Scope 2: definition

Scope 2 emissions are any emissions created by power consumption – like the electricity necessary to run the air conditioning.

Scope 2 emissions are indirect greenhouse gas (GHG) emissions that are a direct result of purchased energy. While this usually refers to purchased energy such as electricity, Scope 2 emissions can also refer to purchased steam, heating, and cooling. The company using this energy does not produce these emissions directly on-site, nor are they directly responsible for them because it consumes the energy that causes emissions at the source.

Scope 2 is one of the three reporting categories defined by the Greenhouse Gas Protocol to help organizations measure and manage their carbon footprint, usually, in attempts to curate a more personalized carbon reduction strategy or to encourage alternative energy sources.

Key characteristics of Scope 2 emissions include:

• Emissions that occur off-site, at a facility where the energy is generated – such as a power plant.
• Emissions are linked directly to a company’s energy consumption habits.
• Reducing these emissions would require improving energy efficiency or switching to the use of renewable energy sources.
  

Examples of Scope 2 emissions include:

• The electricity used to power office lighting, air conditioning, computers, monitors, and more in an office setting.
• Purchased steam used in industrial manufacturing processes.
• Heating purchased to warm buildings in urban centers.
• Chilled water purchased for cooling, such as in data centers, to help sustain operations
  

Scope 2 emissions are important as they account for a large portion of many organization’s carbon footprint, and seeking to reduce them could provide companies with a wide array of benefits – the most notably being cost savings, which will become more prominent as renewable energy options continue to become more accessible.

FAQ

How is Scope 2 different from Scope 1 and Scope 3?

Scope 2 emissions refer to indirect emissions from purchased energy, whereas Scope 1 emission refers to direct emissions from owned or controlled sources and Scope 3 covers all other miscellaneous emissions across the value chain.

How can companies reduce Scope 2 emissions?

Companies can reduce their Scope 2 emissions by improving energy efficiency, investing in on-site renewable energy generation, or purchasing renewable electricity such as through renewable energy certificates (RECs).

Are Scope 2 emissions always from fossil fuels?

No, Scope 2 emissions aren’t always from fossil fuels – since if the purchased energy is 100% renewable, the amount of Scope 2 emissions could be greatly reduced or even eliminated.

Do Scope 2 emissions apply to small businesses?

Yes, virtually any and every organization, regardless of size or sector – is bound to be subject to emissions from purchased electricity, heating, or cooling.

Are Scope 2 emissions regulated?

In many jurisdictions, large companies are required to disclose Scope 2 emissions as part of climate and sustainability reporting or even more basic measures to boost transparency.