How to Qualify, Assess and Develop Suppliers for Scope 3 Decarbonization

To truly achieve corporate climate targets, companies must activate and engage their suppliers, who can account for up to 90% of emissions (Scope 3). The first step is to clearly define the supplier structure and to pre-qualify suppliers for decarbonization on the basis of climate-relevant data. Suppliers must then be assessed and their climate strategy developed and supported accordingly. What is the best way to make this happen?

That’s what we learned at the CHOICE Event #54 from Maximilian Droste from amc Group and Yasha Tarani from The Climate Choice. Here you will find the most important insights from their joint presentation.

Why focus on Scope 3 Decarbonization?

More and more global enterprises are facing various risks and pressure from stakeholders to meet their climate targets today. The de facto standard, the Science Based Targets initiative, requires companies for which emissions from their supply chain (Scope 3) account for more than 40% of their total climate impact to set specific Scope 3 targets. Since Scope 3 emissions are on average 11.4 times higher than direct emissions, this applies to almost every company.

To start measuring and reducing these Scope 3 emissions, companies need to receive product related information from their suppliers. These include product carbon footprint information or lifecycle assessment data in order to compare products and services with each other. The big issue is that most of the suppliers are not ready yet to provide this information.

Without climate relevant data from their suppliers, companies cannot fully understand their climate risks and what measures they need to implement in order to achieve their climate targets. This is where the big challenge for decarbonizing the supply chain lies.

Calculating Emissions from Purchased Goods & Services

So how does calculating emissions from your suppliers actually work? An overview from the Technical Guidance for Calculating Scope 3 Emissions by the Greenhouse Gas Protocol shows that there are different data types used for different calculation methods. Most companies find themselves today still at the bottom with the main use of average data. However, the goal is to arrive at the supplier-specific method and collect as much supplier-specific data as possible. Only then can companies make truly informed buying decisions for decarbonization.

A new study by the Science Based Targets initiative shows that only 6% of companies with science-based climate targets are currently working with specific data from suppliers. This is due to various challenges when approaching their supplier base for climate data. In summary, these are:

• Various levels of understanding
• Lack of access to accurate CO2 data
• Lack of climate management knowledge & capacity
• Lack of collaborative tools & best practices
• Lack of comparables & benchmarks
• Different business sizes & a wide geographic distribution

Process is key for supply chain decarbonization 

In order to overcome all of these challenges, companies must first and foremost ensure that sustainability and compliance are not only written down in declarations and codes of conduct, but that they are anchored in procurement and supply chain processes. Let’s have a look at how such a process can be structured. The process map shown as an example below has three different levels. At the top are strategic processes such as category management and long-term strategic development. They build the guardrails of action for an organization. Once the standards for strategic processes are set, it becomes easier at the tactical and the operational level to actually deploy them. 

The most crucial process for decarbonization within the strategic level is the supplier relationship management. This is what we will now take a closer look at.

Supplier Management practices guide the process

The supplier management process has the intent of building long-term relationships and ensuring supplier quality based on objective assessments. Companies achieve this by first analyzing their supplier pool and defining relevant suppliers for further supplier management steps. They then evaluate the relevant suppliers by their performance in the past as well as their future potential. Lastly, a strategy of developing the suppliers based on their assessment results has to be defined and implemented.

Let’s go into more detail and look at the exact steps for the specific purpose of working with suppliers on climate targets.

1. Gain understanding of supplier structure.

Supply chains are complex structures that can often consist of multiple thousands of vendors. That’s why the first step is to create transparency and understand who is part of the supply chain. This requires accurate supplier screening in, as exemplified by the Climate Intelligence Platform. Different levels are needed in order to clearly define what the results of the screening mean.

2. (Pre-) Qualify suppliers for decarbonization based on climate maturity.

Once companies have established this visibility, they must define criteria to be part of the supplier structure. For example, this could mean that suppliers should be able to provide corporate as well as product carbon footprint information and have already set their own climate targets. The standardized qualification is the basis for increasing the quality of the supplier pool incl. approval process (barrier to entry).

3. Evaluate suppliers with performance scoring.

When evaluating the suppliers, it is important to gain insight into their holistic climate transformation. After all, individual findings such as CO2 data or top-down analyses of financial flows are far from sufficient here. The Climate Intelligence Platform therefore conducts an assessment in five dimensions: Governance, Strategy, Transparency, Metrics & Targets, and Decarbonization Measures.

4. Classification of suppliers to derive decarbonization strategy.

As a result of the evaluation, companies can now classify their suppliers into high performers and low performers. An overview of supplier ratings and score distribution, as shown in the Climate Intelligence Platform, helps to develop a strategy on how to increase their performance over time. Through the classification, every supplier receives the individual support that they actually need.

5. Derive strategy & development plan for supplier base.

Following the previous steps, the ultimate goal is to translate the established criteria and strategy into a concrete implementation plan. An example from the Scandinavian telecommunications group Telia shows what this can look like.

Automated data collection & collaboration with suppliers

As already shown in the examples, the Climate Intelligence Platform provides a way to efficiently automate the various steps of the supplier relationship management process for Scope 3 decarbonization. Companies receive everything they need to set up, test, manage and achieve your supplier climate engagement targets – from data acquisition to tracking and engagement. Via the platform they can access and acquire a wide range of audit-ready company risk as well as emission data and support their suppliers in their decarbonization journey.

Start with a free basic account for the Climate Intelligence Platform

You can now start your own supplier management process by registering for free on the Climate Intelligence Platform. Within the free basic account you can invite an unlimited number of your suppliers in a quick and automated way to become part of your transformation journey and work together with you on climate actions.

Here you can register within 5 minutes and try out the platform without obligation.

How Coca Cola Engages Suppliers for Science Based Targets

The Science Based Targets (SBTs) initiative helps companies set climate targets that are consistent with the latest climate science. A particular focus of SBTs is on supplier engagement, as 90% or more of companies’ emissions occur in their supply chains. Corporations have to work closely with their suppliers to set and achieve their SBTs. How does a major global company still on the path of climate transformation, like Coca Cola, deal with this challenge?

That’s what we learned at the CHOICE Event #53 from Cornelia Folz, Vice President Public Affairs, Communications and Sustainability (PACS) at Coca-Cola Europacific Partners Germany. Here you will find the most important insights from her presentation.

What are the Science Based Targets?

The Science Based Targets Initiative (SBTi) was founded in 2015 in the year of the Paris Climate Agreement by four NGOs – CDP, WWF, UN Global Compact and World Resources Institute. The initiative is considered a leader in both guiding science-based climate target setting and validating it. It defines and promotes best practice in emissions reduction and net-zero targets in line with climate science. Teams of experts provide companies with independent assessment and validation of targets.

The change has already begun and action is gaining pace. Over 2,000 organizations worldwide are leading the transition to a net-zero economy by setting reduction targets grounded in climate science.

Coca Cola’s commitment to Science Based Targets

Together with the Science Based Targets initiative, Coca Cola Europacific Partners has set an ambition to reach net zero greenhouse gas (GHG) emissions by 2040. Over the last decade, the company has already reduced GHG emissions across its entire value chain by 30.5%. Coca Cola now concentrates on reducing its value chain emissions even further, with a focus on scope 3 emissions where the biggest impacts occur. In all of this, Coca Cola is committed to an approach that prioritizes reducing greenhouse gas emissions wherever possible.

Key focus: mobilizing suppliers on climate change

In order to reach this target, Coca Cola puts a key focus on mobilizing its suppliers on climate change. Over 90% of the organizations GHG emissions are scope 3 emissions. Those scope 3 emissions include raw ingredients (25%), packaging (43%), operations and commercial sites (7%), transport (9%) as well as cold drinks equipment (16%). 

So to really achieve the net zero ambition, Coca Cola has to work closer with its suppliers and support them in their decarbonization journey. To do so, the company has decided to start very easy with three clear and direct questions they are asking their suppliers:  

1. Can you set your own SBTi-validated GHG emissions reduction targets by 2023?
2. Can you commit to using 100% renewable electricity across your operations by 2023?
3. Please share your carbon footprint data with us.

Supplier Carbon Reduction Program

These three questions form the basis for activation and close cooperation with suppliers. Once the ambitions, plans as well as the existing know-how regarding the setting of science-based targets, the transition to 100% renewable energy and the sharing of carbon data from suppliers are clear and known, the real work can begin. From this, Coca Cola has launched a program to motivate and support suppliers with knowledge and resources.

Together with the Carbon Disclosure Project (CDP) and the Science Based Targets initiative, Coca Cola has created specific training programs for their suppliers. Suppliers that are just starting their climate transformation can join these programs, receive guidance, and learn how and with what best practices to set science-based targets. They also learn about different emission factors and approaches to identify carbon hotspots, start reduction measures and track real progress.

Practical example: The Transport Tender

So how does this all impact the day to day work? Let’s have a look at the example of the transport tender that Coca Cola is sending to out logistics companies. It includes a clear message to suppliers that sustainability is one of the 3 key objectives of the tender. Via a bidsheet, suppliers can then offer prices for green solutions (rail, waterways, gas, biofuels, electric). This allows Coca Cola to transparently learn about and compare the extra costs of decarbonization measures with actual GHG savings. 

On this basis, Coca Cola can discuss together with the suppliers on possible short and mid-term solutions. The decision making process is supported by formal calculations to weight tCO2e reduction vs oncost. Here, different alternative scenarios are created, which include the highest tCO2e reduction scenario, the cheapest scenario, and so on. 

Conclusion: From easy to complex

The Transport Tender example shows how a simple question at the beginning evolves into more specific details and an ever finer process of collaboration and shared decision making as it progresses. This is exactly how every company should approach the process of decarbonizing its own supply chain. Because one thing is clear: the task is big and complex and can seem overwhelming at first. However, we are all still at the beginning of climate transformation and need to learn together step by step.

Start with a free basic account for the Climate Intelligence Platform

So it’s a matter of approaching suppliers with simple questions and thus taking the first step. You too can easily implement exactly this simple start today. Register for free on the Climate Intelligence Platform to assess your climate maturity and engage suppliers to do the same. Within the free basic account you can invite an unlimited number of your suppliers in a quick and automated way to become part of your transformation journey and work together with you on climate actions.

Here you can register within 5 minutes and try out the platform without obligation.

Discover The Power of Female Climate Leaders at #CTS2023

Shaping The Future of Climate Transformation at #CTS2023

On International Women’s Day, there is no better time to celebrate the incredible female climate leaders who are fighting for decarbonizing companies and their supply chains!

The CLIMATE TRANSFORMATION Summit 2023 brings together outstanding female climate experts for an online event you don’t want to miss. The theme this year is “Making it Happen,” and it will take place online on May 11th and 12th, 2023.

With 49% of confirmed speakers being female, this Summit is all about amplifying the voices of women driving climate transformation. And we are looking to bring the number up!

Why focus on female climate leaders? 

Studies have shown that women in leadership positions are more committed and effective in driving action on climate change than men (sources: UN Women & Global Gender and Climate Alliance). Female leaders assess risks differently compared to men and generally prioritize the well-being of society when making decisions.

And the impact of advancing women in climate action is huge. According to Project Drawdown, it has the potential to save 68.9 gigatons of CO₂e between 2020 and 2050. That’s why the CLIMATE TRANSFORMATION Summit 2023 is giving female climate leaders a special platform to share their insights.

Bringing transformation forward

These experts include Paula Caballero, the “inventor of the SDGs”, Anna Rathmann, Executive Director at the Jane Goodall Institute, and Sonya Bhonsle, Global Head of Value Chains at the Carbon Disclosure Project, among many others. 

In partnership with Futurewoman.de, a network for women in sustainability, the summit also brings together Yvonne Zwick, Executive Director of B.A.U.M. e. V., Katharina Reuter, Managing Director of the Bundesverband Nachhaltige Wirtschaft (BNW e. V.), Olivia Henke, Executive Director of the Foundation Alliance for Development and Climate, Yvonne Jamal, Chairwoman of the Board of Jaro Institut e. V., and Lara Obst, co-founder of the climate tech startup The Climate Choice.

Sandra Broschat, co-founder of Futurewoman.de, says it best:

“The female perspective and expertise are essential in the fight against the climate crisis. It is the biggest challenge of our time, we simply cannot afford not to actively use 50% of the know-how. Female leaders have a key role, as studies show they are particularly committed and consistent in implementing climate action compared to men.”

Claiming the mic to save the planet

The CLIMATE TRANSFORMATION Summit 2023 (#CTS2023) provides a stage for climate experts from diverse fields and perspectives. By doing so, the Summit not only promotes cross-sectoral knowledge transfer but also recognizes the vital role that women play in the fight against climate change.

Olivia Henke, Executive Director of the Foundation Alliance for Development and Climate, expresses the importance of coming together to tackle the climate crisis:

“We need every opportunity to come together, exchange ideas and learn from each other. The Climate Transformation Summit offers a great platform to achieve this goal. We are excited to be partners again.”

Katharina Reuter, Managing Director of BNW e. V., agrees, stating that:

“the Summit shines a spotlight on climate protection solutions – a perfect match with the BNW e. V..”

So mark your calendars for May 11th and 12th and get ready to be inspired by incredible female climate leaders. Let’s make a real difference in Making Transformation Happen in companies and their supply chains!

Don’t forget to get the lasts Early Bird Tickets here! The discounts ends this week.

How to generate Value from Supplier Climate Data

New reporting requirements and stakeholder expectations are driving large companies to collect climate-related information from their suppliers. Once they have overcome the first hurdle of collecting data along complex supply chains, they immediately face the next challenge. What do I do with all this supplier climate data now? How can I generate value for my company from it? How can it help me to achieve my sustainability targets?

This is what we learned at the CHOICE Event #52 from Neele Franke and Hugo Ernest-Jones from IBM Consulting. Here you will find the most important insights from their presentation.

Companies struggle with operationalizing climate strategies

When it comes to sustainability and climate efforts by large companies, it is striking that today many of them are already publicly committing to climate targets and developing strategies for their implementation. While most have ambitious plans, however, many are still struggling to operationalize them. A recent survey among over 2,000 CEOs worldwide revealed that 86% of companies have a sustainability strategy, but only 35% have acted on that strategy (Source: IBM Institute for Business Value (2022): Sustainability as a transformation catalyst).

So while the “What” seems to be rather clear, the “How” of getting it actually done remains a big challenge. Added to this is the increasing pressure and complexity of regulations and frameworks for corporate sustainability and climate disclosure. Regulators are mandating minimum levels of reporting – putting the responsibility onto corporations. They, in turn, have to find their way through the jungle of new standards and initiatives defining the most important climate data in companies. Since up to 90% of a company’s emissions originates from the supply chain, they must also manage to collect this data from their suppliers.

The evolution of a sustainable enterprise

For companies that start collecting supplier climate data, it is important to understand that next to compliance and reporting purposes, they can also generate huge amounts of value from their data collection. If done right, it can help the company to operate more effectively, more profitably, with reduced costs and in a more innovative way to develop new products and services. 

Based on this insight, companies can be classified in a maturity curve for their sustainable evolution in three stages.

Stage 1 – Sustainability Compliance

Focus mainly on license to operate and meeting regulatory or compliance requirements. Digital maturity is low, processes and systems are siloed, and data collection and aggregation is a manual process.

Stage 2 – Sustainability Optimization

Sustainability initiatives exist for Social, Environmental & Governance, across operations and support functions. Acceleration of digitization and automation of sustainability data collection and reporting.

Stage 3 – Sustainability Transformation

Sustainability is embedded as a core value and mission statement across all company departments and functions. Technology is focused on differentiation, advanced analytics and futuristic, with the objective of leveraging sustainability as a competitive advantage.

Key steps in operationalizing supplier climate data

How can companies leverage their supplier climate data to move from mere sustainability compliance to real sustainable transformation? The following key steps can serve as a guide to successfully operationalize the data collected in order to drive action.

1. Data Collection

There are two different options when collecting climate data from suppliers. Real supplier “primary” product level data is the preferred where available, though availability is limited. “Secondary” averages data on the other hand are readily available, but of limited quality. Clients should therefore collect and integrate primary data for selected high impact/strategic suppliers (at least scopes 1 and 2) where possible and use secondary data sources to model remaining emissions.

2. + 3. Data Integration and Engine

While many companies still collect and integrate their data manually in Excel spreadsheets, the goal should be to automate this process as much as possible. Specialized software solutions are already available for this purpose, such as the Climate Intelligence Platform. This has the advantage that time-consuming processes can be carried out efficiently and cost-effectively, and the data is also auditable.

4. Visualization and reporting

Once companies have collected and integrated the supplier climate data, they should visualize the results next in order to draw out insights to inform reporting and strategy. Smart visualization with specialized tools also supports the management of data availability and quality.

5. Simulation and strategy

In order to use the data not only for insight into the past, but also for future planning, the next step is strategy work. Companies can now leverage the supplier climate data to help guide decision making around reducing emissions along the supply chain. This is where modeling and simulation comes in and links with the next and last step: supplier engagement.

6. Supplier Engagement

Collaborating with and engaging suppliers is the core and end goal of every effort to decarbonize the supply chain. It is important to note that successful supplier engagement must occur at three levels.

Process & Governance – Companies should design a strategy and operational model aligned to supplier benefits and user outcomes that are fair, democratic, transparent and evolving.

Business Value – In order to secure participation, companies must design a business model that includes appropriate incentives to stimulate collaboration and network effects.

Technology – Technical solutions with winning human experiences help to drive mass adoption of new digital products and services with privacy, trust and security.

Start with a free basic account for the Climate Intelligence Platform

The best approach to finding the entry point to collecting and leveraging supplier climate data is to “start small and think big”. The Climate Intelligence Platform offers a perfect small start for companies looking to engage their suppliers for climate action. The free basic account offers access to over 10,000 climate supplier profiles and the possibility to analyze the basic climate maturity of an unlimited number of suppliers in an automated way.

Here you can register within 5 minutes and try out the platform without obligation.

“Together we can. Together we will” – Interview with Anna Rathmann from the Jane Goodall Institute

Everything is connected – everyone can make a difference. Under this motto, the Jane Goodall Institute fights worldwide to conserve the natural world we all share. We are excited that Anna Rathmann, Executive Director of the Jane Goodall Institute, will be a keynote speaker at the CLIMATE TRANSFORMATION Summit 2023, sharing her vision and insights with the CLIMATE community.

For the Climate Magazine, she has already taken the time to answer our most pressing questions to her. The interview is about the three big global crises – climate change, biodiversity loss, and environmental inequity –, how they intertwine and how the institute is partnering with companies to tackle them.

Hello Anna, thank you for taking the time for our interview. Let’s start by briefly introducing yourself to our readers and explaining to them what the Jane Goodall Institute stands for at its core.

First off, thank you for the opportunity to share a little bit about the Jane Goodall Institute’s nearly 50 years of conservation. My name is Anna Rathmann, I am the executive director of the Jane Goodall Institute (JGI) USA in Washington, D.C. I have spent my career working in conservation and, like many others, have a profound respect for the holistic philosophies and approach of Dr. Jane Goodall.  The Jane Goodall Institute’s mission evolved as Jane evolved as a scientist and activist.

The foundation of JGI was built on the groundbreaking research Jane began over 60 years ago in Gombe National Park in western Tanzania on chimpanzees and their ecosystem. While this ongoing research continues to be at the core of our work today, we combine this decades long commitment to science with community-led conservation, innovative advocacy around animal welfare and environmental issues, best-in-class rehabilitation and sanctuary care for a variety of wildlife exposed to trafficking, One Health initiatives, forest protection and restoration, applied conservation technology, and our global youth program: Roots & Shoots. 

Jane often refers to our planet as a “tapestry of life”. This philosophy, of “when nature thrives, we all thrive,” has guided the work of her namesake Institute to view complex issues like biodiversity and habitat loss, human inequity, and apathy – as interconnected. In response, JGI’s solutions are interconnected. We see threats as opportunities to bring people together across industry, sector, and identity to pursue science-based solutions that integrate the needs of people, other animals, and the environment in their communities. Together we are adding to the “tapestry of life” and building a “tapestry of hope” towards positive change worldwide. 

In your recently announced new strategy, you are stressing the fact that our society is now facing 3 global crises: climate change, biodiversity loss, and environmental inequity. How do these crises affect and magnify each other, and what is your approach to help address them all?

Climate change, biodiversity loss, and environmental inequity are deeply intertwined. Human inequities have largely driven the over consumption of natural resources and environmental degradation. Global consumer industries both perpetuate inequities and overwhelmingly drive this damage. In turn these processes are the main drivers of greenhouse gas emissions, habitat loss, pollution, and harmful transformations that are causing the Sixth Great Extinction. We are each part of the grand tapestry of life and as species go extinct, the whole tapestry begins to fall apart. 

We also know that as ecosystems lose their ability to absorb greenhouse gases, like global forests and oceans, all these factors of damage and threat increase. This cycle then deepens human inequities, disproportionately affecting low-income communities worldwide, leading to a cycle of habitat loss, destruction, and suffering.  

This is why Jane and JGI have never seen threats as standalone problems. Every threat is integrated and requires integrated solutions – and everyone plays a role in these solutions.  That is why people are at the center of the Jane Goodall Institute’s approach to conservation. We want to create involvement at every level for true community ownership of conservation and environmentalism. Local and indigenous people are the stewards of the majority of the world’s biodiversity, so JGI wants to ensure local communities and indigenous groups are leading their own natural resource management and sustainable development – an approach the Jane Goodall Institute calls “Tacare” (to “take care”). We also firmly believe in the power of young people. Our Roots & Shoots program empowers young people to identify problems facing people, other animals, and their environment – so that they see these interconnections and find ways to help locally. 

Jane and JGI are part of global campaigns and advocacy to influence environmental policies at all levels of government and stewardship. Our #EATMEATLESS campaign is part of our efforts to shine light on the damaging effects of the animal agricultural industry. Our “Jane’s Green Hope” campaign focuses on nature-based solutions through partnering with companies such as Hewlett Packard for native forest restoration and protection. 

Top down and bottom up, JGI believes everyone has a role in creating change and the responsibility to create a better world for us all. These threats facing our planet are complex, but when each of us takes part in transforming our systems, we change the way we view our relationship to one another and to the natural world.

You have defined 4 key groups with whom you want to work together to fight the 3 crises: young people, indigenous communities, the general public, and businesses. What responsibility but also what opportunities do you think businesses have in particular in the fight against climate change?

We know that a small group of around 100 companies are responsible for the majority of emissions, but we also know those companies consist of people. Jane often uses the analogy of speaking to someone’s “heart and their head” by sharing a story about how a young woman in Roots & Shoots spoke to her father who was in the fossil fuel industry about climate change. When we have these intergenerational conversations – interpersonally or between entities like JGI and major companies – we can make important shifts towards the necessary sustainability this world needs before it is too late. 

Jane and JGI work to have these conversations and keep the momentum going in the right direction. This means either directly scaling or deepening our work, increasing accessibility for end-users to participate in sustainable practices, and/or advancing efforts that will work with companies to identify ways to reduce negative impacts, carbon emissions, pollution, and more. 

What special challenges have you experienced in your collaboration with businesses, and what best practices for sustainable and climate-related business decisions have been most effective?

In any relationship, there is the need to make sure we are listening and creating a vision for the project that benefits everyone, one based in science, and which perpetuates movement towards tangible and real sustainability. Having companies see how robust our programs are, and how simple solutions can create big impact, has been less of a challenge and more of an emerging opportunity. 

When finding partners, the Jane Goodall Institute wants to make sure that they have already invested in carbon divestment goals and green transformations. We then find ways to move further to the goal together. Jane has always found common ground through conversations, and conversations are where true understanding happens – where is there already a chance for overlap or expanding programs that work? How can we use our brand to increase the accountability of a corporation to walk the talk? How can we also provide resources, insights, and expertise to ensure that every aspect of the partnership and deliverables are sustainable? These are the questions to ask. 

Do you have a message for companies that you would like to share in short words with the participants of the upcoming CLIMATE TRANSFORMATION Summit 2023?

We know that there are so many innovative people in influential companies ready to turn the tide on the harms facing our planet through partnerships. Through the Jane Goodall Institute’s model, we have the programs, expertise, and investment in local and indigenous leadership, and we welcome thoughtful and meaningful partners to help take that work further. Everyone wants to be part of a winning team and when they see what is possible by working together, they are inspired to think more critically about the brands and organizations they support, and how they live their lives. 

Jane has always followed a path of doing what was right for the sake of the common good with the knowledge that we are all dependent on one another, this planet, and its finite resources. But as Jane says, “How is it that the most intellectual species to ever exist is destroying our only home?” One of Jane’s most important reasons for hope is the human intellect – what has driven our incredible globalized industries is our human brains, and so these same brains can work together to solve even the greatest of complex challenges. When we combine our intellect with using our hearts to guide us in doing what is right, we change the world. 

“Together we can. Together we will” 

We thank Anna for the inspiring interview.

Don’t miss her keynote at the CLIMATE TRANSFORMATION Summit 2023. Here you can secure your ticket.

JGI does not endorse handling or close proximity to wildlife. This represents a sanctuary context with trained professionals.

THE CLIMATE CHOICE says thank you for a special 2022!

What a year for climate champions! We all faced major new challenges in 2022 – especially companies that were particularly hard hit by the energy crisis and supply chain bottlenecks. Despite everything, you, the CLIMATE community, have continued to work with us to drive the transformation to a low-carbon economy. There have been many positive highlights and developments for which we at THE CLIMATE CHOICE want to say thank you. Let’s take a look at how 2022 allowed us to boost climate transformation all around the globe!

Kicking off the year with strong, new partners

Our year began with a firework of climate action. We were able to start working with many new major and influential customers for the Climate Intelligence Platform, including, as two special highlights, the corporate projects with the mobile phone provider o2 Telefónica and the baby food manufacturer HiPP. We kicked off inspiring collaborations to elevate the transparency of emissions along their supply chains by using our platform.

HiPP was able to successfully identify climate-related risks and potentials of five suppliers with the help of our software tool. HiPP’s Head of Sustainability Management Dr. Johannes Knubben reflects: “The software tool from THE CLIMATE CHOICE enables us to implement a scalable and reliable process to increase the climate-relevant transparency of our supply chain.”

Our next goal is to extend the software-driven climate data collection initially to other partners and ultimately to HiPP’s supply chain. Through an integration of THE CLIMATE CHOICE software tool into HiPP’s sustainability and procurement strategy, the full potential of climate-relevant supplier management is to be exploited.

Our corporate project with o2 Telefónica also successfully identified climate-related risks and potentials of the selected suppliers. The company is now able to develop a transparent, scalable process for collecting comparable data on the climate maturity of suppliers.

In the next step, we will integrate our platform into the procurement dashboard of o2 Telefónica. The climate-relevant data collection for the decarbonization of Scope 3 will be extended to around 1,000 suppliers.

CLIMATE TRANSFORMATION Summit 2022

The climate action kept on flowing and reached a new peak at our #CTS2022. For the third year in a row, we brought together international climate leaders and procurement experts for our two-day 100% online Climate Transformation Summit. 

We welcomed 64 speakers, who interacted with over 1,000 attendees from 59 different countries. Attendees had the chance to participate in 12 limited workshops 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. THE CLIMATE CHOICE says thank you!

More good news: We just announced the date for #CTS2023! We cannot wait to welcome you on May 11 & 12 2023 for two days full of climate action! Our focus this year: Making it happen – the decarbonization of supply chains! Together with you and leading experts, we will find out how we can impement CO₂ reduction along the value chain.

You can’t wait to secure your spot?
Get your Super Early-Bird ticket now!

You want to be a speaker, workshop host or partner? 
Let’s get in touch.

Launching CLIMATE Readiness Check

The most important insight we gained from the discussions at the #CTS2022 was that small and medium-sized enterprises (SMEs) in particular still find it very difficult to get a quick start in climate transformation because they often do not have sufficient know-how and/or resources. In response to this challenge, we worked over the summer on a new solution offering.

The result: In October, we launched our digital and freely available Climate Readiness Check in partnership with 10 leading sustainability organizations. Among those B.A.U.M. e.V., Bundesverband Nachhaltige Wirtschaft e.V. (BNW), Stiftung Allianz für Klima und Entwicklung, Jaro Institut für Nachhaltigkeit und Digitalisierung e.V., and the Deutscher Mittelstands-Bund (DMB).

The Climate Readiness Check offers SMEs an easy entry point into their climate transformation: through knowledge and insights into their own climate maturity, benchmarks, suggestions for improvement, and access to a B2B climate data platform.

Our Launch was a full success! We are beyond happy to see so many companies kicking off their climate transformation with our Climate Readiness Check! We can’t wait to see who will join us in 2023!

You too can conduct the Climate Readiness Check for your company now and get free access to our platform!

Kickstarter Program 2022

In addition to the projects we developed ourselves, this year we were also part of pioneering external initiatives. Among them, one highlight: In August, we were selected from more than 2.000 applicants for the Climate Lab and Kickstart Innovation scale-up program in the finance and insurance track! Kickstart is one of the largest European Innovation Platforms. Each year they chose a select number of the best international startups to participate in a 10-week program.

We were honored to work in the program with corporates – such as Swisscom, Credit Suisse, AXA, Sanitas, Post Finance, La Mobilière, Coop, CSS, SATW – from the DACH region, who strive to reduce climate risks and emissions in value chains.

Thanks for the EU ‘Best Digital Solution’ Award

The cherry on top of 2022 was winning the “Best Digital Solution” award from the European Commission. The award recognizes the development of our software platform for the collection of climate-relevant data from suppliers and attributes it great impact potential for the greening and digitalization of European industry.

On behalf of the European Commission’s DG GROW, Deputy Director General Hubert Gambs emphasized: “Digital solutions are not only useful to be competitive and provide better value to European customers. They are also key to making our economy greener and European businesses more resilient to future shocks.”

We are so grateful and can’t wait to enable more businesses in boosting their climate transformation!

Many, many thanks for driving our Mission together!

Our mission at THE CLIMATE CHOICE is transforming every company into a climate champion and enabling businesses to make procurement decisions that are aligned with the 1.5-degree-goal! We have summarized our mission for you in this short video.

We are very grateful to work with inspiring companies – and that media is increasingly sharing our mission. THE CLIMATE CHOICE says thank you Süddeutsche Zeitung, t3n, Berliner Morgenpost, Gründerszene and many more, for featuring our platform and allowing us to gain more visibility on our mission! 

Our Wrap up, 2022!

Let’s wrap it up before we go back to wrapping presents. 2022 was a complicated year for the world. We learned that the energy transition is a major driver for the overall climate transformation. We literally saw that it is interlinked with peace and has a positive impact on people, planet and profit. At the THE CLIMATE CHOICE we are therefore honoured that we were able to work on one piece of the puzzle – bringing us towards a regenerative future. These are our 5 highlights:

1. Started working with major new customers, including HiPP and o2 Telefónica
2. Held our 3rd 100 % digital CLIMATE TRANSFORMATION Summit with 64 speakers and 1.000 participants from 59 countries 
3. Launched our new Climate Readiness Check, accessible for companies of all sizes for free to kick off their climate transformation
4. Won the EU ‘Best Digital Solution’ award of the Get Digital Initiative from the European Commission and the European DIGITAL SME Alliance
5. Süddeutsche Zeitung, Gründerszene, t3n, Berliner Morgenpost, Beschaffung aktuell and many more shared our work

Our biggest ‘THANK YOU’ goes to you, Climate Champion! If you are reading this, you are dedicating your valuable time to make this climate transformation a positive one. Whether you are Sustainability Manager, Procurement Expert, or Tech Champion: You are on a mission to strive together with us for an economy that allows the world to stay below 1.5 degree. Let’s start the new year with the same energy and even more climate action. Cheers to 2023!

Your #TeamClimate

THE CLIMATE CHOICE

Schneider Electric’s Path to Scope 3 Decarbonization

To meet their climate targets, global corporations must reduce CO₂ from their supply chain in particular, which can account for up to 90% of their total emissions. The problem: they cannot reduce these Scope 3 emissions themselves, but instead have to enable their suppliers to do so. This collaboration requires, above all, holistic data on the climate performance of suppliers, which does not yet exist.

How does a global enterprise such as Schneider Electric deal with this challenge? This is what we learned at the the CHOICE Event #47 from Kanishk Negi, Sustainable Procurement Director at Schneider Electric. Here you will find the most important insights from his presentation.

Schneider Electric’s corporate sustainability strategy

Schneider Electric SE, the multinational leader in the digital transformation of energy management and automation, is aiming to accelerate sustainable progress for its customers, employees, partners and communities everywhere. For this purpose, the organization has set six long-term commitments:

• Act for a climate positive world
• Be efficient with resources
• Live up to our Principles of trust
• Create equal opportunities
• Harness the power of all generations
• Empower local communities 

To ensure compliance, Schneider Electric has committed to achieving 12 measurable goals by 2025.

The particular importance of procurement is reflected in the fact that one-third of these targets depend mainly on Schneider Electric’s supply chain (marked with a blue arrow in the graphic). Of these four procurement-dependent commitments, let’s now take a closer look at how Schneider Electric is trying to reduce the CO₂ emissions of its top 1,000 suppliers by 50%.

The challenges of Scope 3 decarbonization

Decarbonizing Scope 3, or supply chain emissions, is a complicated and challenging undertaking. This is especially true for a large and diversified company like Schneider Electric. The multinational organization employs more than 128,000 people in 115 different countries. Its procurement spend last year was over 14 billion euros. Because of its well-balanced global presence, Schneider Electric’s suppliers come from all parts of the world. Managing this global supply chain effectively is therefore a particularly complex task.

In addition, when Schneider Electric began looking at the climate maturity of its top 1,000 suppliers, further challenges came to light. As it turned out, 70% of these companies were actually new to the idea of decarbonization. This means that they had never calculated or quantified their carbon footprint and were not aware of the difference between Scope 1, 2 and 3 emissions. Furthermore, two-thirds of the suppliers requested were found to be small and medium-sized enterprises. This added another nuance to the challenge, as smaller companies have only limited capacities and competencies when it comes to topics like sustainability and decarbonization. Accordingly, many suppliers initially took particular notice of the high cost factor involved in implementing climate protection measures.

Solving the problem: The Zero Carbon Project

After gathering all these insights and gaining a holistic understanding of the challenges, Schneider Electric launched a comprehensive support program in April 2021 and named it “The Zero Carbon Project”. Under the program, Schneider provides tools and resources in order to help suppliers set and achieve their climate targets. The suppliers participating in the program were first encouraged to quantify their CO₂ emissions using the company’s digital tools. This data was then used to set goals and strategies for emissions reduction. 

In order to provide suppliers with comprehensive support for climate actions, Schneider Electric has established a wide range of offerings. So far, more than 130 live training sessions on CO₂ calculation and decarbonization measures took place. In addition, Schneider Electric has provided its suppliers with various digital tools on its web portal. Among other things, they can use these for a digital emissions calculation as well as for best practice exchange with peers and partners to access other innovative solutions for decarbonization. The consultation is supported by specialized experts and is also adapted to the different geographical characteristics.

The results of all these intensive engagements have already been promising. 1,016 active suppliers are currently participating in the program and are being engaged in decarbonization measures. 90% of those suppliers have now calculated their CO₂e footprint. In addition, the participating suppliers have already reported around 8% reduction in their CO₂e emissions.

Streamlining Scope 3 decarbonization with digital tools

Schneider Electric’s pioneering efforts show that, despite today’s challenges, it is actually possible to successfully engage suppliers in decarbonizing the supply chain. Nevertheless, as it stands today, companies can only accomplish this extremely complex task with a great deal of effort, which is why digital tools are now more crucial than ever in order to streamline the process of collaborating with suppliers. 

One such tool is our Climate Intelligence Platform. The end-to-end Software as a Service platform helps enterprises to capture and manage comparable climate-related performance data and information from their suppliers. Via the secure IT platform, suppliers can easily report their climate data and obtain benchmarks, year-to-year comparisons as well as action-oriented potential and concrete decarbonization measures. Thereby, suppliers and customers can work together in a transparent manner to actively pursue climate goals.

For more information on the benefits of the Climate Intelligence Platform for Scope 3 decarbonization:

Get basic access for free within 5 minutes by completing our form and climate check.

The Domino Effect of Scope 3 Emissions

Today, many companies are already regularly calculating their direct corporate CO₂ emissions. But it is not yet known that there is a big potential behind these emissions. Emissions from the value chain in Scope 3 can have a big leverage effect on a company’s reduction potential. However, according to recent insights about the carbon maturity of companies only 10% of large companies have reduction targets for their Scope 3 emissions and only 2% of medium-sized companies. Let’s have a look at this hidden leverage effect! 

Find out here how our Climate Intelligence Platform supports companies to set up Supplier Engagement Programs for Decarbonization!

WHAT ARE SCOPE 3 EMISSIONS?

The Greenhouse Gas (GHG) Protocol divides GHG emissions into Scope 1, 2 and 3. Scope 1 emissions come from sources that are owned or controlled by a company and include direct emissions generated e.g. by buildings and its own mobility. Emissions from Scope 2 are indirect and include purchased energy, steam, and heating/cooling. Scope 3 includes only indirect emissions that are generated in 15 distinct reporting categories along the supply chain. The 15 categories provide companies with a systematic framework to measure, manage, and reduce emissions across the entire corporate value chain. 

This is why the consideration of Scope 3 emissions proves to be particularly important, as they typically account for up to 90% or more of a company’s total emissions. 

WHERE DO SCOPE 3 EMISSIONS OCCUR

The GHG Protocol identified 15 categories of Scope 3 emissions, from upstream to downstream activities:

3.1 Purchased goods and services

3.2 Capital goods

3.3 Fuel- and energy related activities (not included in scope 1 or scope 2)

3.4 Upstream transportation and distribution

3.5 Waste generated in operations

3.6 Business travel

3.7 Employee commuting

3.8 Upstream leased assets

3.9 Downstream transportation and distribution

3.10 Processing of sold products

3.11 Use of sold products

3.12 End-of-life treatment of sold products

3.13 Downstream leased assets

3.14 Franchises

3.15 Investments

For many companies, the first category (Scope 3.1) contributes a major part to their GHG inventory. It covers upstream emissions from the production of purchased goods and services, which includes emissions generated from processing and transporting them along the supply chain – up to tier 1 (direct) suppliers. 

BUILDING SCOPE 3 INVENTORY FOR THE ENTIRE SUPPLY CHAIN

Scope 3 data is often missing as suppliers are often not yet climate ready and cannot provide the necessary data. Primary data from the supply chain is therefore missing and companies work with average data. This data does not help to identify issues in the supply chain or to improve the efforts of existing suppliers. Moreover, the sole focus on CO₂ as leading KPI is misleading, as it is a so-called lagging KPI, which is backwards oriented.

In order to make assumptions about future risks and opportunities, it is necessary to use leading KPIs that allow to manage upcoming challenges. Therefore a holistic climate management is needed in the supply chain. This includes using a set of indicators in the areas: climate governance, strategy, risks, metrics and decarbonization actions.

GETTING SUPPLIERS ON BOARD

Collecting this climate-relevant data from suppliers can be a major undertaking, and often presents the biggest challenges to conducting a Scope 3 Decarbonization Strategy.

Especially small and medium sized enterprises are not  “climate ready” yet, i.e. they cannot provide the needed climate-relevant data to business partners and third parties. Software solutions such as our Climate Intelligence Platform help companies to get their suppliers on board, align around their climate strategy and gain the necessary primary data in a structured and comparable way. 

Discover how our customers work towards Supply Chain Deacrbonization!

5 STEPS FOR SUCCESSFUL SUPPLIER ENGAGEMENT

There are five key steps that support companies in working with suppliers along the supply chain on a joined decarbonization strategy. Those are:

1. Announce the program to the supply chain before sending any survey forms
2. Provide a training or information session on the data collection methodology
3. Check-in periodically with suppliers regarding their progress on completing the survey
4. Provide benefits such as shared data, benchmarks and incentives for all participating suppliers
5. Assess data quality and share the results, best practices and next steps with all participating parties to allows for a joint decarbonisation strategy and improvements

DRIVING DECARBONIZATION

90% of a company’s emissions originate in the supply chain. Getting your suppliers on board of your climate transformation therefore has a major leverage effect of your decarbonization measures. To access climate relevant data from your suppliers, frequent and clear communication with suppliers, reciprocal feedback on the process and structured, comparable data management is key. 

Our Climate Intelligence Platform can help you with getting your suppliers on board. You can invite your suppliers to be part of the solution, capture their holistic climate management profile via Climate Performance Assessments, which can be shared securely and comparably on the Climate Intelligence Platform.

Learn more about how our Platform can give your company’s climate transformation a boost.

Decarbonizing the Telco Sector – Game Changer for Climate Transformation

The Climate Performance of the telco sector is more relevant than ever. With the increased demand for digital communication, streaming and data storage the telco industry plays a relevant part in the digitalization – and its global climate impact. Telco companies must reduce their own emissions, and have on top the potential to become an decarbonization enabler for other industries.

CHOICE Event #45 set Light on Decarbonization in Telco Sector

In the CHOICE Event #45 Roman Friedrich, Managing Director and Partner at the Boston Consulting Group, shared his view on the upcoming climate risks and potentials of the industry. As well as how the Telco sector can lead climate transformation. Find the most important insights in the following.

Climate Impact of Telco Sector today – and in the future

Today, the telco industry accounts for 3-4% of global CO₂ emissions, which is about twice that of civil aviation. With global data traffic expected to increase around 60% each year, the ICT industry could be responsible for up to 14% of global carbon emissions by 2040. This means that the telco industry is a huge lever for decarbonization and an opportunity for real change within economy.

Telco Companies can Become Enablers

Did you know that every regular email creates 4g CO₂? ..as it triggers energy consumption across interlinked ICT components.

To be clear: Climate Transformation always starts with reducing the own corporate emissions first. For telco companies – as well as many other industries – this foremost means using renewable energy. Data centres, cloud solutions and communication networks need to run on 100% renewable energy. Investments must also be made in the construction of new plants and more efficient infrastructure.

But it does not stop here. In addition, telcos have the opportunity to help other industries become more energy efficient. By offering smart climate solutions, telcos enable other industries to reduce emissions on a far greater scale than their own emissions. By factor 10 potentially. For example by replacing physical carbon heavy products and activities with virtual low carbon equivalents. The four dimensions: Costumer Enablement, Circularity, CO₂ intensity and Sustainability Commitment are major factors for the telcos climate performances. Activating all four dimensions hold the potential to decrease costs and risk, while increasing business opportunities. In B2B and B2C – as the market shows an urgent request for positive climate impact. Consumers are willing to pay 10% more for sustainable products and shareholders are more likely to invest in companies driving climate transformation successfully .

Making Climate Performance a Strategic Priority

Many telco companies already act on this opportunity. Future-oriented businesses understand the potential behind climate-compatible operations. Telco operators, as relevant segment within ICT, have within the last five years constantly increased their commitments to reduce emissions along Scope 1-3. Thereby, most of their emissions are created in the supply chain. Mainly through “Use of sold Products” (Scope 3: Category 11) and “Purchased Goods and Services” (Scope 3: Category 1).

Climate-compatible operating therefore requires to aligning organizational goals with those of a low carbon economy. And especially to engage with suppliers to drive decarbonization. This implies a shift in mind set. Away from perceiving climate-compatible purchasing as a cost-driving factor, towards using it as enabling factor to drive innovation, risk reduction and climate impact.

Climate Pioneers set Examples for Supplier Engagement

Focusing on Supply Chain Decarbonization, THE CLIMATE CHOICE supports industry leaders and their suppliers to collaborate on the Scope 3 Challenge.

Learning together with Industry Leaders

To drive meaningful climate actions, a standardized data collection is necessary. In order to decarbonize their supply chain, companies need a comprehensive overview of the climate performance of their most relevant suppliers. Doing so, information along the five dimensions: Climate Governance, Strategy, Risks & Transparency, Metrics & Targets and Decarbonization Measures are essential. As part of a partner program together with O₂ Telefónica, THE CLIMATE CHOICE was able to provide with its Climate Intelligence Platform a structured and scalable system to obtain, streamline and mange climate-related supplier data. Find more insights on this specific case study here.

Whats are the essential steps for supply chain engagement on decarbonization?

1. Data Analysis 

Via a centralized software platform, THE CLIMATE CHOICE enables to gather climate-relevant data in high quality from numerous suppliers. This builds the data foundation to identify the relevant levers within a company’s own supply chain.

2. Supplier Engagement

Decarbonization is no one-way street! It needs collaboration and full transparency. In the Climate Intelligence Platform suppliers receive individual reports in form of a Climate Scorecard, benchmarks on risks and opportunities as well as concrete suggestions for improvements. Sharing these results with suppliers is essential to share the advantages of a successful climate transformation with all stakeholders.

3. Decarbonization 

The collected primary supplier data serves as baseline for the ongoing decarbonization journey. It helps to translate ambitious climate targets into individual reduction roadmaps and climate actions. Moreover, it allows to track the effectiveness and success of different measures over time.

Conclusion: Telco companies anticipate change. They put in place meaningful strategies and work on increasing their climate performance across supply chains. Moreover, they can save costs and win new customers by truly focusing on sustainability. It’s time to lead the market as Climate Champion and strive towards a low carbon economy together.

You are interest in supplier engagement for decarbonization and want to know more about how to collect primary supplier data? We invite you to book right away a demo with us!

SMEs are getting Climate Ready – How to succeed in the race to zero!

Small and medium enterprises (SMEs) play a major role in the national economic development in countries worldwide. Globally, they account for about 90% of all companies, 50% of employment and a significant impact on supply chain performances. 

Like companies of all sizes, also SMEs are facing several challenges today. Global supply chains struggle, long term planning is difficult and upcoming climate regulations impose new guidelines on businesses. SMEs often lack resources and capabilities to deal with the fast changing circumstances.

Find in the following how the freshly launched Climate Readiness Check supports companies to move towards climate transformation.

SMEs becoming Climate Champions

SMEs play a key role in achieving the 1.5 degree target. Not only as they are key economic players, but also as they are essential to any global supply chain. This is important, as emissions from supply chains are typically 11.4 times higher than direct corporate emissions. Many large companies therefore channel their climate protection requirements along the supply chain to their suppliers, often SMEs. 

This means whole businesses have to transform the way they create value! Every company needs to become a Climate Champion, contributing to a climate compatible and future-oriented economy. Customer inquiries and international climate reporting standards are increasingly demanding effective action. Climate action is thus one of the top priorities for SMEs today.

However, many SMEs still lack the necessary resources to get into the various aspects of climate transformation and to create a concrete roadmap based on this. The question is: How can SMEs manage their climate performance, prepare for climate-related risks and position themselves as reliable leaders for decarbonization within supply chains?

Go beyond Offsetting, manage your Climate Performance

It all starts with understanding the actual climate performance of a company. Which goes way beyond measuring CO₂ and offsetting it. International disclosure guidelines, such as TCFD, ask companies to assess, manage and report their climate performance holistically. The most essential five dimensions are: governance, strategy, transparency, KPIs & metrics and decarbonisation actions. 

However, collecting the relevant data within a company can be challenging, especially for SMEs. Lacking time, tools and know-how makes it difficult to gather, streamline and manage the needed information. 

Taking first steps towards Net Zero

In the last few years, we have witnessed the need for an easy start into the climate transformation journey. Many companies, especially SMEs, approached us with the questions how to set up priorities, identify most needed actions and start improving over time. 

“For a holistic change towards a sustainable economy, tools are needed that provide SMEs with an initial orientation on how they can transform their business in a climate-compatible way. For this challenge, THE CLIMATE CHOICE has developed a practical solution. The Climate Readiness Check is an accessible tool for SMEs that enables a new push in the strategic pursuit of climate targets in SMEs.”

Phoebe Köster, Climate Policy Manager at Bundesverband Nachhaltige Wirtschaft e.V.

This is why we are happy to release today our digital and free Climate Readiness Check! Which we launch in partnership with 10 leading sustainability organizations, including B.A.U.M. e.V., Bundesverband Nachhaltige Wirtschaft e.V. (BNW), Fairantwortung e.V., Foundation Development and Climate Alliance, Jaro Institute for Sustainability and Digitalization e.V., the German Association for Small and Medium-sized Enterprises (DMB) and Zentrum für Nachhaltige Unternehmensführung (ZNU).

“Climate friendliness is increasingly becoming a competitive advantage for small and medium-sized enterprises (SMEs). On the way to climate-neutral operation, the Climate Readiness Check is a useful and low-threshold aid.”

Steffen Kawohl, Transition Manager at Deutscher Mittelstands-Bund e.V.

The Climate Readiness Check offers companies of all sizes an easy entry point into their climate transformation: through insights into their own climate maturity, suggestions for improvement and a basic access to the climate intelligence platform.

Get started with your free 5-minute Climate Readiness Check

The free Climate Readiness Check helps to overcome the initial barriers of Climate Transformation and to take the first step towards climate action. The software-driven climate self-test is manageable in 5 minutes and guides through the most relevant indicators of a company’s climate maturity.

Here is how the Climate Readiness Check empowers companies.

1. Be ahead of Climate Regulation

Completing the Climate Readiness Check will grant insights, which help companies taking first steps towards climate disclosure requirements.

2. Discover Quick Wins

Assessing the climate maturity of a company, the Climate Readiness Check proposes relevant areas for improvement and suggests immediate actions.

3. Access to Climate Platform

Successfully completing the Climate Readiness Check grants access to the Climate Intelligence Platform, where companies can discover like-minded businesses.

Climate Ready, Steady, Go!

“Climate Transformation is a goal we can only achieve together. Our free Climate Readiness Check gives first insights on a company’s individual climate maturity and allows access to the Climate Intelligence Platform, where companies can connect with other companies on their path to zero. We are excited to support businesses of all sizes to take first steps towards a low-carbon economy together.”

Lara Obst, Founder & Climate Officer at THE CLIMATE CHOICE.

You want to start your free Climate Readiness Check? Congrats, start now your climate transformation journey here!

Supply Chain Decarbonization – Why primary data is key for action

Companies only achieve their climate targets, when suppliers align with their climate strategy. This is why leading businesses collect primary climate data from their supply chains and establish collaborative supplier networks for decarbonization.

Future-oriented companies see the urgency to act. The world wants them to do. More and more companies are accused of acting superficially as “climate neutral”. Therefore companies do not only need to set climate targets, but need to develop clear actions and measures that find their way into business processes. Procurement plays a major part here as up to 90% of a company’s emissions come from the supply chain. Climate compatible supply chains are the most important lever for a company to reduce emissions.

In our CHOICE Event #43, Maximilian Droste from amc Group and Yasha Tarani from The Climate Choice shared insights on how procurement leaders can speed up the decarbonization process of the supply chain by collecting validated data on the overall climate performance of suppliers. Find the most important insights in the following.

The new role of procurement in climate strategies

First of all: The role of procurement is shifting – becoming a climate champion means anchoring climate targets and carbon reduction measures into procurement processes. Scope 3 emissions, those emerging along the supply chain, account for up to 90% of a company’s total carbon emissions. Hence, a company will reduce emission on a far greater scale, if it gets all relevant suppliers on board with their own climate strategy. Establishing a functional supplier engagement program, which allows for cooperation on climate measures, is needed.

Obtaining reliable primary data as baseline for collaboration

Companies need to understand: How are my suppliers managing their transition towards a low carbon economy? Do they set climate targets, do they alig with our climate strategy and which data can they already report?

To answer these questions, a set of multi dimensional climate-related data is required. A company needs to have a comprehensive understanding of the climate performance of its most relevant suppliers. This allows to identify the main levers for decarbonization along the supply chain and work towards meaningful actions. 

In order to establish a climate-relevant primary data foundation, companies must set up a scalable and consistent process for collecting comparable, high quality supplier data. This goes beyond gathering carbon footprints, since emission data itself is not sufficient enough as baseline for transformation processes. Tackling climate transformation additionally requires forward-looking metrics and indicators in order to assess the supplier’s climate risks and transition opportunities. 

Empowering supplier collaboration on supply chain decarbonization

In order to put these processes into action, it is important to have a clear value propositions for both, suppliers and buyers. This means, that all involved parties need to benefit from the opportunities and advantages of measuring climate-revenant data and developing carbon reduction measures together. While buyers gain audit-quality primary data from their supply chain, suppliers obtain forecasts of individual climate risks, benchmarks and suggestions for improvements.

4 Steps for collaborative Supply Chain Decarbonization 

Today we see that Supply Chain Decarbonization is not a cost driver for companies, but is a perfect justifiable investments in the future viability of a business! In the following, you find the most relevant steps to tackle collaborative decarbonization. 

1. Materiality of top suppliers

Starting small is best to test is the most efficient way going forward, before rolling out new processes. Conduct a materiality analysis of suppliers and commodity groups to identify the 5 – 10 most relevant suppliers in terms of decarbonation effects. This helps companies to prioritize the most relevant reduction levers along the supply chain.

2. Climate Performance Assessment

Have a structured and data-based analysis of the current climate performance of the top 5 suppliers, based on the Climate Performance Assessment.

The assessment software tool is aligned with internationally recognized disclosure frameworks and thereby covers all relevant dimensions of climate performance, such as Governance, Strategy, Transparency, Metrics & KPIs and Decarbonization Measures.

3. Measures for CO2 reduction 

As part of joint one-day workshops with the top suppliers, companies can evaluate and discuss the findings for each supplier and develop concrete supplier-specific measures to reduce CO2. amc group provides support throughout this process and accompanies the entire implementation of the workshops as well as preparation and follow-ups.

Reviewing and optimization

Finally, review. This step is often underestimated, but inherently important in order to achieve effective change. Without feedback loops, suppliers and companies cannot revise measures, so that new processes can not add much value.

Conclusion: Decarbonization is a purchasing issue! Take the opportunity to proactively shape climate transformation form within purchasing. In order to achieve real change, companies and suppliers collaborate to transform supply chain processes and move towards a low carbon economy together! 

You are interest in supplier collaboration and want to know more about how to collect primary supplier data? We invite you to book a demo with us.

CO2 Reduction through Energy Management – Best Practices of enretec

Interview partner: Michael Blöcher is Head of Quality and Environmental Management & Regulatory Affairs at enretec, the ecological specialist disposal company for medical waste. The company has already been able to achieve several steps on its Climate Transformation journey.

Together with THE CLIMATE CHOICE, enretec has conducted the Climate Performance Assessment and is now part of the Climate Intelligence Platform, which enables companies to collect climate-focused data from their suppliers and to improve collaboration along the supply chain for successful decarbonization. In an interview with THE CLIMATE CHOICE, Michael Blöcher talks about which Best Practices for Climate Transformation. The company shares insights about the steps they anticipate to inspire other companies as climate pioneers in the industry.

We are happy to be working with enretec to drive forward climate transformation. Can you briefly introduce yourselves to our CLIMATE community?

Our company was spun off from a predecessor company in 2000. Since then we aimed to position ourselves as specialist in the disposal of residual materials from medical practices. From the beginning on, enretec was able to draw on experience that had been continuously built up. Today, enretec GmbH sees itself as trustworthy partner for its customers in an increasingly complex environment. We operate one of the most modern facilities for the storage, treatment and recycling of medical residues and waste in Brandenburg. As waste management company since 2002, we are certified according to DIN EN ISO 9001:2015 (quality management) and DIN EN ISO 14001:2015 (environmental management). Since 2005, we are registered as an EMAS-certified company in the EMAS register of the Potsdam Chamber of Industry and Commerce. Our more than 30 employees serve our customers all over Germany and the neighboring countries.

Our enretec mission: We, enretec GmbH, as a leading German waste management company in the dental, human and veterinary sectors, want to set standards together with our customers in the customer-friendly and ecological disposal of hazardous and non-hazardous waste.

What are the biggest climate-related challenges you face on a day-to-day basis?

Driven by the continuous improvement process within the scope of our certifications, we were able to realize considerable savings. Through various measures along all ecological parameters, we already achieved several steps of climate transformation in recent years. For example, in 2020 the absolute CO₂ emissions from gas, electricity and diesel consumption of enretec GmbH were approximately 53% below the comparative value of 2015. Also, it marked the absolute lowest value since the introduction of the EMAS certification of our company in 2005. For 2020, we prepared a verified and certified greenhouse gas report for the entire company according to DIN EN ISO 14064 for the first time. We compensated the greenhouse gas emissions by retiring emission reduction certificates, and we will do this annually in the future.

This is where the biggest climate-related challenges for our company already become apparent. How can we become even more climate-friendly in our work, directly on site and without offsetting? For example, how can we modernize our vehicle fleet in the upcoming years, so that we can significantly reduce emissions from fuel? And how can we support our employees in minimizing greenhouse gas emissions during their regular ways to work? How can we help our employees to become even more climate-friendly?

Together we conducted the CLIMATE Performance Assessment. What was your motivation?

Even though we have already achieved quite something, we are sure we can do even more! There are so many exciting developments in the complex topic of climate neutrality. And there will also be some very good approaches for our company. But where exactly do we stand, what are the Best Practice examples and how should we prioritize them? In day-to-day business, an SME lacks the resources to familiarize itself comprehensively with these issues. Here, the Climate Performance Assessment has efficiently given us a very good orientation. We definitely will incorporate the insights into our further work.

What were the most important lessons you learned?

Two key lessons: Even with great successes in the past, there is still a very large number of different opportunities. And as we move forward: We will increasingly use the potential that lies within the area of employee engagement.

What are Best Practices that you would like to share with other organizations?

What really every company can do is to implement energy management, whether certified or not. For example, there are still large commercial electricity consumers in Germany that have only one meter in the company. This is often located somewhere at the entrance to the site at the transfer point to the public grid. How is climate protection by reducing electricity consumption supposed to work under these circumstances?

Otherwise, we are only at the beginning of evaluating the various role models, so we do not yet want to make a recommendation for one or the other. But what is Best Practice in any case: We have talked enough about climate protection, let’s get started!

Do you also want to get a better overview of your company’s climate-related opportunities and risks? Then sign up with us and request information on the Climate Performance Assessment.

Image source: Unsplash