EcoVadis Launches Carbon Data Network for Scope 3 Tracking

EcoVadis, the world's largest business sustainability ratings provider and solution leader, announced the Carbon Data Network, a new data exchange intended to increase the capacity of companies to obtain reliable primary carbon data from their suppliers. This effort responds to one of the biggest corporate sustainability challenges—monitoring and mitigating Scope 3 emissions, which are indirect emissions along a company's value chain.

As companies globally strive towards their net zero targets, the need for credible greenhouse gas (GHG) emissions data has become more urgent. Companies are increasingly subject to regulatory pressure to report carbon footprints accurately and consistently, but many are plagued by disjointed and unreliable supply chain data. EcoVadis' new Carbon Data Network plans to bridge that gap by opening access to a large database of emissions data and simplifying how companies gather and aggregate carbon information into their sustainability initiatives.

The Carbon Data Network contains emissions data from more than 150,000 organizations and is one of the largest collections of its kind. It is driven by EcoVadis' Carbon Action Manager (CAM), a Scope 3 supply chain engagement platform that enables companies to connect with suppliers, develop carbon capabilities, and pursue emissions reductions. Through the use of automation and artificial intelligence, the network improves the quality and reliability of carbon data, making it possible for companies to move beyond industry averages to primary, supplier-level data.

Pierre-François Thaler, co-CEO and co-founder of EcoVadis, highlighted the role of trust and cooperation in the path to net zero. He said the firm is using technology to enhance data accuracy so that companies can make better-informed decisions regarding their carbon footprint. In Thaler's perspective, the network not only enhances data access but also provides an understanding of carbon reliability at a detailed level, enabling businesses to respond more decisively to strategies for emissions cuts.

One of the major strengths of the Carbon Data Network lies in the fact that it makes Scope 3 emissions tracking simpler. These emissions, due to a business's suppliers, transport, use of its product, and other indirect emissions, tend to be the biggest component of a business's overall carbon footprint. They are, however, notoriously hard to quantify because of the complexity of supply chains all over the world. With the new data exchange, companies can effectively capture precise emissions data, incorporate it into their reporting systems, and make more informed decisions regarding decreasing their overall carbon footprint.

EcoVadis has also made significant partnerships to drive the power of the Carbon Data Network. EcoVadis has partnered with carbon account providers Sweep and Normative in an effort to make interoperability more efficient and seamless data transfer throughout supply chains possible. All these partnerships will make reporting less cumbersome by allowing primary supplier information to be available where Scope 3 emissions calculation is done.

Julia Salant, Carbon Solutions General Manager at EcoVadis, emphasized the worth of these partnerships in enabling the use of emissions data. According to her, by increasing its ecosystem through Sweep and Normative, EcoVadis is enabling companies to go past industry averages and progress to actual, supplier-level emissions data. This is significant to businesses looking to enhance the quality of their sustainability reporting and to speed up their decarbonization processes.

The launch of the Carbon Data Network is part of a wider industry movement toward greater transparency and accountability in sustainability reporting. With governments and regulatory agencies making stricter emissions disclosure mandatory, companies are facing increasing pressure to back up their climate promises with trackable data. By offering a solid platform for data gathering and analysis, EcoVadis is emerging as a key driver of corporate climate action.

Beyond regulatory compliance, there are significant business incentives for companies to invest in accurate carbon tracking. Investors, customers, and other stakeholders are increasingly prioritizing sustainability when making decisions, and companies that can demonstrate meaningful progress toward reducing their emissions are likely to gain a competitive advantage. The ability to access primary carbon data also helps businesses identify high-emission areas in their supply chains, allowing them to work more effectively with suppliers to implement reduction strategies.

As the low-carbon transition picks up pace, efforts such as the Carbon Data Network will become a linchpin for assisting companies with navigating the challenges of emissions reporting and reduction. With the application of automation, artificial intelligence, and strategic partnerships, EcoVadis is giving companies the ammunition they need to break out of estimations and into real-time, actionable emissions data.

The success of the Carbon Data Network will be determined by how much businesses adopt data-driven approaches to sustainability. With more than 150,000 organizations already participating in the network, it is clear that there is significant industry momentum towards improved carbon data management. As more businesses see the importance of primary emissions data in meeting their climate objectives, the role of platforms such as this will become more important in determining the future of corporate sustainability.