Scope 2 Electricity (Made Simple)

Build a defensible Scope 2 electricity dataset, understand location vs market-based reporting, and make renewable claims safely.

CollectionCore

Why Scope 2 Matters

For most real estate organizations, Scope 2 (purchased electricity) represents the largest and most controllable emission source. It is also the foundation for renewable energy claims, investor disclosures, and regulatory compliance. Getting Scope 2 right is not optional—it is the credibility baseline for everything else.

Largest Controllable Source

Often 50-80% of operational emissions for real estate.

Foundation for Claims

Renewable procurement only works if baseline data is solid.

Regulatory Readiness

CSRD, SEC, and local benchmarking all require Scope 2.

What is Scope 2 (Plain English)

Scope 2 emissions come from the electricity, steam, heating, and cooling you purchase and consume. For real estate, this almost always means electricity from the grid. The emissions happen at the power plant, not at your building—but you are responsible for them because you bought the power.

Simple rule: If you pay an electricity bill, you have Scope 2 emissions. The size depends on how much you use (kWh) and how the grid generates power (emission factor).

Location-Based Method

Uses average grid emission factors for your region. Shows physical reality of local grid mix.

Market-Based Method

Reflects contractual instruments (RECs, PPAs, green tariffs). Shows impact of procurement choices.

Start Here

If you are new to Scope 2 reporting, follow this sequence:

  1. 1Read the Scope 2 Utility Data Pipeline Starter Kit to understand what data you need and how to collect it.
  2. 2Use the Scope 2 Emissions Calculator to convert kWh into tCO2e using location-based factors.
  3. 3Read Location-Based vs Market-Based to understand when and why to use each method.
  4. 4If making renewable claims, use the Renewable Matching Coverage Calculator and read the Claims guide.

If You Only Do One Thing

Build a clean electricity dataset with billing period dates, kWh values, and evidence links for every entry. Without this foundation, calculations and claims will not survive scrutiny. Start with the Scope 2 Utility Data Pipeline Starter Kit.

All Scope 2 Resources

Tools and Calculators

Common Mistakes to Avoid

  • Using calendar months instead of actual billing periods (causes double-counting or gaps)
  • Missing evidence links for kWh values (fails audit)
  • Reporting only location-based OR market-based (GHG Protocol requires both when making claims)
  • Claiming 100% renewable without matching all consumption with valid instruments
  • Using expired or mismatched emission factors (wrong year, wrong region)
  • Ignoring tenant electricity when you have operational control

What to Do Next

Once you have Scope 2 under control, consider these next steps:

Change log

v1.0 (2026-01): Latest release