Scope 2

What is Scope 2

Scope 2 refers to the indirect greenhouse gas emissions that are produced from the generation of purchased electricity, heating, and cooling consumed by a company. These emissions occur outside of the company's own operations but are a direct consequence of its activities.

Companies typically do not have direct control over their Scope 2 emissions, but they can influence them by choosing to purchase electricity from renewable sources, implementing energy efficiency measures, and reducing energy consumption.

In ESG reporting, Scope 2 emissions are considered an important indicator of a company's environmental impact, and are often reported in addition to direct emissions (Scope 1) and indirect emissions from sources such as transportation and distribution (Scope 3).

Reporting on Scope 2 emissions allows companies to track and measure their emissions reductions over time, set targets for reducing emissions, and demonstrate their commitment to sustainability and reducing their carbon footprint.