Global supply chain sustainability insights platform, Worldly, announced the development of a new tool that will make emissions data management and reporting easier for apparel and consumer goods companies. Earlier this week, the company announced its Product Impact Calculator from the Worldly Customer Forum as the means to make faster and easier the calculation of Scope 3 emissions, comprising the majority of carbon output in industries. In this regard, and with many more regulations cropping up, coupled with Chief Executive Officer sustainability goals, the tool is likely to be very important in enabling companies to achieve environmental targets.
Importance of Scope 3 Emissions
Scope 3 emissions are indirect, representing those which occur along a company’s value chain, which, for any product, begins at raw material extraction and includes methods of disposal. These usually account for more than 90% of the overall carbon footprint in Apparel and Consumer Goods; for this reason, they are of very keen interest for sustainability programs. Despite their relevance, Scope 3 emissions have traditionally been challenging to measure with accuracy, due to the complexity and wide distribution of supply chains across the globe, and because widely standardized data is not available. As of now, several companies have not easily been able to collect genuine data but instead have relied on approximate values which may not be true in representing their environmental damages.
These challenges led to the development of the Product Impact Calculator, which would afford companies access to precise, auditable data on Scope 3 emissions. Powered by technology that already exists at Worldly, along with primary data from supply chains, this calculator better positions a company for much more accurate and actionable tracking and reporting of its emissions.
Simplifying Sustainability Reporting
Before the Product Impact Calculator launched, sustainability teams would take several months compiling and analyzing a variety of data from spreadsheets and disparate sources to gain insight into the environmental impact of their products. Suffice it to say, the tedious process meant that reporting would be late and the data was often inconsistent, ultimately making it difficult for companies to pursue their sustainability goals with much efficiency.
The Product Impact Calculator automates this process of aggregation and calculation. It pulls from a company’s purchase orders, supply chain operations, and product specifications for the more streamlined and efficient workflow. This will enable businesses to pay more attention to reduction rather than spending any more excessive time on administrative tasks.
The most distinctive feature of the Product Impact Calculator is that it filters emissions data by feeding in primary supply chain data from the Higg Index. The Higg Index, developed by the global nonprofit alliance Cascale, had been one of the more well-known tools for measuring environmental and social impacts of the supply chain. By pulling this information into the Product Impact Calculator, Worldly offers the greatest visibility of the user supply chain emissions, making it an extremely valuable tool for sustainability reporting.
Audit-Ready Data for Scope 3 Reporting
Reporting with accuracy is increasingly critical as regulatory requirements around sustainability mount. The Product Impact Calculator has been crafted to meet these needs; it provides limited assurance through Apex-a trusted third-party provider of verification services. This assurance makes the data that comes out of the calculator auditable and usable for compliance with future Scope 3 reporting regulations. The potential for audit-ready data means readiness will go beyond regulatory scrutiny to trust with stakeholders and customers wanting transparency in environmental performance.
Kevin Vranes, the Chief Product Officer at Worldly, added, “The Product Impact Calculator provides a very sound basis for measuring Scope 3 emissions from existing primary data within the supply chain.” This way, companies can have more strategic decisions about their strategies on greenhouse gas reductions and track their progress towards reaching their sustainability targets.
Industry Support for Product Impact Calculator
Since the launch of the Product Impact Calculator, industry leaders have appreciated the potential the tool has in changing the face of sustainability reporting. Alex Lauver, Senior Director of Materials, Innovation & Sustainability at Outdoor Research added that the tool comes with the capability for primary data to drive improvements environmentally. This is a major step forward for companies which, till now, have struggled to get appropriate data they can use in their sustainability work.
According to Kelly Hughes, Sustainability Manager at Ruffwear, “The Product Impact Calculator helps companies track GHG emissions against a greenhouse gas budget much like financial budgets are managed.” This way, businesses are able to track their real-time emissions and adjust whatever they need to in order to stay on track with their sustainability goals.
The launch of the Product Impact Calculator comes after Worldly introduced the Facility Data Manager, a tool that provides monthly validated environmental data from supply chains. Together, these tools are part of Worldly’s ongoing effort to support apparel and consumer goods companies in reaching their targets on sustainability through meaningful, data-driven insights.
A Solution to Future Sustainability Challenges
With apparel and consumer goods companies under continued pressure from both consumers and regulators alike to clean up their environmental performance, tools such as the Product Impact Calculator will become increasingly imperative. By making such accurate, auditable data possible, Worldly is helping businesses wade into the murkiness of sustainability reporting and set more ambitious targets in reducing GHG emissions.
The Product Impact Calculator is a significant leap forward in addressing Scope 3 emissions, by automating the gathering and processing of data to reduce the burden on stretched sustainability teams, freeing them to implement meaningful changes that will drive environmental improvements. And with the added assurance of audit-ready data, companies can feel confident to meet regulatory requirements and demonstrate their commitment to sustainability to stakeholders.
Continuous product development at Worldly into the Product Impact Calculator and Facility Data Manager further cements its position as one of the leading players in supporting the apparel and consumer goods industries on their journey to more sustainable business operations. The pressure to achieve higher levels of transparency and accountability within supply chains grows, so Worldly’s position remains strong to extend solutions to support businesses through this rapidly changing regulatory environment.
Source:
Worldly