Digital Transformation Consulting

Companies are increasingly recognizing the need to address their Scope 3 emissions, which are significantly higher than their direct emissions. A major challenge they face is the lack of visibility into their supply chains, particularly beyond Tier 1 suppliers. Accenture's research highlights that 64% of total upstream emissions come from suppliers beyond Tier 1, and these emissions are often concentrated in complex, multi-tier networks. For instance, in the high-tech industry, approximately 80% of upstream emissions originate from Tier 2 and beyond, complicating efforts to identify and mitigate these emissions effectively.

To tackle these issues, Accenture provides enhanced supply chain visibility that extends beyond direct suppliers, allowing companies to pinpoint the main drivers of emissions throughout their supply chains. This approach enables businesses to identify "hot spots" of emissions by analyzing value chains across various industries and geographies. For example, the research indicates that in the Chinese high-tech sector, 79% of upstream emissions are generated domestically, while this figure is lower in Japan and the US, highlighting the regional disparities in emissions sources.

The tailored solution involves integrating AI-powered insights and fostering a boundaryless flow of data across teams, which is essential for companies aiming to achieve their environmental goals. By understanding the emissions profiles associated with different suppliers and regions, companies can make informed decisions about supplier selection and resource allocation. This strategic focus not only aids in reducing Scope 3 emissions but also enhances overall supply chain sustainability.

The quantifiable benefits of this approach are significant. Companies that embrace these insights can better align their sustainability efforts with their supply chain operations, ultimately leading to more resilient and environmentally friendly supply chains. The research underscores that with the right visibility and collaborative actions, companies can make substantial progress toward their emissions reduction goals, contributing positively to both business and societal outcomes.