DECARBONISATION OF SUPPLY CHAINS: WHY DATA SHARING IS VITAL
As the decarbonisation of supply chains is becoming imperative, companies need standards for calculating and reporting the greenhouse gas (GHG) emissions of their product. Over time, suppliers along complete supply chains will share their calculations with their clients and other stakeholders. Fortunately, emissions can be quantified as carbon-emission equivalents, simplifying the measurement process – hence the term carbon footprint. However, today, we are far from having access to harmonised, detailed and reliable information on emissions. While some generic guidelines such as the Greenhouse Gas Protocol exist, consistent industry approaches at product level are lacking. Achieving this will require collaboration along supply chains in the years to come; undertaking this collaborative effort is vital for several reasons. First, consistency and comparability are key to understanding the relative footprint of different raw materials, components, or products. Having estimates at the company level is not enough to decarbonise our supply chains. Second, solid data foundations help understand emission drivers and initiate incremental and radical improvement projects. In a nutshell, to find alternative raw materials and design more circular supply chains, companies need data they can trust. Finally, product carbon footprint transparency is important for stakeholders and policymakers who expect companies to fulfil their climate commitments and targets.
To achieve a sustainable transition, a circular
