What is Scope 2?
Scope 2 emissions are indirect greenhouse gas emissions from purchased energy an organisation consumes - primarily electricity, and for some organisations, purchased heat, steam, or cooling. Scope 2 shows the impact of generating that energy for your operations. It matters because tariff choices and efficiency can rapidly reduce emissions. Clarification: working-from-home electricity sits in Scope 3 - Category 7, not Scope 2.
Scope 2 for small businesses
Scope 2 is relevant to small and medium-sized enterprises (SMEs) that have operational control over offices, site cabins, or shared workspaces. Suppose you have fewer than 1,000 employees and are just getting started. In that case, you can calculate your scope 2 emissions by: gathering annual kWh from bills, confirming your supplier and tariff, or asking your landlord for allocations if you are in serviced space. When reporting, include both market‑based and location‑based figures: the market‑based view reflects your chosen tariff or supplier data (a verified green tariff can bring this close to zero), while the location‑based view uses the average grid emissions factor to show underlying consumption trends. Quick wins include switching to a green tariff and tracking both methods.
Common use cases for Scope 2
Finance
Financial firms in leased or serviced offices can analyse electricity use and request per‑suite or per‑desk allocations from landlords. Switching to a renewable (green) tariff and upgrading to efficient lighting and systems cuts Scope 2 emissions while aligning with ESG reporting expectations. Note: publish market‑based figures for external disclosure and track location‑based figures for year‑over‑year performance.
Construction
Construction companies can reduce Scope 2 by improving energy management at head offices and site cabins. Metering, verifying tariffs, LED retrofits, and scheduling high‑load tools to off‑peak times lower emissions and operating costs. In the UK, Scope 2 is reportable under SECR for qualifying companies.
Insurance and professional services
Insurance companies and professional service firms often run multiple offices with high electricity use. Bringing utility data from all sites into one view, switching to verified green tariffs for near-zero market-based Scope 2, and upgrading HVAC and lighting systems are simple steps that can quickly lower emissions. It’s also worth tracking location-based figures to understand real energy use, while remembering that home-working electricity falls under Scope 3.
Measure and manage your Scope 2 emissions with Alectro
To accurately calculate your Scope 2 emissions and create a clear strategy to reduce your indirect energy footprint, it’s time to leverage Alectro.
