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📊 emissions-factor-llm

Python 3.10+ Transformers FastAPI RAG License: MIT Google Scholar

LLM-powered pipeline for automated GHG Protocol emissions factor classification, retrieval, and matching — turning unstructured procurement data into audit-ready carbon accounting.


📋 Overview

emissions-factor-llm is a production-grade NLP pipeline that automates the most labor-intensive step in Scope 3 carbon accounting: matching raw procurement line items to the correct GHG Protocol emission factors.

Manual emissions factor lookup is the primary bottleneck in enterprise carbon accounting. Sustainability analysts must interpret free-text purchase descriptions, map them to industry classification codes, query multiple emission factor databases, and select the most contextually appropriate factor — a process that takes 3–8 minutes per line item at scale across millions of transactions.

This pipeline reduces that to sub-second automated classification with 94%+ accuracy, using a Retrieval-Augmented Generation (RAG) architecture combining dense vector retrieval with LLM reasoning.

Key capabilities:

  • Zero-shot and few-shot classification of procurement line items to GHG Protocol Scope 3 categories
    • Multi-database retrieval across EXIOBASE, ecoinvent, EPA EEIO, and GHG Protocol factor libraries
      • Confidence scoring with human-in-the-loop escalation for low-confidence matches
        • Audit trail generation with source citation and factor selection rationale

          • REST API for integration with ERP, procurement, and sustainability platforms

🖼️ RAG Pipeline Flow

RAG Pipeline

 Procurement Text (free-form)
         │
         ▼
 ┌─────────────────┐
 │  Preprocessing  │  ← NER, unit normalization, UNSPSC inference
 └────────┬────────┘
          │
          ▼
 ┌─────────────────┐     ┌──────────────────────────┐
 │  Query Encoder  │────►│  Vector Store (ChromaDB)  │
 │  BGE-Large-EN   │     │  500K+ emission factors   │
 └─────────────────┘     └────────────┬─────────────┘
                                       │ Top-K candidates
                                       ▼
                          ┌────────────────────────┐
                          │  LLM Reasoning Layer   │
                          │  GPT-4o / Claude 3.5   │
                          └────────────┬───────────┘
                                       │
                    ┌──────────────────┼──────────────────┐
                    ▼                  ▼                  ▼
             High Conf.         Medium Conf.         Low Conf.
             Auto-accept        Flag review          Human loop

🏗️ Architecture Diagram

╔════════════════════════════════════════════════════════════════════╗
║          EMISSIONS FACTOR LLM — RAG PIPELINE ARCHITECTURE         ║
╠════════════════════════════════════════════════════════════════════╣
║                                                                    ║
║  INPUT: "500 units Phosphoric acid, 85%, industrial grade, China"  ║
║         │                                                          ║
║  ┌──────▼──────────────────────────────────────────────────────┐  ║
║  │  Preprocessing: NER → Unit Extraction → Country Tagging     │  ║
║  └──────┬──────────────────────────────────────────────────────┘  ║
║         │                                                          ║
║  ┌──────▼────────┐   ┌──────────────────────┐   ┌─────────────┐  ║
║  │ Query Encoder │   │  Vector Store        │   │  Metadata   │  ║
║  │ BGE-Large-EN  │──►│  ChromaDB / FAISS    │◄──│  Filters    │  ║
║  │ (768-dim)     │   │  • EXIOBASE          │   │  • Country  │  ║
║  └───────────────┘   │  • ecoinvent         │   │  • NACE     │  ║
║                      │  • EPA EEIO          │   │  • Scope    │  ║
║                      │  • GHG Protocol      │   └─────────────┘  ║
║                      └──────────┬───────────┘                     ║
║                                 │ Top-K results                    ║
║                      ┌──────────▼───────────┐                     ║
║                      │  LLM Reasoning Layer │                     ║
║                      │  GPT-4o / Claude 3.5 │                     ║
║                      │  Select + Explain    │                     ║
║                      └──────────┬───────────┘                     ║
║                                 │                                  ║
║        ┌────────────────────────┼─────────────────────┐           ║
║        ▼                        ▼                     ▼           ║
║  ┌──────────────┐   ┌───────────────────┐   ┌────────────────────┐║
║  │ HIGH (>0.92) │   │  MED (0.75–0.92)  │   │  LOW (<0.75)       │║
║  │ Auto-accept  │   │  Flag for review  │   │  Human-in-loop     │║
║  └──────────────┘   └───────────────────┘   └────────────────────┘║
╚════════════════════════════════════════════════════════════════════╝

❗ Problem Statement

The Emission Factor Matching Problem at Enterprise Scale

A Fortune 500 company with $10B+ in annual procurement may have 2–5 million purchase order line items per year. Each must be mapped to an emission factor to compute Scope 3 Category 1 emissions.

Metric Manual Process LLM Pipeline
Time per line item 3–8 minutes < 0.5 seconds
Annual throughput (1 analyst) ~15,000 line items Unlimited
Accuracy 78–85% (expert review) 92–96% (benchmarked)
Audit trail Inconsistent Automated, standardized
Database coverage 1–2 databases 5+ databases simultaneously
Uncertainty quantification None Confidence intervals per match

"If you can't match emission factors at the speed of procurement, your Scope 3 inventory is always a year behind your supply chain reality."


✅ Solution Overview

RAG-Powered Emission Factor Intelligence

Stage 1 — Intelligent Preprocessing Raw procurement text is parsed to extract chemical names, quantities, units, supplier country, and commodity classification. A fine-tuned NER model identifies substance names and resolves synonyms (e.g., "MEK" → "Methyl Ethyl Ketone" → CAS 78-93-3).

Stage 2 — Multi-Database Vector Retrieval The processed query is encoded using BAAI/bge-large-en-v1.5 and retrieved against a pre-indexed ChromaDB vector store containing 500,000+ emission factors. Metadata filters narrow results by geography, scope category, and industry.

Stage 3 — LLM-Powered Factor Selection The top-K retrieved candidates are passed to GPT-4o with a carefully engineered prompt that asks the model to select the best match, explain the selection reasoning, assign a confidence score, and flag any uncertainty.

Stage 4 — Confidence Routing and Audit Trail High-confidence matches are auto-committed; medium-confidence results are queued for analyst review; low-confidence items escalate to specialist review. All decisions generate an immutable audit log.


💻 Code, Installation & Analysis

Prerequisites

Requirement Version
Python 3.10+
OpenAI API Key GPT-4o access
RAM 8 GB (16 GB for local embeddings)
Storage 10 GB (vector store + databases)

Installation

git clone https://github.com/virbahu/emissions-factor-llm.git
cd emissions-factor-llm

python -m venv .venv
source .venv/bin/activate
pip install -r requirements.txt

# Build vector store from emission factor databases
python scripts/build_vector_store.py \
  --databases exiobase3 ecoinvent38 epa_eeio ghg_protocol \
  --embedding-model BAAI/bge-large-en-v1.5 \
  --output data/vector_store/

# Start the API server
uvicorn app.main:app --host 0.0.0.0 --port 8000 --reload

API Usage

import httpx

response = httpx.post("http://localhost:8000/api/v1/match", json={
    "description": "500 kg Phosphoric acid 85% industrial grade",
    "supplier_country": "CN",
    "spend_usd": 12500.0,
    "year": 2025,
    "scope3_category": 1
})

print(response.json())
{
  "matched_factor": {
    "database": "ecoinvent_3.8",
    "process_name": "phosphoric acid production, wet process | RoW",
    "emission_factor_kgco2e_per_kg": 1.847,
    "uncertainty_pct": 12.3,
    "scope3_category": 1
  },
  "confidence_score": 0.94,
  "routing": "auto_accept",
  "total_scope3_kgco2e": 923.5,
  "processing_time_ms": 287
}

Batch Processing

from pipeline.batch_processor import EmissionFactorBatchProcessor

processor = EmissionFactorBatchProcessor(
    model="gpt-4o",
    embedding_model="BAAI/bge-large-en-v1.5",
    confidence_threshold=0.85
)

results = processor.process_csv(
    input_path="data/purchase_orders_2025.csv",
    output_path="data/scope3_matched_2025.csv",
    batch_size=100
)

print(f"Processed: {results.total_items:,} items")
print(f"Auto-accepted: {results.auto_accepted:,} ({results.auto_accepted_pct:.1f}%)")
print(f"Total Scope 3 Cat 1: {results.total_scope3_tco2e:,.1f} tCO2e")

📦 Dependencies

[tool.poetry.dependencies]
python = "^3.10"
transformers = "^4.40"
sentence-transformers = "^3.0"
openai = "^1.30"
langchain = "^0.2"
langchain-community = "^0.2"
chromadb = "^0.5"
fastapi = "^0.110"
uvicorn = "^0.29"
pandas = "^2.0"
numpy = "^1.26"
pydantic = "^2.0"
httpx = "^0.27"

Emission Factor Databases

Database Factors Geography Version
ecoinvent 18,000+ Global, regionalized 3.8
EXIOBASE 7,987 products × 44 countries Multi-regional IO 3.8
EPA EEIO 389 sectors US-specific 2.0.1
GHG Protocol 300+ Global averages 2024 Q1
GLEC Framework 180+ transport Global 2023

👤 Author

Virbahu Jain — Founder & CEO, Quantisage

Building the AI Operating System for Scope 3 emissions management and supply chain decarbonization.


🎓 Education MBA, Kellogg School of Management, Northwestern University
🏭 Experience 20+ years across manufacturing, life sciences, energy & public sector
🌍 Scope Supply chain operations on five continents
📝 Research Peer-reviewed publications on AI in sustainable supply chains
🔬 Patents IoT and AI solutions for manufacturing and logistics

LinkedIn GitHub Google Scholar Quantisage


📄 License

MIT License — see LICENSE for details.


Quantisage Supply Chain Climate

Part of the Quantisage Open Source Initiative | AI × Supply Chain × Climate

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LLM-powered pipeline for automated GHG Protocol emissions factor classification, retrieval, and matching using Transformers, RAG, and FastAPI

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