Glossary
Scope 2
"Scope 2" denotes indirect emissions from the generation of purchased energy utilized by an entity. These emissions take place at facilities owned or controlled by another entity, from which the purchased energy is derived. Specifically, it refers to the emissions generated in the production of energy that is eventually consumed by a different organization or entity. It's one of three "scopes" defined by the Greenhouse Gas Protocol, a widely recognized international standard for carbon accounting.
Interpreting scope 2 correctly is paramount for the mapping of an entity’s total greenhouse gas emissions footprint. This scope is typically associated with purchased electricity, steam, heating, and cooling for own use. However, it’s not limited to these sources. While Scope 1 and Scope 3 emissions are generated within the organizational boundaries or by activities external to the organization itself, Scope 2 bridges the gap and should be seen as the connection between internal and external emission sources.
To illustrate, when a business purchases electricity from a power company, the emissions released during the production of that electricity are considered as scope 2. It is crucial to note that although the actual emissions are not produced by the business itself, they are directly linked to its operations by virtue of consumption. Improving energy efficiency, transitioning to low-carbon fuels, or implementing renewable energy options can help to reduce an entity’s Scope 2 emissions.
Monitoring and managing Scope 2 emissions is critical for any business seeking to improve its sustainability practices and reduce its carbon footprint. In addition, this is vital for companies wanting to attain emissions reduction targets and align with global carbon accounting standards. Reporting Scope 2 emissions can also shape key business decisions about energy use and procurement, and forms part of a holistic, responsible, and transparent approach to carbon management. In the context of the green energy revolution, understanding and addressing Scope 2 emissions can contribute significantly to sustainable development goals and demonstrate a company’s commitment to combating climate change.