Scope 2 emissions form a significant part of the climate impacts of the company’s own operations. They cover the indirect emissions of energy production, which arise because of purchased and consumed energy production. The emissions are part of the greenhouse emissions inventory according to the GHG Protocol (Greenhouse Gas Protocol) measurement and reporting standard. The GHG protocol is the most used standard for measuring and reporting greenhouse emissions, where emissions are divided into three different categories: scope 1, scope 2 and scope 3.
What do Scope 2 emissions include?
Emissions include all greenhouse gas emissions that arise from the production of energy purchased from another party. This includes emissions from the production of purchased electricity, heat, steam or cooling.
Electricity and heat purchased for most companies are the main sources of scope 2 emissions. However, it should be noted that for some companies, the separate procurement of steam and cooling can also cause scope 2 emissions. On the other hand, if the company produces some or all its own energy, the emissions from production are taken into account as part of the calculation of scope 1 emissions.
Why is monitoring and reporting of scope 2 emissions important?
Monitoring and reporting of greenhouse gas emissions is an important part of companies’ environmental responsibility. Emissions calculation helps companies understand the climate impacts of their own operations and set goals for reducing emissions. The GHG protocol unifies emissions calculation and reporting, which ensures uniform implementation of companies’ emission calculations and, to some extent, enables comparison of results. In addition, monitoring greenhouse gas emissions provides transparency to stakeholders such as customers, investors, and authorities.
Reporting of greenhouse emissions
Since 2014, the European Union’s NFR Directive (Non-Financial Reporting Directive) has required all companies employing more than 500 people to report on their social and environmental impacts. This obligation also applies to the reporting of greenhouse gas emissions.
From 2024, the reporting obligation according to the new CSRD (Corporate Sustainability Reporting Directive) will enter into force, and with it, the reporting will move to an approach in accordance with the new guidelines. The new directive aims to expand the scope of reporting and establish more uniform reporting standards. In addition, the reporting obligation will gradually extend to all listed companies.
Reducing emissions and optimizing energy
It is important that companies understand the importance of scope 2 emissions and take them into account in their environmental strategy. Emission reduction measures and optimization of energy procurement can help companies reduce their carbon footprint and promote sustainable development.
Ecobio’s team of experts are ready to help companies with issues related to greenhouse gas emissions, monitoring, and reporting, so that they can fulfill their reporting obligations and act responsibly towards the environment.