Decarbonisation Technology - February 2024 Issue

Scope 3 emissions decision tree The GHG Protocol provides a Scope 3 emissions decision tree to navigate the intricacies of supplier data (see Figure 4 ). It prioritises the use of supplier-specific methods, emphasising their reliability and accuracy, ultimately positively influencing the brand image. Following the steps outlined in the GHG Protocol decision tree empowers companies to make informed decisions that faithfully represent the emissions of their supply chain, contributing meaningfully to the overarching goal of reducing their carbon footprint. Confidentiality of supplier data As companies delve into the collection of detailed, supplier-specific data for Scope 3 emissions, safeguarding confidentiality emerges as a paramount concern. This data holds strategic business insights and must be handled with care to prevent misuse. However, with the implementation of appropriate measures, companies can strike a balance, ensuring accessibility for accurate emissions calculation while preserving confidentiality. Establishing trust with suppliers becomes pivotal in navigating these challenges. This involves formalising agreements through legal contracts and aligning internal data usage policies with the interests of suppliers. It is noteworthy that as more companies seek supplier-specific data, reciprocity in legal agreements can be encouraged when sharing data as a supplier. Leveraging technology for primary data sharing Corporate sustainability teams across organisations strive to concentrate their

initiatives in areas where the return on investment is substantial. However, the process of gathering supplier-specific data for the calculation of Scope 3 emissions can be both labour-intensive and financially demanding. That is where technology comes in to simplify the process. Primary data, the raw, first-hand information collected directly from the source, is the cornerstone of any data- driven decision-making process. It serves as the foundation for implementing sustainable practices and achieving decarbonisation goals (see Figure 5 ). The advent of technology and digitisation has revolutionised the way primary data is shared. It has enabled a seamless exchange of accurate and timely data between suppliers and customers, thereby reducing the dependence on secondary data. This shift towards primary data sharing is a critical step in the journey towards supply chain decarbonisation. It ensures that the data driving the decarbonisation efforts is relevant, accurate, and up-to-date. One of the most significant outcomes of primary data sharing is the enhanced collaboration it fosters within the supply chain. With all stakeholders having access to the same set of data, there is a unified approach towards achieving decarbonisation goals. This collaborative environment, coupled with data transparency, fosters trust among stakeholders, leading to a more integrated and efficient supply chain. The use of primary data also leads to an improvement in data quality and accuracy. With accurate data at their disposal, businesses can make informed decisions that align with their decarbonisation objectives. This eliminates guesswork, reduces the risk of errors, and leads to improved operational efficiency and productivity.

Technology connecting end customers to raw carbon data at scale can contribute towards decarbonisation by improving data quality and collaboration.

Raw data

Data quality

PCF

Industry averages

Decarbonisation

Figure 5 Technology and digitisation have revolutionised the way primary data is shared