Sweep

Carbon ledgers provide significant benefits in supply chain management by offering a detailed view of emissions across the entire supply chain. This visibility helps companies identify high-emission areas and prioritize them for reduction efforts. By integrating carbon ledgers into supply chain management, companies can collaborate with suppliers to implement greener practices, leading to a more sustainable supply chain overall. Additionally, carbon ledgers support compliance with environmental regulations and standards, which often require detailed reporting of supply chain emissions. Consequently, businesses can improve their sustainability performance and reduce risks associated with non-compliance.

To implement a carbon ledger system, organizations should begin by defining the scope of their emissions inventory, which involves identifying which operations, processes, and facilities to include. This often follows the guidelines set by standards such as the Greenhouse Gas Protocol, which requires the classification of emissions into Scopes 1, 2, and 3. Next, organizations should establish a baseline year for comparison of future emissions data. Data collection systems need to be put in place to gather accurate information, which might involve installing meters or using third-party data providers. Organizations should also train staff in data collection and management to ensure consistency and accuracy. Once the data is collected, it should be analyzed to identify key areas for emissions reductions. Finally, the emissions data should be reported according to chosen frameworks, such as the CDP or GRI standards, to ensure transparency and accountability.

Under CSRD, companies must report Scope 3 emissions when they represent a significant portion of total greenhouse gas emissions, typically above 40% of total emissions. The European Sustainability Reporting Standards (ESRS) E1 requires disclosure of all 15 Scope 3 categories where material, including purchased goods/services, upstream transportation, waste, business travel, and downstream activities.