Here's What We'll Cover
The manufacturing industry is responsible for a sizeable proportion of global greenhouse gas (GHG) emissions.
While the extent of the emissions vary according to factors like company size and the type of manufacturing processes, it makes sense that larger manufacturing companies are subject to emissions reporting requirements.
The burden of emissions reporting requirements
The Greenhouse Gas Reporting Program (GHGRP), for example, is a mandatory program in the United States that requires manufacturing companies to report their GHG emissions provided they emit more than 25 000 metric tons of CO2e annually.
In the UK, certain companies are required to report their GHG emissions as part of their annual Directors’ Report.
Regulations such as these make it clear that manufacturers are increasingly being pressured to report on their emissions – from their direct operations (Scope 1 and 2), as well as their supply chain and product emissions (Scope 3).
While these types of GHG regulations are aimed at larger OEM manufacturers, they have a knock-on effect on their suppliers as well.
As a part of their strategies to reduce emissions across their operations and supply chains, these major OEM manufacturers will need to report on their business partners’ sustainability metrics, forcing them to disclose their own emissions information.
Tier 1,2, and 3 manufacturing suppliers will therefore need to collect their own emissions data, compile, audit, and package it, and then generate emissions reports for their individual supply chain customers.
The result is that manufacturers at all levels of the supply chain are now feeling the burden of complying with reporting demands regarding their emissions and environmental impacts.
Gathering accurate and comprehensive data on Scope 3 emissions is complex and time-consuming, and dealing with large volumes of data as well as many reporting requests can pose a serious logistical and administrative challenge.
How IsoMetrix Lumina ESG software assists
IsoMetrix Lumina ESG management and reporting software helps manufacturers at all levels of the supply chain gather, track, and report on their emissions data.
With its ability to seamlessly integrate with other internal business systems, Lumina provides manufacturers with simplified sustainability reporting, improved data auditability, and the means to keep all emissions information well-organized and easily accessible.
Here are 4 ways in which IsoMetrix Lumina software helps manufacturers meet the challenge of supply chain emissions reporting pressure.
1. More efficient emissions data gathering and tracking
Dealing with large volumes of emissions data can make gathering and tracking it a complex task. IsoMetrix Lumina integrates with internal company systems to streamline data collection and provides easy-to-use, in-app dashboards for real-time emissions tracking.
2. Improved data quality and auditability
Emissions data that is spread across various systems can result in fragmented and isolated data, lowering the overall quality. By establishing a single, centralized, and reliable repository, IsoMetrix Lumina improves internal data quality and auditability. Having clear and concise emissions data simplifies the important auditing process, enhances strategic decision-making, and bolsters company compliance efforts.
3. Simplified emissions reporting
By leveraging thousands of emissions factors from the GHG Protocol, Part 98, DEFRA, and more, IsoMetrix Lumina automates greenhouse gas (GHG) calculations across Scopes 1, 2 and 3. The ability to seamlessly connect metrics to reporting demands simplifies the task from manufacturing clients higher up the supply chain.
4. A reduced administrative burden
By streamlining emissions data sourcing, providing a unified platform, enabling instant situation analysis, and automating emissions calculations, IsoMetrix Lumina eases the administrative burden of supply chain reporting for Tier 1, 2, and 3 manufacturing suppliers.
Supply chain emissions reporting can be a complex task for manufacturers. It can be challenging to collect accurate data from all levels of the supply chain.
Many suppliers may not have the necessary data or capability to measure and report their emissions. And even when the data is available, its quality and consistency can vary significantly.
While there’s no quick fix for ensuring that your suppliers navigate these complexities successfully, the right software solution can certainly help you do the best with what you’ve got.
By streamlining and centralizing your data collection, software can make it easier to aggregate, analyze, and report your emissions.
Built-in emissions factors can ensure internal data consistency, comparability, and auditability. And automation can reduce your workload by keeping emissions information up to date within your organization and diminishing the need to work with data manually.
By being proactive and taking control of your own supply chain emissions reporting, you will position yourself well for the long-term in terms of regulation compliance and risk mitigation, customer and supplier relationships, business reputation, investor relations, and environmental impact.
Discover how IsoMetrix Lumina ESG software can help YOUR manufacturing organization meet its emissions reporting requirements.
