What does Scope 2 emissions specifically refer to?

Scope 2 emissions specifically refer to indirect emissions associated with the consumption of purchased electricity, steam, heat, and cooling. These emissions occur as a result of generating the energy consumed by an organization but are produced by external sources, typically power plants. This means that while the company itself is not directly producing these emissions, its energy consumption contributes to greenhouse gas emissions elsewhere in the energy supply chain.

Understanding Scope 2 is essential for organizations aiming to accurately measure and manage their carbon footprint because it highlights the impact of their energy sourcing decisions. By focusing on improving energy efficiency, investing in renewable energy, or purchasing green energy credits, organizations can effectively reduce their Scope 2 emissions, which is a crucial step in achieving sustainability goals.