15 Dec 2023

Navigating the Future: Building Data Foundations for Supply Chain Decarbonisation

ASPIRE Blogs

The imperative for decarbonising supply chains has never been clearer. As companies strive to reduce their carbon footprint, the need for standardised methods of calculating and reporting greenhouse gas (GHG) emissions becomes paramount. In this era of transition, sharing detailed, reliable data on emissions across entire supply chains is crucial. While the concept of carbon footprints simplifies measurement, the industry lacks consistent approaches at the product level. The solution lies in collaborative efforts across supply chains, and here’s why it’s indispensable.

 

Key Drivers for Collaborative Data Sharing

 

1. Consistency and Comparability: Understanding the relative footprint of raw materials, components, or products requires standardised approaches. Company-level estimates alone are insufficient for comprehensive supply chain decarbonisation.

 

2. Emission Drivers and Improvement Projects: Solid data foundations aid in identifying emission drivers and fostering incremental and radical improvement initiatives. Trustworthy data is the bedrock for identifying alternative raw materials and designing circular supply chains.

 

3. Stakeholder and Policymaker Expectations: Transparent product carbon footprint data is not just an internal necessity; it’s a commitment to stakeholders and policymakers. Meeting climate commitments requires accountability and adherence to ambitious targets.

 

EU Regulations Pave the Way for Circular Models

 

EU regulations are ushering in a new era of transparency. Focused initially on batteries, these regulations mandate data-digital product passports for companies along the battery supply chains. Companies like BASF, Umicore, and BMW lead the charge by creating passports containing vital information about a battery’s composition, environmental impacts, and end-of-life procedures. This data-sharing initiative aims to provide transparency and accountability throughout a battery’s lifecycle, aligning with the broader goals of sustainable material sourcing and efficient production.

 

Together for Sustainability (TfS): A Blueprint for Collaboration

 

TfS, a global sustainability initiative for the chemical industry, serves as a testament to the power of collaboration. Founded in 2011 by six leading chemical companies, TfS has evolved into a not-for-profit foundation with 47 members and over 14,000 suppliers. The initiative focuses on data-sharing initiatives to improve sustainability practices across the chemical industry’s supply chain.

 

Democratising Carbon Footprint Data

 

TfS launched its Product Carbon Footprint (PCF) Guideline in September 2022, recognising the importance of consistent carbon footprint measurement. The guideline, available in five languages, is open source and accessible to everyone. TfS is piloting a digital solution to facilitate the sharing of upstream product carbon footprints, promoting the democratisation of this vital data. By unifying data across the industry, TfS aims to eliminate the need for competing methods of calculating carbon footprints, making this information a basic service.

 

Trust, Measurement, and Industrywide Standards

 

Trust is paramount in sharing emission data across companies, and industrywide standards and guidelines are essential. TfS’s model, offering a safe space for data exchange, exemplifies the power of collective efforts. By progressing through maturity levels in measuring scope 3 emissions, companies can accelerate their journey towards a common and recognised standard.

 

Lessons for Other Industries 

 

The TfS model provides valuable lessons for other industries. Initiatives aiming to facilitate data exchange should prioritise trust, balance short- and long-term benefits, and create a positive ecosystem momentum. By following this approach, industries can fast-track their development and contribute to the collective effort to combat climate change.

 

ASPIRE Insights 

 

In the quest for solid data foundations for supply chain decarbonisation, TfS stands as a beacon of collaboration. As we embrace the democratisation of product carbon footprint data, we must expedite the creation of standards, ensuring they are freely available to avoid fragmentation. Just like ASPIRE, we aim to contribute to global change solutions and sustainability. Let’s join forces to make this transformation happen swiftly and collaboratively!

 

Thanks for sharing, Hervé Legenvre.