A Supplier Emission Factor (SEF) is a monetary ratio that can be used in the categorization algorithm. It is linked to a specific company and is computed by dividing the company’s GHG emissions by its revenue (kgCO2e / currency)
How are SEFs computed?
A SEF is computed by using information disclosed by the company (e.g. sustainability report, supplier engagement, consolidated report, public platform, Greenly Data, etc.).
➕ Formula: supplier MEF = (Scope 1 + Scope 2 location-based + Scope 3 upstream) / Revenue
Quality Checks
A SEF is only created for companies in certain sectors, mainly the service and tech sector. The key principle is to only create a SEF to compute GHG emissions when an activity-based study isn't feasible.
The SEF is also systematically compared to a benchmark value (average of SEF for a given sector).
Accuracy Gain
When a company moves from a generic MEF to a supplier one, we display an estimated precision gain.
The precision gain is in between 5% and 20% and depends on the reliability and quality of the GHG inventory and revenue.