How to Calculate Scope 2 Emissions (With Country-by-Country Examples)

What Are Scope 2 Emissions?

Scope 2 emissions are the greenhouse gas emissions associated with the electricity, heat, steam, or cooling that your company purchases from an external supplier. They are classified as "indirect" because the combustion happens at the power station, not at your premises — but they are still attributable to your company because your demand drives the generation.

For most European office businesses, Scope 2 is the largest single emissions source. For manufacturers, it often competes with natural gas for the top position. Getting it right is essential for any supplier carbon questionnaire or CSRD compliance filing.

What Are the Two Scope 2 Accounting Methods?

The GHG Protocol defines two ways to calculate Scope 2 emissions, and procurement questionnaires increasingly ask which one you used:

Location-based method Uses the average emissions intensity of the national or regional electricity grid. Your consumption multiplied by the published grid emission factor for your country.

Market-based method Uses the actual emission factor of the specific electricity you contracted — including any renewable Energy Attribute Certificates (EACs) like REGOs (UK) or Guarantees of Origin (EU). If you have a certified 100% renewable tariff, your market-based Scope 2 can legitimately be zero.

Most SMEs without a certified renewable contract should use the location-based method. If you do use the market-based method and report zero Scope 2, you must disclose that you hold the relevant certificates.

What Are the Current Country Grid Emission Factors?

These are the DEFRA 2023 location-based factors for the most common European countries:

France has one of the lowest grid intensities in Europe (predominantly nuclear). Poland has the highest among major economies (predominantly coal). For a Polish manufacturer and a French one using identical amounts of electricity, the carbon difference is enormous.

How Do You Calculate Scope 2 Step by Step?

Step 1: Find your annual electricity consumption in kWh Look at your electricity invoices for the full 12-month reporting year. Add up all invoices at each meter. For multi-site businesses, include all sites you occupy and control.

Step 2: Determine your grid country Use the factor for the country where the electricity was consumed, not where your head office is registered.

Step 3: Apply the emission factor Annual kWh × country factor = kgCO2e

Step 4: Convert to tCO2e Divide by 1,000

Worked example — UK office using 45,000 kWh per year: 45,000 × 0.207 = 9,315 kgCO2e ÷ 1,000 = 9.3 tCO2e

Worked example — German manufacturing plant using 750,000 kWh per year: 750,000 × 0.364 = 273,000 kgCO2e ÷ 1,000 = 273 tCO2e

How Do You Handle Multiple Sites in Different Countries?

For multi-site businesses operating in more than one country, apply each country's emission factor to the electricity consumed in that country. Report the totals separately or combined — most questionnaires accept a single combined Scope 2 figure with a methodology note listing the countries and factors used.

If you lease offices in buildings where electricity is included in your rent and you do not have meter data, use your floor area to estimate consumption. A reasonable benchmark for a typical office is 150–200 kWh per m² per year in northern Europe.

What If You Are on a Renewable Electricity Tariff?

If you have a certified 100% renewable electricity contract, your market-based Scope 2 emissions are near zero — provided the tariff comes with Energy Attribute Certificates (EACs) that confirm the generation source.

You should still report your location-based Scope 2 as a secondary figure (the GHG Protocol recommends reporting both). This shows the full physical emissions impact regardless of contracting.

The market-based approach is valid and widely accepted. Many procurement questionnaires ask for both figures — report location-based in the primary field and note your renewable contract in the methodology section.

How Does Scope 2 Factor Into Your Carbon Passport?

DeCarbonOPS applies your country's grid factor automatically when you enter electricity consumption. If you have a renewable tariff, you can flag it and the platform calculates both the location-based and market-based figures, notes the methodology, and includes both in your Carbon Passport — ready to copy into any questionnaire portal.