Greenhouse Gas Emissions Scope 2: Indirect Emissions From Purchased Energy

Is Your Business Ready to Measure and Report Its Greenhouse Gas Emissions?

Whether your company is just beginning to consider the benefits of getting involved in green energy segments or you’re a current player seeking to expand your markets, it will be important to have an understanding of the role of greenhouse gas emissions.

The first article in this four-part series covered basic information about greenhouse gas emissions (GHGs). Now we take a deep dive into measuring and accounting for greenhouse gas emissions.

Three different types of emissions, called “scopes,” are commonly used to delineate direct and indirect sources of greenhouse gas emissions. The first steps in a GHG inventory include understanding the three different types of emissions and current practices, setting boundaries, and deciding on a model for evaluating emissions.

What’s Inside

Scope 2 emissions, the subject of this article, are purchased from, and managed by, an off-site entity, such as an electric company, a localized grid or energy district. They are an accounting of your organization’s energy use even though the GHG emissions occur off-site and are considered indirect emissions associated with the purchase of energy, such as electricity or steam. Indirect emissions also occur when heat from hot water or cooling from cold water are delivered to the company. The EPA and others place steam and heating and cooling from hot or cold water under one category: electricity.

This article covers topics related to Scope 2 emissions, including:

• How to account for Scope 2 emissions
• What are the business benefits associated with performing a Scope 2 GHG inventory?
• Reducing Scope 2 emissions
• Double counting

Why It Matters

With emerging economic opportunities and the possibility of new regulations in this arena, it is important to have an understanding of the steps involved in measuring and reporting GHG emissions.