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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Environment

Veda Textiles Ltd, a listed company, runs a spinning unit in Tamil Nadu. Its board wants to cut Scope 2 emissions and is comparing options. Which of the following actions would directly reduce its Scope 2 emissions?

Switching purchased grid electricity to contracted solar power reduces Scope 2 emissions, because Scope 2 covers indirect emissions from purchased electricity. Generator fuel changes affect Scope 1, while supplier deliveries and business air travel fall under Scope 3.

  1. AReplacing diesel generators used for backup power with biodiesel generators
  2. BSwitching the unit's purchased grid electricity to electricity from a contracted solar power plantCorrect
  3. CAsking suppliers to deliver cotton bales by rail instead of road
  4. DReducing employee air travel for business meetings

Explanation

Scope 2 covers indirect emissions from purchased electricity, steam, heating or cooling. Replacing grid power with contracted solar power reduces these. Diesel generators are Scope 1, while supplier transport and employee air travel are Scope 3.

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