Understanding Scope 2 Emissions And Why They Matter

Global warming and climate change, driven by greenhouse gas (GHG) emissions, are among the greatest challenges to sustainable development worldwide. It is imperative for organisations to step up and build strategies to address the risks related GHG emissions. Scope 2 emissions are indirect GHG emissions of an organisation arising from the purchase and consumption of energy in the form of electricity, heat, steam and cooling. Accounting, analysing and managing Scope 2 emissions provides a practical entry point for organisations in managing their GHG emissions. Scope 2 emissions reduction offer significant and enduring benefits for the organisation.

INTRODUCTION

Global warming and climate change pose a key challenge in sustainable development of the nations. Governments all over the world are taking steps to reduce their carbon footprint (Greenhouse Gas emissions) by setting nationally determined targets and introducing regulations on energy efficiency and emissions reduction. It is thus imperative for organisations (companies, government agencies, small businesses institutions etc.) to develop strategies to address the risks related to Greenhouse Gas (GHG) emissions to ensure long term resilience and align with national climate policies.

GHG emissions of an organisation has three sources¹ viz. emitted directl