In our continuing discussion about the types of greenhouse gas (GHG) emissions, we have now come to scope 2 and how it relates to the hospitality industry. Much of the research at the Cornell Hotel School focuses on lowering electricity usage, which directly correlates with scope 2 emissions. Let’s start off with a definition.

Scope 2: Indirect GHG emissions from consumption of purchased electricity, heat or steam.

One of the biggest sources of scope 2 emissions is the coal-fired power plant, which emits CO2, NOx, SOx, and a number of heavy metals. Although it is extremely inefficient, coal remains a major source of electricity in the United States.

Let’s be clear about what scope 2 doesn’t include: it does not include emissions from a property’s vehicles, fuels burned on site, and boilers. For our discussion, scope 2 has a very specific definition: it includes emissions from not only a hotel’s consumed electricity, heat, and steam, but also the hotel’s consumption of chilled water. When we look at scope 2 emissions for a hotel, we are looking at all the GHG emissions that result from the generation of electricity that the hotel uses. We’re also looking at the emissions that result from the generation of the electricity used to heat the water, heat the steam, and cool the water that the hotel uses. Some hotels are supplied with heated water/steam and cooled water from the district (sort of as a utility) for HVAC purposes, so we do account for these.

Why are scope 2 emissions so important? Because these emissions result from all the electricity that a hotel, its staff, and its guests use. When hoteliers think about their property’s energy usage, they typically think about the bottom line: lower your electricity bill, and your expenses will drop. However, many hoteliers fail to take this a step further: lower your energy usage, lower your bill, and lower your carbon footprint.

It’s impossible to talk about scope 2 without talking about electricity. The average hotel in the United States spends $2,196 per available room each year on energy, which according to Energy Star, is about 6% of overall operating costs. National Grid reports that the top two sources of electricity consumption in American hotels are cooling (27%) and lighting (23%). The implications of these simple findings are more far-reaching than owners and operators might expect. This means that in order to curb scope 2 emissions, hotels should focus their efforts on efficient HVAC and lighting systems–and FF&E that facilitates efficiency in those two areas–that reduce cooling and lighting costs. For our HVAC and lighting systems, the suggestions are simple, yet few people follow them:

• Invest in Energy Star appliances.
• Set thermostats to at least 78 degrees for cooling.
• Turn toward centralized HVAC systems, which are more efficient than individual room units.
• Shut down HVAC in unoccupied rooms, building sections, and unused BOH spaces.
• Perform repairs, preventative maintenance, and periodic cleaning of HVAC systems.
• Supplement cooling with ceiling fans.
• Install an energy management system (see the Schneider post for an example of this).
• Seal windows and doors for a tighter building envelope.
• Replace all incandescents with CFLs and T-8s–especially hall lighting.
• Utilize natural light.
• Use LEDs and dimmer controls.
• Install occupancy sensors and timers in all public areas.

Simple steps lead to huge impacts. When Hilton Hotels won Energy Star’s competition a decade ago, they had lowered their electricity consumption by 43 million kWh just by implementing an energy management plan for its hotels. The result for scope 2 was the prevention of 65 million pounds of CO2 emissions–the equivalent of removing 6,450 cars from the road. All the other major brands have similar programs in place with impressive goals, some aiming to reduce GHG emissions by 20% by 2020!

As we close, we should recognize that scope 2 is hard to visualize because its effects are indirect and its impacts are off-site, dispersed. Who among us really thinks of a power plant spitting out soot when we flick on a light or turn on the AC? Not many, probably. But the wise hotel owners and operators who are cognizant of their hotels’ indirect emissions–and take steps to reduce them–will reap significant financial rewards.