How to Reduce Scope 2 Emissions
In this modern world, many companies are looking to reduce their greenhouse gas emissions.
When it comes to measuring and reporting progress, you’ll have probably seen the terminology of ‘scope 1,2 and 3 emissions’ used, but what do these actually mean.
In this guide we will explain each scope with a focus on scope 2 emissions, how to reduce the emissions of each and why this is important.
What are scope 1, 2 and 3 emissions?
Scope 1 emissions: These are emissions that your business makes directly, an example of this is if your business has vehicles that run on fuel, the burning of this and the smoke it produces is a scope 1 emission.
Scope 2 emissions: These are the emissions that are from the energy that you use, for example when a business buys electricity to power its lights, the pollution from making this electricity is a scope 2 emission.
Scope 3 emissions: These are all the other emissions associated with business, but you do not directly control, an example of this would be pollution caused by employees commuting to work.
An easy way to think of it is:
Scope 1 = What your business burns itself
Scope 2 = Energy you buy for your business
Scope 3 = Everything else connected to your business
Why reduce scope 2 emissions?
Now you understand the difference between scope 1, 2 and 3 emissions, lets delve into why it’s important to reduce scope 2 emissions.
As we are sure you are aware; the world is in the midst of a climate crisis with global warming having a significant impact. Many of the world’s leading countries agreed and signed the 2015 Paris agreements, which set international targets of limiting the rise in average temperature to 2 degrees by 2100.
As part of this initiative, several countries have set carbon neutrality goals such as France and the UK who are both aiming to be net zero by 2050.
To achieve these goals, we need to embark on ecological and energy transition at all levels, from internationally to individually, we can all contribute.
If we do not tackle the issue now, we will see these emissions continue to contribute to climate change (higher average temperatures, disruption in the water cycle) with numerous consequences such as: loss of biodiversity, lower agricultural yields, reduction in freshwater resources, public health issues and much more.
It is therefore essential that we reduce these emissions, which in turn will reduce our carbon footprint, in order to contribute to a better planet for all.
How to reduce scope 2 emissions
The quickest and easiest way to reduce your scope 2 emissions is to switch to a low carbon energy supplier. Even without changing any of your business practices or improving your business premises efficiency, you can lower your emissions with smarter purchasing decisions.
The ideal supplier is one that is also investing in the building of new renewable energy infrastructure. By choosing this type of supplier you not only lower your emissions, but you are also supporting the development of renewable infrastructure to supply more businesses with low carbon energy.
Another way to reduce your scope 2 emissions is by improving the energy efficiency of your property portfolio and business operations.
For large energy users like manufacturers and production facilities, all machinery should be regularly serviced, maintained and optimised to ensure peak efficiency at all times. When looking at more traditional business sites like offices and retail stores, all electric systems like heating, air conditioning, IT systems and lighting should be assessed and upgraded or replaced where necessary. Adding systems such as timers, sensors and staff training can help minimise human error and help ensure all unused equipment is switched off reducing energy waste.
You could also look into installing renewable generators such as solar panels or wind turbines at your site, these will have an upfront cost but in the long term will provide you with free, renewable energy. Please note that this is not always a good choice or even possible, this will depend on your business’s location.
You can then ‘offset’ the remaining scope 2 emissions, which we will discuss later, under the heading ‘how does carbon offsetting help reduce scope 2 emissions’.
How does carbon offsetting help reduce scope 2 emissions?
Even the most energy efficient businesses struggle to eliminate all scope 2 emissions, as pretty much every business has a need for electricity and the renewable network is not yet ready to support all energy usage.
That’s is where carbon offsetting can help.
Many businesses are investing in some form of carbon offsetting initiatives to neutralise their scope 2 emissions, but what does it actually mean?
Carbon offsetting can be defined as when an individual or business invests in projects that reduce the amount of carbon dioxide in the atmosphere. These projects include things like planting trees or protecting forests. It’s like saying I can’t stop all my pollution, but I can help clean up elsewhere to make up for this.
By choosing progressive carbon offsetting projects, your business can also help improve the lives of local communities by delivering social, environmental and economic benefits.
How does cutting emissions fit into a business strategy?
Although some methods of cutting scope 2 emissions may seem expensive such as supporting carbon offsetting projects or building your own renewable energy generators, in the long term they will be beneficial to both your business and the planets health.
When looking at building your own renewable energy generators, this may have a significant up front cost, but over the following years this will pay for itself through the renewable energy it generates. It can also become an additional revenue steam if it generates more energy than you use on site.
For carbon offsetting project, yes this will cost money, but investing into projects like this create long term sustainability for the wider planet and can be beneficial to your business as it shows your businesses commitment to sustainability and helping reduce the effects of climate change, both of which help build a better brand image and can be a valuable brand asset.
Other methods of reducing your scope 2 emissions such as improving your energy efficiency just make business sense. Making your business more energy efficient will not only lower your carbon emissions but will also lead to a reduction of your energy costs.
Furthermore, reducing your businesses carbon footprint can also reduce your liability for any current and future carbon taxes that governments across the globe are implementing.
Challenges in reducing carbon emissions
Reducing scope 2 emissions is a critical step for businesses looking to lower their carbon footprint, but it does come with some unique challenges. Some of the most common obstacles business face include:
High initial costs: As previously discussed, investing in carbon offsetting projects, renewable energy generators, energy efficient systems and transitioning to renewable energy can be costly, especially in the short term. This can make it difficult for businesses, especially smaller organisations to implement these measures.
Balancing priorities: Businesses often need to balance sustainability goals with other business goals like growth, profitability and customer satisfaction. Juggling these priorities can become difficult if resources are stretched thin meaning reducing emissions may take a back seat.
Dependence on external supplier: Whilst you could do everything in your power to reduce your businesses emissions one factor you will not be able to control is the energy supplier. You will have no control on your energy supplier’s energy mix and convincing suppliers to prioritise renewables and sustainable practices can be difficult.
Access to renewable energy: This is more so in relation to renewable energy on site as most suppliers will now offer green energy options. But in some areas of the country, it may not be viable to have certain renewable energy generators on site such as wind turbines in the middle of the city or solar panels on a rooftop that sees limited sunlight.
Resistance to change: Employees and stakeholders may show some resistance to adopting new practices or investment into energy efficient practices. This lack of awareness and understanding about the long-term benefits of reducing emissions can slow progress.
Uncertain renewable energy markets: Like regular energy, renewable energy prices fluctuate on the wholesale market depending on external factors and can become quite volatile. With this in mind, it can make it difficult predict long term costs and savings.
While these challenges are significant, there are a few ways that business could address them such as:
- Partnering with a reliable and trusted renewable energy supplier
- Seeking government support or subsidies to offset costs
- Educating staff and stakeholders on the importance of reducing emissions
- Using technology to monitor and manage energy consumption efficiently.
By addressing the challenges head on, businesses can make real progress toward reducing their scope 2 emissions and reaching their sustainability targets.
Partnering with Dyce Energy for a Greener Future
Reducing Scope 2 emissions is a crucial step toward lowering your business’s overall carbon footprint and supporting global sustainability goals. By transitioning to renewable energy, improving energy efficiency, and adopting smart energy management practices, businesses can significantly cut emissions while enjoying cost savings and operational benefits.
While challenges like upfront costs and limited renewable energy access exist, they can be overcome with strategic planning, innovative technology, and a commitment to change. Every effort, no matter how small, contributes to a greener, more sustainable future for your business and the planet.
At Dyce Energy, we’re here to help.
If you’re looking to reduce your Scope 2 emissions by switching to renewable energy, get a free no obligation quote from us today!
