Machine Learning Models for Prediction of Scope 3 Carbon Emissions
36 Pages Posted: 20 Jul 2022
Date Written: June 1, 2022
For most organizations, the vast amount of carbon emissions occur in their supply chain and in the post-sale processing, usage, and end of life treatment of a product, collectively labelled scope 3 emissions. In this paper, we train machine learning algorithms on 15 reported types of scope 3 emissions. The models utilize as inputs widely available financial statement variables, scope 1 and 2 emissions, and industrial classifications. We find that most reported scope 3 emission types can be predicted with higher accuracy using Adaptive Boosting machine learning algorithms relative to linear regression models and other supervised machine learning algorithms.
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