Scope 2

Scope 2 emissions refer to indirect greenhouse gas (GHG) emissions resulting from the generation of purchased electricity, steam, heat, or cooling consumed by a company. These emissions occur at the facility where the energy is produced, not at the company's own location. Accurately accounting for Scope 2 emissions is essential for organizations to understand their total GHG footprint and to develop effective strategies for energy consumption and emission reductions.

Key aspects of Scope 2 emissions include:

• Indirect Emissions: Unlike Scope 1 emissions, which are direct emissions from owned or controlled sources, Scope 2 encompasses emissions from the generation of purchased energy.
• Energy Consumption: Includes electricity, steam, heat, and cooling that is purchased or otherwise brought into the organizational boundary of the company.
• Location-Based and Market-Based Reporting: The GHG Protocol's Scope 2 Guidance recommends reporting emissions using both methods to provide a comprehensive view of a company's indirect emissions. The location-based method reflects the average emissions intensity of grids on which energy consumption occurs, while the market-based method reflects emissions from contractual instruments such as energy attribute certificates.

Understanding and managing Scope 2 emissions enable companies to make informed decisions about energy procurement, efficiency measures, and investments in renewable energy, thereby contributing to overall sustainability goals.

Source(s):

• The Greenhouse Gas Protocol. (2004). A Corporate Accounting and Reporting Standard.
• GHG Protocol. (n.d.). Scope 2 Guidance.

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