Understanding Corporate Carbon Footprints: Part 2

A Deep Dive into Scope 1, 2, and 3 Emissions

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June 13, 2024

Article 2: Decoding Scope 2 Emissions: Powering the Future Responsibly

Introduction: In the journey to reduce carbon footprints, the next step beyond direct emissions (Scope 1) is addressing the indirect emissions associated with purchased energy—known as Scope 2 emissions. These emissions can be substantial, especially in energy-intensive industries. In this post, we explore what Scope 2 emissions entail and how companies are working to reduce them.

What Are Scope 2 Emissions?

Scope 2 emissions are indirect GHG emissions from the consumption of purchased electricity, steam, heat, and cooling. Even though these emissions occur at the energy provider’s facility, they are attributed to the consumer, as the demand drives the production. Scope 2 emissions can be measured using two methods:

Location-based method: Reflects the average emissions intensity of grids where energy consumption occurs.
Market-based method: Reflects emissions from the specific energy contracts or suppliers a company chooses.

Why Scope 2 Matters:

For many companies, particularly those in manufacturing or with large office buildings, Scope 2 emissions make up a significant portion of their total carbon footprint. Addressing these emissions is crucial for companies aiming to become carbon neutral or achieve net-zero goals.

Case Study: Google’s Renewable Energy Journey

Google has been a pioneer in addressing Scope 2 emissions through its aggressive pursuit of renewable energy. The company achieved 100% renewable energy for its global operations in 2017, meaning that for every kilowatt-hour of electricity used, Google purchased an equivalent amount of renewable energy. This shift has drastically reduced Google’s Scope 2 emissions and set a benchmark for other tech companies.

Mitigation Strategies for Scope 2 Emissions:

Purchasing Renewable Energy:
- Companies can enter into power purchase agreements (PPAs) for renewable energy or buy renewable energy certificates (RECs) to offset their electricity use.
On-Site Renewable Energy Generation:
- Installing solar panels or wind turbines on-site can directly reduce the amount of purchased electricity, lowering Scope 2 emissions.
Energy Efficiency Improvements:
- Upgrading lighting systems to LEDs, optimizing heating and cooling systems, and implementing energy management systems can significantly reduce energy consumption.

Scope 2 emissions represent a significant portion of a company’s carbon footprint but are often easier to mitigate than direct emissions. By shifting to renewable energy sources and improving energy efficiency, companies can make substantial progress in reducing their overall emissions. In our next blog, we’ll tackle the complex world of Scope 3 emissions, which encompass a company’s entire value chain.

A Deep Dive into Scope 1, 2, and 3 Emissions

Share on

Article 2: Decoding Scope 2 Emissions: Powering the Future Responsibly

What Are Scope 2 Emissions?

Why Scope 2 Matters:

Case Study: Google’s Renewable Energy Journey

Mitigation Strategies for Scope 2 Emissions:

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