Episode
86

Net Zero Procurement Basics

June 14, 2023
|
Duration:
1768687
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In This Episode:

Join energy coaches David Arkell and John Pooley, and producer Lysandra Naom on an episode about net zero procurement basics. This episode features what net zero procurement is, scopes #1-3, what businesses should be paying attention to this, and more. Check out our 360 Carbon Excellence Program.

Highlights

  • Definition of Net Zero Procurement: Net Zero procurement involves sourcing goods and services with minimal carbon emissions, thereby reducing the overall carbon footprint of an organization’s purchases.
  • Understanding Scope 1, 2, and 3 Emissions: Scope 1 covers direct emissions from fuel use; Scope 2 includes indirect emissions from purchased electricity; Scope 3 encompasses all other indirect emissions from the supply chain.
  • Challenges in Scope 3 Management: Scope 3 emissions are challenging to manage as they rely on data from suppliers, requiring companies to engage actively with vendors to gather accurate emissions data.
  • Carbon Footprinting in Products: Some companies, such as those in the food and construction industries, are exploring product-specific carbon footprints, which track emissions associated with individual items.
  • Global Variability in Carbon Content: Carbon accounting varies by region and energy source, which can complicate the tracking of emissions for multinational organizations.

Key Insights

  • Supply Chain Engagement for Carbon Reduction: Organizations can start their Net Zero journey by asking suppliers about their emissions and setting targets for them to reduce their carbon footprints over time.
  • Importance of Accurate Data: High-quality data is essential for effective emissions tracking and reporting. Simplistic estimates based on expenditures aren’t sufficient for precise carbon accounting.
  • Early Adoption Benefits: Engaging in Net Zero procurement early offers long-term business advantages, including cost savings, competitive positioning, and alignment with future regulatory standards.
  • Business Opportunities in Carbon Reduction: Companies often discover operational efficiencies and cost-saving opportunities when they examine their emissions data closely, highlighting the financial benefits of sustainability efforts.
  • Cross-Departmental Collaboration Needed: Effective carbon management in procurement requires the involvement of multiple departments, including procurement, operations, and finance, to achieve comprehensive emissions reductions.
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Hosts:
David Arkell

David Arkell

President & CEO

360 Energy

John Pooley

John Pooley

Vice-President, Program Development

360 Energy

Lysandra Naom

Lysandra Naom

Project Manager

ENWIN Solutons

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