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.
