Sustainable supply chains: using AI to fulfill Scope 3 requirements

As manufacturers broaden their value chains, global trade grows more complex and interwoven. More expansive supply chains means more suppliers, making it increasingly difficult to measure “Scope 3” emissions—the greenhouse-gas emissions that occur in a company’s value chain which are outside of their direct control.

Many procurement professionals are turning to artificial intelligence to lower their Scope 3 emissions. AI can track all components of products from across the value chain, determine their carbon footprints and calculate the true carbon footprint of finished goods. By combing through various datasets, AI can analyse suppliers’ data and use predictive analytics to assess whether suppliers are meeting their sustainability goals. Such visibility allows companies to make quantifiable sourcing decisions that lower their impact on the environment.

But supply chain emissions-data is often lacking. And with no global standard for emissions data, many companies may receive inaccurate information. How can procurement leaders optimise AI to make sustainability decisions with the data available?

Discussion points include:

• How can procurement leaders improve Scope 3 data collection? What standards are needed from regulators? 
• What metrics should be used to determine a supply chain’s sustainability? How does this impact procurement decisions? 
• How can companies encourage partners to adopt sustainability best-practices? 
• How can businesses assess the costs and benefits of using AI for greener supply chains? What impact can it have on profits?