Your CLIMATE News: best practices to decarbonize, exclusive CHOICE events and insights into our CLIMATE team!
My tech-life at The Climate Choice
We live in the digital era. Information technology is a massive driving force for modern day business operations. It is also now that time-critical climate policies and decisions are being undertaken globally. Not surprisingly, there is a clear upsurge of technology driven climate solutions in today’s markets – several of them being start-ups. What is life like as a tech person at one such start-up?
For an IT professional in 2022, today is always the best day for better career opportunities. Then again, what defines a ‘better career opportunity’ is highly subjective. As a personal choice, I would prioritize a healthy work environment where I can grow at my own pace, over and above everything else. And that is exactly what was promised to me when I started working as a software developer at The Climate Choice. Half a year down the road, I find myself in a happy space, surrounded by like-minded people, in what is undeniably the most positive work environment I’ve been part of so far.
Our Working Environment and Team Spirit
Life at TCC is quite different from any other workplace I have had. Even though we all are hired into specific roles, we find the time and opportunity to know about each other’s work updates – be it from any department. We work (mostly) remotely but make a conscious effort to stay connected via virtual no-agenda meetings or informal team gatherings. All of us share a sense of collective achievement in anything positive that drives TCC forward – sales targets being met, new investors, growing public outreach of our company, positive feedback from our clients or just simply experiencing our web app go live with its first few external users being onboarded. We collectively celebrate it all.
Workload at a start-up is inherently unpredictable – and it is no different at TCC. We have our easy going days, and days which are just outright hectic. However, we have the freedom to speak up – discuss blockers, seek help or even grab a virtual coffee (or a real one) with a colleague to take our minds off things. None of it is met with judgment or even remotely discouraged.
A Typical Day in Tech at TCC
From the tech perspective – we always have newer features to incorporate, older ones to improve and upcoming ones to talk about. It’s safe to say, we are never out of tasks. A typical day starts with a round of discussion over ongoing issues via Jira’s Kanban board. The backend team works predominantly with Django (with Postgres), Celery and Redis. The frontend is written in React. We use Sentry for error logging and AWS S3 for storage. We strive to iteratively enhance our web-app as per gathered feedback from both internal and external users.
Our DevOps team continually tries to improve our Git CI/CD pipeline, infrastructure architecture and deployment cycles. We use Docker and Dokku for containerization and deployments. We are gradually moving towards incorporating Kubernetes into our tech stack.
In recent months, analytics has been a hot topic for us. We are currently building dashboards with insights from how users interact with our web-app and products for our internal teams, external users, investors and potential clients. We are using Posthog and Redash for data collection and dashboard prototyping.
A major project scheduled for the upcoming months is the data ingestion pipeline, which would involve almost the entirety of the tech team as per the initial plan. We envision orchestrating an automated, self-sustained system that populates our data lake with companies of interest (ie. from our perspective – companies that could serve as sustainable alternatives for different industries).
Constructive Feedback, Knowledge Sharing & Open-minded Attitude
Besides our ongoing projects, we actively pursue knowledge sharing, providing constructive feedback and maintaining a non-judgemental attitude towards different individuals within the team. Decision-making and planning is done through a bottom-up approach within TCC rather than in the usual top-down manner. Every opinion matters and every new idea is welcomed.
Here at TCC, we are driven by our vision of aiding enterprises and their supply chains to evaluate and monitor their emissions. With the ever growing consensus around climate change and corporate responsibility towards decarbonization of businesses and industries, the IT industry plays a pivotal role. We can help build better digital solutions, drive management decisions through data analytics, and in general, revolutionize how companies adapt their day-to-day operations in adherence to sustainability concerns. We are far from being there, but every day is a step forward into realizing our mutual dream.
Why the CLIMATE TRANSFORMATION Summit makes 2022 our year for actions!
Wow, what an energy! One week has passed since the 2 interactive days of the third edition of the CLIMATE TRANSFORMATION Summit ended. It is time to celebrate, to look back at the numbers, results and what we achieved together as CLIMATE Community.
A DREAM CLIMATE TEAM + A DOG
First of all, what I can share with you: a few months of inspiring work flowed into the #CTS2022! Which I was happy to lead together with our dedicated team from THE CLIMATE CHOICE – composed by Max and Lara, and the continuous support of our Growth Team. Sometimes even our office dog ‘Sunny’ brought in the necessary energy. But it did not stop here. We had countless enthusiastic helpers, partners and supporters who did everything to make the Summit valuable and meaningful. An incredibly big THANK YOU in advance to all of you. It was wonderful to be able to work with you!
BUILDING UP A GLOBAL CLIMATE COMMUNITY
So let me get you into the journey we took together. It all started as a brainstorming on an excel spreadsheet, and turned into an amazing event less than 6 months later. Gathering 1,000 climate enthusiasts, decision makers and curious people from around the world, all interested in learning more about climate transformation, and in particular about Decarbonisation of Companies and their Supply Chains. Fast forward: we kicked off the 100% online summit on 2nd June, with participants and experts joining from many many different countries.
STARTING A CLIMATE REVOLUTION
As stated by our co-founder Lara during her Welcome Speech: “We see now more than ever, companies need to step up and go into a sustainability revolution, but they need to act now, as the window of opportunity is closing faster and faster”. I bet the majority of us today would agree on this need for a sustainability revolution, driving a successful climate transformation of economy and within companies, but probably only few of us would know exactly what to do to get it started.
CLIMATE TRANSFORMATION IS A MATTER OF HOW, NOT IF
So let’s go deep here on actions! These are the three most important steps we learned about climate actions at #CTS2022.
The first point of departure would be to understand your individual status quo. Where does your company stand, how climate mature is it and which actions are already taken? This step requires collecting all climate relevant data on your business and along the supply chain. This allows you to learn where you stand and to make assumptions about where you are most likely heading. As you may guess, this can be difficult to acknowledge, but it is the only way to start. With you and your own actions.
Therefore the only logical next step is to get active and find ways to reduce emissions. This most often brings in a new challenge, remembering that your accountability does not end at the borders of your company, but that the supply chain is where up to 90% of the total corporate emissions typically are generated.
Facing this hurdle brings you to step three: collaborate with your suppliers to align climate strategies, to share best practices and implement solutions to reduce emissions together. Useless to say that these can also create a positive impact on cost reduction, efficiency and sometimes even other sustainability issues such as loss of biodiversity, labor rights or plastic waste.
Allowing for best practices sharing around these three steps, on the first day, we looked into how to become truly climate neutral, and then, on the second day, went deeper into how to create and manage collaborative supply chains transformation and a planet proof procurement.
LEARNING FROM CHANGE AGENTS
We welcomed over the course of the two days over 64 speakers (of which proudly 52% were female, which we were able to achieve for the first time!!), who spoke with our audience composed of 30% of corporates and 15% of SMEs and a 55% going as ‘others’, such as start ups, NGOs, Institutes or self-employed people, overall coming from 59 different countries.
THE MOST ACTIVE CLIMATE COMMUNITY
In fact, this year’s summit was for the first time entirely held in English, which made its CLIMATE Community more international than ever, with the top 10 countries represented being Germany, Austria, India, Switzerland, Netherlands, UK, Spain, France, Italy and USA!
The summit required, besides a strong internet connection, also a lot of focus, to grasp the insights shared during the various sessions, which were super interactive and helped answer questions coming from the participants. In fact, the #CTS2022 attendees deserve a special applause, as they were getting the most out of the event platform we used. On average a participant spent an unbelievable amount of time:11 hours! Celebrating this huge level of commitment and lively contribution, we honored our 3 most active participants with the CLIMATE Community award. Thanks for your outstanding engagement!
GETTING YOUR HAND DIRTY
Furthermore, attendees had the chance to participate in two of the 12 limited workshops we prepared for them, together with our Partners from B.A.U.M. e.V., First Climate, BearingPoint, AXA Climate School, Enviria, Fairantwortung gAG, Katjes Fassin GmbH & Co. KG, Regionique, IBM, Make-IT Alliance, Telefónica Germany, EcoVadis, Alice Schmidt, ESG Portfolio Management, Sustainable Procurement Pledge Germany, Development and Climate Alliance Foundation and WWF Germany.
Quite amazingly, 73% of the attendees participated in a workshop, and loved it so much that the most recurring feedback was that we should have even more workshops next year! By looking at the attendance, it turns out that the most popular topics covered in the workshops were the ESG regulations & EU Taxonomy reporting, the En-ROADS simulation and a concrete example on how to decrease emissions with a company and along the supply chain.
DISCOVERING CLIMATE SOLUTIONS
Last but not least, the online fair, showcasing 26 different Climate Pioneers, was also available to our attendees. They had the chance to meet the exhibitors at their booth, learn about their solutions and discuss possible business opportunities. A total number of around 4.500 visits to all booths was tracked down!
Which leads us to the last highlight of the online fair. We gave all attendees the opportunity to vote for the CLIMATE Champion Awards, which had all Exhibitors competing in the following three categories:
- Climate Solution Pioneer (the exhibitor offering the best climate solution to decarbonise companies);
- Supply Chain Transformer (the exhibitor offering the best climate solution to transform supply chains);
- Exhibitor Hero (best booth design and most welcoming exhibitor).
The voting results saw 3 companies winning over the others, respectively CarbonStack (Climate Solution), THE CLIMATE CHOICE (Supply Chain Transformer) and Enviria (Exhibitor Hero). Thanks therefore for everyone voting, but a huge congratulations to all exhibitors – you do amazing work!
AFTER THE SUMMIT: MOVING TO ACTIONS
Overall, I had an amazing experience and it was an impactful event of which our Team Climate is proud of. But most importantly, now is the time for action. We learned a lot, we shared more and made valuable business connections. Let’s go out and start the CLIMATE TRANSFORMATION in our daily lives and business decisions, see you next year!
Many thanks for everyone working with us, and me, on this #CTS2022 journey! I am very excited to move to a new role now within THE CLIMATE CHOICE, supporting our Growth & Customer Happiness Team. Stay tuned, sign up for our CLIMATE News and thus don’t miss on our next events, whitepapers and shared opportunities for Climate Actions!
Your CLIMATE Team & Chiara
New proposals for climate-related disclosure standards by ISSB – This is what you need to know
International investors increasingly demand information on environmental, social and governmental (ESG) matters. Transparency around sustainability and climate-related affairs gains relevance today more than ever. According to the IFRS (International Financial Reporting Standards) Foundation, the current regulations do not ensure that climate-relevant information is disclosed to a reasonable extent, but still encourages an inconsistent and selective application of voluntary standards.
In November 2021 at COP26 in Glasgow, the formation of the International Sustainability Standards Board (ISSB) was announced. The ISSB is an independent private-sector body that operates under the oversight of the IFRS Foundation. Its aim is to develop a globally applicable and comprehensive set of sustainability disclosure standards that works for major economies as well as for emerging markets.
Therefore, the ISSB has proposed two new standards, in order to create further consistency, comparability and reliability across climate disclosure. The standards require companies to reveal relevant information about its significant sustainability-related risks and opportunities, necessary for investors to assess a company’s enterprise value. The G7 welcomes the establishment of the International Sustainability Standards Board and calls on all relevant stakeholders to participate in the ongoing consultation on the proposed standards. In order to create a practical, flexible and proportionate disclosure baseline, that is ultimately suitable for small- and medium-size enterprises, the G7 invites other reporting initiatives to cooperate in the process of elaborating the baseline.
Two ISSB proposals for sustainable-related disclosure
Based on the work of existing investor-focused reporting initiatives – including the Climate Disclosure Standards Board, the Task Force on Climate Related Financial Disclosures (TCFD) and the World Economic Forum´s Stakeholder Capitalism Metrics – the ISSB is working towards the incorporation of the global baseline into legal requirements, with the aim to become the global standards-setter for sustainability disclosure for the financial markets.
Both of the new standards are mainly built upon the recommendations of TCFD. While one of the proposals sets out general sustainability-related disclosure requirements, the other specifies on climate-related disclosure. Learn more about the climate-related disclosure requirements in the following.
What is the goal of the ISSB Climate-related Disclosure Standards?
The objective of „IFRS S2 Climate-related Disclosures“ is to require a company to disclose information about its exposure to significant climate-related risks and opportunities. This enables investors to access relevant information in order to make climate-compatible and sustainable financial decisions. The goal is to assess the effects of significant climate-related risks and opportunities and to understand how a company’s use of resources and activities support managing its risks as well as to evaluate the options to adapt planning, business model and operations to significant climate-related risks and opportunities. Companies are required to disclose information along the dimensions Governance, Strategy, Risk Management and Metrics & Targets. Find more detailed information on the disclosure regulations along those dimensions in the following section.
- Governance body (e.g. board, committee, etc.) with oversight of climate-related risks and opportunities
- Skills and strategies that ensure that climate-related risks and opportunities are being tackled
- Information on the extent to which climate-related opportunities and risks are being considered in the company’s decisions on major transactions and risk management policies
- Effects of climate-related risks on business model, strategy and cash flows
- Climate resilience and flexibility (in terms of transitioning) of strategy and business model
3. RISK MANAGEMENT
- Identification and assessment of climate-related risks and opportunities (Data sources and covered scopes of operations)
- Prioritization of climate-related risks relative to other types of risks within the company
- Processes in comparison to prior reporting periods
4. METRICS & TARGETS
- Information relevant to the cross-industry metric categories, in order to create transparency around the assessment strategy of its performance
- Progress towards the targets it has set (e.g. mitigation or adaptation to climate-related risks or maximizing climate-related opportunities)
How do companies prepare for the ISSB requirements?
Since enterprises will be required to disclose climate-related information along these four dimensions, they will face the challenge to collect climate-relevant data and analyze their climate performance. How do companies prepare for that?
Today, many companies are already using data-driven software tools, which helps them to analyze their climate performance holistically. The Climate Performance Assessment offers a fast and structured data analysis aligned with internationally recognized standards. It enables companies to holistically analyze their climate performance along the four dimensions Governance, Strategy, Metrics & Targets and Transparency. The Climate Performance Assessment is fit to meet the ISSB’s climate-related disclosure requirements as it covers the key disclosure information.
You want to know more? Download our new Whitepaper to find more details on the upcoming ISSB standards and how to prepare for them here.
Our WHY behind the #CTS2022
Climate action is all about collaboration and we need to start thinking (and acting) beyond the company’s borders! How can we fulfill the latest regulations? Which innovations should we have on our radar? What are best practices of climate-progressive companies?
We believe that we can all learn from each other’s experiences to boost #climatetransformation! That is our ‘WHY’ behind our third CLIMATE Transformation Summit on June 2nd and 3rd.
As Dr. Jonathan Foley of Project Drawdown said last year at #CTS2021:
How do we go about it? At the CLIMATE TRANSFORMATION Summit 2022, over 900 Speakers, Climate Pioneers and Climate Solution Providers will gather to discuss Best-Practices of the Climate Transformation. Trend topic of this year’s climatesummit.de will be the decarbonization of companies and their supply chains. At the #CTS2022 we are going to raise questions of how to effectively reduce CO2 along entire supply chains. We will share success stories and will learn from each other’s experiences – Together we design, create and discuss. For two days, live and 100% online. And the best part: You can participate!
On June 2nd and 3rd, we will all be part of the solution! We will work together to make our goal – decarbonising companies and their supply chains – a reality. In interactive Panels, Fireside Chats, Speed-Networking Sessions and an Online Fair, we will talk openly about challenges and opportunities and discover tangible climate solutions! In deep-dive workshops, you can share your insights, clarify your questions, actively participate and get to know the community.
The Agenda of #CTS2022 – Changing the economy together
We already know how to tackle the Climate Transformation! Today, Climate-Tech and Green-Tech innovations from different fields enable innovative climate solutions. Get to know the climate experts and solution providers at the #CTS2022:
Among others, we will have Prof. Stefan Rahmstorf (PIK), Yvonne Zwick (B.A.U.M. e.V.), Gaby Symonds (Nestlé Germany AG), Dr. Jonathan Foley (Project Drawdown), Therese Seiringer (Vodafone Germany), Johannes Knubben (HiPP), Gundula Ullah (FUNKE Mediengruppe), Tom Raftery (SAP) and many more.
In order to find ways for a regenerative future, we need to bring the climate debate out of the niche and into the broad economy and provide practical steps to implement Climate Transformation in businesses. And since we already know that the supply chain is the biggest lever of Climate Transformation, it gets clear: We can only do it together!
Transparency, Collaboration and Data!
We are looking forward to learning from our speakers, coming from international corporations such as Microsoft, IBM, Telefónica Germany, SIEMENS and Nestlé as well as from CLIMATE Pioneers such as WWF, Project Drawdown and Potsdam Institute for Climate Impact! All of them are ready to share valuable business insights with you into how their organization is tackling the biggest opportunity of our time: The Climate Transformation!
How do we engage all relevant stakeholders and how do we establish a functional supplier-management? At the #CTS2002, these are only some of the questions that will be answered by leading Climate Experts. Topics like climate-relevant procurement decisions and data-driven solutions for climate performance assessments will be covered. Businesses will get insights on how to prepare for upcoming climate-related disclosure requirements, such as the EU-Taxonomy, and companies will get to know innovative ways on how to collaborate with suppliers, in order to move towards a climate-relevant economy, together!
YOUR SUMMIT, YOUR CLIMATE TRANSFORMATION!
The #CTS2022 is exactly what you are looking for? You can still get a ticket! The CLIMATE TRANSFORMATION Summit invites all decision-makers, climate officers, buyers, green tech entrepreneurs, self-employed, researchers and interested parties who want to implement relevant climate transformation measures and best practices now!
TOGETHER WITH STRONG PARTNERS!
The summit connects solution providers and companies, as well as interested parties and experts. The #CTS2022 is made possible to a large extent by its great supporters! Without B.A.U.M. e.V., First Climate, Ørsted, BearingPoint, AXA Climate School, Enviria, Fairantwortung gAG, Katjes Fassin GmbH & Co. KG, Regionique, IBM, Make-IT Alliance and StackFuel, the Summit would not be possible! Likewise, our terrific media partners make the Summit a real community event! Thank you for your support and enthusiasm, which makes us look forward to the Summit with great excitement. It’s wonderful that you are all here!
Since we want to make climate transformation accessible to as many people as possible, the Transformation Ticket is for those who cannot afford the ticket due to the current situation. It gives you access to all event points. Please send us an email to firstname.lastname@example.org – subject: Transformation-Ticket. We are looking forward to seeing you!
EU-Taxonomy Extension – How a traffic light system will transform EU-Taxonomy classification
Today, there are debates about extending the current version of the EU-Taxonomy. The EU’s original Taxonomy was developed to provide insights on sustainable investments for investors, government and other organizations. The Taxonomy aims to provide a science-based classification system to use in financial decisions with the goal of increasingly directing investments in sustainable economic activities. While the EU-Taxonomy is still relatively new, it has attracted a large amount of critical feedback.
Why is the current version of the EU Taxonomy receiving criticism?
The current version is mainly focused on the performance levels of activities that are considered to make a substantial contribution to the EU´s environmental objectives, while also not making significant harm to one of those objectives. So, economic activities are considered sustainable if, on the one hand, they directly contribute to the fulfillment of EU environmental goals or support the achievement of at least one of the environmental goals, such as data services to optimize the management of renewable energy sources. In doing so, none of the other environmental goals may be significantly impaired.
Still, this classification shows some limitations. It leaves a wide variety of economic activities non-classified, either because they have no sustainable transition options or they are considered to not substantially contribute to the climate objectives. This non-classification is often misinterpreted as ”non-sustainable“. This implies that at some point, the investments for those activities will eventually dry up, although they are not actually unsustainable.
Traffic lights driving a broader understanding of sustainable activities
The latest proposal would introduce a traffic light system for classifying economic activities. This would entail that more activities are included in the EU-Taxonomy, showing the different degrees of sustainability.
This is to be seen in the visualization below.
In comparison to the existing Taxonomy, the new model shows a more complex classification system. Firstly, there are some activities, classed as red (Box 1), that cannot be reformed and will always be considered to do “Significant Harm“. Secondly, listed activities with an Amber status are considered as “intermediate performance“ (Box 2). Those are activities that are in the process of transitioning to a more climate compatible performance. Box 3 shows activities that are about to be included in the future. The ultimate goal is to eventually assess all the activities on an activity-by-activity basis. The last column (Box 4) shows the low environmental impact activities (LEnvI), which includes the activities that do not have significant environmental impact and should not be regarded as either red, amber or green. It could allow enterprises to show that their overall activities do not cause environmental or social harm, although not considered “green“.
Directly spoken, many EU-Taxonomy users could benefit from an extension of the Taxonomy framework to introduce other performance levels, since this would enhance transparency. Additionally, it would support a faster environmental transition within the whole economy with the goal of the “Red“ activities, transitioning to “Amber“ and to eventually eliminating the activities unable to transition.
What does that mean for companies?
The extension of the EU-Taxonomy aims to provide more transparency around the environmental impact of economic activities with the goal to incentivize investments in sustainable activities. Companies need to be aware of what this will mean for them. As investors increasingly focus on climate compatible activities, companies will need to adapt their strategy accordingly. Already today, companies are faced with the challenge of developing a climate relevant strategy in order to position themselves as a sustainable and climate compatible company.
This year’s workshops at #CTS2022 – Take action and be part of change!
The preparations are full on – the CLIMATE TRANSFORMATION Summit 2022 is just around the corner! Just 5 weeks to go until Climate Experts, Entrepreneurs and Decision-Makers get connected to discuss and share Best-Practices on decarbonizing the supply chain. Are you in? Get to know more about the program and exclusive workshops at climatesummit.de below.
Climate Targets and Decarbonization – Why is it relevant today?
The topic of supply chain decarbonization is more relevant this decade than ever before. Many companies have already set climate targets and aim to build a climate-compatible supply chain. Not only because most of them understand that including a climate strategy into their core company goals is relevant today more than ever, but also because political decisions drive companies towards the disclosure of climate relevant information.
For example, the European Union is about to tighten controls on supply chains and demands companies to review their entire supply chain instead of merely their direct suppliers. According to the EU’s draft for the supply chain act, companies with 500 employees and 150 million Euro annual revenue are required to disclose relevant information regarding social and environmental standards along the supply chain. Corporates now face the challenge of preparing for this law. However, most of the companies still lack the knowledge and resources to make climate relevant decisions and create transparency around the value chain in order to identify the important savings potential.
The value chain is the biggest lever for a successful Climate Transformation – up to 90% of the emissions are generated along the supply chain. So let’s take this challenge and transform it into an opportunity! Here is how the climatesummit.de will help you achieve this.
Why you should take part in #CTS2022
In order to effectively reduce CO2, the first step is to calculate Scope 1-3 emissions. Generating climate-relevant data along the supply chain is the foundation to get an overview over the suppliers climate performances. Doesn’t sound feasible yet?
Together with Climate Experts and Change-Makers, we will explore the questions around climate-relevant data and how it’s being used for managing climate-related risks and opportunities along the supply chain. Data experts will share their experiences and success stories and show how climate data enables a holistic supply chain decarbonization and drives a strong Climate Transformation in businesses. In keynotes, panels and fireside chats, Climate Pioneers such as Project Drawdown, WWF Germany and B.A.U.M. e.V. will give insights on how to implement Climate Transformation internationally and based on most recent scientific findings share Best-Practices for decarbonization.
Also, Climate Transformation isn’t something to do on your own. That’s why connecting a strong CLIMATE Community and building networks is also one of the main goals of the Summit. At our online fair, you will get to know innovative climate solutions – such as myclimate, windCORE, BearingPoint, greenmiles and exxeta. Learn how these suppliers of climate-friendly B2B products or services can help your company reduce CO2 and build a climate-relevant supply chain.
Interactive workshops with CLIMATE Pioneers
And that’s not all! We also want to hear what you have to say! Take part in this year’s interactive workshops and share your experiences and expertise as well as raise your questions around the topic of decarbonization. From workshops about climate-relevant procurement and supplier management to creating solutions on how to reach the 1.5 degree goal in a climate simulation game – Here’s something for everyone!
Which specific topics await you? Find out more about the workshops below. Here are some of the topics that will be tackled in the workshops this year – more details will soon be published on the climatesummit.de.
Have you ever wondered how to train employees on climate and sustainable transformation? AXA Climate enables companies to upskill and engage all employees to succeed in the sustainable transition and already trains more than 3 million subscribers. Join the workshop in order to learn more about driving Climate Transformation together with your employees.
Global Climate Action – Simulation Game
Ready to take action? In this interactive workshop with Alice Schmidt, we are going to simulate global climate action and together create a scenario in which global warming stays below 1.5 degrees Celsius. Together, we will establish high-impact actions and discuss how energy efficiency, renewable energy investment or carbon pricing affects temperature rise.
In workshops with Sustainable Procurement Pledge Germany and BearingPoint, we will tackle the most relevant questions about sustainable procurement. We will explore how procurement can engage suppliers in the race to Net-Zero emissions by 2050, the pros and cons of doing so, and how to make it happen. Learn how to increase supplier engagement and enable your relevant suppliers to reach climate targets.
Data-driven CLIMATE Rating
It’s all about data – In the workshop by Telefónica and The Climate Choice, we will discuss the relevance of climate-related ESG data and how it enables companies to make sustainable sourcing decisions. Learn how to collaborate with suppliers in order to successfully decarbonize your supply chain by using data-driven Climate Analysis Tools.
Transparency and ESG-Reporting
Reporting standards and disclosure needs are providing new risks and chances. What are companies expected to deliver? In this workshop with Christoph Klein, companies’ executives understand the perspective and requirements of a manager of article 9 funds. Join the discussion and learn how to tackle the challenges of companies to comply with new reporting standards.
Join #CTS2022 – be part of Climate Transformation
As you can see, the #CTS2022 will be full of different insights, learnings and opportunities to challenge your company with new CO2-reduction strategies and Best-Practices for Climate Transformation! Not only in the „Climate Bubble“ but among the wider economic sphere, we need to raise awareness and make climate solutions easily accessible for every business – cause that’s how real change happens. The climatesummit.de invites all Decision-Makers, Climate Officers, Green-Tech Entrepreneurs, Freelancers, Researchers and interested parties to join the CLIMATE Community and enable a long-lasting Climate Transformation!
We are happy to have you joining! Get your ticket here!
Featured Images: Unsplash
Prioritizing Climate Transparency in the Technology sector
Interview partner: Karli Cumber is responsible for any marketing, social media communications, and sustainability related activates for Footprint Technologies. The Berlin start-up develops an AI based technology that enables users to always find the perfect fit for selected apparel during online shopping. In this way, Footprint Technologies provides online retailers with a solution to reduce the high number of returned products, and thus saving CO2 and costs.
In an interview with THE CLIMATE CHOICE, Karli shares Footprint Techologies’ challenges and progress in implementing their own climate transformation and how the Climate Readiness Check has helped them.
At Footprint, our greatest climate goal is to reduce the amount of CO2 emissions related to returns and reshipments in the footwear industry. Our challenge is to reduce negative environmental effects caused by the processes of shoe returns, specifically due to improper fit. We have started in the children’s shoe segment and this year we are starting to make our way into the adult shoe segmentation. Our services offer a foot measurement technology, which is intended to find the correct-size fitting shoe based on the exact dimension of the shoes’ manufacturing. In 2021, we published our first ‘Sustainability Report’ for the company, where we discussed our climate commitments and partnerships such as with The Climate Choice, as well as reevaluate our current practices. This includes our internal climate code of conduct, to best support our overall climate mission.
As we are mostly working digitally, also remotely, we don’t necessary encounter too many climate related challenges on a daily basis, such as transport or paper printing/usage. But because we are a green-minded company, in our Sustainability Report we summarize the day-to-day activities which support our climate mission. Some of these include our energy consumption of our software, mobility, team learning, and event participation. Overall, we make it a priority to choose more environmentally friendly options when available, and create a welcoming space for learning and open dialogue within our team. Additionally, we provide opportunities and encourage the team to learn about sustainable options, for them to pursue a sustainable lifestyle outside of work.
Our motivation to conduct the Climate Readiness Check was to get insights on where our company currently stands at with our climate efforts and to increase our score as a company.
From the results of our Climate Readiness Check, we learned that we are extremely transparent when it comes to our climate efforts. While this factor may seem obvious for a company that specializes in technical solutions, we find that our transparency is something that can serve as a model throughout our industry. Other than that, we also took note of the areas for improvement as we continue to look forward. We have learned, there are many different areas that are necessary to be considered during a Climate-Scoring.
We would encourage other organizations to prioritize transparency and enable positive climate thinking. We recognize that it is important to consider the environment in our work solutions and moreover to implement this commitment as an integral part of our values. We want to drive forward change in our industry and encourage future partners or collaborators to think the same way. As technology has the favorable quality of constantly being ready to adapt, also our climate actions should be adaptable.
You want to know more about the Climate Readiness Check? Do not hesitate if you want to learn how our software service is enabling you to take the next steps forward. Contact us for more information.
CLIMATE TRANSFORMATION Community – International decision makers join #CTS2022 to share Best-Practices for Decarbonisation
We could not be more excited! The CLIMATE TRANSFORMATION Summit 2022 is less than two months away and we’re super happy to share with you who is going to join #CTS2022 and will be sharing insights, challenges and Best-Practices with you. Please meet our #CTS2022 Ecosystem!
Let’s get started: Your personal Program, 100% online & 100% interactive
The agenda of the Summit is already ready and so are we! As the latest update of the sixth IPCC Assessment Report highlights once again, the time to act is NOW. The good news are: Technically, we have all the solutions right there and at our fingertips to make a successful Climate Transformation possible. But, it needs us to get them implemented. Everyone of us, as employee, employer or decision maker, as climate officer, procurement leader or budget owner. We need to take climate relevant decisions to get active and decrease emissions drastically. Within the next 8 years around 50%. The challenge is on and accepted!
That’s why we’ve gathered over 50 Climate Pioneers, Experts, Practitioners and Decision-Makers to share their current challenges as well as Best-Practices at CLIMATE TRANSFORMATION Summit 2022. We welcome you to a two-days interactive program, full of insights, time for learnings and networking. 100% online and live.
At this year’s third edition of ClimateSummit.de, on the 2nd and 3rd of June, a wide range of speakers come together to share with you their individual steps towards a comprehensive, climate compatible transformation and provide their insights on Supply Chain Transformation, Decarbonisation Data & IT, Infrastructure for Transformation, Emission Management and the International Climate Community.
Join and become part of the CLIMATE Community!
Supply Chain Decarbonisation: A Game-Changer
We all know: Reducing emissions is hard enough. But it gets even harder if you want to get to the root of it: The value chain, where up to 90% of the total corporate emissions typically are generated. Hence, the biggest lever of a successful Climate Transformation is the supply chain. This brings a huge shift in climate management as the highest potential for companies to reduce CO2 emissions lies in supplier management as well as in climate relevant procurement decisions! So how can climate and procurement leaders work together to make this change happen? This is what we explore together at #CTS2022. Because we are all just getting started and it needs all of us to get it right.
This is why, we can’t wait to learn more from our speakers, who come from international corporations such as Microsoft, IBM, Telefónica Germany, SIEMENS and Nestlé as well as from CLIMATE Pioneers such as WWF, Project Drawdown and Potsdam Institute for Climate Impact (PIK)! All of them are ready to share valuable business insights with you into how their organisation is tackling the biggest opportunity of our time: The Climate Transformation!
“Data is the new oil“
In an ever more connected world, having reliable data is needed for any kind of business decision. So what is it about climate relevant data?
The first topic is obvious: Calculating Scope 3 (indirect) emissions of a corporate carbon footprint – the emissions that occur along the entire supply chain – is indispensable. Up until today, those are hard to measure as not all data is available. The second topic around climate relevant data is a little hidden. It is formed around the question: How do you measure and track how well companies are managing their Climate Transformation? How are they setting up climate targets, how are they implementing reduction efforts and how well are they managing internal and external climate risks? All these questions occur today, especially in the financial world. Investors and financial institutions – but also customers and business partners – want to understand if a specific company will be negatively affected by climate change or is turning into a Climate Champion. Therefore, one needs to manage climate related ESG data, which is reflecting the governance, strategy, risks and metrics of companies around climate.
At #CTS2022, we will explore all of these data needs in different panels and fireside chats. Especially Decarbonisation Data & IT Experts will come together and share their experiences on how data can be successfully used for decarbonisation and showcase cutting-edge innovations. We can’t wait to see what practitioners such as Microsoft, IBM, SINE Foundation and many more have in store for the successful Climate Transformation!
Keeping track of the emissions!
So we see already that advanced knowledge and technology can be used for monitoring and reducing greenhouse gas (GHG) emissions from business operations. Therefore, we are happy to present innovative emission management solutions and enabling services as Climate Pioneers at our online fair – such as myclimate, First Climate, BearingPoint, greenmiles and Planted. Get to know them as exhibitors, schedule a call or explore their virtual booth, and learn how you can implement comprehensive CO2 management.
In addition, in the various Panels, interactive Fire-Side-Chats, Deep-Dive Workshops and Speed-Networking sessions, it is all about you! All participants will become part of the vibrant CLIMATE Community and have the opportunity to get involved and active! Present your insights during each session and exchange best-practices with others, work together on decarbonisation and Climate Transformation. This way, the day after the Summit, you can get started in your company, with new business partners, community support or know-how. You don’t want to miss out on that!
Why does it need a Climate Action Community?
As stated by research from the United Nations, the Sustainable Development Goal (SGD) number 17: Partnerships is the single most powerful goal as it affects all other goals such as Safety, Health, Education, Biodiversity, Climate and so on.
In order to make the monumental task of decarbonisation of companies and their supply chains possible, we need a strong and motivated international community that works together on not only setting climate targets but also implementing them in terms of strong actions, along supply chains. This is why we are so glad to build up an open-minded, respectful and supportive CLIMATE Community at the CLIMATE TRANSFORMATION Summit 2022!
Meet the international Community at #CTS2022
We are very honored to have so many amazing international and local players being part of the Community. Climate pioneers such as Project Drawdown, B.A.U.M. e.V., GreenBiz, Futurewoman, WWF Germany and the Potsdam Institute for Climate Impact Research (PIK) will be presenting through their speakers and workshop hosts insights from the international Climate Transformation. Be prepared for the most recent scientific findings and biggest potentials for decarbonisation. Join and contribute, together we make the Climate Transformation happen!
You want to dig deeper? Take a look below at the first overview of the #CTS2022 Ecosystem Line-Up. We’re super thankful to have such diverse and impressive speakers participating in the Summit, coming from different industries and tackling the climate crisis in their own individual ways to make the transformation work! If you want to become part of this ecosystem yourself, you can still apply here.
Always in the making – be a part of #CTS2022!
Just like in nature, the #CTS2022 ecosystem can only function if all participants are on board and pull together in one direction. Therefore, we would like to say THANK YOU for your great support and motivation – you are making it all possible!
To make real change happen we need to go beyond the „Climate Bubble”, raising awareness amongst the wider business community. This is the mission of the Summit: Making Climate Transformation available for companies and their entire supply chains. Therefore, the CLIMATE TRANSFORMATION Summit invites all Decision-Makers, Climate Officers, Green-Tech Entrepreneurs, Freelancers, Researchers and interested parties who now want to implement relevant measures and best practices of the Climate Transformation.
We are happy to have you joining! Get your ticket here and join the CLIMATE Community, be part of #CTS2022 and make decarbonisation happen.
#CTS2022: The climate solutions I didn’t know existed
Today on the CLIMATE TRANSFORMATION Summit’s agenda, we have “The climate solutions I didn’t know existed”.
The #CTS2022 is expected to be mind-blowing, and one of the reasons is the CLIMATE Online Fair, for which we reserved one and a half hours on both days of the Summit. During this time slot, attendees will be able to meet inspiring providers of climate solutions and learn about the solutions that are already out there. That’s right, we already have some of the technologies needed to slow down (to say to stop it would be too optimistic) climate change, even though we might not be aware of it!
In this blog entry, I would like to introduce you to some of the Exhibitors who will showcase their products and services at our Summit to give you an idea of the type of climate pioneers you will be able to meet.
MEET THE EXHIBITORS!
So here is a list with the first confirmed Exhibitors with their climate solutions at our Summit – and don’t forget: if you want to become one, you can apply here.
- B.A.U.M. e.V. with its over 700 members is today a strong voice of sustainably operating companies and a driving force for sustainable development in Europe.
- myclimate is a Swiss Non-Profit Organisation wanting to shape the future through consultation, education, and climate protection projects.
- Tracks GmbH offers automated decarbonization solutions for the transportation industry.
- PLANTED plants mixed forests in Germany and offsets the CO₂ emissions of their customers.
- INTENSE AG is one of the leading providers for competent IT implementation in energy supply.
- CarbonStack accelerates the transformation to CO₂ neutrality by offsetting emissions that are difficult to avoid with local compensation projects.
- VERSO GmbH supports companies with its software for sustainability & CO₂ management.
- Helioz Research & Development GmbH develops climate projects with its own innovation for water disinfection resulting in carbon offsets for the voluntary market.
- greenmiles has been offering advice on all aspects of climate strategy and climate accounting since 2007.
- Next-Incubator is a think tank and internationally established innovation developer, that promotes projects that meet ESG-criteria.
- First Climate is an internationally active provider of solutions for climate protection and renewable energy supply.
- An official partner to the UN Race to Zero, Tech Zero is a worldwide group of tech companies of all sizes around the world who are committed to fighting the climate crisis.
- DQS CFS GmbH handles all certification and auditing services concerning aspects of consumer safety and sustainability.
- PHAT CONSULTING GmbH is a leading Microsoft partner in cloud-based office and frontline collaboration.
- PRIMAKLIMA plants and supports forests.
- Fokus Zukunft GmbH & Co. KG is a sector-independent external sustainability consultancy for (medium-sized) companies
I don’t know about you, but I already feel inspired by simply looking at all the climate solutions out there! I can’t wait to see what each exhibitor will prepare to customize their own Virtual Booth and I hope you will join us at our CLIMATE TRANSFORMATION Summit 2022 on 2nd & 3rd June!
Don’t forget to get your ticket here and see you there!
Why should I attend the #CTS2022?
Hello again and welcome to the second blog entry on this year’s CLIMATE TRANSFORMATION Summit, here is Chiara, the Event Project Manager of the Summit. In case you missed the first blog post and do not want to leave anything behind, I suggest you read here before proceeding.
SO FAR SO GOOD
Three weeks have passed since we last spoke and SO MUCH has happened! Everyday we have had super interesting calls with potential speakers, exhibitors, workshop hosts and media partners and I can assure you that the #CTS2022 will be a great learning and networking experience!
You don’t have a ticket yet? Register here and enjoy the Early Bird Discount, only available for a limited amount of time!
WHAT ARE WE GOING TO TALK ABOUT?
That’s a very good question and the answer is: Climate Data & Supply Chain Transformation. These two will respectively be the focus points of the 2 days of the Summit, happening on the 2nd & 3rd June 2022.
The Supply Chain is where the majority of corporate CO2 emissions stem from, and is also the most difficult aspect to tackle, as it is (mostly) out of one’s control. However, at the #CTS2022 we want to show how Climate Data and Procurement are intrinsically related and how the only way to REALLY change things is to take responsibility beyond the borders of your company.
A HOT TOPIC YOU DON’T WANT TO MISS
The Decarbonisation of the Supply Chain is a highly debated topic and we read it more and more often on the news. The European Commission has recently adopted a proposal for a Directive on corporate sustainability due diligence, which aims to foster sustainable and responsible corporate behaviour throughout global value chains. This means that soon corporations will need to identify and if necessary, prevent, end or mitigate adverse impacts of their activities on human rights and on the environment. This is easier said than done, and it will be the main focus of the #CTS2022!
DOES ONLINE MEAN BORING?
Of course not! Even if the CLIMATE TRANSFORMATION Summit is 100% online, it is also 100% live! This means that all attendees will have the opportunity to connect and chat with the people present, to exchange contact information and interact with one another. We want to offer you a great experience and will make sure to deliver it to you!
#StayTuned to find out the technical details for the #CTS2022, coming up soon!
WHAT’S ON THE AGENDA? ONE PANEL AT A TIME
I guess you are all dying to know more about the agenda of the Summit and I’m here to tell you exactly this.
Each day we will start with a Keynote Speech, where Sustainability Experts and Practitioners will give impactful insights linked to the Decarbonisation of the Supply Chains. Why? It’s always good to hear from the experts their viewpoints and it’s a good way to get you started on the summit.
- FIRST PANEL
How can companies and corporates improve their sustainability performance, if they don’t know where they’re standing? To have clear and reliable climate data it’s equally important and hard for companies, and this will be the starting point of discussion during the First Main Panel. I bet you cannot wait to hear what will come out of this Panel – neither can I!
After having “passively” heard our Speakers, it’s time to get into action and participate in one of the selected Workshops! We will have around 5 Workshops happening simultaneously and attendees will register in advance to their most preferred ones (one for each day). This is the time where attendees can actively contribute and participate in what our Workshop hosts prepared for them – details on the workshops will soon be published on the ClimateSummit.de!
- ONLINE FAIR
And then what’s next? After the workshops it’s time to visit our amazing CLIMATE Online Fair! Start-ups and Innovators, providing B2B climate solutions will welcome you at their virtual Exhibitor Booth, where they will present you their services and products. So you will have the chance to get your personal deep dive into climate transformation. You certainly don’t want to miss what is out there. You aim to become an exhibitor yourself, you can still apply to become one here.
- FIRESIDE CHAT
Last but not least, the afternoon will be all about the interactive Fireside Chats, where three speakers at a time will exchange ideas and experiences on the chosen topic. Additionally, the moderators of the panel discussions will ask questions coming from the audience via the live chat.
The program is truly exciting and interactive, the line up of the Speakers is very promising – anything that is still missing is you! Check out the agenda here and get ready to join!
I hope this gave you an overview of what the Summit will all be about, but the only way to truly be part of the climate transformation is by attending it! We are looking forward to meeting you in June.
Get your ticket now and join the CLIMATE Community!
Any question remained? Please feel free to write to me, I am happy to help.
Climate Report THE CLIMATE CHOICE – Our Climate Performance 2021
In 2021, many companies seized the opportunity of climate transformation, set climate goals and tackled them with concrete decarbonization measures. THE CLIMATE CHOICE supports companies in becoming a CLIMATE Champion, reducing emissions along the entire supply chain and thus improving their climate performance.
Transparent reporting plays a major role in this and is a crucial part of corporate responsibility. It is important to us, even as a startup, to reflect critically our own climate performance and to continuously throve to improve it.
SUSTAINABILITY GOALS AND MISSION
The mission of THE CLIMATE CHOICE is to make climate transformation accessible to every company in a simple and straightforward way. Through our platform, we aim to enable companies to reduce around 50% of supply chain emissions by 2030. Additionally, we also focus on contributing to the 1.5 °C target through our own corporate activities. All our corporate and business actions underline this goal in order to transform the economy and create a regenerative future.
OUR CLIMATE PERFORMANCE ALONG 5 DIMENSIONS – A STATUS QUO ANALYSIS
Along the 5 dimensions of our CLIMATE Readiness Check– our industry-independent climate rating, we have analyzed our climate performance for 2021. A comprehensive analysis goes beyond simply measuring the carbon footprint and includes the intensity and speed with which climate targets are implemented through concrete measures and effective climate management. This enables us to track our corporate action and identify tangible strengths and potentials, which we can use in the future as a basis for climate-relevant decisions.
1. Climate Impact Model
With our CLIMATE Readiness Check along with the CLIMATE Data Platform, we support companies in analyzing their own climate performance as well as the climate impact of their suppliers. Up to 90% of a company’s emissions occur within the supply chain through purchased products or services. Hence, we help strengthen collaboration between companies and suppliers and make procurement practices climate-compatible. To promote cross-disciplinary exchange, we organize regular online CHOICE events in which experts speak on relevant topics related to supply chain decarbonization and use our CLIMATE magazine as a medium for knowledge transfer. The annual CLIMATE Transformation Summit, which has already been organized twice since 2020, provides a stage for a wide range of debates and knowledge exchanges. We organize the Summit to strengthen cross-industry collaboration and enable knowledge sharing. In this way, our business model contributes directly to the UN Sustainable Development Goals 13 “Climate Action” and 17 “Partnerships to achieve the Goals”. Moreover, as a company we are part of B.A.U.M. e.V., a network for sustainable business, and the “Leaders for Climate Action” initiative. This helps us to keep on critically examining our own business model and to multiply the impact of our own measures through cooperative exchange.
2. Climate Leadership
A company’s climate management is relevant in order to achieve climate targets and to act in accordance with the requirements set by government bodies and meet customer expectations . We benefit from clear responsibilities- Lara Obst as Chief Climate Officer and Theresa Wenning as Climate Performance Analyst. They are specifically responsible for identifying and managing climate-related issues. This enables us to analyze and transparently disclose climate-related opportunities and risks, particularly with regards to financial and strategic impacts.
3. Climate Performance
The Climate Impact dimension focuses on key indicators and targets for corporate climate transformation in order to analyze the impact of business activities on the environment and society. The most important key figure here is the company’s carbon footprint, i.e. the calculated CO2 emissions balance.
Our CO2 emissions for 2021 total 4.05 metric tons. Last year, our emissions were 7.7 tons. The difference is explained partly by the use of a different software tool and partly by the use of average values last year. Our Corporate Carbon Footprint is currently still being validated by our external partner myclimate. This includes emissions from Scope 1-3, i.e. not only the emissions from our own corporate activities, but also those generated along the entire supply chain.
4. Climate Transparency
Through regular exchange with our Advisory Board and networks (B.A.U.M. e.v. and BNW), we involve external stakeholders in setting climate-related strategies, policies and performance improvements, thus creating effective stakeholder management. In weekly demo meetings, we also ensure internal communication of climate-related topics within the team. We are currently working with the entire team to develop a Code of Conduct that covers responsible behavior with regards to human and labor rights, as well as guidelines for adherence to sustainable actions within the company.
5. Climate Actions
We use 100% carbon neutral web hosting and cloud services for our platform. In addition, our software is hosted according to the highest security standards on a 100% wind-powered data center in Germany and is DSGVO and BDSG compliant, and ISO/IEC 27001 certified. We also use GLS, a sustainable banking provider that finances sustainable businesses and supports projects such as setting up of wind turbines and organic farming, among others. By using refurbished hardware, all employees contribute to lower emissions in their daily work. In addition, together with MOBIKO, the company supports low-carbon mobility through flexible mobility budgets for employees.
Even during the fully online CLIMATE Transformation Summit in June 2021, which connected around 600 participants with climate experts and solution providers, emissions were significantly lesser as compared to an offline event. Together with our partner Fokus Zukunft GmbH & Co. KG, we calculated 4t of CO2 emissions, which included the use of Zoom, YouTube broadcast, Slack and Gather-Town as well as the travel of two team members by train. Through a gold standard wind power project in Turkey, we offset twice the emissions created.
THE CLIMATE TRANSFORMATION IN 2022
Implementing climate goals together – that’s the motto for the coming year 2022. Our learnings from the CLIMATE Readiness Check will help us to drive forward the climate transformation within our own company and to focus in the coming year on measures that have not been taken care of so far. We have recognized that it is not sufficient to simply offer a climate-friendly product or service. Every company must start internally, make the entire corporate DNA climate-friendly and prioritize sustainability as a core area of corporate management. The most important trend for this in the coming year will be supply chain decarbonization – climate relevant procurement decisions are what matter! Let’s make this happen in 2022 and seize the opportunities of climate transformation by working together through cross-industry cooperation to develop concrete measures and implement climate targets along the entire supply chain.
Do you also want to get a better overview of your company’s climate-related opportunities and risks? Then contact us and request information on the CLIMATE Readiness Check.
5 Steps to Achieve a Climate-compatible procurement practice
A company that wants to efficiently reduce emissions and leverage savings potential has to take the supply chain into account. This is because up to 90 % of a company’s emissions does not originate internally, but along the entire value chain through the procurement and further processing of raw materials. Tackling indirect emissions and critically examining the company’s supply chain is therefore a decisive step toward decarbonizing the business.
CLIMATE POLICY DEMANDS RESPONSIBLE PROCUREMENT PRACTICES
While a conventional procurement practice is mainly concerned with acquiring high quality at the lowest possible price, climate-compatible sourcing additionally focuses on including ecological factors in procurement decisions, which includes taking responsibility for the social and climate-related practices of suppliers.
THE OPPORTUNITIES OF CLIMATE-COMPATIBLE PROCUREMENT FOR YOUR COMPANY
Many companies still underestimate the opportunities of climate-compatible procurement. Yet, sustainable procurement practices and networking with climate-neutral suppliers offers great CO2 savings potential for companies. Close cooperation with suppliers enables reliable supply and reduces risks such as cost fluctuations or supply interruptions. Therefore, responsible resource extraction and processing not only enables energy- and resource-saving working methods, it also enhances a company’s reputation and employer attractiveness. Companies that implement climate-relevant procurement as a central component of supply chain management are also increasingly achieving competitive advantages and minimizing risks.
CLIMATE-RELEVANT PROCUREMENT – HOW DOES IT WORK?
Implementing a climate-compatible purchasing practice means to integrate social, ethical and environmental factors into the supplier selection process and the overall procurement strategy. The aim is to source products and services in a way that will not negatively impact the environment and society. For this, ecological, social and economic factors need to be taken into account in the whole process of a product, from production to disposal.
Above all, a sustainable procurement operating model is designed to ensure that every element of the conventional procurement process is complemented by climate-relevant activities. This not only includes building strong and long-term supplier relationships. Furthermore, employees need to be trained in accordance with the underlying goal. Also, investing in digital tools is helpful to facilitate both cost and sustainability transparency throughout the supply chain. Transparent climate-relevant data and key figures along the supply chain is the basis for developing specific solutions and adapting processes. In the following, we will show you five relevant steps that help your company to facilitate a responsible sourcing practice and building stable long-term relationships with suppliers.
5 PRACTICAL STEPS TO IMPLEMENT SUSTAINABLE PROCUREMENT
1. Analyze supply chain and set targets
Despite growing awareness, the supply chain and its influence on a company’s own climate performance often remains a “black box”. Therefore, the first step for climate analysts and procurement leaders is to create an overview of the company’s climate performance by collecting climate-relevant data from their suppliers. Not only are company-wide emissions relevant – a critical examination of internal climate management and the established climate strategy is also part of a comprehensive overview. Based on this, your company can set targets and define individual measures. In accordance with your own business policy, you can develop a clear vision of how climate-relevant procurement should be implemented in your company.
2. Communicate expectations to suppliers
By laying out your own requirements for suppliers within a code of conduct, for example, you can transparently communicate your expectations and introduce your suppliers to the company’s climate targets. The code acts as a benchmark for the desired level of performance and provides binding guidelines for climate-related standards for suppliers. While selecting suppliers, it is also important to consider their climate performance alongside the set criteria, and use it as a metric for the procurement process.
3. Climate-compatible procurement through cooperation with suppliers
Based on transparent climate-relevant data, your company can build trusted business relationships with suppliers and shape a climate-compatible transformation in the long term. Such business relationships are particularly successful if requirements are set and conveyed and furthermore, suppliers are supported in implementing them.
The goal is to cooperate proactively and systematically with all suppliers and to collectively outline challenges, in order to develop customized approaches to solutions. This also ensures that suppliers are well-aware about business benefits and are incentivized to pursue a climate-compatible business model. Additionally, you motivate them to increasingly take social and environmental standards into account in their own procurement practices.
4. Monitoring and evaluating measures
By continuously monitoring ongoing measures, your company can make successes quantifiable and highlight positive developments. In addition, processes can be adjusted and if necessary, further measures can be developed. Moreover, ensure that your company constantly revises its goals in order to further challenge and motivate itself and its suppliers.
5. Create transparency
In order to be sustainable as a company, it is not only important to develop climate-compatible corporate activities, but also to communicate them transparently to the outside world. In this way, you can build trust with all stakeholders and set an example to inspire others. Moreover, political regulations such as the EU taxonomy increasingly oblige companies to disclose their own climate performance in annual reports.
Conclusion: A climate-relevant procurement strategy offers your company the opportunity to reduce emissions along the entire supply chain and to operate in a climate-compatible manner. For this, transparency is the most important prerequisite for successful cooperation along the supply chain. Comprehensive CO₂ reduction in procurement cannot be achieved without an understanding of the own climate performance and that of the cooperating partners. In the future, there will be a significant need to increase transparency and devise simple ways to identify both providers of climate-relevant solutions and suppliers based on their outstanding climate performance. With our CLIMATE Data Platform, THE CLIMATE CHOICE is pursuing this goal. Companies from different industries can use the platform to validate themselves by undertaking the CLIMATE Readiness Check and receiving a climate performance rating. Today, this service enables companies to make climate-relevant procurement decisions based on transparent climate data, find new business partners and integrate existing suppliers into their successful climate transformation.
You want to know more? Schedule a free consultation with us now and learn about our software for decarbonizing companies and their supply chain.