Solutions designed to measure, analyze, and manage indirect greenhouse gas emissions that occur across an organization’s value chain are increasingly vital. These emissions, often the largest portion of a company’s carbon footprint, stem from sources not owned or directly controlled by the reporting entity but are linked to its activities. For example, a manufacturing firm’s indirect emissions may arise from the extraction and production of purchased materials, transportation of goods, use of sold products, and end-of-life treatment of sold products. Effective calculation and management of these emissions require specialized systems.
Addressing these indirect emissions offers significant advantages. Organizations gain enhanced visibility into their supply chains, allowing them to identify key emission hotspots and implement targeted reduction strategies. Comprehensive data also supports improved decision-making, facilitating the selection of lower-emission suppliers and the development of more sustainable products and services. Historically, quantifying these indirect emissions presented substantial challenges due to data complexity and the extensive scope of value chains. This is driving the need for specialized tools.
