About the Scope 2 Guidance
The Scope 2 Guidance is the most significant amendment to the Corporate Accounting and Reporting Standard since its inception. It offers much needed clarity on how corporations measure emissions from electricity and other types of energy purchases. This heightened level of transparency could play a pivotal role in unleashing corporate demand for more renewable electricity.
Nearly 40% of global greenhouse gas emissions can be traced to energy generation, and half of that energy is used by industrial or commercial entities. To reduce these emissions, companies typically turn to energy conservation, efficiency upgrades, and supply switches to low-carbon electricity, whether through on-site installations or through changing (via contracts and electricity suppliers) the energy products purchased.
The Scope 2 Guidance was developed with the input of with over 200 representatives from companies, electricity utilities, government agencies, academia, industry associations, and civil society in over 23 countries. It is required reading for companies that follow the Corporate Standard.