Scope 2 Emissions

Under the Greenhouse Gas Protocol, Scope 2 emissions occur at the power stations or facilities that produce the energy, not at the organisation’s own premises, but they are counted because the organisation’s energy use causes them.

For example, an office-based company that uses electricity generated from gas or coal would report the emissions from producing that electricity as its Scope 2 emissions.

Scope 2 emissions can be calculated in two ways. The location-based method uses the average emissions of the electricity grid where the energy is used. The market-based method reflects the electricity the company has chosen to buy, such as renewable energy through contracts or certificates. Companies usually report both.

Companies can reduce Scope 2 emissions by using less energy, installing their own renewable energy and buying renewable electricity. For many service businesses, such as offices, retailers and data centres, Scope 2 emissions form a large part of their direct footprint. Critics argue that some renewable energy certificates overstate emissions reductions, prompting debate about reporting rules.