A Supplier Emission Factor (SEF) is a monetary ratio that can be used in the expense module. 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?
To compute a supplier emission factor, we collect information disclosed by the company. It can be in a report published by the company (e.g. sustainability report, consolidated report), via a public disclosure platform (e.g. CDP), or via a survey or GHG report carried out by Greenly.
💡 SEF = (Scope 1 + Scope 2 location-based + Scope 3 Upstream) / Revenue
If the required information is not available, there may be some flexibility
If the required information is not available, there may be some flexibility
Scope 2 market-based GHG emissions can be used.
Total Scope 3 GHG emissions can be used (i.e. upstream + downstream)
Partial Scope 3 GHG emissions may be used, provided that significant categories for the sector are included, with a minimum of Category 1 – Purchased Goods and Services for all sectors.
Revenue may be estimated or extrapolated.
🤔 When should a SEF be used?
A SEF is only created for companies in certain sectors, primarily the service and tech sectors. The key principle is to create a SEF only for the calculation of GHG emissions:
When an activity-based study is not feasible.
When there is an increase in calculation accuracy compared to a generic average monetary emission factor.
When the company has a single core activity and not diversified businesses.
The SEF is also systematically compared to a benchmark value to ensure consistency (the average of SEFs for a given sector).
📌 Minimum Requirements
Mandatory Data
Mandatory Data
Company Name
Greenly Industry
Sustainability or GHG Inventory Report
Inventory Year
Scope 1 (tCO2e)
Scope 2 (tCO2e)
Scope 3 - Total (tCO2e)
Report (disregard if this is the same report as the GHG inventory)
Revenue (millions)
Currency
Revenue Year (should be the same as GHG inventory)
Highly Recommended Data
Highly Recommended Data
Scope 2 - Location Based (tCO2e)
Scope 2 - Market Based (tCO2e)
Scope 3 - Upstream (tCO2e)
Recommended Data
Recommended Data
Company Short Description
Company Identifier (e.g., NACE, ISIC, NAICS code)
Company Website
Scope 3 - Breakdown per category
Scope 3 - Purchased goods and services (tCO2e)
Scope 3 - Capital goods (tCO2e)
Scope 3 - Fuel- and energy-related activities not included in Scope 1 or Scope 2 (tCO2e)
Scope 3 - Upstream transportation and distribution (tCO2e)
Scope 3 - Waste generated in operations (tCO2e)
Scope 3 - Business travel (tCO2e)
Scope 3 - Employee commuting (tCO2e)
Scope 3 - Upstream leased assets (tCO2e)
Scope 3 - Downstream transportation and distribution (tCO2e)
Scope 3 - Processing of sold products (tCO2e)
Scope 3 - Use of sold products (tCO2e)
Scope 3 - End-of-life treatment of sold products (tCO2e)
Scope 3 - Downstream leased assets (tCO2e)
Scope 3 - Franchises (tCO2e)
Scope 3 - Investments (tCO2e)
Done by Greenly
Done by Greenly
Greenly Category Name
Report Audit Check
SEF Calculation
Benchmark Quality Check
Validation?
Justification if not validated
✅ Quality Checks
A confidence index and accuracy gain ratio will be computed and provided for each SEF.
Step 1: Validate Scope 1, 2, 3 GHG Emissions Calculation
Step 1: Validate Scope 1, 2, 3 GHG Emissions Calculation
Who undertook the study?
Is a justification document provided?
Who computed the GHG emissions? E.g. Carbon accounting software, consulting firm, internal computations.
Is the report audited, validated by a third party?
Were the results published on a public website? E.g. Company website, CDP
Are all Scopes included? Is Scope 2 location-based or market-based? Are all Scope 3 categories included?
What Emission Factors used? Are the sources reliable?
What is the percentage of spend-based versus activity-based data?
Step 2: Validate Turnover
Step 2: Validate Turnover
Is it provided by the company or computed via sector average (turnover per employee)?
Is it the same year as the GHG inventory?
Step 3: Validate MEF - Benchmark Comparison
Step 3: Validate MEF - Benchmark Comparison
Select an industry. If the company doesn't have single core activity but not diversified businesses, the SEF shouldn't be created.
Compare SEF to the benchmark value of companies in the same sector.
The SEF must be included in the interval
[Benchmark / ( 1 + 100%) ; Benchmark * ( 1 + 100%)]
Step 4: Validate MEF - Average MEF Comparison
Step 4: Validate MEF - Average MEF Comparison
Compare SEF with the closest generic average MEF provided by Exiobase, USEEIO or Base Empreinte.
The SEF must be included in the interval
[Average MEF / ( 1 + 300%) ; Average MEF * ( 1 + 300%)]
Step 5: Create SEF
Step 5: Create SEF
If the SEF validates the benchmarks checks, create the SEF and compute the confidence index.
If not validated, justify why the SEF wasn't created.
🧩 Example
Example 1 - Digital And Software Sector
Example 1 - Digital And Software Sector
Company X shared it's 2024 GHG report, it was done with a carbon accounting platform.
The following details were provided:
Scope 1: 1.78 tCO2e
Scope 2 - Location-based: 0.93 tCO2e
Scope 2 - Market-based: 0 tCO2e
Scope 3 - Upstream: 881 tCO2e
Scope 3 - Downstream: excluded
Scope 3 - Total: 881 tCO2e
The 2024 revenue was also shared: €9,250,273
The SEF is computed: SEF = 0.096 kgCO2e/€
For that sector, the benchmark value is 0.062 kgCO2e/€.
The SEF for company X is included in the confidence interval and hence is created.
The confidence score for this SEF is high as
All 8 upstream Scope 3 GHG Protocol categories were provided,
The report was done be a well known carbon accounting software company,
And the revenue is sourced for the financial statements of company X.
The uncertainty is also computed and equal to 30%.
Example 2 - Audit And Consulting Sector
Example 2 - Audit And Consulting Sector
Company Y shared it's 2024 GHG report, it was done by a consulting company and audited by an independent third party.
The following details were provided:
Scope 1: 36,959 tCO2e
Scope 2 - Location-based: 18,958 tCO2e
Scope 2 - Market-based: 0 tCO2e
Scope 3 - Upstream: 553,806 tCO2e
Scope 3 - Downstream: excluded
Scope 3 - Total: 553,806 tCO2e
The 2024 revenue was also shared: $64,900,000,000
The SEF is computed: SEF = 0.0094 kgCO2e/$
For that sector, the benchmark value is 0.031 kgCO2e/€.
The SEF for company Y is not included in the confidence interval and hence is not created.
The justification is the following: Scope 3 emissions only included Category 1 - Purchased Products and Services.