Identify Supply Chain Emission Hotspots

Want to cut your carbon footprint? Start here:

1. Understand Emissions: Supply chain emissions fall into three categories:

   • Scope 1: Direct emissions (e.g., company vehicles, facilities).

   • Scope 2: Indirect emissions from purchased energy.

   • Scope 3: All other indirect emissions, like suppliers and product disposal.

2. Why It Matters:

   • Two-thirds of emissions often come from suppliers you don’t directly work with.

   • Only 7% of companies are on track for net zero goals. Identifying hotspots helps you reduce emissions, streamline operations, and stay compliant with regulations like CSRD.

3. Steps to Identify Hotspots:

   • Map Your Supply Chain: Include direct suppliers, their suppliers, transportation methods, and storage locations.

   • Gather Data: Use tools to track energy use, supplier emissions, and waste.

   • Pinpoint Key Sources: Focus on high-emission areas like factories, transport, or waste-heavy processes.

   • Prioritize Fixes: Tackle the biggest emission sources first with cost-effective solutions.

4. Tools to Help:

   • Emerald Power: Automates data collection and tracks emissions in real-time.

   • Coolset & OPTEL OptchainTM: Pinpoint hotspots and monitor emissions across the supply chain.

5. Collaborate for Results:

   • Work with suppliers to adopt sustainable practices.

   • Use tech and partnerships to drive impactful changes.

Bottom line: Supply chain emissions are a major blind spot for most companies. Start tracking and reducing them today with the right tools and a clear plan.

Related video from YouTube

How to Identify Emission Hotspots in Your Supply Chain

Let's cut through the complexity and look at how mid-market businesses can spot their biggest emission sources.

Step 1: Create a Map of Your Supply Chain

Most companies only see what's right in front of them - their direct suppliers. But the real emission story often lies deeper in the supply chain, where visibility gets murky.

Here's what you need to map out:

• Who supplies directly to you

• Who supplies to your suppliers

• How stuff moves around (trucks, ships, planes)

• Where things get stored

• Where manufacturing happens

Pro tip: Start with your big players. Usually, 20% of your suppliers pump out 80% of your emissions. That's where you'll want to look first.

Step 2: Gather and Measure Emissions Data

Getting good data is like building a puzzle - you need all the pieces. Here's how to get them:

• Set up digital tools to track energy use

• Ask your key suppliers for their emission numbers

• Get detailed info about how stuff moves around

• Keep tabs on your waste numbers

Step 3: Identify Key Emission Sources

Look hard at places where emissions tend to pile up: busy transport hubs, power-hungry factories, old supplier facilities, and operations that create lots of waste.

"Tracking progress against your goal, scoring your suppliers, and identifying hotspots and trends is only possible with accurate, organized data." - Optera Team

Step 4: Focus on Priority Hotspots

Think of this like fixing up a house - you tackle the biggest problems first. When picking your battles:

• Go after your biggest emission sources

• Pick fixes that won't break the bank

• Make sure you're following the rules

• Look for easy fixes that show quick results (like smarter delivery routes)

Once you know where your hotspots are, you're ready to grab the right tools and start fixing them.

Tools to Help Identify and Manage Emissions

Getting a handle on your emissions doesn't have to be complicated. Thanks to digital tools, mid-market businesses can now track their carbon footprint without breaking the bank.

Take Emerald Power, for example. It's built specifically for mid-market companies and takes the headache out of emissions tracking by:

• Automating data collection

• Monitoring emissions in real-time

• Following GHG Protocol standards

• Tracking both direct and indirect emissions

This means less manual work, better accuracy, and clearer planning for your net zero journey.

Need to dig deeper? That's where specialized tools come in. Coolset helps you spot exactly where your emissions are highest, while OPTEL's OptchainTM watches your supply chain emissions as they happen.

But here's the tricky part: Scope 3 emissions. These often come from suppliers you might not even directly work with. As Kris Timmermans, Accenture's Supply Chain Lead, puts it:

"Scope 3 emissions are elusive and difficult to track in today's complex supply chains. Many large companies don't even know the suppliers beyond Tier 1, let alone have any sort of influence or control over them or their sustainability practices."

Different industries face different challenges. High-tech companies typically deal with more upstream emissions than utilities do. But no matter your industry, having solid tracking tools is key to measuring and cutting your carbon footprint.

Bottom line: With modern tools at your disposal, you can move beyond just tracking emissions to actually shrinking them.

Improving Emissions Management Over Time

Managing supply chain emissions isn't a one-off task - it's an ongoing journey. Here's something that might surprise you: supply chain emissions make up about two-thirds of the average company's carbon footprint. That's why companies need to keep pushing forward with their management efforts.

Using Digital Tools for Better Visibility

Companies are turning to tech to tackle their emissions tracking head-on. Take Stanley Black & Decker and Ecolab - they're putting their money into startups that use AI and automation to track supply chain emissions. It's a smart move that shows how tech can make a real difference in measuring and cutting carbon output.

Working with Suppliers and Partners

Sure, fancy tech helps - but the real magic happens when companies team up with their suppliers. Just look at VELUX. They didn't go it alone - they joined forces with suppliers to create a new solution using recycled aluminum. The result? They cut emissions in ways they couldn't have achieved by themselves.

Want another example? Interface, a European carpet maker, shows what's possible when you get suppliers on board. They worked hand-in-hand with their partners to switch to natural, bio-based, and recycled materials. The payoff? They've slashed their product carbon footprint by 69%.

Making Sustainability Part of Operations

Talk is cheap - companies need to turn their green goals into real action. Arla Foods gets this. They've come up with a clever pricing system that pays farmers more when they take steps to fight climate change. We're talking about things like smarter land use and switching to renewable energy. It's proof that mid-sized companies can create real incentives for their supply chain partners to go green.

The bottom line? You need everyone in your supply chain on board to cut emissions effectively. Mix in some smart tech, strong supplier partnerships, and practical changes to your operations, and you've got a recipe for success that's good for the planet and your business.

Wrapping Up

Let's get real about supply chain emissions: two-thirds come from indirect suppliers. That's a big blind spot for many companies.

Here's what we've learned: tracking emissions isn't a one-time thing - it's about building it into your daily operations. Think of it like keeping tabs on your bank account, but for carbon.

Mid-market businesses are turning to digital tools like Emerald Power to get the job done. These platforms do the heavy lifting by:

• Pulling data automatically from your supply chain

• Showing you what's happening beyond your direct suppliers

• Keeping all your emissions data in one place

• Making it easier to work with suppliers

The key is making it routine. Just like checking your email or running payroll, emissions tracking should be part of your regular business rhythm. And with tools that automate the process, you won't need to chase suppliers for data manually.

Want to stay ahead of CSRD requirements? Start with the basics: get your data collection sorted, know where your biggest emissions come from, and keep your suppliers in the loop. The more you measure, the more you can improve.

FAQs

How could you measure the carbon footprint for a supply chain?

Let's talk about measuring your supply chain's carbon footprint - it's trickier than it might seem at first glance.

Here's an eye-opening fact: in the high-tech industry, upstream Scope 3 emissions are 28 times larger than direct emissions. That's huge! But tracking these emissions isn't easy. Just ask Accenture's Supply Chain lead Kris Timmermans:

"Scope 3 emissions are elusive and difficult to track in today's complex supply chains. Many large companies don't even know the suppliers beyond Tier 1, let alone have any sort of influence or control over them or their sustainability practices."

Want to tackle this challenge? Here's what you need to do:

First, map out your entire supply chain. Think of it like creating a blueprint - you need to know every step of your production process and where emissions might pop up.

Next, gather your emissions data. If you're running a mid-market business, you don't have to do this manually. Tools like Emerald Power can plug directly into your suppliers' systems and pull this information automatically.

Finally, zero in on your biggest emission sources. This helps you focus your efforts where they'll have the most impact.

But here's the thing: one-time reports won't cut it anymore. Your supply chain is always changing, so you need real-time data to stay on top of things. That's where modern carbon accounting tools come in - they keep track of everything automatically, giving you a clear picture of your emissions at any moment.