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Sustainability & Energy Management Simplified Scope II emissions are all greenhouse gas emissions released into the atmosphere from purchased electricity, steam, heating, and cooling. Scope II does not include fuel consumption as that typically happens on-site. They are considered indirect emissions because they occur physically at the location of generation outside of a reporting organization's control or ownership (in many cases the electricity generator or the utility company's facilities). Although Scope II and Scope III emissions are both indirect emissions, the GHG Protocol carved out Scope II emissions as a distinct category, because they come from activities that the company does have control over, like how much energy they use and whether they purchase renewable energy, in addition to the fact that they are easily measured and allocated to specific companies, whereas Scope III emissions are not. The Greenhouse Gas (GHG) Protocol, an established framework for the measurement and management of greenhouse gas emissions, breaks down emissions into 3 distinct categories or scopes for differentiating between direct and indirect emissions of a business and for more accurate measurement and reporting. Scope I covers emissions that directly result from operations owned or controlled by a reporting organization; scope II emissions come from purchased electricity, heat, steam, and cooling; and scope III emissions include all other indirect emissions both up and downstream in an entity's value chain. In this report, we take a deeper look into the activities that make up scope II emissions, and the nuances of calculating scope II with both location-based and market- based methodologies. THE BASICS Indirect & Upstream Scope II Emissions HEATING & COOLING FOR OWN USE STEAM PURCHASED ELECTRICITY

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