Scope 2:
purchased energy, explained simply.

Scope 2 covers the indirect emissions linked to the energy your company buys and consumes without producing it itself. It is the counterpart of Scope 1: where Scope 1 measures what you burn, Scope 2 measures what you plug in.

Scope 2: the GHG Protocol definition

The GHG Protocol defines Scope 2 as the indirect emissions associated with the generation of purchased electricity, heat, steam or cooling consumed by the company. The physical emission occurs at the energy supplier’s site (power plant, urban heating network), but it is accounted for at your end because you are the final consumer.

For almost all SMEs, Scope 2 in practice comes down to a single item: electricity.

• Purchased electricity: by far the most common source, used for lighting, machinery, IT equipment, and electric air conditioning.
• Purchased heat or steam: relevant for companies connected to an urban heating network, rarer outside certain city centers or industrial zones.
• Purchased cooling: an even more marginal case, with urban cooling networks existing in only a few major metropolitan areas.

Two calculation methods that can diverge sharply

Since the 2015 update to the GHG Protocol Scope 2 guidance, companies are in principle expected to report two separate results for their electricity-related Scope 2 emissions, calculated using two different approaches.

Location-based method: applies the average emission factor of the national electricity grid, regardless of the energy contract signed. In France, this factor is very low thanks to the nuclear-heavy mix, around 0.052 kgCO₂e/kWh according to ADEME, compared with several hundred grams in countries with a more carbon-intensive mix.

Market-based method: reflects the electricity contract actually signed. If you have signed a green electricity contract with guarantees of origin, the factor can be close to zero. Without a specific contract, a higher “residual” factor applies, as it represents the mix of sources not already claimed by other buyers of green energy.

For a first carbon footprint aimed at answering a client request or a supplier questionnaire, the location-based method is sufficient in most cases. The market-based method becomes relevant if you have negotiated a renewable energy contract and want to reflect that effort in your report.

Why Scope 2 is generally low in France

The emission factor of electricity depends almost entirely on the country’s generation mix. France, with a large share of nuclear and hydroelectric power, has one of the least carbon-intensive electricity mixes in Europe.

An SME that consumes only French electricity will have a proportionally much lower Scope 2 than an equivalent company in Germany or Poland, where the mix remains more coal-based. This is not a sign of poor performance elsewhere: it is a direct consequence of the structure of the national electricity grid.

How to calculate your Scope 2 without a carbon expert

The base data can be found directly on your electricity bills: annual consumption in kWh is always shown. The calculation consists of multiplying this consumption by the ADEME emission factor corresponding to the method chosen.

• You have your electricity bills: add up the consumption in kWh over 12 months, then multiply by the location-based factor (France mix) or the market-based factor (depending on your contract).
• You only have the amount spent: the monetary method (amount in euros × emission factor per euro spent on energy) gives an acceptable estimate for a first submission, to be refined later with actual kWh figures.
• You lease your premises: if electricity is included in your service charges without a dedicated meter, allocating it in proportion to the floor area occupied is a common and acceptable practice.

Worked example for a mid-sized SME

For an SME with 40 employees, offices and a light workshop, consuming around 150,000 kWh of electricity per year:

• Location-based method (France mix): approximately 150,000 × 0.052 ≈ 8 tCO₂e per year
• Market-based method, without a green contract: since the residual factor is higher, the result can be 2 to 4 times greater, in the range of 15 to 30 tCO₂e
• Market-based method, with a 100% guaranteed renewable contract: close to 0 tCO₂e

The gap between the two methods illustrates why it matters to specify which one you use: a Scope 2 figure reported without its method is not comparable from one company to another.

The most common mistakes

• Presenting only one method without specifying it. A rigorous report explicitly states whether it is location-based or market-based, especially if the result underpins reduction commitments.
• Confusing electricity and gas. Gas burned on-site (heating, ovens) falls under Scope 1, not Scope 2. Only energy purchased as electricity, heat, steam or cooling falls within Scope 2.
• Forgetting secondary sites. A warehouse or sales office with its own electricity meter must be included, even if its volume seems marginal.
• Overestimating the effect of a green contract without guarantees of origin. A commercial “green electricity” offer without traceable guarantees of origin certificates does not justify using a reduced market-based factor.

To complete your carbon footprint, two related guides: Scope 1, direct emissions, and Scope 3, the most significant part for most SMEs. No specific client request yet? Here’s why you should calculate your carbon footprint anyway.

Oakbon calculates your Scope 1, 2 and 3
automatically, in 2 hours.

Drop in your accounting export: FEC, Pennylane, Sage, or any CSV or Excel file. Oakbon identifies your energy expenses, applies the location-based and market-based ADEME factors, and generates a complete report, ready to send.

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