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Scope 3 Accounting for Transportation Sector in

a Pharmaceutical Company
Nakul Bageja · Follow
4 min read · Aug 18

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Scope 3 Accounting isMedium
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supply chain. This post houses a detailed explanation of a Scope 3 Accounting project
that focuses on transportation data within a pharmaceutical company. Below, we
provide an overview of the project’s contents and significance.

Table of Contents
1. Project Description

2. Installation

3. Data Collection

4. Assumptions Made Regarding the Data

5. Steps Taken to Create the Project

6. Results

7. Future Work

Project Description
The primary objective of this project is to implement Scope 3 Accounting specifically
for transportation data within a pharmaceutical company’s operations. The Scope 3
framework allows for identifying and quantifying indirect emissions from various
aspects of the supply chain, including transportation. Our project focuses on collecting
and analyzing transportation data from suppliers, distributors, and partners in the
supply chain to uncover opportunities for emission reduction and sustainability
enhancement. The ultimate goal is to minimize the environmental impact of
transportation activities by identifying key emission contributors.

Installation
The project was developed using the following packages:

Pandas

Numpy

Geopy
 openrouteservice
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country_converter

Data Collection
Key datasets used in the project:

SCMS_Delivery_History_Dataset_20150929.csv — Sourced from Data.world

airports.csv — Comprehensive list of international airports

country-capital-list.csv — Catalog of country capitals

attributed_ports.geojson — Geographic data of international ports

Assumptions Made Regarding the Data

Several assumptions guided our analysis:

The reporting company does not directly purchase transportation services during
the reporting year.

Focus on Scope 3, Category 9 standards (Downstream transportation and

distribution).

The capital city is considered for air/road transport for destination locations, while
the nearest port serves ocean transport.

Source locations are derived from the ‘Manufacturing Site’ column, with
coordinates and city names extracted.

Emission factors are based on generalized values obtained from GHG data.

Steps Taken to Create the Project

To ensure a comprehensive analysis, we followed a set of well-defined steps. If you
would like to learn about the step-by-step implementation of this project, click here.

Results
The outcomes of the project are available in CSV format here. Below is the Power BI
visualization. Stay tuned
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aspects of the results:

1. Top 10 Customers with Highest Emissions: The visualization provides a clear and
concise breakdown of the top 10 customers contributing the most to emissions.
This insight is crucial for stakeholders to identify the significant emission sources
and tailor strategies to engage with these customers. By understanding the
emission hotspots, companies can work collaboratively with these clients to
explore emission reduction initiatives.

2. Distribution of Emission per Mode of Transport: One of the critical aspects of the
visualization is the distribution of emissions across different modes of transport.
This breakdown not only helps in understanding the relative contribution of each
mode but also aids in pinpointing specific transportation avenues that might
require optimization. This information is pivotal in steering decisions toward more
sustainable and eco-friendly transportation.

3. Emissions per Month by Each Mode of Transport: The monthly breakdown of

emissions for each mode of transport offers a dynamic perspective on seasonal
 emission variations. This insight can guide companies in preparing for peak
emission periods
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also underscores the importance of targeted interventions to ensure consistent
emission reduction throughout the year.

4. Top 10 Manufacturing Sites with Highest Emissions: The visualization highlights

manufacturing sites contributing significantly to emissions. This data can act as a
catalyst for on-ground improvements and site-specific emission reduction
initiatives. By focusing efforts on these sites, companies can work towards
lowering emissions at the source and driving positive change at a local level.

Conclusion and Future Work

In conclusion, this project is a tangible demonstration of the real-world application of
Scope 3 accounting to transportation data within the pharmaceutical industry. By
meticulously analyzing and quantifying the emission hotspots across the supply chain,
we empower the stakeholders with the critical insights needed to make informed
decisions. These insights pave the way for targeted interventions to reduce emissions
and enhance sustainability.

Looking ahead, the future of this project holds immense potential. As we refine our
methodologies and data collection processes, we anticipate the opportunity to gather
even more accurate and granular information. This refined data will strengthen the
precision of our carbon accounting and allow us to develop a more sophisticated
algorithm that can seamlessly navigate the complexities of emission quantification.

Take Action: Dive into the GitHub Repository and Uncover Deeper Insights
As we conclude this insightful journey through our Scope 3 Accounting project, we
extend an open invitation to you, our esteemed readers. Step into our GitHub
repository and immerse yourself in the intricacies of code and data that power our
insights. Uncover the layers, challenge assumptions, and contribute your unique
perspective. By engaging with the project firsthand, you’re not just exploring — you’re
joining a community of minds striving for sustainable innovation.

Whether you’re an avid coder, a data enthusiast, or simply curious about making a
positive impact, this repository welcomes you. Your exploration might lead to a new
perspective, a creative solution, or a collaborative discussion that sparks even brighter
ideas. Together, let’s harness the power of data and knowledge to drive meaningful
change. The journey
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future.

Carbon Accounting Data Analysis Data Engineering

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Written by Nakul Bageja

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I'm here to share my day-to-day learnings in the field of engineering. Ranging from full-fledged projects to
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