Scope 3 supply chain emissions complexity can be addressed with a new collection and reporting solution from Ivalua.
The company’s new Environmental Impact Center (EIC) solution allows for collection of Scope 3 emissions and other ESG data at scale from an organisation’s supply base and third parties.
More than half of UK organisations struggle with visibility into their suppliers, making Scope 3 measurement extremely difficult. Incoming UK regulations like the proposed Sustainability Disclosure Requirements (SDR) in the finance industry will make reporting on Scope 3 emissions compulsory for the first time.
The procurement function will be central to tackling Scope 3 emissions as regulatory requirements and public scrutiny are on the rise. With Ivalua’s EIC, organisations can gain reliable and actionable insight to reduce Scope 3 emissions.
Through Ivalua’s EIC, emissions and other ESG data can be tracked against environmental risk scores, policies, published targets, or certifications to expose shortfalls, identify opportunities and track progress on sustainability goals.
Armed with this data, decision makers can precisely track the year-to-date carbon emission trajectory for their purchases, helping to make more sustainable decisions in daily operations. This data and visibility into emissions enables firms to design and implement ESG-focused strategies that are transparent, actionable, timely, and sustainable for their business.
Emissions data can be imported from recognised third-party emissions data sources or directly from suppliers; the data is then combined with other information such as environmental risk scores, policies, published targets, or certifications. This data is accessible across Ivalua’s Source-to-Pay solution to facilitate more sustainable procurement decisions within daily operations. As products are purchased within an organisation, category managers can precisely track the year-to-date carbon emission trajectory for their purchases.
“Procurement and supply chain teams play a crucial role in reducing Scope 3 emissions and contributing to corporate objectives around supply chain sustainability”, said David Khuat-Duy, CEO, Ivalua. “By combining relevant and reliable data with supplier collaboration capabilities, Ivalua will enable customers to make meaningful progress on their sustainability journeys.”
In contrast to other solutions, the EIC will allow procurement to build baseline estimates for products and categories where verifiable supplier data does not exist, said Pascal Bensoussan, chief product officer at Ivalua.
“They can use these models to focus on high-emitting categories and products. They can then collaborate with suppliers to verify actual product emissions, define improvement plans to reduce emissions, and, ultimately, accurately track and report progress. EIC will aid our customers in establishing a more sustainable supply chain to reduce both greenwashing and green-guessing.”
Ivalua’s new Environmental Impact Centre empowers procurement and supply chain teams with reliable and actionable insight to reduce Scope 3 greenhouse gas emissions. The solution can ensure transparent carbon emissions baseline based on reliable emissions data; identify and prioritise emissions reduction opportunities and monitor and manage emissions at the product level.
Efforts to impact emissions and reach net zero targets must involve the reduction of Scope 3 emissions. This puts the procurement function in a central role towards establishing a transparent emissions baseline using reliable data and collaborating with suppliers on carbon savings plans to meet reduction targets and for reporting and risk assessment.