SCOPE 2 EMISSIONS

 

Scope 2 emissions are a core component of corporate carbon accounting and a critical lever for effective climate strategies. They include indirect emissions from purchased energy—such as electricity, steam, heating, or cooling—often underestimated but highly manageable. For any organization committed to environmental and climate performance, accurately tracking, reporting, and reducing Scope 2 emissions is essential. The importance of Scope 2 is growing rapidly in the context of international sustainability standards, including the Corporate Sustainability Reporting Directive (CSRD).

FORLIANCE explains what Scope 2 encompasses, how companies can manage their CO₂ emissions in this area, and how Scope 2 connects strategically with Scope 1 and Scope 3.

According to the GHG Protocol, Scope 2 emissions include all indirect greenhouse gas emissions from the generation of purchased energy. This includes electricity, steam, district heating, or cooling acquired from an external utility. The definition of Scope 2 is closely tied to corporate carbon accounting principles.

For companies, this means that even if emissions are not generated directly, they are still responsible for the energy sources they choose. Under the CSRD, consistent disclosure of Scope 2 CO₂ emissions is becoming mandatory—making it a key element of credible sustainability reporting.

 

METHODS FOR CALCULATING SCOPE 2 EMISSIONS

There are two internationally recognized methods for calculating Scope 2 emissions: the location-based and the market-based approach. The location-based approach uses average regional or national emissions factors for electricity. The market-based method incorporates specific emission factors from the actual energy provider. 

FORLIANCE recommends disclosing results from both methods to enhance transparency and comparability in sustainability reporting. The chosen method not only impacts reported Scope 2 emissions but also guides strategic decisions around energy contracts or certificates.

 

CONNECTING SCOPE 2 TO SCOPE 1 AND SCOPE 3 EMISSIONS

Scope 2 is part of the broader emissions framework defined by the GHG Protocol, falling between Scope 1 and Scope 3. While Scope 1 includes direct emissions from owned sources such as company vehicles or onsite heating systems, Scope 3 encompasses all other indirect emissions along the value chain—from raw material sourcing to product use by end customers. 

Scope 2 represents the most operationally controllable category outside of direct emissions. FORLIANCE supports companies in developing integrated strategies across all three scopes to build robust and comprehensive climate roadmaps.

 

SCOPE 2 EMISSIONS WITHIN THE CSRD AND EU TAXONOMY FRAMEWORK

Beginning in 2025, the Corporate Sustainability Reporting Directive (CSRD) requires many companies to disclose detailed climate-related data. Scope 2 emissions are a mandatory component of this reporting. Under the EU Taxonomy for sustainable economic activities, Scope 2 disclosures are also considered essential for demonstrating “substantial contributions to climate mitigation.” 

Thus, companies must collect, analyze, and manage Scope 2 emissions in alignment with their Net-Zero targets. A precise carbon footprint—supported by external experts like FORLIANCE—is fundamental to ensuring regulatory compliance and sustainable financing eligibility.