A recent PwC study showed that 84 per cent of businesses are maintaining or accelerating their climate goals, despite ongoing economic challenges. This trend reflects a growing understanding that sustainability is no longer one priority among many, but a core strategic business imperative. As climate change remains high on the global agenda, companies are under increasing pressure to take meaningful action.
Technology already plays a central role in our lives, from improving workplace efficiency to streamlining daily routines. Unsurprisingly, it also holds transformative potential for decarbonisation. The way businesses measure, manage and mitigate greenhouse gas emissions is being redefined by innovation – making it easier for organisations, governments and societies to achieve net zero targets.
Unlocking decarbonisation with better Scope 3 data
Effective decarbonisation begins with data, and more specifically, access to high-quality Scope 3 emissions data. While Scope 1 and 2 emissions (those from direct operations) are relatively straightforward to calculate, Scope 3 emissions are far more complex. These include emissions generated across the entire value chain, from raw materials to end consumers, and often represent the majority of an organisation’s carbon footprint – up to 26 times higher than direct emissions.
To tackle Scope 3 emissions, companies must move beyond industry averages and gather primary data directly from suppliers. This enables more accurate assessments of supplier sustainability practices and helps uncover opportunities to reduce emissions where it matters the most. For instance, procurement teams are increasingly incorporating carbon pricing into their decision-making process, ensuring that sustainability considerations are embedded into commercial strategy.
AI and digital twins are the new tools for net zero supply chains
Among emerging technologies, AI stands out as a game-changer for sustainability. Its momentum is undeniable: in 2023, start-ups developing AI-driven climate solutions attracted $5bn in funding – 7.5 per cent of all climate tech investment. By Q3 2024, that figure had surged to $6bn, accounting for 14.6 per cent of total climate tech investment.
AI enables to gain deeper insight into companies’ operations and supply chains, allowing them to pinpoint emissions hotspots and prioritise impactful changes. This is especially critical amid shifting trade policies and geopolitical uncertainty. AI-powered platforms can model complex scenarios, helping organisations design low-carbon supply chains that are resilient to future disruptions.
Additionally, automated tools can now process bills of materials (BOMs) and product carbon footprints (PCFs) at scale, enabling companies to generate accurate product-level emissions data. This not only supports more sustainable procurement decisions, but also allows organisations to identify suppliers with greater carbon maturity and engage them in emissions reduction efforts.
Meanwhile, digital twin technology is becoming more popular to simulate emissions reduction scenarios. By virtually modelling different supply chain configurations and forecasting outcomes, businesses can accelerate their progress towards net zero with greater confidence and precision.
From complexity to strategic action
Optimising supply chains no longer needs to be a slow, manual process. For many years, measuring Scope 3 emissions has been a resource-intensive task, but today, advanced technologies are helping businesses to understand how to decarbonise their supply chains efficiently and move towards strategic action. AI and Internet of Things devices, for example, are enhancing transparency by offering real-time insights into emissions, while AI-powered analytics uncover patterns and highlight optimisation opportunities across supply chains. With enhanced visibility and analytics, companies can engage in high-impact initiatives like multi-tier supply chain mapping, supplier hackathons and robust engagement programmes with suppliers.
As businesses adapt to a world where decarbonisation is a competitive advantage, embracing technology is not just beneficial – it’s essential. By leveraging innovation, companies can lead the charge towards more sustainable, resilient and future-proof supply chains.
Mauro Cozzi, CEO and co-founder at Emitwise
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