Scope 2 emissions are the indirect greenhouse gas (GHG) emissions associated with the purchased energy an organization consumes—primarily electricity, but also purchased steam, heat, or cooling (such as district heating/cooling). Even though the emissions occur at the power plant or heat source, the organization reports them because the energy is used to run its operations.
Scope 2 is defined under the GHG Protocol and is a core part of a company’s corporate carbon footprint alongside Scope 1 and Scope 3.
Why Scope 2 Emissions Matter
For many organizations, Scope 2 is a major, measurable lever for decarbonization.
– Often one of the fastest areas to reduce via renewable electricity sourcing and efficiency
– A common requirement in customer ESG assessments and procurement questionnaires
– Central to SBTi near-term target setting and progress reporting
– Links directly to operating cost and energy risk (tariffs, volatility, grid constraints)
For EV charging businesses, Scope 2 can be significant in factories, test labs, warehouses, and offices—especially where electrical testing, burn-in, or production equipment uses substantial power.
What Counts as Scope 2
Scope 2 typically includes:
– Purchased electricity used in buildings and production facilities
– Purchased district heating (heat imported from an external network)
– Purchased steam (less common in many EU contexts)
– Purchased cooling (district cooling where applicable)
It does not include:
– Fuel burned on-site (that is, Scope 1)
– Supply-chain emissions from producing materials and components (that is, Scope 3)
Location-Based vs Market-Based Scope 2
Scope 2 is often reported in two parallel ways.
– Location-based method: uses the average emissions factor of the local grid where electricity is consumed
– Market-based method: reflects emissions factors tied to contractual instruments (such as renewable electricity contracts), where accepted by the accounting rules
Reporting both provides transparency: one shows the physical grid context, the other shows the impact of procurement decisions.
How Scope 2 Emissions Are Calculated
Scope 2 is generally calculated from electricity and heat consumption data.
– Collect activity data (kWh of electricity, MWh of heat/cooling/steam) from meters and utility bills
– Apply the appropriate emissions factors (location-based and/or market-based)
– Convert to CO₂e using consistent reporting-year methodology
– Document boundaries (sites included, reporting period, instruments used for market-based claims)
Data quality improves when metering is granular (by building, line, or cost center) and when anomalies (shutdowns, expansions) are explained.
Reduction Strategies for Scope 2
– Reduce consumption through efficiency (lighting, HVAC controls, compressed air, process optimization)
– Source renewable electricity through accepted procurement routes
– Shift load to lower-carbon periods where relevant (demand management, scheduling)
– Improve power quality and reduce losses (where applicable in industrial setups)
– Electrify systems thoughtfully so electrification doesn’t raise peak demand without controls
Limitations to Consider
– Market-based reporting depends on the quality and acceptability of procurement instruments
– Multi-site organizations need consistent factor selection and documentation
– Electricity consumption can rise during electrification even as total emissions fall
– Without sub-metering, assigning Scope 2 reductions to specific actions can be difficult
Related Glossary Terms
Scope 1 emissions
Scope 3 emissions
Scope 1/2/3 emissions
GHG Protocol
Science-Based Targets (SBTi)
Location-based accounting
Market-based accounting
Renewable energy certificates
Corporate carbon footprint
Energy management system (EMS)