UNDERSTANDING SCOPE 2 EMISSIONS

Understanding Scope 2 emissions

Understanding Scope 2 emissions

Blog Article

Those from purchased electricity, heat, steam, or cooling—is crucial for corporate carbon accounting. The GHG Protocol outlines two main methods for calculating these emissions: location-based and market-based.


 



 

Location-Based Method


 

This method uses the average emissions intensity of the local electricity grid.





    • How it works: Multiply electricity use (kWh) by the average grid emission factor.



 


    • Best for: Benchmarking across regions and meeting compliance needs.



 


    • Data needed: Electricity consumption + regional emission factors.



 


    • Pros: Simple and standardized.



 


    • Cons: Doesn’t reflect renewable energy purchases.



 



 

Market-Based Method


 

This approach considers actual energy contracts and sources, including renewable energy.





    • How it works: Apply supplier-specific emission factors, considering RECs, GOs, or PPAs.



 


    • Best for: Companies with green energy sourcing or carbon reduction goals.



 


    • Data needed: Consumption data + contractual documents.



 


    • Pros: Reflects sustainability efforts.



 


    • Cons: Requires detailed tracking and documentation.



 



 

Reporting Best Practice


 

Organizations should report both methods to stay compliant and transparent. This dual reporting shows both actual and potential impacts and highlights renewable energy strategies.


 



 

How QuikESG Helps with Scope 2 Reporting


 

QuikESG streamlines ESG reporting with tools that support both location- and market-based Scope 2 calculations. It allows companies to:





    • Upload and track energy usage and supplier data.



 


    • Automatically apply correct emission factors.



 


    • Generate compliant, audit-ready reports.



 


    • Visualize Scope 2 performance with dashboards.



 

 

With QuikESG, organizations can ensure accurate, efficient, and standards-aligned ESG reporting—without the manual hassle.

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