How Optera Tech Enhances Supply Chain Emission Management

Optera, a leader in ESG and carbon management software, is taking significant steps forward in supply chain management.

This development assists companies in adhering to new regulatory mandates for reporting Scope 3 emissions.

The enhanced software version focuses on micro-level management of supply chain emissions, pushing organisations towards broader decarbonisation initiatives.

This rollout is timely, with regulatory frameworks like the European Union’s Corporate Sustainability Reporting Directive (CSRD) and California’s Climate Corporate Data Accountability Act spotlighting the necessity for such advancements.

As supply chains grow in complexity and importance, it becomes imperative for companies to sharpen their transparency and data handling concerning Scope 3 and broader supply chain emissions.

Introduction to Optera

Established in 2006, Optera stands as the pinnacle of carbon management software solutions designed for impactful climate actions, with a focus on reducing Scope 3 emissions.

Optera's software and services provide:

• Credible carbon accounting for Scope 1, 2 and 3 emissions 
• Actionable insights and forecasts
• Tools to collaborate with supply chain and investment partners.

With its deep-rooted expertise in sustainability, Optera oversees over 225m tonnes of CO₂ across 84,000 customer sites.

Committed to slashing Scope 3 emissions, Optera collaborates with leading NGOs like BSR and CDP, the World Economic Forum and technology giants such as HPE and Dell.

Expanding operational capabilities

To meet emerging regulatory demands more effectively, Optera is enhancing its Supply Chain Manager platform.

This initiative not only supports organisations in compliance but also spearheads efficiency in their operational practices.

The latest research priorities from sustainability professionals include:

• Manufacturing
• Retail
• Financial services
• Information technology. 

These emerging science-based targets (SBTs) are becoming the new standard. 

The new supply chain manager project involves: 

• More detailed supplier data: Facility-level and business unit emissions data from suppliers, with the ability to incorporate product-level emissions insights in the near future
• Increased calculation transparency: The platform displays emissions calculations, sources and emissions factor mapping within the interface – supporting data traceability for sustainability teams, stakeholders and auditors 
• Faster time from onboarding to report: Access to initial supply chain emissions data in weeks for a faster start to their category 1 inventory, with automated reporting to streamline submission for the most common reporting frameworks
• Enhanced user interface: Collaboration among cross-functional teams, including company leadership and other stakeholders outside of sustainability teams.

Tim Weiss, CEO and Co-Founder, says: “We're not just providing a tool; we're enabling a transformative approach to sustainability.

“With enhanced supplier data granularity, transparent calculations and accelerated time to insight, Optera is making it easier than ever for companies to drive climate action throughout their value chains."

The impact on Scope 3 emissions

The enhancements to Optera’s platform include a database with emissions data from more than 10,000 companies and advanced calculation methods aimed at optimising supplier engagement and quality standards.

Communication is essential across the whole supply chain for emission reporting, a survey found:

• 73% have set a science-based target
• 70% of respondents are working across their value chain to help suppliers decarbonise
• Over 90% report emissions either publicly or to regulators and customers.

The affected scope 3 emissions 

• Category 1: Purchased Goods and Services:  Emissions associated with the production of goods and services purchased by the reporting company
• Category 2: Capital Goods: Emissions from the production of long-term assets used by the company, such as machinery or buildings
• Category 3: Fuel- and Energy-Related Activities: Indirect emissions from fuel and energy production not covered in Scope 1 or 2 – including extraction, production, and transportation
• Category 4: Upstream and Downstream Transportation and Distribution: Emissions from transportation and distribution services within the supply chain for products or services purchased or sold
• Category 5: Waste Generated in Operations: Emissions from waste disposal and treatment due to company activities – relevant if waste management data is part of the emissions data Optera tracks
• Categories 6 and 7: Business Travel and Employee Commuting: Emissions from corporate travel and employee commuting, often reported within Scope 3
• Category 11: Use of Sold Products: Emissions from customer use of products – relevant for IT and manufacturing sectors
• Category 12: End-of-Life Treatment of Sold Products: Emissions from the disposal and treatment of sold products at the end of their lifecycle.

Building on the success of Optera’s Outreach Module, the new Supply Chain Manager enriches companies' ability to gather direct emissions data from suppliers.

Tim adds: "These metrics underscore the critical role our Supply Chain Manager plays in today's sustainability landscape, giving companies the data and collaborative capabilities necessary to make substantial value chain emissions reductions," 

This evolution of Optera’s supply chain management services is a major leap for companies tackling Scope 3 emissions, enabling enhanced detailed tracking, transparency and reporting speed, key to meeting standards like the EU's CSRD and driving effective, widespread decarbonisation efforts.

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