E - Environmental (Carbon, Energy, Resources, Climate) 5 min read

What is Scope 2 (Indirect Emissions)? Definition and Context

Credibility Check & Framework Comparison

To ensure absolute regulatory accuracy and reliability, we verify definitions across leading international frameworks before presenting our synthesized SME context.

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GHG Protocol

"Indirect greenhouse gas emissions from the generation of purchased electricity, steam, heating, or cooling consumed by the reporting organization."
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EFRAG / ESRS E1

"Mandatory disclosure of indirect energy emissions in metric tonnes of CO2 equivalent, calculated using both location-based and market-based methods."
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EcoVadis

"Evaluation of indirect carbon footprints from purchased energy, accounting for renewable energy certificates and supplier energy mixes."

ExecutESG Consolidated Definition

Scope 2 (Indirect Emissions)

Scope 2 emissions are indirect greenhouse gas (GHG) emissions associated with the generation of purchased electricity, steam, heating, or cooling consumed by the company.

Methods of Calculation:

  • Location-Based Method: Reflects the average emissions intensity of the local/national electricity grids where the consumption occurs.
  • Market-Based Method: Reflects emissions from the specific electricity contracts that the company has purposely chosen (such as green energy tariffs, Guarantees of Origin, or power purchase agreements).

SME Relevance & B2B Inbound Action:

For most service and light-manufacturing SMEs, Scope 2 emissions from offices and warehouses represent their primary carbon footprint. Reducing Scope 2 can be achieved by transitioning to certified green tariffs or installing on-site solar. Gather your annual utility invoices in kilowatt-hours (kWh) and upload them to Aura Understand to instantly compute your location- and market-based Scope 2 footprints.

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