End to end carbon accounting
It’s 2030, your emissions should’ve been reduced with 55%. You, your shareholders, and your colleagues embedded emission reduction in the core values of the company. Your customers demand lower (or no) emissions in relation to the products/services they procure.
(Local) governments require you to not only report, but act on your carbon footprint reduction as well. Next to that, your IT, financial, HR, marketing, R&D and production departments are aligned and can transparently share all documentation related to the above. It's not yet 2030, but we’re getting there quickly. Don’t be late.
It is 2023 and you just started your ESG (environmental, social, governance) journey. You are looking for the right emission parameters, emissions measuring and reporting framework. You want to integrate the carbon emissions into your business reporting and establish a carbon reduction agenda. You are trying to identify the right approach to get a sense of the sensitivities in your supply chain. Not only in costs and customer satisfaction (2C), but in carbon emissions as well (to 3C). Eventually, every company will be working with carbon footprint accounting, but a first step is what we call Carbon Footprint Modelling. By utilizing your supply chain flows and network configuration, we can (together) determine the starting points in your roadmap towards Net-Zero. By analyzing from a 3C point of view, you will gain insights in the major fields of impact, leading to Your Roadmap to Net-Zero. Application of the right measures at the right time will get you on track for your and your stakeholder’s goals.
In line with the level of required detail, Carbon Added Accounting utilizes your actual data of consumption (gas, water, electricity, components, fuel, etc.) instead of generic measurements or assumptions. The outcomes of our projects are in line with the requirements to use in your organization and external reporting. By the time we get to 2030, you will be ready and compliant.
The Carbon Footprinting of supply chain elements helps you understand specific parts of the network. It is possible to allocate emissions on a high level to for example your warehouse operations or specific trade-lanes in transport.
Understanding industry specific supply chain characteristics
Product type, volumes, geo-location and demand characteristics are a selection of drivers for a supply chain network. As an example: a typical fashion supply chain greatly varies in set-up and accompanied carbon footprint in comparison to a medical technology related supply chain. Transport is organized differently, warehouses are located differently and market demands are different. Different industry characteristics enable you to compare and learn from best practices from other industries. After all, not all industries innovate at the same pace or at the same time.
Utilize 3C analysis providing potential new decision levers in supply chain network design
Supply chain network design simulates and identifies the ‘best’ configuration for your product/market combination. By expanding the scope from costs and customer satisfaction to carbon footprint as well, we potentially provide you with new decision levers. One of the recurring scenario results is a similar level of costs, while customer satisfaction increases and the total carbon footprint decreases. Previously this scenario (2C) would not have been considered as improvement.
Set-up a company specific carbon accounting plan, methodology and training
The Carbon Added Accounting approach switches from generic measurements or assumptions to your actual data of consumption. This leads to trackable “Carbon Added” and an allocated product footprint on SKU (or other freight equivalent) level.
Prepare for recurring external reporting in line with regulatory
The changing regulatory landscape concerning ESG requires you to report on emissions and the mitigating actions to reduce these emissions. In the end, you will need accountants approval on your (integrated) reporting.
There is an increased level of detail as you go from supply chain modelling to carbon accounting. Even though the modelling provides you with extensive strategic insights for your decisions on 3C level, the devil is in the details and so is impact. When moving from modelling to accounting, the following inputs to your study change (not limited to):
| From | To |
| Generalized supply chain archetype | Blueprint of your supply chain |
| Common locations for warehousing | Your geo-location(s) |
| Averaged indicators for modalities | The use of gas, diesel, and other energy |
| An emission per m2 depending on country | Your energy suppliers’ invoices |
| High level product split | Your SKU ‘recipe’ (BOM) |
| Averages for carbon origin | In-depth analysis of your compounds* |
| Emissions associated with plants | Emissions per SKU, per period |
*The analysis of your compounds is to identify associated carbon footprint. We will not consult on substitute products, as we’re not chemical engineers.
The increased preciseness of your supply chain emissions when using the accounting approach helps you to work towards compliance, and provides you with detailed information on your value chain. Not only in the field of emissions, but on efficiencies (and therefore quality and money) and opportunities as well.
