As the world is becoming more conscious of the environmental impacts of supply chains, many governments and political organisations are making legislation to regulate global emissions. As a result, companies around the world are looking to reduce their carbon footprint and are searching for solutions to help assess their emission production through the tiers.
However, if we want to make progress on a global scale, more companies need to put the appropriate plans in place to start reducing emissions.
- 1/3 CEOs say their business has not implemented any initiatives to reduce emissions
- 42% CEOs say their organisation has not developed an enterprise-level climate risk and emission reduction strategy yet
- 44% of investors see reducing GHG emissions in their own operations and supply chains as a top priority
To help rise to this daunting challenge, here we outline how supply chain software solutions can help to measure emissions all the way back to source.
What are scope 3 emissions?
Scope 3 emissions are indirect emissions produced by a company or organisation outside of their operational control throughout their supply chains. Scope 3 emissions make up 65-95% of most companies’ carbon impact, this includes emissions produced from transportation of finished goods, production of materials and disposal of waste by the customer.
Due to the complexities of Scope 3 emissions, tackling the issue can be complex and requires collaboration from all parties involved in a supply chain, from stakeholders, customers, suppliers and distributors.
Why should companies reduce emissions?
Many organisations are assessing their traditional supply chain to determine areas of improvement. Here are some reasons why.
Environmental responsibility
With the growing concern for the long-term global impacts of carbon emissions, it is a collective responsibility to tackle the issue to prevent further climate catastrophes that can impact planet Earth.
With over 40% of the world’s population vulnerable to climate change, companies must take immediate action and work towards reducing their emissions.
Cost savings
The production of excess carbon emissions requires an excess of energy production, which can be costly to a company. By implementing emission-reduction practices, companies can save money on a wide range of operational costs. This can lead to a reduced overall cost for the consumer of their goods and services.
Regulatory compliance
Many governments across the world have implemented regulations to improve global emissions and ensure socially conscious business practices in their country. This means that many companies must align their practices with government regulations to avoid fines and penalties.
Positive reputation
As more consumers are spending consciously, many are assessing the carbon footprint of companies. By improving the rate of their greenhouse gas (GHG) emissions, companies can align themselves with the social attitudes of consumers, which increases their reputation in the market.
What is the UK’s policy on emissions?
The UK government has made efforts to reduce GHG emissions through legislation and policies that companies are expected to follow.
The UK Climate Change Act has set a target for the country to reduce its GHG emissions by at least 100% compared to emission levels of 1990 by 2050, meaning that the country should be a net-zero emitter by that time.
Companies operating in the UK are required to measure and report their GHG emissions, as well as set targets for reducing their emissions. Companies should be taking steps to decarbonise their operations and supply chains. This could involve implementing energy efficiency measures, switching to renewable energy sources, and investing in low-carbon technologies.
The UK government has also introduced various incentives and schemes to encourage businesses to reduce their carbon footprint, such as the Energy Savings Opportunity Scheme (ESOS) and the Climate Change Levy (CCL).
How can Authenticate help organisations act on emissions?
Authenticate offers a range of tools and services to improve supply chain visibility, collect data and monitor all stages of the supply chain. Here are a few solutions we provide that can help measure and collaborate with suppliers to reduce the emissions companies produce.
Detect areas of emission production with supply chain mapping
Supply chain mapping process provides companies with an insight into all tiers and suppliers (including logistics) within their supply chains. The visibility allows them to detect areas of emission production and gives the information they need to tackle the issue.
Companies can reduce their emissions by working with suppliers and stakeholders to prevent excess emission production.
Monitor emission production with Authenticate’s digital audits
Authenticate offers digital audits for companies to identify supply chain emission risk and compliance information. Digital audits allow companies to address areas of energy wastage and promote more efficient alternatives.
By conducting digital audits, companies can gain insight into the carbon footprint of their supply chain by collecting responses from suppliers on how they are currently measuring energy consumption, transportation emissions, waste generation and much more
Track emission production with key performance indicators (KPIs)
Key Performance Indicators (KPIs) allow companies to reach their emission targets by collecting data and tracking progress against goals at defined intervals. Authenticate offers a KPI management module to help bring supplier and emission data together in one central environment.
Specifications can assess emission production per ingredient/commodity
Specifications can be used to collate product component data and overlay emissions by ingredient or commodity, providing businesses with a comprehensive picture of the carbon footprint of their products. By gathering data on the ingredients and materials used in their products, businesses can identify the sources of emissions throughout their supply chain and take targeted action to reduce their environmental impact.
Use date integrations to reduce carbon emissions
Authenticate can overlay trusted third-party data sources that provide reliable emissions calculations, such as government databases or industry-specific emissions calculators. This data can be integrated into our centralised platform, along with supplier and product data on materials, components, and manufacturing processes.
By bringing these data sources together, businesses can gain insights into the carbon footprint of their entire supply chain and this information can be used to identify areas where emissions can be reduced.
Dashboards can present data on scope 3 emissions
Dashboards are an advantageous mechanism for converting static emissions data that is collected from other modules into actionable insights, which can be utilised for both internal and external reporting and disclosure requirements.
By presenting emissions data in an interactive and dynamic format, organisations can gain a more comprehensive understanding of their environmental impact and recognise opportunities for change.
Authenticate offers supply chain management services for organisations looking to increase their supply chain transparency and reduce scope 3 emissions.
Get in touch with the Authenticate team for more information and support.
