Scope 2: Indirect Emissions Related to Energy
Summary
Scope 2 of the Carbon Footprint represents indirect emissions related to energy purchased by a company, such as electricity, heat, and steam. These emissions are produced by energy suppliers but are attributed to the consuming company. Understanding and managing these emissions helps reduce the overall carbon footprint. By using precise calculation methodologies and adopting sustainable practices, companies can improve their energy performance and enhance their brand image.
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What is Scope 2 of the Carbon Footprint?
Definition of Scope 2
Scope 2 of the Carbon Footprint encompasses indirect greenhouse gas (GHG) emissions associated with the consumption of purchased energy, such as electricity, heat, steam, and cooling. Scope 2 focuses on emissions produced upstream by energy suppliers. These emissions, although generated off-site, are a direct consequence of the company's energy consumption and represent a crucial aspect of its overall carbon footprint.
Differences between Scope 1 and Scope 2
Under the GHG Protocol , Scope 1 and Scope 2 of the Carbon Footprint differ primarily in the nature of the emissions they cover. Scope 1 concerns direct greenhouse gas (GHG) emissions from sources owned or controlled by the company, such as the combustion of fossil fuels in boilers, company vehicles, and industrial processes.
In contrast, Scope 2 encompasses indirect emissions related to the energy purchased and consumed by the company, such as electricity, heat, steam, and cooling. These emissions are produced by energy suppliers but are attributed to the company due to its consumption.
For example, if a factory uses electricity from a coal-fired power plant, the CO2 emissions from that plant are accounted for in the factory's Scope 2 emissions. This distinction is important as it allows companies to understand and manage emissions at different stages of the energy supply chain, providing a comprehensive view of the company's carbon footprint.
Sources of Scope 2 Emissions
Electricity Consumption
Electricity consumption is a major source of Scope 2 emissions. When a company uses electricity, greenhouse gas (GHG) emissions are generated by the power plants that produce this energy. These emissions are indirect but attributed to the consuming company. The amount of emissions depends on the energy mix of the region, meaning the proportion of fossil fuels, nuclear, and renewable energies used to generate the electricity. Effective management of electricity consumption, such as adopting energy efficiency practices and using renewable energy sources, can significantly reduce Scope 2 emissions.
Use of Heat and Steam
The use of heat and steam is another source of Scope 2 emissions. These emissions result from the production of heat and steam by third-party facilities, often through the combustion of fossil fuels. Companies that purchase heat or steam must account for the emissions associated with their production. To reduce these emissions, it is essential to optimize the use of heat and steam, improve the energy efficiency of processes, and seek suppliers that use renewable or lower-carbon energy sources for the production of heat and steam.
Tip
To effectively manage Scope 2 emissions, use precise calculation methodologies and adopt sustainable practices to improve your energy performance and brand image.
Other Sources of Indirect Energy
Other sources of indirect energy in Scope 2 include the purchase of cooling, refrigeration, and sometimes hydrogen. These energies, often provided by external suppliers, contribute to a company's indirect emissions. The emissions result from the production and distribution processes of these energy forms. To manage and reduce these emissions, companies can choose suppliers that use renewable energy, improve the energy efficiency of their own systems and equipment, and implement energy management practices to optimize the consumption of these resources.
Methodology for Calculating Scope 2 Emissions
The methodology for calculating Scope 2 emissions involves several steps to ensure accuracy and compliance with international standards. The first step is to collect detailed data on the consumption of electricity, heat, steam, and other indirect energy sources. These data must be accurate and include the quantities of energy consumed over a defined period.
Next, companies must apply specific emission factors for each type of energy consumed. These factors are often provided by recognized organizations such as the French Agency for Ecological Transition (ADEME ) or the GHG Protocol. They allow the conversion of energy consumption data into CO2 equivalents.
It is also important to consider the different recommended calculation methods, such as the location-based and market-based methods. The location-based method uses average emission factors according to a local grid, while the market-based method relies on specific factors from the energy suppliers chosen by the company.
Finally, transparency in reporting is crucial. Companies must document their data collection methods, the sources of emission factors used, and any assumptions made during calculations. This ensures the reliability of results and facilitates third-party verification.
Understanding Scope 2 emissions is essential for any company concerned with reducing its environmental impact. By understanding the sources of emissions and using a precise calculation methodology with tools like D-Carbonize, organizations can not only comply with regulations but also improve their energy performance and brand image by adopting more sustainable practices.
