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    Scope 2 Emissions

    Definition

    Indirect greenhouse-gas emissions associated with purchased or acquired electricity, steam, heat and cooling consumed by the organisation.

    Editorial definition: The QHSE Standard, updated 3 October 2026 · https://qhsetech.com/glossary/scope-2-emissions

    Example for your evaluation: Retain the consumption record and emission-factor basis for a purchased electricity calculation.

    Sources checked: . Examples are editorial illustrations.

    What the GHG Protocol Scope 2 Guidance requires

    The Scope 2 Guidance of 2015 amends the GHG Protocol Corporate Standard for emissions from purchased or acquired electricity, steam, heat and cooling that a company consumes. Its executive summary says that for companies with operations in markets providing product or supplier-specific data in the form of contractual instruments, Scope 2 is no longer one number but two: they shall report according to a location-based method and a market-based method, and shall choose which method's results to use for goal setting and other benchmarks.

    The location-based method reflects the average emissions intensity of the grids where energy is consumed, mostly with grid-average factors. The market-based method reflects the electricity a company has chosen, or its lack of choice, and takes factors from contractual instruments: energy attribute certificates, direct contracts, supplier-specific emission rates and, where nothing else qualifies, the residual mix. Instruments must meet eight Scope 2 Quality Criteria, which include conveying the emission rate attribute, being the only instrument carrying that claim, being tracked and retired for the reporting entity, being issued close to the period of use and coming from the same market as the consumption. The summary states that these instruments are not carbon offsets, because they convey an emission rate per megawatt hour and not avoided emissions, and that lacking contractual data for every site does not by itself cause non-conformance.

    The GHG Protocol held a public consultation on updating the 2015 Guidance from 20 October 2025 to 31 January 2026 and says the feedback will inform its review and revision of the Guidance. The Guidance page opened for this entry still offered the 2015 text, and the feedback page says a draft consolidated Corporate Standard is expected for public consultation in the second quarter of 2027. ESRS E1 as first adopted asks for gross location-based and gross market-based Scope 2 figures. This page is general information, not advice on a reporting duty.

    Sources opened :

    What a Scope 2 record holds in software

    • Consumption by site, meter and energy carrier (electricity, steam, heat, cooling) for each period, with the supplier and the source document.
    • The location-based factor used, with its publisher, year and grid region.
    • The market-based factor for each site and where it came from: a supplier-specific rate, a certificate, a direct contract or the residual mix.
    • A register of contractual instruments with volume, vintage, market, registry reference and retirement or cancellation evidence.
    • Both results for each period, and a statement of which one is used for targets.
    • A note on any site where contractual data was not available and which fallback applied.

    Location-based, market-based and renewable electricity claims

    A market-based figure can fall when a company buys qualifying certificates or a supplier-specific low-carbon product, while the location-based figure stays tied to the grid. A statement that a site runs on renewable electricity is a procurement claim, not a Scope 2 result, and it says nothing about the other method. Certificates under this Guidance are tied to an emission rate per unit of energy and are not offsets.

    A hypothetical example: two sites, two sets of data

    This case is invented to illustrate the record and describes no real company. A manufacturer reports two sites in the same country. Site A buys under a contract that gives a supplier-specific emission rate, so its market-based figure uses that rate. Site B has no contract data, so the company uses the residual mix published for its market and notes that this is a fallback. For both sites the location-based figure uses the national grid factor, and the report shows the two totals side by side.

    In the next year the company buys certificates for Site B covering the 400 MWh the site consumed. The register records that the certificates come from the same market, are issued for the period of use and have been cancelled in the company's name. Its market-based total falls and the location-based total does not move. The target statement says which figure it is measured against, and the note on Site A is revisited when the supplier updates its rate.

    Common misunderstandings about Scope 2

    • Scope 2 is not always one number. Where contractual instruments exist in a market, the Guidance asks for both methods.
    • A certificate is not a carbon offset. It carries an emission rate attribute for a quantity of energy, and the criteria decide whether it may be used.
    • A lower market-based figure does not mean the grid became cleaner. The two methods answer different questions and each has its own use.
    • A certificate from another market or another period may fail the quality criteria. Check market, vintage and retirement before counting it.
    • Scope 2 is not only electricity. Purchased steam, heat and cooling are in scope too.

    How Scope 2 relates to other glossary terms

    Scope 2 sits between the direct emissions of a site and the wider value chain.

    • Scope 1 emissions: direct emissions from owned or controlled sources, reported separately from Scope 2.
    • GHG Scope 1, 2 and 3: the overall structure, including the boundary choices that apply to all scopes.
    • ISO 50001: an energy management system standard whose energy reviews may supply the consumption figures.
    • SBTi: a target setter whose Corporate Net-Zero Standard Version 2.0 includes its own Scope 2 target-setting options.

    Records and evidence that usually exist for Scope 2

    • Utility invoices and meter data for electricity, steam, heat and cooling.
    • Supplier contracts and statements of the supplier-specific emission rate.
    • Certificate purchase records and registry evidence of cancellation or retirement.
    • Factor tables for grid averages and residual mix, with publisher and year.
    • The calculation of both methods, with review sign-off.
    • The decision on which method is used for targets.

    What a software tool needs to capture for Scope 2

    • Two calculation paths for every site, with both results kept and shown.
    • A register of contractual instruments with volume, vintage, market and retirement evidence.
    • A check of each instrument against the Guidance's quality criteria, with the reviewer's decision.
    • Fallback handling that labels residual mix or grid factors where no contract data exists.
    • Emission factors held with publisher, year and version, so a change is visible against the period.
    • Separate treatment of steam, heat and cooling from electricity.
    • A note field for the target method and a version trail if the Guidance is revised.

    Catalog profiles documenting carbon inventory or GHG calculation

    Each profile documents a carbon calculation capability in its record. The list does not show that a product applies both Scope 2 methods or checks instruments against the quality criteria.

    Same rule for every product: tagged “Carbon Accounting”, “Carbon Management”, “Scope 3 Emissions”, “Scope 3” or “Emissions Reporting”, with a sourced carbon inventory or GHG calculation capability in its record, or one the vendor stated to us, labelled as vendor-stated. Documented and conditional capabilities qualify; check the linked scope before treating a module as included.

    Tekmon pays for a sponsored placement (above); its place in this list follows the same rule as every entry. How lists are ordered

    All 18 matching profiles are shown. Documentation review, not hands-on testing or a claim of compliance.

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    Frequently asked questions

    Which Scope 2 figure should be used for a target?

    The Guidance says companies shall choose which method's results to use for goal setting and other benchmarks, and a target standard may add its own rule. State the choice, and report both figures where contractual instruments exist.

    What if there is no supplier data for a site?

    The Guidance says that lacking contractual data for every site does not by itself cause non-conformance. A residual mix or, where none exists, location-based factors from the hierarchy of emission factors are acceptable. Label the fallback.

    Is the Scope 2 Guidance being revised?

    The GHG Protocol consulted on updates from 20 October 2025 to 31 January 2026 and says the feedback will inform its review and revision of the Guidance. Use the text in force for your reporting period and watch the GHG Protocol pages.

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