What do Scope 2 emissions primarily refer to?

Scope 2 emissions refer to indirect greenhouse gas emissions that result from the generation of purchased electricity, steam, heating, and cooling consumed by a reporting company. Essentially, these are emissions that occur from the production of energy that a company buys and uses, rather than being directly produced by the company's own operations (which would fall under Scope 1 emissions). This is an important distinction because it highlights the impact companies have not only on their immediate operational emissions but also on the broader environmental impact of the energy they choose to purchase.

Understanding Scope 2 emissions is crucial for companies aiming to enhance their sustainability initiatives and reduce their overall carbon footprint. By addressing these emissions, organizations can work towards cleaner energy sources and greater efficiency in their energy use, which are key components of sustainable practices in the corporate world.