By Ghislaine Barry, Operations Support Excecutive
In our previous Emissions Explained blog, we discussed the categorisation of the different kinds of carbon emissions a company creates in its own operations, and in its wider value chain. Specifically, we went into detail about Scope 1 emissions which are commonly referred to as direct emissions. This blog will dive into Scope 2 emissions as, in order to take action to reduce emissions, we need to understand and measure where they’re sourced from in the first place.
What are Scope 2 emissions?
Scope 2 emissions are greenhouse gases that a company releases into the atmosphere indirectly from the consumption of purchased electricity, steam, heat and cooling. In simple terms, these emissions come from the generation of energy that is purchased from a utility provider.
Globally, scope 2 emissions represent one of the largest sources of greenhouse gas emissions with the generation of electricity and heat now accounting for at least one third of global greenhouse gas emissions.
How do you measure Scope 2 emissions?
The Scope 2 Guidance from the GHG Protocol provides clarity on how organisations measure emissions from electricity and other energy purchases. The guidance is required reading for companies that follow the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard and requires companies use two reporting methods in order to disclose their scope 2 emissions:
- The market-based reporting method – This method “reflects emissions from electricity that companies have purposefully chosen (or their lack of choice). It derives emission factors from contractual instruments, which include any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attribute claims.”
- The location-based reporting method – This method “reflects the average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission factor data).”
If you are struggling to meet the requirements of scope 1-3 efficiently and need to find a way to manage and share your emissions data in a more secure fashion, then the siccar solution might be for you. Our Energy Transition Databox enhances the credibility of scope 1-3 emissions reporting, allowing organisations to continue to move forward with their sustainability goals and to strengthen their environmental position.
Created in collaboration with our industry partner, Vysus Group, Databox ensures that companies have established a clear audit trail to ensure the integrity of their emissions reporting.
If you would like to learn more about how we can assist you with your emission reporting, reach out to our dedicated team for a demonstration.