How To Measure Your CPG Value Chain’s Carbon Emissions
As companies continue to face increasing pressure to address their carbon footprint, it’s more important than ever for supply chain leaders to take a close look at their emissions. But where do you start?
First, it’s important to understand what emissions you’re actually responsible for. Many companies focus solely on their Scope 1 and 2 emissions, which include direct emissions from their own operations and indirect emissions from purchased electricity, heat, and steam. However, the majority of emissions for most consumer packaged goods (CPG) companies actually fall under Scope 3, which includes all indirect emissions that occur throughout the value chain, including from suppliers, transportation, and end-of-life disposal.
To accurately measure your emissions, you’ll need to start by gathering data from across your entire value chain. This can be a daunting task, but there are a few steps you can take to make the process more manageable.
Set goals and priorities: Before diving into data collection, it’s important to define what you want to achieve with your emissions reduction efforts. Are you looking to improve your supply chain efficiency, reduce costs, or appeal to environmentally conscious consumers? Once you’ve identified your goals, you can prioritize which areas of your value chain to focus on first.
Identify key suppliers: Your suppliers likely have their own carbon footprints, which can impact your overall emissions. Identify which suppliers have the greatest impact on your emissions and work with them to collect data and set reduction targets.
Choose data collection tools: There are a variety of tools and resources available to help you collect and analyze emissions data. Some companies opt to use spreadsheets or other manual methods, while others invest in specialized software or work with sustainability consultants.
Standardize data collection: To ensure consistency and accuracy, it’s important to develop a standardized approach to data collection. This may involve creating templates or guidelines for suppliers to follow, or using standardized emissions factors to calculate emissions across different sources.
Continuously monitor and improve: Measuring emissions is not a one-time event — it’s an ongoing process that requires continuous monitoring and improvement. Regularly review your emissions data to identify areas where you can make improvements and set new reduction targets.
While measuring your emissions may seem like a daunting task, it’s a critical first step towards creating a more sustainable supply chain. By taking a proactive approach and investing in data collection and analysis tools, CPG companies can not only reduce their carbon footprint, but also improve their bottom line and appeal to environmentally conscious consumers.
About IN BOLD PRINT.
IN BOLD PRINT.’s technology platform helps small to mid-sized companies in the consumer goods space measure their carbon emissions and share their sustainability journey. Think of IN BOLD PRINT. as the ‘TurboTax’ of carbon accounting. Learn more at www.inboldprint.co.
