Guides · Scope 2: electricity and heat
Purchased heat and steam: Scope 2 emissions from district heating
How to report heat, steam and cooling bought from a network: Scope 2 calculation, distribution losses and upstream emissions in Scope 3, with DESNZ 2026 factors.
By LCALens. Published 8 Oct 2026, 1 min read.
Part of Scope 2 emissions from electricity and heat: how to calculate them.
If your building is connected to a district heating network, or you buy steam from an industrial neighbour, the emissions from producing that heat are your Scope 2, just like electricity. See Scope 2 emissions.
The calculation
kWh of heat or steam delivered × factor per kWh
The kWh figure comes from the heat meter or the supplier's invoice. DESNZ 2026 gives 0.17529 kg CO2e per kWh for district heat and steam.
Supplier-specific factors
Heat networks differ much more than electricity grids: a network fed by a gas boiler and one fed by a biomass plant or waste heat have very different emissions. If your supplier publishes an emission factor for its network, it is usually more accurate than a national average. Record it as your own factor with the supplier's document as evidence, and say which factor you used.
Losses and upstream emissions
As with electricity, the emissions caused before the heat reaches you belong in Scope 3 category 3:
- Distribution losses: DESNZ publishes well-to-tank factors for district heat and steam distribution (0.00176 kg CO2e per kWh for its 5% loss case) and transmission and distribution factors for heat.
- Upstream fuel production: 0.03341 kg CO2e per kWh for district heat and steam (well-to-tank).
The GHG Protocol's category 3 activities cover "electricity, steam, heating, and cooling" in the same way. See category 3.
Worked example
An office receives 80,000 kWh of district heat in a year:
| Item | Scope | Factor | Emissions |
|---|---|---|---|
| Heat delivered | 2 | 0.17529 | 14,023 kg |
| Upstream fuel (well-to-tank) | 3, category 3 | 0.03341 | 2,673 kg |
Market-based reporting
The Scope 2 Guidance's two methods apply to heat as well as electricity. If your heat contract comes with a specific emission rate, that rate is your market-based figure; otherwise, the location-based factor is used for both.
Calculate it
Scope 2
Purchased heat and steam calculatorHeat or steam bought from a district or industrial network.
Scope 3
Upstream fuel and energy calculatorWell-to-tank emissions of the fuels, electricity and heat you reported in Scope 1 and 2.
Scope 3
Grid transmission and distribution losses calculatorElectricity, heat and steam lost in networks before reaching your sites.
More on Scope 2: electricity and heat
Sources
- UK Government GHG Conversion Factors for Company Reporting 2026, Department for Energy Security and Net Zero (accessed 2026-10-08)
- GHG Protocol Scope 2 Guidance, Executive Summary, World Resources Institute / WBCSD (2015) (accessed 2026-10-08)
- Technical Guidance for Calculating Scope 3 Emissions, Chapter 3: Category 3, World Resources Institute / WBCSD (accessed 2026-10-08)
This guide explains methods and published data. It is not legal or assurance advice. LCALens is designed to align with the GHG Protocol and ISO 14064-1 but is not certified or endorsed by either body.