How Technology is Driving Decarbonization in Supply Chains
A recent PwC study revealed that a significant 84% of businesses are not only maintaining but even accelerating their climate goals, despite facing ongoing economic hurdles. This finding underscores a notable shift in the business landscape, as sustainability transitions from being a mere option to becoming a fundamental strategic priority for companies aware of the pressing need for climate action.
As climate change continues to dominate global discussions, organizations feel mounting pressure to implement effective measures. Technology stands at the forefront of this transformation. From enhancing workplace efficiency to redefining everyday activities, technological advancements present unprecedented opportunities for decarbonization.
Unlocking Decarbonization Through Enhanced Data Access
Effective decarbonization starts with robust data, specifically high-quality Scope 3 emissions data. While Scope 1 and 2 emissions are relatively easy to assess, Scope 3 emissions pose a challenge, as they encompass the entire value chain’s emissions, which can be substantially higher—up to 26 times greater than direct emissions. To meaningfully address these emissions, businesses must eschew industry averages in favor of collecting primary data from their suppliers, enabling precise evaluations of sustainability practices.
The Role of AI and Digital Twins in Achieving Net-Zero Goals
Artificial Intelligence (AI) has emerged as a transformative tool in sustainability efforts. In 2023, startups focused on AI-driven climate solutions attracted approximately $5 billion in funding, which represented 7.5% of all climate tech investments. By the third quarter of 2024, investments in AI rose to $6 billion, accounting for 14.6% of total climate tech funding. Through AI, companies can gain valuable insights into their operations, helping them identify emission hotspots and implement impactful changes, especially crucial in the context of shifting trade policies and geopolitical uncertainty.
From Complexity to Action: The Power of AI and IoT
Moreover, advancements in technology eliminate the traditional hurdles associated with optimizing supply chains. With innovations in AI and the Internet of Things (IoT), companies can access real-time emissions data and derive actionable insights. This enhanced visibility leads to impactful initiatives, including comprehensive supply chain mapping and collaborative engagement programs with suppliers.
In an era where decarbonization is becoming a competitive advantage, embracing technology is no longer optional; it has become a necessity. Through innovative solutions, businesses can pioneer the move towards sustainable, resilient, and future-ready supply chains.
— Mauro Cozzi, CEO and Co-founder at Emitwise
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