When businesses begin calculating their carbon emissions, many start with Scopes 1 and 2, as these are typically the easiest to address due to the higher level of control companies have over them. But what do Scopes 1 and 2 actually encompass? In a previous article, we explored Scope 1 emissions. In this article, we’ll focus on Scope 2 emissions, which relate to the electricity your business purchases from the grid, as well as purchased heat and steam.
Purchased Electricity for Your Business
A significant portion of Scope 2 emissions stems from the emissions generated when producing the electricity your business buys from the grid. This area is relatively simple to calculate because all you need is your recorded electricity consumption over the reporting period from your utility bills.
Purchased Electricity for Your Electric Vehicle Fleet
If your business operates electric vehicles (EVs), you will also need to account for the electricity used to charge them. Note that this does not apply to leased EVs or employees charging their personal vehicles for commuting, as those fall under Scope 3 emissions.
Before you calculate the emissions for your electric fleet, consider where the vehicles are charged. If charging occurs only at your business premises, those emissions are likely already captured in your overall purchased electricity figures. However, if your vehicles are charged offsite, you’ll need to calculate these emissions separately. To do so, you’ll require data on the mileage of the fleet during the reporting period.
Be cautious of potential double-counting if vehicles are charged both on-site and on-the-go. In such cases, you should subtract the electricity used for EV charging from your total purchased electricity. Many electric vehicle chargers come with smart features, allowing you to track electricity usage specifically for charging. If this isn’t possible, ensure that the kilowatt-hours (kWh) used to charge vehicles on-the-go are documented, so this can be added to your purchased electricity calculations.
Purchased Heat and Steam
The final component of Scope 2 emissions involves purchased heat and steam. This is typically relevant for factories that use heat or steam for their operations or for heating their facilities, or for businesses located near industries that provide heat or steam as a by-product. If this applies to your business, calculating these emissions is again straightforward—simply use the billed consumption of heat and steam during your reporting period.
We hope this article has helped clarify Scope 2 emissions and provided practical guidance for calculating them. If you need more detailed assistance, feel free to reach out!