Machinery Industry, Sustainability
Designing Scope 3 Emissions Methodology
Preview/Excerpt
MachineryCo aimed to quantify its Scope 3 emissions across 15 categories to prepare for SBTi target setting, but faced fragmented data, limited calculation capabilities, and inconsistent methodologies. SprintlyWorks developed a structured emissions inventory framework, aligned with GHG Protocol standards, enabling high-coverage estimation, category-specific insights, and actionable recommendations for reduction planning.
Outcomes
98%
of Scope 3 emissions attributed to Category 11 (Use of Sold Products)
350
suppliers reviewed for upstream emissions coverage
Problem Summary
MachineryCo faced challenges in calculating its Scope 3 emissions due to fragmented data systems, limited supplier disclosures, and lack of standard methodologies across its global operations. With SBTi target-setting on the horizon, the company needed a robust, high-coverage emissions inventory that aligned with GHG Protocol standards and enabled transparent, actionable insights across 15 emission categories including high-impact areas like sold products and purchased goods.
Situation
MachineryCo, a global industrial equipment manufacturer, sought to quantify its Scope 3 emissions to prepare for upcoming SBTi commitments. While internal systems supported Scope 1 and 2 tracking, the company lacked a clear methodology, data sources, and ownership structure for Scope 3, particularly across the 15 categories outlined in the GHG Protocol. Key challenges included limited supplier-reported emissions data, outdated estimation practices, and reliance on software not built for Scope 3 granularity. High-emitting categories, such as Purchased Goods, Transportation, and Use of Sold Products, required tailored methodologies, data models, and calculation tools to ensure accuracy and strategic decision-making.
Key Research Question
The key question driving the project was:
- What is the appropriate calculation methodology for each of the 15 Scope 3 categories as defined by the GHG Protocol, and how should MachineryCo apply them to its operations?
- What data points and carbon emission factors are required to estimate MachineryCo’s Scope 3 emissions, and which internal and external sources can provide them?
- What is the total estimated Scope 3 emissions footprint of MachineryCo, and which categories and supplier groups contribute most significantly to this footprint?
Our Approach
SprintlyWorks adopted a three-phase approach to help MachineryCo build a high-coverage, standards-aligned Scope 3 emissions inventory in preparation for SBTi target setting.
- Define Methodology and Data Model:
We began by aligning all emissions calculations with the GHG Protocol’s 15-category framework. For each category, we identified the applicable calculation methods, necessary data points, and appropriate carbon emission factors. Internal SAP data, supplier disclosures, and external databases like Exiobase and Carbon Footprint Ltd. were mapped to fill data gaps. We also developed estimation assumptions and sampling strategies to accommodate data availability variations across geographies and business units.
- Estimate Category-Level Emissions:
We conducted a detailed emissions estimation for 12 upstream and downstream categories, including Purchased Goods, Capital Goods, Transportation, Business Travel, and Waste. For each, we designed sampling methodologies, segmented site and product data, and created Excel-based models for emissions calculation. This enabled MachineryCo to generate high-confidence, audit-ready estimates despite data limitations. Categories with low spend or activity were benchmarked and excluded as per GHG and SBTi guidelines.
- Analyze Sold Products and Build Tools:
Recognizing that most emissions came from Category 11 (Use of Sold Products), we modeled emissions for top-selling pump products based on sales data, energy usage, and geographic deployment. We incorporated runtime assumptions from Europump guidance and country-specific electricity mixes. The final delivery included a flexible Excel tool, category-specific manuals, and a strategic recommendation report to guide future data collection and target setting.
The final delivery included a flexible Excel tool, category-specific manuals, and a strategic recommendation report. By co-developing solutions with end-users and balancing global consistency with local adaptability, we ensured the tools were both practical and strategic.
Results
The project equipped MachineryCo with a complete Scope 3 emissions inventory, covering 15 categories and totaling 140.1 million tCO₂e for 2024. Category 11 alone accounted for 98% of total emissions, driven by improved methodology and expanded pump coverage. The new Excel tool standardized calculations, embedded assumptions, and enabled repeatable estimations across business units. Supplier-level analysis captured emissions and target readiness from 350 vendors, providing a foundation for target-setting. By aligning with GHG Protocol standards and integrating user feedback, the project set the stage for MachineryCo’s SBTi-aligned emissions reduction strategy.
“Complex emissions, simplified into a clear, actionable framework.”
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