Scope 2 Emissions - Indirect Emissions

Scope 2 emissions resulting from the production of energy types consumed by organizations for various purposes.

Carbon Footprint

Emissions

Azalt

What are Scope 2 Emissions (Indirect Emissions)?

Scope 2 emissions are defined by the U.S. Environmental Protection Agency (EPA) as greenhouse gas emissions related to the purchase and use of electricity, heat or cooling, and steam. Scope 2 emissions are defined as indirect emissions because they involve the purchase or import of energy needed to meet needs such as electricity, heat or cooling, and steam [1].

What are the Factors Affecting Scope 2 Emissions?

Scope 2 emissions are affected by Electricity Supply Source and Energy Efficiency factors. Electricity Supply Source causes Scope 2 emission values to vary depending on whether organizations prefer fossil fuels such as coal, oil, natural gas or renewable energy sources such as wind, solar, geothermal. As for Energy Efficiency, companies that install efficient systems with innovative technologies and use efficient equipment update their business practices according to the requirements of the age and reduce the amount of energy they consume.

How to Calculate Scope 2 Emissions?

Scope 2 emissions consist of three main steps: (1) determining the quantity of energy purchased, (2) determining emission factors, and (3) calculating emissions. For example, in the calculation of electricity emissions, it is first necessary to determine the amount of electricity purchased. Then, the emission factor of electricity consumption should be determined by location-based method or market-based method. Finally, Scope 2 emissions are calculated by multiplying the purchased electricity consumption data by the defined emission factor [2].

How do Scope 2 Emissions differ from Scope 1 and 3 Emissions?

Emission sources in each emission category differ in terms of the extent to which organizations can control these sources and their capacity to tackle them. Each scope should have its own unique management process. Emissions should be reduced with different strategies and approaches.

Scope 1 Emissions:

Direct emissions from sources owned or controlled by organizations.
They are under the direct control of the organizations.

Scope 2 Emissions:

Indirect emissions that occur during the production of electricity, heat or steam purchased by institutions.
Under partial control of the institutions. (May vary depending on energy supplier choices)

Scope 3 Emissions:

Other indirect emissions that occur in the value chain of organizations. These emissions come from sources outside the control of organizations.
Scope 3 emissions are more difficult to control than Scope 1 and Scope 2 emission categories due to the involvement of suppliers, customers and other stakeholders.

Scope 1 Emissions:

Direct emissions from sources owned or controlled by organizations.
They are under the direct control of the organizations.

Scope 2 Emissions:

Indirect emissions that occur during the production of electricity, heat or steam purchased by institutions.
Under partial control of the institutions. (May vary depending on energy supplier choices)

Scope 3 Emissions:

Other indirect emissions that occur in the value chain of organizations. These emissions come from sources outside the control of organizations.
Scope 3 emissions are more difficult to control than Scope 1 and Scope 2 emission categories due to the involvement of suppliers, customers and other stakeholders.

Scope 1 Emissions:

Direct emissions from sources owned or controlled by organizations.
They are under the direct control of the organizations.

Scope 2 Emissions:

Indirect emissions that occur during the production of electricity, heat or steam purchased by institutions.
Under partial control of the institutions. (May vary depending on energy supplier choices)

Scope 3 Emissions:

Other indirect emissions that occur in the value chain of organizations. These emissions come from sources outside the control of organizations.
Scope 3 emissions are more difficult to control than Scope 1 and Scope 2 emission categories due to the involvement of suppliers, customers and other stakeholders.

How to Manage and Mitigate Scope 2 Emissions?

The United States Environmental Protection Agency has shown that coal, natural gas and oil combustion for electricity and heat generation is one of the largest sources of global greenhouse gas emissions, accounting for 34% of global greenhouse gas emissions according to 2019 data. This data clearly shows that conducting studies on Scope 2 emissions, determining management strategies and establishing mitigation methods have an important place in reducing greenhouse gas emissions and combating climate change [3].

Increasing Energy Efficiency

The first step in reducing Scope 2 emissions is to also reduce energy use.
The use of LED lighting technology increases energy efficiency.
Hot air from compressors can be used to heat a certain part of the buildings.
The need for air conditioning can be reduced through solar filters, reflective glass, solar films, and exterior protection.

Selection of Suppliers Supporting Green Transformation

Choosing a green supplier to ensure that the energy purchased or imported to meet the needs of the organization is from renewable energy sources is advantageous for reducing scope 2 emissions.

Renewable Energy Investment

Preferring renewable energy technologies and making investments in this field is defined as another option for organizations to reduce scope 2 emissions. In this context, renewable energy solutions developed include the following options [4].

Power Purchase Agreement (PPA)
Renewable Energy Certificates (REC)
Green Power Purchasing or Green Tariff Programs

Increasing Energy Efficiency

The first step in reducing Scope 2 emissions is to also reduce energy use.
The use of LED lighting technology increases energy efficiency.
Hot air from compressors can be used to heat a certain part of the buildings.
The need for air conditioning can be reduced through solar filters, reflective glass, solar films, and exterior protection.

Selection of Suppliers Supporting Green Transformation

Choosing a green supplier to ensure that the energy purchased or imported to meet the needs of the organization is from renewable energy sources is advantageous for reducing scope 2 emissions.

Renewable Energy Investment

Power Purchase Agreement (PPA)
Renewable Energy Certificates (REC)
Green Power Purchasing or Green Tariff Programs

Increasing Energy Efficiency

The first step in reducing Scope 2 emissions is to also reduce energy use.
The use of LED lighting technology increases energy efficiency.
Hot air from compressors can be used to heat a certain part of the buildings.
The need for air conditioning can be reduced through solar filters, reflective glass, solar films, and exterior protection.

Selection of Suppliers Supporting Green Transformation

Choosing a green supplier to ensure that the energy purchased or imported to meet the needs of the organization is from renewable energy sources is advantageous for reducing scope 2 emissions.

Renewable Energy Investment

Power Purchase Agreement (PPA)
Renewable Energy Certificates (REC)
Green Power Purchasing or Green Tariff Programs

Offset Your Carbon Footprint with ECM!

In cases where the aforementioned methods cannot be fully implemented, organizations can neutralize the emissions they release into the atmosphere as a result of their activities by offsetting them through various methods such as carbon reduction, removal and capture. Carbon Offsetting is defined as one of the most efficient methods to offset the carbon footprint. If you would like to offset your scope 2 emissions, you can check out our ECM Platform.

Carbon offsetting processes are usually carried out in 5 steps. Calculating the carbon footprint, investing in carbon projects, purchasing carbon credits, verifying and auditing the carbon footprint. Each step is important in realizing projects such as investing in renewable energy, increasing green areas, incorporating energy efficiency methods into business processes, carbon removal, capture and storage.

Choose Azalt: ESG Software to Calculate Scope 2 Emissions

You can use Azalt: ESG Software to carry out your emission processes efficiently and quickly. Our Azalt: ESG Software platform, where you can easily process your data through a digital interface, calculates and reports your carbon footprint. You can also browse our platform here to reduce or offset the calculated emission amounts.