Scope 2 – Indirect emissions

Companies need to measure not only the emissions caused by their own operations, but also from the raw materials they source and use of the goods they sell.

Calculating the totality of a company’s impact on emissions requires evaluating three scopes:

• Scope 1 refers to direct GHG emissions. This means that they directly come from sources that a company owns or controls, such as; company vehicle emissions.
• Scope 2 refers to indirect emissions from purchased sources, such as organization’s consumed electricity or cooling.
• Scope 3 refers to indirect emissions. Include all the other indirect emissions within your entire value chain, the upstream supply chain (suppliers), as well as downstream GHG emissions occurring with customers.

For most companies with manufacturing operations, scope 2 emissions will make up a very large part of their overall carbon footprint. At least four types of purchased energy are tracked in scope 2, including the following:

• Electricity. It is used to operate machines, lighting, electric vehicle charging, and certain types of heat and cooling systems.
• Steam. Is a valuable energy source for industrial processes. It is used for mechanical work, heat, or directly as a process medium.
• Heat. Most commercial or industrial buildings require heat to control interior climates and heat water. Many industrial processes also require heat for specific equipment.
• Cooling. May be produced from electricity or through the distribution of cooled air or water.