Scope 2 Emissions: Complete Calculation Guide
Indirect greenhouse gas emissions from purchased electricity, heat, steam, and cooling.
What Are Scope 2 Emissions?
Scope 2 emissions are indirect greenhouse gas (GHG) emissions from the generation of purchased or acquired electricity, steam, heat, or cooling consumed by the reporting company. These emissions physically occur at the facility where the energy is generated, but are accounted for in the reporting company's GHG inventory because they result from the company's energy consumption.
Two Methods for Calculating Scope 2
The GHG Protocol requires companies to report Scope 2 emissions using both methods:
1. Location-Based Method
Reflects the average emissions intensity of the grids where energy consumption occurs. Uses regional or sub-national grid average emission factors.
Emissions = Energy Consumed (kWh) × Grid Average Emission Factor (kg CO2e/kWh)
2. Market-Based Method
Reflects emissions from electricity that companies have purposefully chosen. Uses emission factors derived from contractual instruments such as Renewable Energy Certificates (RECs), Guarantees of Origin (GOs), or Power Purchase Agreements (PPAs).
Emissions = Energy Consumed (kWh) × Supplier-Specific or Residual Mix Emission Factor
Sources of Scope 2 Emissions
- Purchased electricity — Grid power for offices, factories, data centers
- Purchased steam — Industrial processes, district heating
- Purchased heat — Space heating, hot water
- Purchased cooling — District cooling, chilled water
Emission Factor Sources by Region
| Region | Factor (kg CO2e/kWh) | Source |
|---|---|---|
| EU Average | 0.40 | EEA |
| Germany | 0.38 | Bundesnetzagentur |
| France | 0.05 | RTE |
| UK | 0.38 | DEFRA |
| US Average | 0.42 | EPA eGRID |
| China | 0.55 | NDRC |
Example Calculation
A company in Germany consumes 500,000 kWh of electricity annually.
Location-Based: 500,000 kWh × 0.38 kg/kWh = 190,000 kg = 190 tCO2e
If 50% covered by GOs with zero emission factor:
Market-Based: (250,000 × 0.38) + (250,000 × 0) = 95 tCO2e
Reporting Standards
- GHG Protocol Scope 2 Guidance (mandatory dual reporting)
- CSRD — European Sustainability Reporting Standards (ESRS E1)
- CDP Climate Change questionnaire
- Science Based Targets initiative (SBTi)
- RE100 (for market-based method validation)
Reducing Scope 2 Emissions
- Renewable energy procurement — PPAs, green tariffs, RECs/GOs
- On-site generation — Solar PV, wind, combined heat and power (CHP)
- Energy efficiency — LED lighting, efficient HVAC, building insulation
- Electrification — Switch from fossil fuel heating to heat pumps
Calculate Your Scope 2 Emissions
Use our free calculator with location-based and market-based methods. Export results for CSRD, CDP, or internal reporting.
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