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Climate change is one of the most complex issues facing us today. It scales from local to global problems and involves many aspects - including economics, society, politics, moral and ethical practices. After a temporary decline during the COVID-19 pandemic, CO2 emissions are projected to rebound and grow by 4.8% this year (2021) as demand for coal, oil and gas rebounds with the economic recovery. This growth in greenhouse gas (GHG) emissions obviously makes the effort more difficult to achieve net-zero emissions by mid-century.
As global leaders convened at the U.N climate conference in Glasgow, Scotland, several pledges have been made, and countries joined in committing to limit GHG emissions, phase out coal usage, and end deforestation. That being said, climate scientists warn that it will take only eleven years before the planet warms to more than 1.5C from pre-industrial levels at the current level of emissions. We must act now to reduce GHG emissions and remove environmentally-bad practices from daily production, distribution and transportation within the value chain.
According to a report by the International Energy Agency (IEA), between now and 2030, readily available technologies are the main drivers to global reductions in CO2 emissions and the deployment of clean energy technologies. Among these technologies are technologies like Peer Ledger’s DPP for Supply Chain Traceability & Transparency that enable companies to better measure their Scope 3 emissions - the component that is larger than Scope 1 and Scope 2 combined - to better inform decisions and manage environment preservation.
A comprehensive and collaborative view of trusted GHG emissions data proves critical in mitigating climate change. Peer Ledger DPP captures all transactions and metrics, then calculates and screens them on a dashboard, making it possible to measure and manage environmental impact more accurately. Aggregated sustainability data such as water usage and chemical composition provides input to an effective transition from fossil fuels to clean and renewable energy. GHG Scope 3 dashboards can capture actual emissions factors across a company’s global value chain.
Peer Ledger DPP's Mobile geofencing technologies reduce the risk of illegal logging and deforestation. The system red flags sensitive areas that may involve deforestation or bad practices and require products from that area to document their legitimacy. With the urgency of needing to act on climate change, leaders focus on net-zero deforestation and restoring our natural habitats as positive solutions.
Even though the momentum of addressing global warming is increasing, still the climate is changing unexpectedly from place to place. Companies need to react with agility and to adapt their supply chain management to new climate conditions, changing regulations, and increasing environmental and social requirements from the general public. Near real-time visibility enables companies to know the current conditions in their supply chains and react to changes. Technology like Peer Ledger's DPP is designed to be interoperable with other systems. Its API communicates with other APIs and securely transfers data on a permission basis. Peer Ledger’s GHG dashboarding enables companies to take more aggressive actions to reduce emissions and to understand and score impact across their supply chains. Asset owners can increase the value of their responsibly-sourced and manufactured products and manage resources wisely in the context of climate change.
Traceability technology can drive the sustainability of many types of businesses and create more profit through better collaboration, significant cost savings, and unbeatable customer loyalty. The strategic value-added to the supply chain comes from seamless communications and good relationships among stakeholders. The immutable data sharing maintains transparency and connections, helping minimize conflict and enhance the firm’s ability to operate on schedule and budget. Good practices improve risk management and save costs. Hence, it helps companies get through exterior issues out of their control, such as resource scarcity, natural disasters, and civil conflict. A company with a sustainability plan is positioned to better react to economic, social, environmental and regulatory changes.
Today’s customers, especially the young generation, expect more transparency, honesty and social and responsible impacts from companies. Reports found that most Millennials and Gen Z prefer sustainable products and are willing to pay more for those. Therefore, companies can charge premium prices for their positive corporate responsibility performance and for fulfilling their customer’s intangible demands. Higher performers on ESG (environmental, social and governance factors) attract significantly more attention and opportunities from investors.
