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Greenhouse gas (GHG) emissions are categorised into three scopes by the Greenhouse Gas Protocol, a widely used international accounting tool that helps businesses and governments track, report, and manage greenhouse gas emissions.

For an overview of all three scopes, check this article.

Scope 2 GHG emissions covers indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company. Although these emissions occur at the facility where electricity is generated, they are considered indirect because they are a consequence of the company’s energy use, not directly emitted by the company’s own operations.

Scope 2 emissions are important for companies to track and manage because they can represent a significant portion of their overall carbon footprint. They can be reduced through measures such as increasing energy efficiency, purchasing renewable energy, or investing in energy-saving technologies.

Scope 2 can be further explained through the following classification:

1. Purchased electricity

These emissions occur at the facility where the electricity or energy is generated, not at the point of use. When a company purchases electricity to power its operations, the emissions associated with generating that electricity are considered Scope 2 emissions.

For example, if a company purchases electricity from a local utility provider, the emissions produced by the power plants generating that electricity are counted as the company's Scope 2 emissions. These emissions are typically calculated using emission factors provided by the utility or national averages, which estimate the amount of greenhouse gases emitted per unit of electricity consumed.

2. Purchased heat or cooling

These emissions occur at the facility where the heat or cooling is generated, not at the point of use. When a company purchases heat or cooling to regulate the temperature of its buildings or processes, the emissions associated with generating that heat or cooling are also considered Scope 2 emissions.

For example, if the same company purchases district heating from a local provider to heat its office buildings, the emissions produced by the facility generating that heat are counted as the company's Scope 2 emissions. Similarly, if the company purchases cooling services to use AC during the summer, these emissions are typically calculated as the amount of GHG emitted per unit of heat or cooling consumed.

3. Electric vehicles

GHG emissions resulting from the consumption of electricity used to charge electric vehicles (EVs) also occur at the power plants where the electricity is generated, not at the point of use. These are therefore considered Scope 2 and calculated as the amount of GHG emissions per unit of electricity consumed.

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