Scope 2 Emissions
Scope 2 covers indirect GHG emissions from purchased electricity, steam, heating, cooling. GHG Protocol defines two methods: location and market-based.
Definition
Scope 2 emissions are indirect greenhouse gas (GHG) emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting entity. The emissions physically occur at the energy producer’s facility, but are attributed to the consumer per the GHG Protocol Corporate Accounting and Reporting Standard.
Location-based vs market-based reporting
The GHG Protocol Scope 2 Guidance (2015) requires entities to report Scope 2 using two methods:
- Location-based method — uses average emission factors for the grid where electricity consumption occurs. For Indian operations, the standard reference is the CEA CO2 Baseline Database emission factor (see CEA Grid Emission Factors).
- Market-based method — uses emission factors that reflect contractual instruments — green PPAs, Renewable Energy Certificates (RECs), supplier-specific factors. Entities without such instruments use a residual mix factor (or fall back to the location-based factor).
The two methods can produce materially different totals. Best-practice disclosure reports both.
Scope 2 in BRSR
Scope 2 GHG emissions are reported in BRSR under Principle 6 — Environment. The combined Scope 1 + Scope 2 emission intensity per ₹ revenue is one of the 9 BRSR Core attributes and is subject to reasonable assurance for entities in the BRSR Core phase-in.
The unit prescribed in the BRSR XBRL taxonomy for Scope 2 is metric tonnes of CO₂ equivalent (tCO₂e).
Related terms
- Scope 1 Emissions — direct emissions
- Scope 3 Emissions — value-chain emissions
- CEA Grid Emission Factors — the standard India location-based factor