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Climate, Carbon & Energy

Scope 2 emissions

Scope 2 emissions are indirect greenhouse gas emissions from the generation of purchased or acquired electricity, steam, heating, or cooling consumed by a reporting organization. The emissions occur at the energy producer’s facilities but are attributed to the organization’s purchased energy use.

Also known as
Scope 2
Type
Metric or unit
Updated

In simple terms

An organization causes demand for energy even when it does not own the generating source. The Greenhouse Gas Protocol’s Scope 2 Guidance defines how to quantify and report those indirect emissions. Depending on applicable criteria and market conditions, reporting may use a location-based method reflecting average grid emissions and a market-based method reflecting qualifying contractual instruments and supplier data. The method, factors, energy boundary, and instruments should be disclosed with the result.

Why it matters

Scope 2 connects energy purchasing and consumption with the emissions of generation inside a greenhouse gas inventory. It can reveal opportunities for energy efficiency, on-site generation, and credible renewable energy procurement. Method choices can materially change a reported result, so users need both transparent calculations and evidence that contractual claims meet the chosen accounting criteria.

Example

For example, electricity bought for an office produces Scope 2 emissions for the tenant when consumed within its inventory boundary, even though a utility generates it elsewhere. The tenant can calculate the required result using grid data and, where applicable, separately report a result based on qualifying contractual information.

How it differs

Scope 1 emissions

Scope 2 is indirect and tied to generation of purchased or acquired energy; Scope 1 is direct and arises from sources the reporting organization owns or controls.

Scope 3 emissions

Scope 2 is the defined purchased-energy category; Scope 3 contains other indirect upstream and downstream value-chain emissions not included in Scope 2.

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Next reading

  1. Greenhouse gas inventoryClimate & energy
  2. Greenhouse Gas ProtocolClimate & energy
  3. Market-based methodClimate & energy

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  1. Science-based targetClimate & energy
  2. SDG indicatorsPeople & value chains