Managing Scope 2 Emissions in A Digital World

According to many climate change experts, a drastic reduction of our carbon emissions will be the bitter medicine for all of us to take now to ensure that we leave behind a cooler and more liveable planet for our children.

The Greenhouse Gas Protocol (GHG) developed in the 1990s is basically the De facto framework that many organizations are using today for measuring and managing greenhouse gases. GHG protocol basically classifies carbon emissions into three scopes.

• Scope 1 is direct emissions coming from the organization’s sources, such as the combustion of fossil fuels from its own factories, transportation of goods, and leaks from cooling systems such as refrigeration and air conditioning.
• Scope 2 is indirect emissions from purchased energy sources such as electricity consumption. This includes emissions from the utility companies that provide electricity to an organization.
• Scope 3 is indirect emissions within the entire value chain, starting from upstream supply chains to the downstream emission dealing with the customers. This includes raw material supply chain, and distribution of purchased goods using other transportation service companies.

Of the three types of emissions, scope 2 emission, which accounts for approximately 40% of global gas emissions, is one of the more easily measurable and controllable emissions. With proper electricity meters around to measure the energy consumption, scope 2 emissions can be more easily quantified, monitored, and ideally leading to easier controls.

Setting Targets

As consumers are becoming more and more conscious and aware of the need to fight climate change, corporates who lead the charge in their sustainability clause are not shy in declaring their commitments and achievement. Science Based Targets (SBTi) currently have 2396 science-based targets, with 1733 net-zero commitments from a total of 4715 companies pledging to take action.

Detailed Sector level guidance by different industries on the Science Based Targets movement provides detailed guidance on how to set targets and compare against competitor targets based on the different industries and locations a company is in.

Measurements

You cannot manage what you cannot measure. Having accurate, quality data on scope 2 emissions is the first step towards emission reduction goals.

Knowing what to measure may differ from one company to another. Identifying the key sources of energy consumption within an organization will be the first step. This will differ from one industry to another. 

1. Data centres: The computers inside Data centres feeds on electricity. Optimizing the usage electricity to occur during period where electricity production is more abundant are some of the ways in which advanced cloud computing users of data centres are starting to experiment with.
2. A Hotel company’s electricity usage is coming mainly from the different floors rented out to its customers.

Digitalization is one growing means by which better monitoring and visualization of energy usage patterns will provide insights into better control. Technologies to gather and analyze data will put us in a better position to make changes to the physical environment.

Wiring Sensors for Adaptive Decision Making

For data gathering, installing smarts sensor, digital thermometers and meters that are wired to the communication network allows a wide array of physical data points to be taken. Centralizing and decentralizing renewables can be added to an electric grid. Smart buildings, vehicles, and industrial facilities can then adjust their load intelligently.

Digitalized energy systems will be able to identify who needs the energy at which location and deliver the energy at the right time, in the right place, and hopefully at the lowest cost as well.

Smart thermometers can anticipate occupant behaviour and combine with real-time weather forecasts to better predict and control cooling and heating needs.

Predictive maintenance can allow for low-efficient machinery and appliance to be sent for repairs earlier and maintain energy efficiency constantly at a high level. 

Digitally Interconnected World

Enter the era of the Internet of Things (IOT). Interconnecting the data points in an isolated system provides the digitalization path and the ability to break down energy sectors.

Digital technology paths the way for two-way linkages between utility companies and their customers. By having sensors along the transmission lines coupled with controls, the application of artificial intelligence will allow a smart grid to respond digitally to the consumer changing electric demands. Smart grids can better match energy demands to times when renewable solar energy is more available. Increased storage of solar energy in battery systems can reduce the curtailment of PV and wind power.

Match Use when Electricity Price is Low

Choose the best time to purchase and utilize electricity when the overall demand for electricity is low. There is now the combination of near-real-time monitoring at both production and consumption ends, and available employment of predictive electricity prices enabled by recent advancements in the field of artificial intelligence. We now have in our control a wider spectrum of possibilities and technologies smart enterprises can utilize compared to a decade ago.

Ways to Control Scope 2 Emissions

Here are a few ways a company can control its Scope 2 emissions:

• Reducing: Lower the electricity consumption by a combination of means such as using more energy-efficient appliances, for example using LED lighting over Tungsten light bulbs, using fridges with more ticks on their energy labels. Manufacturing and production facilities can be optimized and undergo regular maintenance to always ensure peak energy efficiency. Installing timers, and occupancy sensors and educating staff on responsible electricity usage are proven techniques to switch off equipment from the electric supply when not needed.
• Renewing: Increase usage of renewable energy. By using renewable energy sources like solar, wind, hydroelectric, and geothermal power, an organization can reduce its reliance on fossil fuels. Renewable energy usage can be achieved through the installation of solar installation or wind power if your company has the space to do so, entering into off-site power purchase agreements (PPAs), getting green tariffs from utility/energy traders, or through the purchase of renewable energy certificates.
• Recycling: Through recycling the use of some materials such as plastic, glass, aluminium, and steel in a company manufacturing process, energy consumption and lower greenhouse gas emission can also be reduced.

Let us all dig deeper and harder to control scope 2 emissions through the clever use of digital technologies. We need to leave behind a more hospitable planet Earth that our next generations can enjoy.

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