IBM Envizi Releases New Scope 3 Emissions Measurement Tool

Illustration of supply chain emissions

(Credit: IBM Envizi)

by | Feb 20, 2024

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IBM Envizi has released a new Supply Chain Intelligence module within its ESG platform, allowing for data management of supplier- and product-level transactional data for Scope 3 emissions calculations.

The new tool can automate Scope 3 emissions calculations by integrating transactional data directly from a user’s ERP system, the company said. The calculator is able to address individual order lines and prioritize suppliers’ carbon emissions data when it is provided, otherwise using average data or spend-based emissions factors to fill the gaps.

IBM Envizi Supply Chain Intelligence can centralize supply chain data and broader ESG data for Scope 3 emissions reporting, targeting common data limitations associated with emissions tracking for companies’ reporting and performance improvement needs, according to the company. IBM Envizi has made other recent additions to help companies with ESG data management, including an entry-level climate disclosure solution, AI functionality, and expanded language options.

Overall, Envizi ESG Suite works to help companies build a data foundation for ESG reporting and emissions calculations while streamlining the disclosure process as companies work toward their climate goals.

Scope 3 Reporting Expectations Increase

Scope 3 emissions, or those caused indirectly by companies’ value chains, account for the largest percentage of most organizations’ overall emissions. About 63% of the largest companies in the United States voluntarily report on their Scope 3 emissions, and legislation has also been proposed that would require Scope 3 emissions reporting from all U.S. companies with a revenue of more than $1 billion.

Scope 3 emissions are also known for being more difficult to track and report. Under half of companies admit to considering themselves ready to report on such emissions, according to IBM.

The Supply Chain Intelligence addition marks the continued buildout of IBM’s Scope 3 emissions accounting platforms. The company said that automated data capture and management, made possible by the platform, has allowed one of its clients to reduce time spent on ESG disclosures by 50% within one year of its use. Another company was able to save $20 million on energy and water costs through the system, the company said.

With companies also increasingly incorporating Scope 3 emissions into their overall climate strategies, data management platforms may provide detailed, accurate information to track progress and show where improvements may be made.

 

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