Scope 2 GHG emissions are indirect emissions from the generation of purchased electricity, heat, steam, or cooling. Scope 2 is calculated using location-based and market-based methods in line with the GHG Protocol, and must meet CSRD and ESRS E1 requirements.
The location-based method reflects the average emissions intensity of the grid where energy consumption occurs, while the market-based method reflects the specific energy contracts and renewable energy certificates a company holds. Under ESRS E1, companies are required to report Scope 2 using both methods. For many office-based and service-sector companies, Scope 2 represents the largest share of their direct emissions footprint, making energy procurement decisions a key lever for decarbonization.
Switching to renewable energy contracts, investing in on-site generation, or purchasing guarantees of origin are common strategies to reduce Scope 2 emissions. These decisions must be reflected transparently in CSRD climate disclosures.
Learn how to measure and reduce your Scope 1, 2, and 3 emissions and explore our guide on ESRS reporting standards for detailed climate disclosure requirements.
See how Coolset helps companies with Scope 2 emissions tracking and reduction →
