What is Scope 2 Emissions?
Indirect greenhouse gas emissions from the generation of purchased energy consumed by an organisation. This includes electricity, steam, heating, and cooling purchased from utility providers. Scope 2 can be calculated using location-based or market-based methods.
Why it matters
Scope 2 is often the easiest scope to reduce by switching to a renewable electricity tariff. It is also a key differentiator in procurement assessments, where buyers compare suppliers on energy sourcing decisions.
Example
An office-based consultancy consuming 120,000 kWh of grid electricity per year reports 25 tCO₂e under the location-based method. By switching to a 100% renewable tariff backed by REGOs, the market-based figure drops to near zero.
Related terms
Scope 1 Emissions
Direct greenhouse gas emissions from sources owned or controlled by an organisation. Examples include emissions from company vehicles, on-site fuel combustion in boilers and furnaces, and refrigerant leaks from air conditioning systems.
Location-based Method
A Scope 2 calculation method that reflects the average emissions intensity of the local electricity grid. This method uses grid average emission factors and shows what emissions would be if no renewable energy was purchased.
Market-based Method
A Scope 2 calculation method that reflects emissions based on the electricity an organisation has chosen to purchase, such as renewable energy tariffs. This method uses supplier-specific emission factors and renewable energy certificates.
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