How to Calculate Scope 2 Emissions in India 2025 Update.

What Are Scope 2 Emissions? Complete Definition

Scope 2 emissions represent indirect greenhouse gas (GHG) emissions from purchased electricity, heat, steam, or cooling consumed by your organization. These emissions occur physically at the power generation facility but are attributed to your company as the end consumer.

Under the internationally recognized Greenhouse Gas Protocol, Scope 2 emissions are categorized as indirect emissions that organizations can control through their energy procurement decisions. For Indian businesses, understanding Scope 2 emissions is crucial for:

• SEBI BRSR (Business Responsibility and Sustainability Reporting) compliance
• Carbon footprint assessment and sustainability reporting
• ESG (Environmental, Social, and Governance) performance measurement
• Supply chain transparency and stakeholder disclosure

How to Calculate Scope 2 Emissions

Understanding how to calculate Scope 2 emissions is essential for any organization that consumes electricity. These are indirect greenhouse gas (GHG) emissions resulting from purchased electricity, steam, or cooling. To calculate them, you need to multiply your electricity usage (in kilowatt-hours or kWh) by the appropriate emission factor. In India, for example, these emission factors are published annually by the Central Electricity Authority (CEA) and vary by state. Therefore, the same energy usage can result in different emissions depending on where your facility is located. As a result, accurate reporting depends not only on consumption data but also on regional energy profiles. In addition, this calculation plays a vital role in sustainability frameworks like BRSR and global ESG disclosures.

Key Components of Scope 2 Emissions

Electricity Consumption: The primary source of Scope 2 emissions for most Indian businesses, including office buildings, manufacturing facilities, retail stores, and data centers.

District Heating and Cooling: Less common in India but applicable to industrial complexes and large commercial developments that purchase centralized heating or cooling services.

Steam Purchases: Relevant for manufacturing industries that purchase steam from external suppliers rather than generating it on-site.

India’s Energy Mix Characteristics

Coal Dominance: Approximately 70% of India’s electricity comes from coal-fired thermal power plants, resulting in higher emission factors compared to countries with cleaner energy mixes.

Regional Variations: Different states have varying energy portfolios. For example, Kerala has higher renewable energy penetration, while states like Chhattisgarh rely more heavily on coal.

Grid Interconnection: India operates as an interconnected grid system, but regional variations in energy sources create different emission factors across states and regions.

Regulatory Framework

The Central Electricity Authority (CEA) under the Ministry of Power provides official grid emission factors annually through the “CO₂ Baseline Database for the Indian Power Sector.” These factors are:

• Legally recognized for compliance reporting
• Updated annually to reflect changing energy mix
• State-specific to account for regional variations
• Methodology-consistent with international standards

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Official Indian Data Sources for Scope 2 Emissions

Accurate calculation of Scope 2 emissions in India depends heavily on government-published emission factors. The Central Electricity Authority (CEA) is the official body responsible for providing standardized data through its annual reports.

CEA CO₂ Baseline Database: Key to Scope 2 Emissions

The CEA publishes comprehensive emission factors through its annual “CO₂ Baseline Database” report. This database includes:

Combined Margin (CM): The most commonly used factor, representing a weighted average of Operating Margin and Build Margin emission factors.

Operating Margin (OM): Reflects emissions from power plants that would be displaced by new renewable energy projects.

Build Margin (BM): Represents emissions from recently built power plants, indicating the carbon intensity of new capacity additions.

Data Reliability and Annual Updates for Scope 2 Emissions

Annual Updates: CEA releases updated emission factors annually, typically in the second quarter of each year.

Methodology Compliance: All factors follow UNFCCC (United Nations Framework Convention on Climate Change) CDM (Clean Development Mechanism) guidelines.

Transparency: Complete methodology and calculation details are publicly available, ensuring transparency and reproducibility.

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Calculate Scope 2 Emission: Step by Step

Basic Calculation Formula

The fundamental formula for calculating Scope 2 emissions in India is:

CO₂e Emissions (kg) = Electricity Consumed (kWh) × Grid Emission Factor (kg CO₂e/kWh)

Detailed Calculation Process

Step 1: Gather Electricity Consumption Data

• Collect monthly electricity bills for all facilities
• Record total kWh consumption for the reporting period
• Ensure data completeness for accurate calculations

Step 2: Identify Applicable Grid Emission Factor

• Determine the state/region where electricity is consumed
• Select the appropriate CEA emission factor (typically Combined Margin)
• Verify you’re using the latest available data

Step 3: Apply the Calculation Formula

• Multiply total kWh by the emission factor
• Convert units if necessary (typically results in kg CO₂e)
• Document all assumptions and data sources

Step 4: Aggregate and Report

• Sum emissions from all facilities
• Convert to appropriate units (tonnes CO₂e for reporting)
• Include uncertainty ranges if available

Quality Assurance Measures

Data Verification: Cross-check electricity consumption data with utility bills and internal records.

Factor Validation: Ensure emission factors are from the current CEA database and applicable to your location.

Calculation Review: Implement independent verification of calculations, especially for large organizations.

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2025 State-wise Grid Emission Factors

Major States and Union Territories

State/UT	Combined Margin (CM)	Operating Margin (OM)	Build Margin (BM)
Tamil Nadu	0.82 kg CO₂e/kWh	0.79 kg CO₂e/kWh	0.85 kg CO₂e/kWh
Maharashtra	0.89 kg CO₂e/kWh	0.91 kg CO₂e/kWh	0.87 kg CO₂e/kWh
Gujarat	0.92 kg CO₂e/kWh	0.94 kg CO₂e/kWh	0.90 kg CO₂e/kWh
Karnataka	0.77 kg CO₂e/kWh	0.74 kg CO₂e/kWh	0.80 kg CO₂e/kWh
Delhi (NDPL)	0.87 kg CO₂e/kWh	0.85 kg CO₂e/kWh	0.89 kg CO₂e/kWh
Uttar Pradesh	0.95 kg CO₂e/kWh	0.97 kg CO₂e/kWh	0.93 kg CO₂e/kWh
West Bengal	0.93 kg CO₂e/kWh	0.95 kg CO₂e/kWh	0.91 kg CO₂e/kWh
Rajasthan	0.88 kg CO₂e/kWh	0.86 kg CO₂e/kWh	0.90 kg CO₂e/kWh

Regional Variations Explained

Lower Emission States: States like Karnataka and Tamil Nadu have relatively lower emission factors due to higher renewable energy penetration and hydroelectric power generation.

Higher Emission States: States with coal-heavy energy portfolios, such as Uttar Pradesh and West Bengal, show higher emission factors.

Industrial vs. Commercial: Some states provide different factors for industrial and commercial consumers based on their consumption patterns and grid connection types.

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Practical Examples of Scope 2 Emissions and Case Studies

Case Study 1: Technology Startup in Bengaluru

Scenario: A tech startup in Bengaluru consumed 2,500 kWh of electricity in Q1 2025.

Calculation:

• Location: Karnataka
• Emission Factor: 0.77 kg CO₂e/kWh (Combined Margin)
• Calculation: 2,500 kWh × 0.77 kg CO₂e/kWh = 1,925 kg CO₂e
• Result: 1.925 tonnes CO₂e for Q1 2025

Business Impact: This startup can now report accurate Scope 2 emissions for investor presentations and potential B-Corp certification.

Case Study 2: Manufacturing Unit in Maharashtra

Scenario: A mid-size manufacturing unit in Pune with monthly electricity consumption of 15,000 kWh.

Annual Calculation:

• Monthly consumption: 15,000 kWh
• Annual consumption: 180,000 kWh
• Emission Factor: 0.89 kg CO₂e/kWh
• Calculation: 180,000 kWh × 0.89 kg CO₂e/kWh = 160,200 kg CO₂e
• Result: 160.2 tonnes CO₂e annually

BRSR Compliance: This calculation enables the company to meet SEBI’s BRSR reporting requirements for Scope 2 emissions disclosure.

Case Study 3: Retail Chain with Multiple Locations

Scenario: A retail chain with stores across Delhi, Mumbai, and Chennai.

Multi-location Calculation:

• Delhi stores: 8,000 kWh × 0.87 kg CO₂e/kWh = 6,960 kg CO₂e
• Mumbai stores: 12,000 kWh × 0.89 kg CO₂e/kWh = 10,680 kg CO₂e
• Chennai stores: 6,000 kWh × 0.82 kg CO₂e/kWh = 4,920 kg CO₂e
• Total: 22.56 tonnes CO₂e monthly

Strategic Insights: The retailer can identify which locations have higher carbon intensity and prioritize energy efficiency investments accordingly.

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BRSR & SEBI Compliance for Scope 2 Emissions in India

India’s Business Responsibility and Sustainability Reporting (BRSR) framework, mandated by SEBI, requires all listed companies to disclose their Scope 2 emissions as part of their environmental impact reporting. This ensures transparency, comparability, and alignment with global ESG standards.

Scope 2 Emissions Requirements under BRSR Core

The BRSR Core framework applies to small and mid-sized listed companies and includes essential Scope 2 reporting requirements:

• Quantitative Disclosure:
  Companies must report their total Scope 2 emissions in tonnes of CO₂ equivalent (tCO₂e). This includes specifying the methodology used for calculation.

• Operational Boundary Definition:
  Organizations must define their operational and reporting boundaries, ensuring that all electricity consumption across locations is accounted for.

• Emission Factors & Data Quality:
  Calculations should use standardized and recognized emission factors, preferably from India’s CEA Baseline Database, to ensure consistency and credibility.

BRSR Core vs. Full BRSR: Scope 2 Emissions Expectations

Note: While BRSR Core is designed to reduce the burden on smaller companies, accurate Scope 2 emissions reporting remains a mandatory component.

Documentation for Scope 2 Emissions Disclosure

To meet SEBI’s audit and assurance expectations, companies must maintain and submit:

• Methodology Statement:
  A clear explanation of how Scope 2 emissions were calculated — including formulas, emission factors, and any assumptions.

• Data Sources & Boundaries:

  • Source of electricity usage data (e.g., utility bills, metering systems)

  • Billing periods covered

  • Justification for emission factor selection (e.g., CEA’s state-wise CM or OM values)

• Verification & Assurance:
  For companies with high emissions or large operational footprints, independent verification of Scope 2 emissions is encouraged — and in some sectors, expected.

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Common Calculation Mistakes to Avoid

Data Quality Issues

Incomplete Data: Ensure all electricity consumption sources are included, including common areas, backup generators running on electricity, and temporary facilities.

Unit Confusion: Verify consistent units throughout calculations (kWh vs. MWh, kg vs. tonnes CO₂e).

Billing Period Misalignment: Ensure electricity bills align with reporting periods, accounting for any timing differences.

Methodology Errors

Wrong Emission Factor: Using emission factors from incorrect states or outdated databases can significantly impact accuracy.

Double Counting: Avoid including renewable energy consumption in Scope 2 calculations if it’s already accounted for separately.

Boundary Issues: Clearly define organizational boundaries to avoid including or excluding inappropriate consumption sources.

Reporting Mistakes

Inadequate Documentation: Poor documentation of assumptions and data sources can lead to audit issues and credibility concerns.

Inconsistent Methodology: Changing calculation methods between reporting periods without proper justification and restatement.

Missing Uncertainty: Failing to acknowledge and report uncertainty ranges in emission calculations.

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Tools and Resources for Automation

Digital Calculation Tools

Spreadsheet Templates: Downloadable Excel templates with built-in CEA emission factors and calculation formulas.

Online Calculators: Web-based tools that automatically update with latest CEA data and support multi-location calculations.

API Integration: For larger organizations, APIs that connect directly with utility billing systems for automated data collection.

Software Solutions

ERP Integration: Enterprise Resource Planning systems with built-in sustainability modules for automated emission tracking.

Specialized Software: Dedicated carbon accounting software with India-specific features and CEA database integration.

Cloud Platforms: SaaS solutions offering comprehensive carbon accounting with automated reporting features.

Data Management Best Practices

Centralized Data Collection: Implement systems for consistent data collection across all facilities and locations.

Regular Data Validation: Establish processes for ongoing data quality checks and validation.

Automated Reporting: Set up automated reporting systems to ensure timely and accurate disclosure.

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Frequently Asked Questions

General Scope 2 Questions

What is the difference between Scope 1, 2, and 3 emissions?

Scope 1 emissions are direct emissions from owned or controlled sources (like company vehicles or on-site fuel combustion). Scope 2 emissions are indirect emissions from purchased electricity, heat, or steam. Scope 3 emissions are all other indirect emissions from the value chain, including supply chain, business travel, and waste disposal.

How often should I calculate Scope 2 emissions?

Most organizations calculate Scope 2 emissions annually for compliance reporting. However, monthly or quarterly calculations can provide better insights for management decisions and help track progress toward reduction targets.

What is the most reliable emission factor to use in India?

The Combined Margin (CM) emission factor from the CEA database is generally recommended as it represents the most comprehensive view of grid emissions. Use the latest available data and ensure it corresponds to your operational location.

Technical Calculation Questions

How do I handle electricity consumption from multiple states?

For multi-state operations, calculate emissions separately for each state using the respective emission factors, then aggregate the results. This approach provides the most accurate representation of your organization’s carbon footprint.

What if I use both grid electricity and renewable energy?

Grid electricity consumption should be calculated using CEA emission factors. On-site renewable energy generation typically has zero emissions for Scope 2 purposes. For purchased renewable energy, specific emission factors may apply depending on the procurement mechanism.

How do I account for transmission and distribution losses?

CEA emission factors already account for transmission and distribution losses in the grid system. You should not adjust your calculations for these losses as they are built into the official factors.

Compliance and Reporting Questions

What documentation is required for BRSR reporting?

BRSR reporting requires clear methodology documentation, data source identification, emission factor justification, and calculation verification. Keep detailed records of all assumptions and data sources used in your calculations.

How accurate do my Scope 2 calculations need to be?

While there’s no official accuracy requirement, best practice suggests maintaining calculation uncertainty within ±5% for material emissions sources. Document any assumptions and uncertainty ranges in your reporting.

Can I use international emission factors for Indian operations?

No, you should use India-specific emission factors from CEA databases for accurate and compliant reporting. International factors don’t reflect India’s unique energy mix and grid characteristics.

Implementation Questions

What’s the best way to start measuring Scope 2 Emissions?

Begin by collecting electricity consumption data from all facilities, identify applicable CEA emission factors for your locations, and perform initial calculations. Focus on data quality and documentation from the start.

How do I verify the accuracy of my Scope 2 Emissions calculations?

Implement independent verification processes, cross-check consumption data with utility bills, validate emission factors against CEA databases, and consider third-party verification for material emissions.

What should I do if emission factors change between reporting periods?

Use the most current emission factors available for each reporting period. Document any changes and consider restating prior year emissions for comparison purposes, following established accounting principles.

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Conclusion

Calculating Scope 2 emissions in India requires understanding the country’s unique energy landscape and regulatory framework. By using official CEA emission factors and following established calculation methodologies, organizations can ensure accurate, compliant, and meaningful emission reporting.

The key to successful Scope 2 emission calculation lies in maintaining high data quality, using appropriate emission factors, and implementing robust documentation practices. As India continues its transition toward cleaner energy sources, emission factors will evolve, making it essential to stay updated with the latest CEA databases and regulatory requirements.

For organizations beginning their carbon accounting journey, start with basic calculations and gradually implement more sophisticated tracking and reporting systems. Focus on accuracy, consistency, and transparency to build credibility with stakeholders and support meaningful carbon reduction initiatives.

Remember that Scope 2 emission calculation is not just about compliance—it’s about understanding your organization’s carbon footprint and identifying opportunities for improvement. Use these insights to drive energy efficiency initiatives, evaluate renewable energy procurement options, and demonstrate your commitment to sustainability.

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Need help with Scope 2 Emission calculations or sustainability reporting?
Accurately measuring your electricity-based carbon footprint is crucial for ESG compliance, BRSR reporting, and climate accountability.

Use our free Scope 2 Emissions Calculator for India to estimate emissions based on state-wise CEA data. This tool is optimized for businesses, sustainability teams, and climate-conscious organizations looking for precision and transparency.

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