The Corporate Standard requires organizations to quantify emissions from the generation of acquired and consumed electricity, steam, heat, or cooling (collectively referred to as “electricity”). These emissions are termed “scope 2” and are considered an indirect
emissions source (along with scope 3), because the emissions are a consequence of activities of the reporting organization but actually occur at sources owned or controlled by another organization (here, they are owned or controlled by an electricity generator or utility).
Scope 2 represents one of the largest sources of GHG emissions globally: the generation of electricity and heat now accounts for at least a third of global GHG emissions. Electricity consumers have significant opportunities to reduce those emissions by reducing electricity demand, and increasingly play a role in shifting energy supply to alternative low-carbon resources.
The methods used to calculate and report scope 2 emissions critically impact how a company assesses its
performance and what mitigation actions are incentivized. To calculate scope 2 emissions, the Corporate Standard recommends multiplying activity data (MWhs of electricity consumption) by source and supplier-specific emission factors to arrive at the total GHG emissions impact of electricity use. It also emphasizes the role of green power programs in reducing emissions from electricity
use. Only if these forms of information about electricity supply are unavailable are companies advised to use statistics such as local or national grid emission factors.
(GHG Protocol Scope 2 Guidance: An amendment to the GHG Protocol Corporate Standard, 2015, pp. 5-6)