Sustainability
Scope 2 emissions
Also written: scope 2
What Scope 2 emissions means
Scope 2 emissions are indirect greenhouse gas emissions resulting from the generation of purchased electricity, steam, heating, and cooling consumed by a hotel property. Unlike direct onsite fuel combustion, these emissions occur at the utility facility producing the energy.
Formula
Scope 2 Emissions (kg CO2e) = Purchased Energy Consumption (kWh or MWh) × Regional Grid Emission Factor (kg CO2e per kWh or MWh)
How it is used
Asset managers and engineering teams track Scope 2 emissions to meet corporate ESG reporting mandates, comply with local municipal building performance standards, and secure green building certifications like LEED or BREEAM. Revenue managers and commercial teams increasingly leverage low Scope 2 intensity to win corporate RFPs that require carbon reporting. Operational strategies to reduce Scope 2 footprint include switching to renewable energy power purchase agreements (PPAs), installing onsite solar arrays, upgrading to high-efficiency HVAC systems, and optimizing building management systems to lower megawatt-hour consumption.
Worked example
A 250-room hotel consumes 2,000,000 kWh of purchased electricity annually. The local electrical grid has an emission factor of 0.40 kg CO2e per kWh. The property's annual Scope 2 emissions equal 800,000 kg (or 800 metric tons) of CO2e.
Common mistake
Failing to account for the location-based versus market-based accounting methods can skew reporting when a hotel purchases renewable energy certificates or green power tariffs.