Scope 2 Emissions

Indirect greenhouse gas emissions from the generation of purchased electricity, heating, or cooling.

What are Scope 2 Emissions?

Scope 2 emissions are indirect greenhouse gas (GHG) emissions that result from the generation of purchased or acquired electricity, steam, heating, and cooling consumed by the reporting organization. These emissions physically occur at the utility provider's facility, but are accounted for by the consuming organization.

Why are Scope 2 Emissions important?

Scope 2 emissions represent a significant portion of the carbon footprint for many organizations, especially those with high energy consumption. Addressing them encourages companies to procure renewable energy, improve energy efficiency, and engage with their energy suppliers to reduce the carbon intensity of their power supply.

Frequently asked questions

How can a company reduce its Scope 2 emissions?

Companies can reduce Scope 2 emissions by purchasing renewable energy (e.g., through PPAs, RECs), improving energy efficiency in their operations, and influencing their utility providers to decarbonize the grid.

What's the difference between market-based and location-based Scope 2 accounting?

Location-based accounting reflects the average emissions intensity of the grid where consumption occurs. Market-based accounting reflects emissions from electricity that companies have *purchased* from specific suppliers or through contractual instruments like renewable energy certificates.

Are all indirect emissions Scope 2?

No, only indirect emissions from purchased electricity, heating, and cooling are Scope 2. All other indirect emissions are categorized as Scope 3.