Methodology Description

• Category 1: Total Purchased Goods and Services: This value was estimated using the average data method for the top 85% of our purchased raw materials globally, and top 84% of packaging by weight. The values were extrapolated to account for the impact of our entire portfolio of purchased goods. The life cycle assessment (LCA) cradle-to-gate emission factors used to calculate the impact of each purchased good were obtained from LCI (Life Cycle Inventory) standard datasets including Sphera and the European Council of the Paint, Printing Ink, and Artist’s Colours Industry (CEPE) databases.

• Category 2: Capital Goods: U.S. capital expenditures are used as the basis of this estimate, categorizing fixed asset additions and expenditures based on asset type and assigning a relevant U.S. Environmental Protection Agency (EPA) emissions factor to estimate the associated GHG emissions. Since U.S. capital expenditures represent the majority of total global company spend, this amount was then extrapolated to estimate total global company GHG emissions associated with capital goods.

• Category 3: Fuel- and Energy-Related Activities: The fleet energy, onsite fuel and natural gas purchases were combined with U.K. Department for Environment, Food and Rural Affairs (Defra) emissions intensities to calculate energy activities not captured under Scopes 1 or 2. Our methodology excluded biogenic carbon from ethanol consumption, which is immaterial to our operation. Region-specific electricity grid mix (indirect) datasets from Sphera were used to extract relevant emission factors for electricity. Wherever country data was not available, U.S. average values were used. Quantifications of CO₂e were done using the Intergovernmental Panel on Climate Change (IPCC's) fifth Assessment Report (AR5) methodology.

• Category 4: Upstream Transportation and Distribution: To calculate our upstream transportation impact, we multiplied the total amount of purchased raw materials and packaging by emissions factors for each mode of transportation utilized in Sherwin-Williams value chain. We used transportation distances from Product Category Rules developed by the coatings industry and calculated the emissions factors in the GaBi LCA software using the EPA's Tool for Reduction and Assessment of Chemicals and Other Environmental Impacts (TRACI) 2.2 LCA Methods.

• Category 5: Waste Generated in Operations: The waste quantities used to calculate the impact of waste is provided directly from our manufacturing, retail and other locations. Using emission factors from Sphera datasets, we estimated the impact of waste treatment or landfill as appropriate for the individual waste stream. 

• Category 6: Business Travel: Business travel emissions are primarily driven by air travel, with additional contributions from rental vehicles, rideshare services, and a limited amount of rail. Emissions data are obtained from relevant travel service providers. Currently, complete data for travel booked outside of approved service provider channels are not available; however, such activities are expected to be negligible as they are limited by policy. Given that the calculated emissions based on available data represent an immaterial percentage of the Company’s total Scope 3 inventory, the Company has not pursued collection of data for travel booked outside of approved channels.

• Category 7: Employee Commuting: The employee commuting emissions calculation is estimated based on the average data method and includes simplified assumptions, including average daily commuting distances, average modes of transport and average number of commuting days per year.

• Category 9: Downstream Transportation: To estimate downstream transportation emissions, we multiplied product production quantities by emission factors for each mode of transportation utilized in Sherwin-Williams value chain. We used transportation distances from the Product Category Rules developed by the coatings industry and calculated the emission factors in GaBi software using the EPA's TRACI 2.2 LCA Methods. In North America, Sherwin-Williams owns the distribution via its fleets, so the impact from production facility to Point of Sale is counted in Scopes 1 and 2.

• Category 10: Processing of Sold Products: This category considers the GHG emissions from energy required to cure certain industrial coatings in our product portfolio.  The impact of coating application and waste generated in the application process was determined to be immaterial and not included in the calculation. Emission factors used to convert energy to operate curing ovens to emissions were sourced from EPA (April 2023) and International Energy Agency (IEA) (September 2025). Information on energy required to cure the coatings was sourced from a combination of customer-provided data, trade association data, and Sherwin-Williams environmental benchmarking work.

• Category 12: End-of-Life Treatment of Sold Products: This category includes GHG emissions from waste disposal and treatment of products and packaging at the end of their life. Our product portfolio consists of products considered as intermediates that require further treatment, as well as those considered final products, which according to the GHG protocol have different calculations for determining emissions at this stage. Due to the complexity of our portfolio, we have not assessed each individual product by category (intermediate or final product). As a conservative approximation, we considered our powder coatings as intermediate products, while the rest were considered final products. For intermediate products, we assumed 10% of the coating remains unused and disposed (based on the Architectural Product Category Rules), while we assumed the remaining paint and the purchased packaging material is disposed as final product. Emission factors from the EPA Emission Factor Hub were used in the estimation.

Other categories assessed as not relevant to Sherwin-Williams

• Category 8: Upstream Leased Assets: We lease assets with the intention of operating them directly, maintaining operational control over these assets. As a result, the associated emissions are reported under Scope 1 or Scope 2, depending on the source. We do not have material upstream leased assets that fall outside our operational control.

• Category 11: Use of Sold Products: Once our coatings are applied to a substrate or customer manufactured good, there are no relevant emissions from our coatings that need to be accounted for during the use phase of that product.

• Category 13: Downstream Leased Assets: This category is not relevant as Sherwin-Williams does not lease significant Company-owned assets to other parties at this time.  

• Category 14: Franchises: Sherwin-Williams owns its stores and does not operate franchised locations at this time.

• Category 15: Investments: Sherwin-Williams invests as a Limited Partner in certain entities formed for the purpose of investing in real estate that qualifies for historic or low-income housing tax credits. Most entities in which the Company invests do not own the associated real estate but rather invest in another entity that directly or indirectly owns the real estate. Therefore, Sherwin-Williams investments are passive funds that do not produce any Scope 1 and 2 GHG emissions themselves. Rather, the emissions associated with real estate would be included in the Scope 3, Category 15 emissions of Sherwin-Williams investments.