Scope 2: What Are the Calculation Methods?
Summary
A good understanding of Scope 2 emission calculations is essential for companies conducting a Carbon Footprint Assessment. To calculate the emissions of scope 2, there exists 2 different methods: location-based or market-based method.
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Scope 2 Calculation Methods
Location-based method
The location-based method for calculating Scope 2 emissions relies on average emission factors specific to a region or country. These factors represent the average emissions generated by electricity production in a particular geographical area, considering the local energy mix. For example, a country that primarily uses renewable energy will have a lower emission factor compared to a country heavily reliant on coal.
This method provides a standardized view of emissions, facilitating comparisons between different companies located in the same region. However, it does not reflect an individual organization's efforts to use cleaner energy sources. It is particularly useful for companies operating in areas with diverse energy infrastructures and seeking a simplified and consistent assessment of their indirect energy-related emissions.
Market-based method
The market-based method for calculating Scope 2 emissions considers the specific energy procurement choices made by the company. Unlike the location-based method, this approach uses the emission factors of the energy suppliers chosen by the company, such as green electricity contracts, renewable energy certificates (RECs), and guarantees of origin (GOs).
This method allows companies to reflect their sustainability efforts by using low-carbon energy sources. By opting for renewable energy suppliers, a company can reduce its Scope 2 emissions even if it operates in a region where the energy mix is generally carbon-intensive.
The market-based method encourages organizations to invest in cleaner energy solutions and supports the renewable energy markets.
Data collection for calculating Scope 2 emissions
Required data sources
To calculate Scope 2, emissions, it is essential to collect accurate data on energy consumption. The main data sources include electricity, heat, steam, and cooling bills, as well as energy meter readings. It is also important to gather information on energy purchase contracts, including renewable energy certificates and guarantees of origin.
Companies must ensure that the data is complete and covers all relevant facilities and sites. Rigorous data collection ensures the accuracy and reliability of Scope 2 emissions calculations for the Carbon Footprint Assessment.
Emission factors
Emission factors are coefficients used to convert energy consumption data into greenhouse gas (GHG) emissions. They vary depending on the energy source and the regional energy mix. For example, emission factors for electricity depend on the proportion of fossil, nuclear, and renewable energies used to generate it.
Recognized organizations such as ADEME or the GHG Protocol provide these factors. Using up-to-date and accurate emission factors is crucial to ensure the accuracy of Scope 2 emission calculations and facilitate comparability between different organizations.
Tip
For effective management of Scope 2 emissions, use calculation methodologies, collect data, and adopt sustainable practices to improve your carbon footprint and brand image.
How to Calculate Scope 2 Emissions?
Calculation steps
Calculating Scope 2 emissions involves several steps:
Collect energy consumption data, including electricity, heat, steam, and cooling.
Apply specific emission factors provided by recognized organizations, such as ADEME or the GHG Protocol, to convert this data into CO2 equivalents.
Choose between the location-based method or the market-based method according to the company's context.
Document the assumptions and methods used to ensure transparency and reliability of the results, thus facilitating third-party verification.
Use of carbon footprint tools and software
The use of specialized tools and software for Carbon Footprint assessment is essential for calculating Scope 2 emissions. These software solutions, such as D-Carbonize, facilitate the collection and analysis of energy consumption data. They integrate databases of emission factors, automate calculations, and generate reports compliant with international standards such as the GHG Protocol. Additionally, these tools enable real-time emission tracking, identification of major emission sources, and simulation of various reduction scenarios. By using these technologies, companies can improve their environmental management and make informed decisions to reduce their carbon footprint.
Accurately calculating Scope 2 emissions enables effective environmental management. By using appropriate calculation methods, reliable data, and specialized tools, organizations can better understand and reduce their indirect energy-related emissions.