Scope 2 Emissions Overview
In carbon accounting, Scope 2 emissions refer to the indirect greenhouse gas (GHG) emissions associated with the purchase of electricity, steam, heat, or cooling. These emissions are a significant contributor to global GHG levels, with electricity and heat generation alone responsible for nearly a third of total emissions. Scope 2 emissions are categorized as indirect because they originate from sources outside a company’s direct control (such as power plants), yet they result from the energy a company uses.
What Do Scope 2 Emissions Look Like?
Scope 2 emissions cover four types of purchased energy, collectively known as “Electricity.” Here’s a breakdown:
- Electricity: This is the most common form of energy used by companies, powering machinery, lighting, electric vehicle charging, and certain types of heating and cooling systems.
- Steam: Produced by boiling water, steam is often used as a medium for industrial processes, mechanical work, or heating. Companies purchasing steam from a Combined Heat and Power (CHP) facility, which generates multiple energy outputs from a single process, should check with their supplier to ensure emissions are allocated appropriately.
- Heat: Commercial and industrial buildings typically require heat for climate control and water heating, while some industrial equipment also relies on heat. This heat may be generated by the company itself or purchased from external sources, such as a thermal power plant.
- Cooling: Similar to heat, cooling may be purchased as a service for building climate control or industrial applications. This energy may be generated on-site or procured from an external cooling provider.
Locating Scope 2 Emissions Data
Here’s a quick reference table to help you locate the data needed to measure Scope 2 emissions across each category:
Scope 2 Emissions Category | Description | Common Sources of Activity Data |
Electricity | Electricity purchased for general operations, including lighting, machinery, electric vehicle charging, and heating/cooling systems | Utility bills
Electricity meter readings Renewable energy certificates (RECs) or Power Purchase Agreements (PPAs)
Energy management systems or monitoring software |
Steam | Purchased steam used in industrial processes, mechanical work, or as a heating medium | Invoices from steam suppliers
Contracts or agreements with steam providers
Energy usage statements from Combined Heat and Power (CHP) facilities |
Heat | Purchased heat used for climate control in buildings or for industrial processes | Utility bills or invoices for heat supply
Meter readings specific to heating systems
Contracts with district heating providers
Records from thermal power plants (if applicable) |
Cooling | Purchased cooling (e.g., chilled air or water) for climate control in buildings or industrial applications | Invoices from cooling providers or utility bills
Cooling system meter readings
Service agreements for district cooling or similar services Documentation of any renewable cooling sources |
Why Scope 2 Matters and How to Reduce It
Scope 2 emissions are relatively straightforward to track and measure. By having a clear view of energy consumption, businesses can identify opportunities to enhance efficiency and switch to renewable energy sources, directly reducing Scope 2 emissions.
In practical terms, reducing Scope 2 emissions involves two primary actions:
- Reducing energy consumption through energy-efficient practices, equipment upgrades, or process improvements.
- Switching to renewable energy sources by purchasing renewable energy certificates (RECs), entering Power Purchase Agreements (PPAs), or installing on-site renewable energy systems.
For more detailed guidance, business case templates, and tutorials on reducing Scope 2 emissions, explore the Sumday Academy.