What type of emissions does Scope 2 refer to?

Scope 2 emissions refer specifically to indirect emissions that occur from the generation of purchased energy, including electricity, steam, heating, and cooling that a company consumes. This classification is part of the Greenhouse Gas Protocol, which categorizes emissions into three scopes to help companies understand their greenhouse gas outputs more clearly.

When an organization purchases energy from an outside source, it is not directly producing the emissions associated with that energy generation, but it is indirectly responsible for those emissions due to its energy consumption. By tracking Scope 2 emissions, organizations can take steps to improve their energy efficiency, switch to renewable energy sources, or otherwise reduce their carbon footprint associated with energy use.

Understanding this concept is crucial for Accounting in sustainability, as it enables businesses to identify the indirect impacts of their operations and work toward more sustainable practices.