Understanding Scope 2 Emissions
Key to Reducing Carbon Footprint
In the global effort to combat climate change, businesses and organizations are increasingly focusing on understanding and managing their greenhouse gas (GHG) emissions. These emissions are typically classified into three categories: Scope 1, Scope 2, and Scope 3. While much attention is often given to the direct emissions under Scope 1, Scope 2 emissions, which encompass indirect emissions from purchased energy, are equally crucial to address. This article delves into the nature of Scope 2 emissions and offers insights on how companies can effectively reduce them.
Scope 1 emissions are direct GHG emissions from sources that are owned or controlled by the company, such as emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.
Scope 2 emissions are indirect GHG emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company.
Scope 3 emissions encompass a wide range of activities. They can be broadly categorised into upstream and downstream activities.
What Are Scope 2 Emissions?
Scope 2 emissions refer to the indirect greenhouse gas emissions from the consumption of purchased electricity, steam, heating, and cooling. Although these emissions occur at the facilities of the energy producers rather than within the operational boundaries of the company, they result from the energy that the company uses.
For instance, when a business uses electricity for lighting, computers, or machinery, the GHG emissions generated by producing that electricity fall under Scope 2. This is a critical area because the energy sector is a significant source of carbon emissions globally, particularly in regions where fossil fuels dominate the energy mix.
Sources of Scope 2 Emissions
Scope 2 emissions originate from indirect emissions that come from the energy a company buys and uses. While the emissions happen at the energy production site, they are a result of the company’s consumption.
- Electricity: This is the most common source. Companies use electricity for lighting, powering equipment, heating, cooling, and running day-to-day operations. The emissions depend on how the electricity is generated – whether it’s from fossil fuels like coal and natural gas or renewable sources like wind and solar.
- Steam: Some businesses purchase steam for heating or industrial processes. The steam is usually generated at a central plant, often by burning fossil fuels, leading to GHG emissions.
- Heating: Many companies use purchased heating, such as district heating systems, where heat is generated centrally and distributed to multiple buildings. The emissions from generating this heat fall under Scope 2.
- Cooling: Similar to heating, district cooling systems produce chilled water centrally and distribute it to buildings. The production of chilled water typically involves using electricity, leading to Scope 2 emissions.
Factors Affecting Scope 2 Emissions
Below are the factors affecting scope 2 emissions:
- Energy Source Mix: The type of energy used by suppliers greatly affects emissions. Renewable sources like solar and wind have lower emissions compared to fossil fuels like coal and gas.
- Energy Efficiency: Efficient energy production means less GHG emissions per unit of energy used. Modern, efficient plants produce fewer emissions.
Summary: Scope 2 Emissions
Addressing Scope 2 emissions is a critical component of any comprehensive strategy to reduce a company’s carbon footprint. By focusing on energy efficiency, transitioning to renewable energy, and leveraging advanced energy management practices, businesses can significantly lower their indirect emissions. This not only contributes to the fight against climate change but also offers regulatory, financial, and reputational benefits. As the world continues to prioritize sustainability, proactive management of Scope 2 emissions will become increasingly important for companies committed to making a positive environmental impact.
