Scope 2 emissions are defined as indirect Greenhouse gas emissions from the generation of purchased or acquired electricity, steam, heat or cooling consumed by the reporting company.
Scope 2 emissions are the indirect emissions generated from purchased energy (i.e., electricity, heat, steam and cooling) that was consumed by a reporting entity. Common examples include emissions from the generation of electricity purchased from a utility company.
The GHG Protocol requires a reporting entity to differentiate its GHG emissions from direct and indirect sources (i.e., Scope 1 vs. Scope 2 and Scope 3), but it does not require a reporting entity to report on Scope 3 emissions. However, some regulations may require it to report Scope 3 emissions. This accounting and reporting structure increases the transparency of the emissions based on which party is emitting the GHGs. It also avoids double counting by making sure that two or more reporting entities do not account for the same emissions in Scope 1, while also providing information about a reporting entity’s other GHG emissions. That is, if every entity and individual throughout the world reported their GHG emissions, the total of all Scope 1 emissions would equal the total GHGs emitted throughout the world.
However, a stakeholder may also want information about how a reporting entity’s decisions (e.g., how much purchased electricity its production process uses, the impact of business travel) affects GHG emissions, which is why reporting entities also report their indirect GHG emissions in Scope 2 and Scope 3 emissions.
