In tackling the various types of emissions in Greenhouse Gas (GHG) Accounting, emissions are divided into three different scopes depending on where they come from in respect to the business’ operation. Scope 1 emissions are direct emissions. These are found in sources that the company has direct control over like company vehicles. Scope 2 emissions are indirect emissions caused by purchased energy. Electricity consumption at the office would fall into this scope as the company is a consumer of this energy and not the producer. And lastly, Scope 3 emissions are also indirect emissions not covered by Scope 1 and 2. These are emissions created by a company’s value chain such as suppliers, retailers and customers. 

As we uncover more of Scope 2 emissions. It is a key to unlocking energy efficient measures and tapping into renewable energy. The energy sector is responsible for almost 40% of global emissions and 57% of national emissions as of 2020. 

The biggest demonstration of the impacts of Scope 2 emissions was the mandatory lockdown during the COVID-19 pandemic that began last 2020. Everyone was required to stay at home unless deemed necessary and this put an abrupt stop to office operations as it forced everyone to adopt a work-from-home setup. Take for example this GHG accounting report from Drink Sustainability Communications (Drink) highlighting the trend in Scope 2 emissions from 2019 to 2024. 

There was a sudden drop in Scope 2 emissions in 2020 due to the lockdown and this is presumably the case for other companies as well. This highlights that operational changes like reducing onsite hours can significantly reduce and manage scope 2 emissions 

Since the pandemic, many companies have embraced hybrid or work-from-home setups not just for employee convenience, but also for their environmental and financial benefits. By reducing the need or the frequency for office space and energy consumption, these setups directly lower Scope 2 emissions and operational costs. This shift was clearly reflected in Drink’s most recent GHG accounting report, which showed a significant drop in Scope 2 emissions during the 2020 lockdown. The report is available for your reference as a business case on GHG reporting.

This significant drop in Scope 2 emissions brought by the pandemic demonstrated a trend that continues for companies maintaining flexible work arrangements. But remote work is just one of many ways to manage Scope 2 emissions. Businesses can also invest in energy-efficient appliances, optimize lighting, and heating, ventilation and air conditioning systems (HVAC) systems, or transition to renewable energy sources like solar or wind. These interventions, whether large or small, offer meaningful opportunities to reduce emissions tied to purchased energy.

Ultimately, Scope 2 emissions represent an untapped potential for sustainability. By rethinking how and where energy is used, companies can make impactful changes that benefit their employees, the environment and the company itself.