Scope 2 emissions are indirect GHG emissions from the generation of purchased energy. This includes electricity, steam, heating, and cooling that a company buys from utilities.
Electricity bought from the grid for operations, lighting, equipment, and cooling
85%of typical Scope 2
Steam purchased from third parties for industrial processes
8%of typical Scope 2
District heating, chilled water, and other purchased thermal energy
7%of typical Scope 2
Uses average grid emission factors for the region
India grid: 0.82 kg CO₂e/kWh (CEA 2023)
Reflects energy procurement choices (RECs, PPAs)
100% renewable = 0 market-based emissions
Scope 2 emissions are indirect GHG emissions from the generation of purchased energy consumed by the company. This includes electricity, steam, heating, and cooling bought from utilities or third parties.
Location-based method uses average grid emission factors for the region where electricity is consumed. Market-based method reflects choices the company makes about energy supply, like renewable energy certificates (RECs) or power purchase agreements (PPAs).
GHG Protocol recommends reporting both methods when possible. Location-based shows grid impact, while market-based shows effect of energy procurement choices. BRSR and CSRD require dual reporting.
Purchasing renewable energy through RECs, PPAs, or green tariffs can reduce market-based Scope 2 emissions to zero. However, location-based emissions remain unchanged as they reflect grid averages.