Work in Progress: This methodology is in the ideation phase and under active development. We welcome your feedback and suggestions to help shape this framework.
Pillar Weight Methodology
A science-based approach to determining where each company can have the greatest climate impact, grounded in established frameworks from CDP, SASB, PCAF, and peer-reviewed academic research.
Methodology Summary
We use a Sector Archetype Model with company-specific adjustments. Each company is assigned to one of 10 sector archetypes, which provides base pillar weights derived from SASB materiality classifications and CDP Scope 3 relevance data. These base weights are then adjusted based on company-specific evidence such as avoided emissions ratios and documented climate finance activities.
Three-Step Weight Determination Process
Assign Sector Archetype
Classify the company into one of 10 sector archetypes based on their primary business model and revenue sources. This determines the base weight template.
Apply Adjustment Factors
Adjust base weights based on company-specific evidence: avoided emissions ratio (P3), climate finance activities (P4), and policy leadership (P5).
Designate Primary/Secondary
Apply threshold rules: Primary pillar must be ≥30%. Secondary pillar must be ≥15% and at least 10% below Primary. Normalize weights to sum to 100%.
Sector Archetype Templates
Each archetype has base pillar weights derived from SASB materiality classifications and CDP Scope 3 relevance data. Click on any archetype to see the calculation example.
Heavy Industry
Steel, cement, chemicals - operations-dominant with high Scope 1-2 emissions
Green steel production requires transforming core operations (P1: 50%). Value chain decarbonization for raw materials is secondary (P2: 25%).
Consumer Goods & Retail
Retail, apparel, food - value chain dominant with extensive supplier networks
85%+ of emissions in supply chain (P2: 60%). Product design for circularity and lower footprint is secondary (P3: 15%).
Financial Services
Banks, asset managers, insurers - financed emissions dominate impact
Financed emissions are 700x operational footprint (P4: 80%). Own operations are negligible. PCAF methodology validates this allocation.
Professional Services
Consultancies, engineering firms - enabling impact through client solutions
Engineering climate solutions at GW-scale creates 280x impact ratio (P3: 60%). Climate finance advisory (LTA, green bonds) adds secondary impact (P4: 15%).
Technology
Software, hardware, semiconductors - mixed operations and supply chain
Manufacturing supply chain dominates emissions (P2: 40%). Product efficiency and enabling solutions create secondary impact (P3: 30%).
Utilities & Energy
Electric, gas, water utilities - generation and distribution focused
Power generation is the core emissions source (P1: 60%). Fuel supply chain and customer solutions are secondary.
Real Estate & Construction
REITs, developers, construction - building operations and embodied carbon
Building operations and construction emissions (P1: 40%). Embodied carbon in materials (P2: 25%). Green building solutions (P3: 20%).
Transportation & Logistics
Airlines, shipping, rail, logistics - fleet operations dominant
Fleet fuel consumption dominates (P1: 50%). Fuel supply chain and customer logistics (P2: 30%).
Agriculture & Food
Farming, food processing, beverages - land use and supply chain
Agricultural supply chain and ingredients (P2: 50%). Processing operations (P1: 20%). Product as climate solution (P3: 15%).
Extractives & Mining
Oil & gas, mining - extraction and processing operations
Extraction and processing operations (P1: 55%). Scope 3 from product use is significant but outside direct control.
Company-Specific Adjustment Factors
Avoided Emissions Ratio
If a company's avoided emissions exceed their own footprint by a significant ratio, increase P3 weight.
| Ratio | P3 Adjustment |
|---|---|
| 10-50x | +5% |
| 50-100x | +10% |
| >100x | +15% |
Based on WBCSD Avoided Emissions Guidance v2.0
Climate Finance Activities
If a company has documented climate finance activities beyond their sector baseline, increase P4 weight.
| Evidence | P4 Adjustment |
|---|---|
| 1-2 activities | +0% |
| 3-4 activities | +5% |
| 5+ activities | +10% |
Activities: Green bonds, LTA, Pay-As-You-Save, carbon markets, etc.
Policy Leadership
If a company demonstrates exceptional policy engagement and advocacy, increase P5 weight.
| Evidence | P5 Adjustment |
|---|---|
| Basic advocacy | +0% |
| Industry leadership | +5% |
| Direct lobbying | +5% |
Max +10% for exceptional policy leadership
Detailed Calculation Example: AFRY
AFRY AB
Engineering & Consulting | Sweden
Assign Sector Archetype
AFRY is an engineering consultancy with 70%+ revenue from climate solutions advisory. Assigned to: Professional Services archetype.
Apply Adjustment Factors
Avoided Emissions Ratio: ~280x — AFRY's 27+ GW solar advisory enables ~10-15 MtCO₂e/year avoided emissions, compared to ~44,000 tCO₂e operational footprint.
Reference: WBCSD Avoided Emissions Guidance v2.0
5 documented climate finance activities:
- Pay-As-You-Save building energy financing model
- Lender's Technical Advisor (LTA) for 344.5 MW Finland wind project
- Green Bond Framework advisory for Aker Horizons
- Carbon market modelling for investors
- Climate and transition risk assessments
5+ activities = +5% adjustment (could be +10% with more quantified evidence)
AFRY has policy engagement (Fossil Detox Report, WEF Davos) but not exceptional industry-leading lobbying. Base weight maintained.
Calculate Final Weights & Designate Primary/Secondary
| Pillar | Base | Adjustment | Raw | Normalized | Designation |
|---|---|---|---|---|---|
| P1: Operations | 5% | +0% | 5% | 5% | - |
| P2: Value Chain | 10% | +0% | 10% | 10% | - |
| P3: Solutions | 60% | +15% | 75% | 75% | PRIMARY |
| P4: Finance | 10% | +5% | 15% | 15% | SECONDARY |
| P5: Policy | 10% | +0% | 10% | -5%* | - |
*Normalization: Raw total = 115%. P5 reduced by 5% to normalize to 100%. Final: P1: 5%, P2: 10%, P3: 75%, P4: 15%, P5: 5% (sum = 110%, further normalized proportionally if needed).
Final AFRY Pillar Weights
AFRY's climate impact is primarily through enabling client decarbonization (P3), with significant secondary impact through innovative climate financing mechanisms (P4).
Academic & Industry References
This methodology is grounded in peer-reviewed research and established industry frameworks. The following sources provide the scientific foundation for our approach.
Khan, M., Serafeim, G., & Yoon, A. (2016). Corporate Sustainability: First Evidence on Materiality
The Accounting Review, 91(6), 1697-1724
Firms with good performance on material sustainability issues significantly outperform those with poor performance. This validates sector-specific materiality weighting.
CDP (2024). Technical Note: Relevance of Scope 3 Categories by Sector
CDP Guidance Document (Version 3.0)
Provides sector-specific guidance on which Scope 3 categories are most material, based on literature review and analysis of actual CDP response data.
Partnership for Carbon Accounting Financials (2022). The Global GHG Accounting and Reporting Standard for the Financial Industry
PCAF (Second Edition)
Attribution Factor = Outstanding Amount ÷ (Total Equity + Debt). Provides scientific basis for allocating financed emissions to financial institutions.
World Business Council for Sustainable Development (2025). Guidance on Avoided Emissions: Helping Business Drive Innovations and Scale Solutions Toward Net Zero
WBCSD (Version 2.0)
Provides methodology for calculating avoided emissions - the positive impact created when comparing a low-carbon solution to a reference scenario.
SASB (now IFRS Foundation) (2023). SASB Materiality Map
IFRS Sustainability Disclosure Standards
Maps 26 sustainability issues across 77 industries using the Sustainable Industry Classification System (SICS). Provides industry-level materiality determination.
ADEME, CDP, World Benchmarking Alliance (2024). ACT Framework 2.0: Assessing low-Carbon Transition
ACT Initiative
Provides sector-specific module weighting for climate transition assessment, including guidance on avoided emissions calculation.