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Scope 2 Emission

Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. These emissions physically occur at the facility where they are generated but are accounted for in an organization’s GHG inventory because they are a result of the organization’s energy use

Scope 2 Emission

Calculating Scope 2 Emissions

There are two main methodologies companies can use to quantify Scope 2:

  1. Location-Based Method: Uses grid-average emission factor data based on the geographic locations where the electricity is consumed.
  2. Market-Based Method: Uses emission factors from the specific electricity markets and suppliers from which the organization purchased its electricity.

The market-based method is considered more accurate, but requires more specific emissions data from utilities.

Strategies to Reduce Scope 2

Some key ways organizations can lower their Scope 2 emissions:

  1. Improving energy efficiency to reduce electricity needs
  2. On-site renewable energy installations (solar, wind, etc.)
  3. Purchasing energy from renewable energy providers
  4. Procurement of Renewable Energy Certificates (RECs)
  5. Power Purchase Agreements (PPAs) for renewable energy

Importance of Scope 2 Reporting

Comprehensive emissions reporting requires Scope 1 (direct) and Scope 2 (indirect) disclosures. Robust Scope 2 accounting:

  1. Identifies emissions hotspots to tackle
  2. Demonstrates leadership in renewable procurement
  3. Enables science-based target setting
  4. Provides transparency to stakeholders

Reference

Scope 1 and Scope 2 Inventory Guidance | US EPA

Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. Although scope 2 emissions physically occur at the facility where they are generated, they are accounted for in an organization’s GHG inventory because they are a result of the organization’s energy use.

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What are scope 1, 2 and 3 carbon emissions?

Scope 2 are emissions that a company causes indirectly and come from where the energy it purchases and uses is produced. For example, the emissions caused when generating the electricity that we use in our buildings would fall into this category.

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Explaining Scope 1, 2 & 3

Scope 2 accounts for GHG emissions from the generation of purchased electricity consumed by a company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated.

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