**London:** Businesses are accelerating climate goals amid economic uncertainty, leveraging AI and digital twin technology to measure and reduce complex Scope 3 emissions across supply chains, transforming sustainability into a core strategic imperative for competitive advantage.
Sustainability has increasingly become a central strategic focus for many businesses, driven by growing recognition of climate change’s global significance. Mauro Cozzi, CEO and co-founder of Emitwise, emphasises this shift in an in-depth discussion on the current role of technology in decarbonisation.
Recent research conducted by PwC reveals that 84 per cent of companies are either maintaining or accelerating their climate objectives despite economic uncertainties. This trend underscores the evolution of sustainability from a peripheral concern to a fundamental business imperative, as organisations face mounting pressure to undertake substantive climate action.
Technology is now pivotal not only in enhancing operational efficiency but also in transforming how businesses measure, manage, and mitigate greenhouse gas emissions. Cozzi highlights that effective decarbonisation begins with comprehensive data acquisition, particularly concerning Scope 3 emissions, which are the most complex and substantial portion of a company’s carbon footprint. These emissions span the entire value chain—from sourcing raw materials to the end consumers—and can be up to 26 times greater than direct operational emissions (Scope 1 and 2).
To address Scope 3 emissions, businesses must move beyond generic industry data and collect primary emissions information directly from suppliers. This approach allows for precise evaluation of suppliers’ sustainability efforts and helps identify where emission reductions are most impactful. Procurement teams have increasingly integrated carbon pricing into their decision-making processes, thereby embedding sustainability deeper into commercial strategies.
Advancements in artificial intelligence (AI) and digital twin technology are revolutionising net zero supply chains. AI-driven climate solutions attracted $5 billion in funding in 2023, representing 7.5 per cent of all climate technology investments, a figure which increased to $6 billion by the third quarter of 2024, accounting for nearly 15 per cent of such investments. AI’s power lies in its ability to analyse complex supply chain data, identify emissions hotspots, and simulate scenarios to build low-carbon, resilient supply chains, crucial amid evolving trade policies and geopolitical uncertainties.
Furthermore, automated tools now enable mass processing of bills of materials and product carbon footprints, equipping companies with precise product-level emissions data. This capacity enhances sustainable procurement practices and facilitates engagement with suppliers exhibiting higher carbon maturity, fostering collaborative emissions reduction initiatives.
Digital twin technology aids businesses by simulating diverse supply chain configurations and forecasting emissions outcomes virtually, thus helping firms to refine their net zero strategies with greater precision and confidence.
Cozzi notes that the historically slow and resource-intensive task of measuring Scope 3 emissions can now be accelerated through these innovative technologies. Integration of AI and Internet of Things (IoT) devices offers real-time visibility into emissions, while AI-powered analytics reveal patterns and highlight optimisation opportunities throughout supply chains. This enhanced transparency supports initiatives such as multi-tier supply chain mapping, supplier hackathons, and structured supplier engagement programmes focused on reducing emissions.
As companies adjust to a landscape where decarbonisation translates into competitive advantage, adopting technological innovations moves beyond being merely advantageous to becoming essential. Leveraging such tools enables organisations to spearhead the development of sustainable, resilient, and future-proof supply chains, according to Mauro Cozzi.
Source: Noah Wire Services
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