Scope 2 Emissions
Scope 2 emissions are indirect greenhouse gas emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting organisation. They occur at the facility where the energy is generated, not at the organisation's own premises.
What is Scope 2 Emissions?
Scope 2 emissions, as defined by the GHG Protocol, are indirect greenhouse gas emissions associated with the purchase of electricity, steam, heat, or cooling. Although the emissions physically occur at the power plant or energy facility, the reporting organisation is responsible for them because it creates the demand for that energy.
For most office-based and service-sector businesses, Scope 2 emissions — specifically from purchased electricity — represent one of the largest components of their carbon footprint. For energy-intensive industries, Scope 2 can be even more significant.
The GHG Protocol Scope 2 Guidance (2015) requires organisations to report Scope 2 using two methods. The location-based method uses average grid emission factors for the region where the electricity is consumed. In the UK, this factor is published annually by DESNZ (formerly DEFRA) and reflects the average carbon intensity of the national electricity grid, which has been falling as renewable generation increases. The market-based method reflects the specific electricity product an organisation has chosen — for example, a 100% renewable energy tariff backed by Renewable Energy Guarantees of Origin (REGOs), or the residual mix for the country. If an organisation purchases a certified green tariff with valid REGOs, its market-based Scope 2 from electricity can be reported as zero.
Under SECR, UK companies are required to report using the location-based method. The GHG Protocol and CDP require dual reporting — both location-based and market-based figures — to give a complete picture. The CSRD and ISSB standards also require both approaches.
Calculating Scope 2 emissions is relatively straightforward: multiply the total electricity consumed (in kWh) by the appropriate grid emission factor. For UK electricity in recent years, this has been approximately 0.20–0.21 kgCO₂e per kWh (location-based), though it continues to decrease as the grid decarbonises.
Organisations can reduce Scope 2 emissions by improving energy efficiency (LED lighting, better insulation, efficient HVAC), generating on-site renewable energy (rooftop solar PV), purchasing certified renewable electricity tariffs, entering into corporate power purchase agreements (CPPAs), or investing in Renewable Energy Certificates.
Practical Examples
A UK office consuming 200,000 kWh of electricity annually from the national grid — multiplied by the DEFRA grid emission factor, this produces its location-based Scope 2 figure.
A data centre operator purchasing electricity on a certified 100% REGO-backed renewable tariff — its market-based Scope 2 for electricity is zero, but it still reports a location-based figure using the average grid factor.
A hospital consuming district heating from a gas-fired combined heat and power plant — the steam and heat purchased from the external CHP system are classified as Scope 2.
How Climatise Helps
Upload your electricity and energy bills and Climatise will calculate both location-based and market-based Scope 2 figures automatically. The platform supports dual reporting, flags where REGO certificates may reduce your market-based total, and applies the correct year-specific grid factors.
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