The race towards achieving carbon neutrality is speeding up – but are companies any closer to winning?
Ivalua’s report assesses the challenges and costs companies and their suppliers face, and how they’re managing decarbonisation.
To achieve zero net emissions, author Dr Natacha Tréhan states we need to transform the global economy and rethink business models. But how can business actually do that?
Why transform Procurement?
Similar to much of the research on this topic, Ivalua’s report comments on how digital platforms can help companies, suppliers and customers work together to achieve sustainability targets through monitoring, reducing (and offsetting) emissions.
Digital tools are a strategic, necessary asset. When paired with the right, fresh and reliable data, procurement teams can become unstoppable when tackling carbon reporting.
‘The climate transition will not happen without digitisation’
How can transforming Procurement help decarbonisation efforts?
Incorporating supplier decarbonisation elements throughout every procurement process will encourage more positive moves, thus developing teams and helping companies excel in their efforts to minimise (and hopefully eliminate) carbon emissions.
By making data and AI work together, companies are provided with the knowledge they need to take action and amend their impact on the planet. For instance, Doug Johnson-Poensgen, CEO and co-founder of Circulor, revealed how “80% of carbon emissions are in the supply chain, and can’t be measured”: information like this should encourage companies to secure their supply chains by using the right tools to monitor activities, such as tracing items using blockchain technology.
What next? Is carbon neutrality achievable?
Investment. Innovation. R&D.
Companies need to review performance indicators and consider their stakeholders’ view: do they want to be associated with companies not taking action?
Going digital aids company development and encourages more positive moves, such as ‘servitisation’ (product becomes a service), where an asset or machine may be fixed with sensors. For example, the report outlines how digital tools can save not only energy, but associated costs:
‘Placing sensors in a building, for example, can save an average of 30% in energy costs. In industry, the optimisation of energy consumption is achieved through digital twins, and industry 4.0’
Procurement still needs investment in the right tools to achieve effective digitisation methods. In order to limit global warming to +1.5°C and achieve carbon neutrality, companies and C-level need to pick up the pace, invest and take action to look after the future of the planet, in order to win the race – together.