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What are scope 2 emissions?

Scope 2 emissions refer to indirect greenhouse gas (GHG) emissions from the generation of purchased electricity, heat, or steam. This means that the emissions are caused by the generation of energy that the company uses, but are not emitted directly from sources that the company owns or controls.


Measuring and reporting on scope 2 emissions is important for companies as it allows them to understand their indirect GHG emissions and identify opportunities for improvement. This is particularly important as companies are increasingly looking for ways to reduce their environmental impact, including by sourcing their energy from renewable sources and implementing energy efficiency measures.


There are several methods for measuring and reporting scope 2 emissions, including the use of emissions factors, grid average, and location-based methods. Emissions factors are estimates of the emissions per unit of electricity, heat, or steam consumed, based on the fuel mix and emissions intensity of the grid or supplier providing the energy. Grid average methods use the average emissions intensity of the grid or supplier providing the energy, while location-based methods use the emissions intensity of the grid or supplier providing the energy at a specific location.


Advanced methodologies like the "market-based method" are increasingly used which it allows companies to assign emissions to the entity responsible for emitting them. This method uses data from power purchase agreements, green energy certificates, and other instruments to assign emissions from the electricity used by the company to the generator of that electricity.


Additionally, companies can also opt for using a life-cycle assessment (LCA) approach to measure their scope 2 emissions. LCA is a methodology that takes into account the entire life-cycle of a product or service, including the emissions associated with the generation of energy used. This enables companies to identify and account for emissions from all sources in their value chain, including those that are not controlled by the company.


In conclusion, scope 2 emissions refer to indirect GHG emissions from the generation of purchased electricity, heat or steam. Measuring and reporting on scope 2 emissions is important for companies as it allows them to understand their indirect GHG emissions and identify opportunities for improvement. By using a combination of advanced methodologies such as market-based method, emissions factors, grid average, location-based, and LCA methods, companies can ensure accurate and comprehensive measurement of their scope 2 emissions and take action to reduce their environmental impact. Companies can also opt for sourcing their energy from renewable sources, implementing energy efficiency measures which can significantly reduce their scope 2 emissions and align with the goal of achieving a decarbonized economy.



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