What are Scope 2 Emissions?

Understanding the concept of scope 2 emissions is crucial for any individual or organization trying to effectively manage theirs carbon footprint . Scope 2 emissions as defined in Greenhouse Gas (GHG) Protocol , refer to indirect emissions from the production of purchased electricity, steam, heating and cooling consumed by the reporting unit. These emissions occur in the facility where the energy is produced, not where it is consumed.

Scope 2 emissions are one of three "scopes" of emissions listed in the GHG Protocol, the other two being Scope 1 (direct emissions from owned or controlled sources) and Scope 3 (all other indirect emissions that occur in a company's value chain). This article delves into the complexities of Scope 2 emissions, exploring their definition, calculation, reporting and reduction strategies.

What are scope 2 emissions?

Scope 2 emissions make up a substantial part of the company's total greenhouse gas emissions. They arise during the production of energy, which the organization subsequently purchases and uses. Although they are produced by an external entity (for example, an energy supplier), their origin is tied to the energy consumption of the entity reporting them.

Examples:
– If a company buys electricity from a coal-fired power plant, emissions from coal are included in scope 2 emissions of that company.
– Similarly, if the household uses electricity from wind power plants, any emissions from the production of this electricity belong to scope 2 of this household.

Why are they important?
1. Main share of carbon footprint: Scope 2 emissions often represent a substantial part of an organization's total emissions, especially in industries with low direct emissions (scope 1) but high energy consumption (eg retail, IT, services).
2. Easier reduction: Range 2 emissions can be reduced more easily than range 1, by purchasing energy from renewable sources or increasing energy efficiency.

Difference from range 1 and 3 emissions:
– Scope 1: Direct emissions from assets owned or controlled by the organization (eg company vehicles).
– Scope 3: All other indirect emissions in the organization's value chain (e.g. business trips, workers commuting to work, production of purchased goods).

Calculation of range 2 emissions:
– It includes determining the consumed energy and multiplying it by the emission factor of the energy source. Emission factors are different depending on the energy source; renewable sources tend to have lower or zero emission factors.

Calculation methods:
– Market method: Reflects emissions from specific energy sources purchased by the organization.
– Location-based method: It takes into account the average intensity of emissions in the local network.

Calculation challenges:
– Accurately obtaining energy consumption data and selecting appropriate emission factors can be challenging. In addition, the market method requires transparent information about specific energy sources.

Reporting:
– Includes annual disclosure of scope 2 emissions. The GHG Protocol offers a standardized framework that helps organizations increase transparency and credibility.

Verification and Assurance:
– Includes third-party verification of data accuracy. This increases the credibility and reliability of the reported information, which can improve reputation and attract investment.

Strategies to reduce emissions:
1. Increase energy efficiency: Measures to reduce energy consumption can include installing efficient appliances, optimizing heating and cooling systems, etc.
2. Transition to renewable sources: It includes the purchase or production of energy from wind, solar systems, etc.
3. Purchase of carbon offsets: Investing in projects aimed at reducing emissions (e.g. reforestation, methane capture).

Scope 2 emissions are a significant point in an organization's carbon footprint. Accurately understanding, calculating and reducing these emissions are key to effective carbon management and sustainability. Targeted actions can help organizations not only minimize their carbon footprint, but also improve their reputation and attract support from various stakeholders.