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Challenge
Concept 4, a global sourcing company located in Asia, was facing increasing demand for ESG transparency from their roster of 45 clients. As part of their commitment to sustainability and their USP, they embarked on their Science Based Targets initiative (SBTi) journey. This strategic move necessitated the automation of their current method of carbon accounting, to better support ESG-related, strategic decision-making. PALO IT was brought into the fold to assess their current state of affairs, and help develop a solution to automate processes.
The objective from the onset of the project was to generate reports and provide a 360° view of environmental performance to teams (purchasing, logistics, and product) for evaluation.
Approach
After a rapid discovery phase, PALO IT vouched to develop a product-based approach – a bespoke ESG data platform aligned to Concept 4’s unique context. The tool—developed within PALO IT’s in-house ecosystem—would be capable of calculating the company’s carbon impact in terms of physical assets and internal office operations, per year, categorized across the 15 subcategories of Scope 3 defined in ISO14064 – a widely used international standard for quantifying and reporting greenhouse gas emissions.
After the initial discovery phase, a three-part approach was mapped to develop the solution itself:
1. Identifying Data Sources
2. Ingesting Data into the Repository
3. Building Dashboards and Automating Processes
Outcomes
When all was said and done, Concept 4 was able to automate their carbon accounting process, identifying 5,600 tons of actionable carbon reduction. We've provided them with long-term visibility over their performance across various carbon subcategories, and clearly identifying projects and business cases (among their supply-chain, but also their operation) where Carbon reduction was well within their grasp. This has enabled the business to better meet demands for ESG transparency for their own 45+ clients, spur the transformation of 250+ of their supplier contracts, and support their own ongoing sustainability initiative.
With robust historical data and thorough analysis, Concept 4 is now capable of forecasting carbon emissions in its product lifecycle management (PLM) for all 2,500+ of their products. This enables them to provide clients with information on various dimensions, including pricing based on material emissions and supplier emissions. Clients can then make informed decisions based on their annual carbon budgets.
PASCAL VIEILVOYE
CEO/CFO & FOUNDER, CONCEPT4