Milan, December 29th, 2022
Carbon Tracker, an APP part of the SupplHi SaaS, was validated by Bureau Veritas as being in line with the requirements of the ISO 14064-1 and the GHG Protocol.
The use of primary data collected from the Vendors, the high comparability of results, and the respect for the requirements of the most widespread and globally recognized carbon-accounting Standards make Carbon Tracker’s calculation model and digital tool a unique solution to tackle the complex Scope 3 world.
A solution for Supply Chains
Buyer Organizations are becoming increasingly responsible for the Vendors belonging to their Supply Chain, including for their GHG Emissions (i.e., emissions of Greenhouse Gases), and are faced with a fast-growing need for enhanced Vendor Due Diligence approaches.
In fact, the Upstream Supply Chain emissions are a key factor, as, on average, they account for more than 70% of a Company’s total GHG emissions. Nowadays, there are three main issues creating difficulties in the estimation of Scope 3 GHG emissions:
- the lack of primary data, which leads Buyer Organizations to use the traditional spend-based approaches, leveraging secondary data;
- the so-called “chain effect”, where the GHG emissions of each player in each tier are depending on the emissions of its suppliers and sub-suppliers;
- and finally, the comparability of results, since Vendors’ own estimation initiatives may lead to very different results, even when following the same Standards (due to the fact that multiple calculation assumptions can be made, depending on information availability).
Carbon Tracker is a unique tool
The challenge taken up by Carbon Tracker is to define and digitally implement a calculation model based on selected primary data that are provided by Vendors through a trusted and free-of-charge environment.
The overall guiding principle of Carbon Tracker is to “focus on what really matters” in terms of GHG emissions, which results in capturing the reality without excluding relevant GHG sources and removals.
The GHG emissions estimation is not the endgame, as it is rather a starting point that is instrumental to monitor the evolution of GHG emissions over time.
Carbon Tracker is used by Buyer Organizations to move from traditional spend-based secondary databases to trusted primary activity-based data coming directly from the Vendors for the estimation of the Buyer Organization’s Scope 3 GHG emissions.
The Carbon Tracker methodology
The data required for Carbon Tracker are collected through a dedicated questionnaire that is provided and submitted on SupplHi, and it is available free of charge to any Vendor:
- as a first step, the Vendor is asked to provide primary data (e.g., MWh of electricity consumed over the last year): the Vendor’s prevalent category of supply is what determines the choice of which primary data to ask, defined by the model through Significance Matrixes;
- the second step is to collect data and information on Vendor’s GHG emissions reduction targets as well as on the improvement actions the Vendors currently have ongoing or are planning to implement.
The methodology also supports, when present, the collection of GHG emissions estimations (tCO2eq) performed using the Vendor’s own methodology.
The validation from Bureau Veritas
SupplHi engaged Bureau Veritas, a world leader in sustainability audit and certification services, to perform an independent validation of the Carbon Tracker Model.
As a result, in the 4Q22 SupplHi received a third-party validation of Carbon Tracker being in line with the requirements of two of the most widespread and globally recognized carbon accounting standards: the ISO 14064-1 and the GHG Protocol.
SupplHi is committed to continuing to analyze the results coming from the Model and to monitor the evolution of the relevant standards, so as to identify possible improvement areas to the methodology.
SupplHi is the Vendor Management SaaS for industrial B2B equipment and services, chosen by the most demanding buyer organizations of all sizes to manage their vendor base efficiently and compliantly, at a global level. SupplHi increases transparency, efficiency, compliance, and opportunities while reducing costs for all players involved. Carbon Tracker is an APP developed by SupplHi.