Tracking supply chain emissions is crucial in a company’s pursuit of sustainability. If sustainability is the practice of using good practices to ensure and preserve the health of the environment and prevent climate change, then tracking supply chain emissions allows for an organization to do its part in ensuring that its efforts to curb carbon emissions are working.
Another reason tracking supply chain emissions is so important is that it allows companies to adequately respond to growing regulatory pressures and consumer expectations. Accurate emissions reporting enables organizations to show regulators and consumers that the company is not only being proactive in reducing emissions but also that the carbon emissions reductions that occur are meeting reduction targets.
At Greenabl, we’re laser-focused on helping organizations develop accurate internal emissions reporting programs so that companies can pinpoint areas of opportunities where emissions reductions can go one step further.
As Supply Chain Emissions Rise, Businesses Face Pressure to Act
While retail-facing companies might hesitate to be aggressive with implementing sustainability initiatives because of concerns over how much the initiatives might cost their customers, the cost of getting to net zero carbon is “surprisingly low,” according to a January 2021 article by consulting group BCG. In BCG’s analysis, “full decarbonization would result in end consumer price increases of only 1% to 4% in the medium term—less than $1 on a $40 pair of jeans,” the consulting firm said.
Since the costs for consumers might not be as high as we feared, why aren’t more companies pursuing sustainability initiatives such as tracking their emissions? Part of the problem is that, although organizations may excel at tracking their own emissions, also known as Scope 1 and Scope 2 emissions, they may have a harder time tracking Scope 3 emissions, which are the indirect emissions that occur from transporting materials, goods and finished products along the whole supply chain. As the BCG article mentions, supply chain emissions can be distributed across hundreds of individual suppliers in many countries around the globe.
As a result of this challenge, businesses are turning to innovative tools and technologies to implement pragmatic decarbonization solutions. And this is where Greenabl comes in: we partner with businesses to help them develop effective emission-tracking regimens to achieve their emission reduction goals and meet regulatory compliance.
Pragmatic Mitigation: The Role of Technology in Supply Chain Emission Tracking
Over the years, technology for monitoring and tracking supply chain emissions has certainly grown more sophisticated. Technological tools can now enhance visibility and accuracy in emissions tracking. These tools often use real-time data so that companies can make effective decisions about reducing carbon emissions along the supply chain.
Three Key Tools and Technologies for Emission Tracking
The number of tech firms dedicated to finding ways for companies to reduce supply chain emissions has increased tenfold in recent years, providing businesses with many options. At Greenabl, our decades of collective experience in deploying decarbonization strategies have helped to inform the tools we’ve created for our clients.
Below are descriptions of some of the tools that we and our peers have been developing to help businesses effectively monitor and track supply chain emissions.
1. Emission Tracking Software
Emission tracking software enables businesses to track emissions across the supply chain. Common features for this type of software should include a user-friendly interface, data integration capabilities, and reporting functionalities.
2. Data Analytics Platforms
Data analytics allows businesses to identify emission hotspots, and it can also enable companies to optimize operations. One branch of data analytics is predictive analytics, which allows companies to forecast future emissions trends.
3. Carbon Footprint Calculators
Another way that businesses can calculate their carbon footprint is through the use of carbon calculators. These calculators can involve inputting the daily activities involved in running the business and then analyzing the carbon footprint to assess environmental impact. These calculators may also help companies track their progress over time.
Leveraging Integration Toward Reducing Supply Chain Emissions
The three tools mentioned above are just a sampling of the technological tools out there to help companies effectively track carbon emissions along the supply chain. But the best approach usually incorporates multiple tools and leaves no stone unturned. Indeed, integrating various tools and technologies allows for a holistic approach to emissions tracking that enables companies to develop and fine-tune their decarbonization strategies. These technologies integrate through data interoperability between the various tools, allowing for enhanced accuracy and efficiency.
Take Charge of Your Emissions
In this article, we’ve highlighted the critical need for businesses to track emissions as part of their sustainability initiatives. We’ve talked about the rising pressures from regulators and consumers to reduce supply chain emissions, as well as the challenges businesses face in achieving effective mitigation. We’ve also explored how innovative technologies enhance visibility and accuracy in emission tracking, presenting key tools such as emission-tracking software, data analytics platforms, and carbon footprint calculators.
When decarbonization strategies are informed by real-time data, we can see real results: as we accurately track emissions, we can see that our actionable solutions to reduce carbon emissions are working.
Contact Greenabl today to learn how we can help you develop an effective decarbonization strategy that gets the job done.
