When doing carbon accounting, it is incredibly important to understand the differences between scope 1, scope 2 and scope 3 emissions. This blog post will help you understand what scope 2 emissions are. Learn more about scope 1 emissions here and scope 3 emissions here.
What are Scope 2 Emissions?
These emissions are probably the easiest to understand because they only relate to GHG emissions generated from the consumption of the company’s purchased electricity, steam, heat or cooling.
For most organisations, electricity will be the biggest (sometimes the only) source of scope 2 emissions.
How to Measure Scope 2 Emissions
Similar to scope 1, the data on scope 2 emissions of companies is relatively accessible and easy to find. Calculation of those emissions doesn’t require much more than contacting the company’s energy provider and some simple calculations. This is why for most organisations, you will find scope 1 and 2 emissions but will have trouble finding information on the last scope (more on that here).
It is important to add that there are two ways for calculating these emissions:
- location-based
- market-based
The location-based method reveals what a company is physically putting into the air, whereas the market-based method presents emissions resulted from purchased energy only (source). Both methods are in use in today’s public reports.
How to Reduce these emissions
Companies can reduce these emissions by purchasing renewable energy or generating this energy on-site themselves (e.g. by using solar panels on their buildings).
By increasing their use of renewable energy sources, such as wind, solar, or hydropower, companies can meet their electricity needs. Additionally, improving energy efficiency through the adoption of energy-saving technologies, like LED lighting, efficient heating, ventilation, and air conditioning (HVAC) systems, and optimised manufacturing processes, can significantly lower electricity consumption.
Purchasing green energy certificates or entering into power purchase agreements (PPAs) with renewable energy providers is another effective strategy.
These steps not only reduce a company’s carbon footprint but also contribute to long-term cost savings and a more sustainable operation.
At Connect Earth we provide in-depth insights into scope 1, 2, and 3 emissions data of companies and products through our simple carbon footprint API solution. Our API gives consumers detailed insights about the impact of all their purchases, allowing them to make more sustainable choices.
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About Connect Earth:
Founded in 2021, Connect Earth is a London-based environmental data company that democratises easy access to sustainability data. With its carbon tracking API technology, Connect Earth is on a mission to empower consumers and SMEs to make sustainable choices and bridge the gap between intent, knowledge and action. Connect Earth supports financial institutions in offering their customers transparent insight into the climate impact of their spending.
Reach out if you think Connect Earth can help your business.
