Ndustrial provides new way to automate Scope 3 emissions

Ndustrial has announced that it is expanding its software capabilities to help organisations capture and report their Scope 3 emissions.

CDP estimates that an organisation’s supply chains often account for over 90 per cent of their greenhouse gas (GHG) emissions, when taking into account their overall climate impacts.

Ndustrial said that leading food producers have implemented GHG practices that are reducing their Scope 1 and 2 GHG emissions and are now challenged to measure and reduce their Scope 3 emissions throughout their supply chain, including cold storage.

“If we ignore Scope 3 emissions, we’re only addressing a small percentage of the emissions linked to a business, and we’ll never get a full snapshot of a company’s carbon footprint,” said Daniel Goldman, Co-founder and Managing Partner at Clean Energy Ventures.

Goldman continued that Scope 3 emissions are 11.4x higher than direct, operational emissions.

“With many companies focused solely on Scope 1 and Scope 2 emissions, there is a missed opportunity to find and remove even more emissions as part of Environment, Social, and Governance (ESG) initiatives,” he said.

Ndustrial explained that the freezing and food storage processes for cold chain warehouses require massive amounts of electricity. It could be as simple as freezing chicken products at zero degrees, blast freezing fruit at -20 degrees, or simply refrigerating produce.

To reduce and control these Scope 1 and Scope 2 emissions, facilities reduce the amount of energy required to store each product.

Scope 3 emissions, which are also referred to as value chain emissions, are the result of activities from assets not owned or controlled by the reporting organisation, but that the organisation indirectly impacts in its value chain.

A few examples of what contributes to Scope 3 emissions are the transportation of goods by outside carriers or the storage of their products in a warehouse.

“One company’s Scope 2 emissions is another company’s Scope 3 emissions,” explained Jason Massey, CEO at Ndustrial.

“To get to true Scope 3, leading enterprises will require their strategic suppliers to disclose data on GHG emissions and corporate governance,” Massey said.

“It will also require the ability to capture granular product-level data and establish a chain of custody to understand the full carbon impact of an organisation,” he concluded.

With their new initiative, Ndustrial said that it will provide a solution for industrial enterprises to automate their Scope 3 emissions reporting throughout their supply chain, as well as cold storage.