PEAB tackles Scope 3 – with the help of AI
AI as a tool – not the solution
The project focused on Scope 3 Category 1: purchased goods and services – the most complex part of Scope 3.
In total, around 6,000 accounts from different Peab companies were analysed. An account is a cost category for purchases of a certain product, service or other expense. Using the Exiobase database, climate impact can be calculated based on the type of expenditure associated with different accounts. To make it possible to handle this amount of data, an AI model was developed together with IconsOf.
“Peab has already done a great deal of work on materials with a high CO₂ impact, such as asphalt, concrete and bitumen. To meet the broader requirements of the CSRD, they also needed a systematic approach for materials and services that are less environmentally significant – but still need to be reported.”
– Pär Lindman, Miljögiraff
The method for training the AI began with Miljögiraff manually classifying a smaller number of accounts. This manual classification formed the basis for training the AI. Miljögiraff has previously carried out a large number of environmental spend analyses and has extensive experience of classification using Exiobase. The AI model then went through several iterations, with adjustments and verification carried out until it produced stable and reliable results.
The result? An efficient and scalable way for Peab to generate complete Scope 3 data.
For us at Miljögiraff, it is important that AI does not take over. We remain in control, while AI serves as a tool that makes it possible to process volumes of data that would otherwise be practically impossible to handle. In addition to being more efficient, the AI can analyse each transaction and account in greater detail. This means it can dig deeper into individual transactions than would realistically be possible in a manual classification process. Carrying out the same work manually would have required thousands of hours.
“Our strategy is to use the double materiality assessment to turn reporting requirements into business value. By measuring and gaining better control of our emissions, we can manage and monitor progress towards our climate targets more effectively, while also helping our customers with better climate data.”
– Sofie Johansson, Project Manager, PEAB
A robust methodology
An important requirement from Peab was that the methodology had to be reliable enough to withstand external review. Transparency and traceability were therefore ensured at every stage – from the initial classification to the final reporting of results. Peab also had the methodology reviewed by an auditing firm, where it was approved.
Together with IconsOf, we developed an iterative model in which the AI’s interpretation was compared with actual expenditure data until we could determine that the results remained within acceptable margins of deviation. This created both confidence and precision.
With the help of AI, the model is also dynamic from one year to the next. The following year, all accounts can be processed using the same algorithm, while changes in purchasing patterns generate new classifications and updated results. In this way, the model provides a highly representative picture of Peab’s purchasing year after year.
From climate requirements to competitive advantage
Peab’s Scope 3 work is an example of how companies can turn complex reporting requirements into a clear advantage. By creating a climate footprint across the entire value chain – including smaller but harder-to-capture purchases – companies gain both a more complete picture of their climate impact and a stronger basis for decision-making.
“This is the first time we have taken on an organisation of this size in a Scope 3 project. It has demonstrated that we can handle large corporate groups in a way that is both cost-effective and methodologically robust.”
– Pär Lindman, Miljögiraff
“So far, the analysis has mainly confirmed the picture we already had of which parts of our operations have the greatest climate impact. The greatest value is that we now have a time-efficient, systematic and smart method for calculating the parts of our emissions that are complicated to quantify, while representing a relatively small share of our overall climate impact.”
– Sofie Johansson, Project Manager, PEAB
Want to get a better grip on Scope 3?
With Miljögiraff’s methodology, even the largest organisations can meet CSRD requirements through data-driven and efficient climate calculations. We combine AI with human expertise to deliver results that stand up both in the boardroom and in practice.
When detailed accuracy, scalability and cost-efficiency are essential, you have found the right partner.
Read more about PEAB’s sustainability work here and about our partner in this project, IconsOf.
What you get with the Miljögiraff and IconsOf solution
- Cost-efficiency: AI tools make it possible to process large volumes of data without sacrificing detail.
- Robustness: The results can be reviewed and approved by an external auditing firm.
- Scalability: The methodology works for entire corporate groups, regardless of industry or organisational structure.
- Future-proofing: The model is designed to be reused and updated year after year.
What are Scope 3 and CSRD?
Scope 3 covers the indirect emissions that occur throughout a company’s value chain – both upstream and downstream – for example from purchased goods and services, transport, business travel, waste management and the use of sold products. It often represents the largest share of a company’s total climate impact, but it is also the most difficult to measure.
The CSRD (Corporate Sustainability Reporting Directive) requires companies in the EU to report on their impacts on people and the environment – including climate impacts across the entire value chain according to Scope 1, 2 and 3. Doing this successfully requires a structured methodology, access to relevant data and the right tools to create a complete picture.
Understanding Scope 3 is therefore not only a reporting issue – it is a strategic key to reducing impact and meeting the business requirements of the future.
Images: press images, PEAB.