Introduction
Understanding Scope 2 emissions is crucial for companies aiming to manage and reduce their environmental impact. Scope 2 encompasses the indirect greenhouse gas emissions resulting from the consumption of purchased energy, including electricity, steam, heating, and cooling, highlighting the importance of tracking energy use within facilities under a company’s operational control.
What is Scope 2?
Scope 2 emissions are indirect greenhouse gas emissions from the consumption of purchased electricity, steam, heating, and cooling.
Operational control
For Scope 2 emissions, if a company controls a facility, it must count the indirect emissions from all the energy it buys, like electricity. So, any energy used in company-run places like offices or factories where the company sets the rules must be included in its Scope 2 emissions.
What metrics are included in Scope 2?
The following metrics are captured in Scope 2 in the KEY ESG portal:
Electricity usage: the amount, in kWh of electricity used by your company for powering your sites and operations. Find this data on your utility bills.
Electric commercial vehicles: yourcommercial vehicles (vehicles with a Gross Vehicle Mass of of greater than 3.5 tonnes) that are powered by electricity, that is paid for by your organisation.
Electric company cars: company cars that owned by the organisation that are powered by electricity, where that electricity is paid for by your organisation.
Steam, heating, cooling: involves the use of steam purchased from external sources to heat or cool a facility. This is relevant to any organization that relies on externally generated steam for temperature control in their buildings or processes.
Conclusion
Most organizations rely on electricity in their operations, making Scope 2 emissions a critical component to report. By accurately capturing metrics like electricity use, electric vehicles, and external steam, heating, and cooling, companies can effectively manage their environmental impact. For any questions on reporting your Scope 1 emissions, the KEY ESG team is available through the in-app chat or at support@keyesg.com.