Invalua introduces technology to establish Scope 3 emissions baselines

Ivalua, a global leader in cloud spend management solutions, has announced the launch of its Environmental Impact Center (EIC), a solution that enables organizations to measure and reduce their value chain (or Scope 3) greenhouse gas (GHG) emissions. By integrating the EIC’s functionalities in their procurement practices, Ivalua says organizations can accelerate sustainability agendas with reliable emissions data for all the direct and indirect products and services they acquire and establish transparent reporting standards. 

The Environmental Protection Agency has outlined what comprises Scope 3 emissions.

With regulatory requirements, sanctions and public scrutiny on the rise, sustainability is a top priority for every organization globally. Domestically, efforts to reduce emissions and reach net-zero targets must involve the reduction of Scope 3 emissions, which comprise over 75 percent of total emissions at most organizations. As a result, procurement takes the spotlight in the effort to establish a transparent emissions baseline using reliable data and collaborating with suppliers on carbon savings plans to meet reduction targets. 

“In contrast to other solutions, the EIC will allow procurement to build baseline estimates for products and categories where verifiable supplier data does not exist,” says Pascal Bensoussan, chief product officer at the Redwood City, California firm. “They can use these models to focus on high-emitting categories and products.  They can then collaborate with suppliers to verify actual product emissions, define improvement plans to reduce emissions, and, ultimately, accurately track and report progress. EIC will aid our customers in establishing a more sustainable supply chain to reduce both greenwashing and green guessing.”

RELATED: GBB achieves carbon neutrality in 2021 and 2022 | EMR seeks to achieve net-zero carbon emissions by 2040 with new strategy

Through Ivalua’s EIC, emissions data can be imported from recognized third-party emissions data sources or directly from suppliers. Then the data is then combined with other information, such as environmental risk scores, policies, published targets or certifications. This data is accessible across Ivalua’s Source-to-Pay solution to facilitate more sustainable procurement decisions within daily operations, the company says. As products are purchased within an organization, category managers can track the year-to-date carbon emission trajectory for their purchases.

“Procurement and supply chain teams play a crucial role in reducing Scope 3 emissions and contributing to corporate objectives around supply chain sustainability,” Invalua founder and CEO David Khuat-Duy says. “By combining relevant and reliable data with supplier collaboration capabilities, Ivalua will enable customers to make meaningful progress on their sustainability journeys.”