Scope 3 Emissions Management and GHG Tracking for Sustainable Supply Chains

Around the world, organizations are trying to reduce climate impacts; however, many unintentionally ignore Scope 3 emissions. These appropriate emissions take place along the entire value chain of an organization in the letting stages, including: suppliers, logistics providers, various modes of transportation, and the use of their products. Not only do Scope 3 emissions commonly constitute a majority of a company’s overall carbon footprint, but they are also quite challenging to track and help manage effectively for meaningful carbon footprint reduction and enhanced supply chain transparency.

The client identified multiple hurdles:

• Overextracted Scope 3 emissions: A number of companies could not achieve a level of visibility regarding the emissions "out of sight" in their supply chain, resulting in large omissions through their sustainability efforts and limiting supply chain transparency.
  
   
• Need for Actionable Insight: Organizations could not derive data-based decisions in a low or distributed data world with respect to GHG (greenhouse gas) reduction, including Scope 3 emissions, limiting their carbon footprint reduction efforts.
  
   
• Deficient Reporting Framework: Emission reporting frameworks rarely provide parties with reasonable assurances concerning completeness and accuracy conditions, e.g., transparency in processes, risk of issuing a non-compliance report, or risk of creating a reputational liability, impacting the credibility of emissions management and Scope 3 reporting.
  
   
• Complexity of Supply Chain Emission Management: Corporations experienced difficulty coordinating emission reduction strategies across suppliers, partners, and customers because of multiple stakeholder engagement concerning Scope 3 emissions.
  
   

The client needed a robust, data-driven platform that could simplify the detection, measurement, and reduction of Scope 3 emissions, helping organizations improve their sustainability credentials, achieve carbon footprint reduction, and increase supply chain transparency while meeting net-zero goals.

Seaflux worked with the client to enhance their sustainability strategy, including creating and implementing a full suite of initiatives aimed at measuring and reducing their Scope 3 emissions:

• Supply Chain Management Expertise: Through their extensive domain expertise, Seaflux assisted the client in identifying hidden sources of Scope 3 emissions in their supply chain. This made the management of numerous stakeholders more manageable, which, in turn, became more transparent and aligned with sustainable supply chain solutions.
  
   
• Data Driven Insights: A robust data-driven framework was developed to identify greenhouse gases across the value chain. This allowed companies to make informed decisions and reduce emissions directly at the source, enhancing carbon footprint reduction and GHG emissions tracking.
  
   
• Timely Emissions Reporting: The process simplified the emissions data collection, analysis, and reporting reasoning to a point where stakeholders, regulatory engagement, and customers all received reliable reports based upon transparency, accuracy, and legitimacy, improving Scope 3 reporting. 
  
   
• Utilizing Blockchain for Transparency: The framework suggested using blockchain as a certifiable source of Scope 3 emissions data, being less susceptible to fraud or updates that could facilitate fraudulent data entry, which created a large opportunity to build trust among supply chain partners. 
  
   
• Support for Net-zero aspirations: The framework included useful applications for businesses intending to deliver a credible path toward establishing sustainability targets, track progress toward those targets, while allowing potential improvements to their carbon footprint, supply chain decarbonization, and supply chain traceability. 

• Served 1,000+ Organizations: Direct client access to the solution enabled the management of Scope 3 emissions within 1,000 organizations, supporting carbon footprint reduction and making the client a zero-carbon footprint organization and a leader in sustainability.
  
   
• 8.5% Increase in Efficiency: The client realized an 8.5% increase in the ability to surface and manage Scope 3 emissions as compared to a prior technology-focused approach that was faster and more reliable. 
  
   
• 100% Accurate and Inclusive Reporting: By simplifying emissions measurement and reporting, the client was able to simultaneously achieve accuracy and inclusivity and maintain regulatory compliance and stakeholder trust, including enhanced GHG emissions tracking.
  
   
• Align to Net Zero Carbon Footprint: Organizations can use the solution to take data-driven, source emissions management practices to help reach net-zero aspirations, sustainable supply chains, and enhanced supply chain traceability.