What Are Scope 2 Emissions and How to Reduce Them
As businesses work to shrink their carbon footprints, understanding Scope 2 emissions is essential. These emissions come from the electricity, heating, and cooling that a company purchases and uses. While generated offsite by energy providers, they still count toward a business’s overall carbon impact.
Unlike Scope 1 emissions, which come from direct sources like company-owned vehicles or machinery, Scope 2 covers emissions that result from a company’s energy consumption. For many businesses, Scope 2 is one of the largest contributors to their total carbon footprint—especially those with energy-intensive operations like manufacturing, data centres, or retail chains.
Leaving office lights and equipment on overnight?
A law firm installed motion sensors and automated shutdowns, cutting energy waste by 35%.
What Are Scope 2 Emissions?
Scope 2 emissions come from power and utilities that businesses rely on every day. Some common examples include:
- Electricity consumption – Powering offices, production plants, warehouses, and retail spaces.
- Heating and cooling – Supplied by utility providers for climate control.
- Purchased steam or chilled water – Used in industrial processes or large-scale cooling systems.
Although companies don’t produce these emissions directly, they are still accountable for the environmental impact of the energy they use. That’s why reducing Scope 2 emissions is a crucial part of any sustainability strategy.
Still using standard electricity tariffs?
A financial services firm switched to a green tariff, reducing their indirect carbon footprint without operational changes.
Why Managing Scope 2 Emissions Matters
Tackling Scope 2 emissions isn’t just about reducing environmental impact, it also makes good business sense. Here’s why:
- Lower operating costs – Energy efficiency upgrades reduce electricity bills and long-term expenses.
- Regulatory compliance – Many businesses must track and report Scope 2 emissions under standards like SECR (UK), TCFD, and GHG Protocol.
- Competitive advantage – Companies with strong sustainability policies attract eco-conscious customers, investors, and partners.
- Energy security – Sourcing renewable energy can protect businesses from energy price volatility and future carbon taxes.
Companies that fail to address their Scope 2 emissions may face increasing pressure from regulators, stakeholders, and the public, making action now more important than ever.
Are your employees unaware of energy-saving practices?
A company-wide energy reduction challenge helped an insurance firm cut office emissions by 15%.
How to Track and Reduce Scope 2 Emissions
The first step in reducing Scope 2 emissions is accurate tracking. Businesses should:
- Review utility bills – Identify trends in energy consumption.
- Engage with energy providers – Understand where electricity and heating come from.
- Use carbon accounting software – Platforms like Zeropath automate tracking and convert energy use into emissions data.
Once companies have a clear picture of their Scope 2 footprint, they can take steps to reduce emissions and improve efficiency:
- Energy efficiency improvements – Upgrade lighting, HVAC systems, and production equipment to more efficient models.
- Renewable energy sourcing – Purchase electricity from wind, solar, or hydro power suppliers.
- Green Power Purchase Agreements (PPAs) – Secure long-term renewable energy supply contracts with providers.
- On-site renewable generation – Install solar panels or other renewable sources to reduce reliance on external energy.
Even simple actions – such as optimising energy use during peak hours or shifting to LED lighting can have a big impact over time.
Ignoring energy performance in property or real estate decisions?
A logistics firm moved to a LEED-certified warehouse, cutting energy use by 40%.
Conclusion
Scope 2 emissions play a major role in a company’s carbon footprint. While they are indirect, they are still within a business’s controland reducing them brings both environmental and financial benefits.
By taking proactive steps to cut energy waste, source renewables, and improve efficiency, companies can lower emissions, save money, and future-proof their operations.
The transition to low-carbon energy isn’t just an environmental choice – it’s a strategic business decision. Forward-thinking companies that act now will be better positioned for a more sustainable, resilient future.
Cooling systems running inefficiently?
A hospital upgraded to energy-efficient chillers, lowering cooling-related emissions by 30%.
