• Welcome to the second installment of ATMA’s three-part ESG series, exploring Greenhouse Gas (GHG) emissions across Scopes 1, 2, and 3.

  
  
  

  Scope 2 - the emissions you don’t see that still count

  The global mobility industry is increasingly required to measure and report carbon footprints, with Scope 2 emissions representing a significant portion of environmental impact calculations.
  When a company uses electricity for offices, housing, or warehouses, the emissions from that energy use (called Scope 2 emissions) are part of its carbon footprint. Understanding these emissions is becoming key for responding to client surveys, RFPs and regulatory requirements in some jurisdictions.

  Scope 2 emissions are the greenhouse gases released when producing the electricity, heating, and cooling that organisations purchase and use. While these emissions occur at power plants rather than company facilities, they count against an organisation's carbon footprint in sustainability reporting.

  For global mobility operations, Scope 2 emissions primarily come from several sources:

  • Electricity and climate control in serviced apartments and temporary housing
  • Power consumption in RMC and DSP office operations
  • Energy usage in household goods warehouse facilities

   

  Measurement Methods

  The Greenhouse Gas (GHG) Protocol provides two primary methods for calculating Scope 2 emissions:

• ·      Market-based emissions reflect the specific energy contracts and suppliers a company has chosen, including any renewable energy purchases or green power agreements made.
• ·      Location-based emissions consider the average emissions intensity of the power grid where facilities operate.

Most reporting frameworks prioritise market-based calculations for total Scope 2 emissions, as they better represent actual procurement decisions. When market-based data is not available, location-based figures serve as the alternative.

 

Why This Matters

Understanding and tracking Scope 2 emissions has become a business requirement as large corporates seek to manage emissions throughout their supply chains due to global, complex regulatory requirements. Emission data is increasingly requested as part of:

• RFP requirements from potential clients evaluating provider sustainability
• Client sustainability surveys and annual reviews
• Supplier assessment questionnaires from corporations with net-zero commitments
• Industry and other benchmarking initiatives, e.g. Ecovadis
• Opportunities for operational cost reduction through energy efficiency
• Increasing regulatory requirements across global markets
• Enhanced brand value and competitive advantage through demonstrated environmental leadership

As more organizations incorporate carbon footprint into their vendor selection criteria, the ability to accurately report these emissions could directly impact business opportunities and client retention.

 

How to calculate emissions using the GHG Protocol framework

Companies in the global mobility industry can calculate Scope 2 emissions by following the global standard under the GHG Protocol Guidance. The first step is to gather energy consumption data—this includes electricity, heating, and cooling from utility bills or purchase records, measured in kWh, MWh, or BTUs. Next, identify the appropriate emission factors based on location and type of energy used, including any renewable energy contracts in place. Then, apply the formula: Emissions = Energy Use × Emission Factor.

Whilst there are some nuances, this calculation provides the amount of greenhouse gases, such as CO₂, associated with purchased energy.

 

Practical Implementation for Mobility Providers

For RMCs and DSPs, a key priority is tracking emissions across their global operations, including offices, warehouses, and service centres. One of the biggest challenges is that energy emissions vary widely by region, depending on local electricity grids and how energy is produced in each location.

Housing providers also face complexity. Emissions tracking needs to happen at the property level, across various types of accommodation, and should reflect changing occupancy rates, seasonal energy demands, and climate differences between regions.

There are also many tools available. Platforms like Microsoft Sustainability Manager offer robust tracking aligned with the GHG Protocol, especially when paired with automated utility billing and real-time energy monitoring. But for smaller organisations, the cost and complexity of these systems can be a barrier, making it important to find right-sized solutions that balance capability with ease of use.

 

Best Practices for the Mobility Industry

1. Tiered monitoring approaches

• SMEs: Begin with manual utility bill tracking using simple spreadsheets; focus on largest facilities first before expanding.
• Mid-sized organizations: Utilize free energy tracking tools specific to your location, or basic utility provider portals.
• Household goods providers: Start with whole-facility baseline measurements before considering sub-metering; manual recording during weekly warehouse walkthroughs provides actionable data.
• Serviced apartments: Prioritize tracking high-occupancy properties first; implement basic checklists for property managers to record meter readings during routine inspections.

2. Low-cost reduction strategies

• DSPs and RMCs: Implement no-cost behavioural changes like equipment shut-down policies, natural lighting practices, limitations on heat and cooling where possible.
• Household goods providers: Optimize loading schedules to minimize door openings; perform regular maintenance on existing equipment rather than full replacements.
• Serviced apartments: Install low-flow fixtures and draft-proofing measures; educate guests on energy conservation through simple room notices.
• Regional adaptations: For Asian operations with limited clean energy options, focus on efficiency improvements first; explore on-site solar for facilities with suitable roof space where financially viable.

3. Simplified reporting frameworks

• SMEs: Develop basic annual emissions summary reports using free calculation tools from industry associations such as the FIDI carbon calculation platform.
• Regional considerations: Maintain separate tracking for Western and Asian operations to account for different availability of clean energy options.
• Client communication: Create simple facts sheets and information to share with assignees and clients, highlighting implemented efficiency measures rather than complex technical reports.
• Industry cooperation: Share successful low-cost reduction strategies through informal networks and industry forums to benefit all members regardless of size.

 

Moving Forward

Understanding and managing Scope 2 emissions has become essential to our industry. Mobility providers that track energy use and cut emissions can meet growing client demand, lower costs, boost competitiveness and lead on climate action. Start by setting a clear baseline and building a strategy aligned with the GHG Protocol. While the calculations and data gathering may seem daunting, the core approach is simple: track energy usage, apply the appropriate emission factors, and consistently monitor progress.

 

References

EPA. Greenhouse Gas Inventory Guidance: Indirect Emissions from Purchased Electricity. U.S. Environmental Protection Agency. Retrieved from https://www.epa.gov.

Greenhouse Gas Protocol, Scope 2 Guidance: A guidance for calculating GHG emissions from purchased electricity, heat, steam and cooling. Retrieved from https://ghgprotocol.org/scope-2-guidance

Microsoft Learn. Calculate Scope 2 Emissions. Retrieved from https://learn.microsoft.com/en-us/industry/sustainability/calculate-scope2.

Microsoft Learn. Sustainability Manager: Import Data with Power Query Templates. Retrieved from https://learn.microsoft.com/en-us/industry/sustainability/sustainability-manager-import-data-power-query-templates.