Digital Ecosystems: A Data-Driven Approach To Decarbonizing Supply Chains

Industry leaders are working hard to implement sweeping measures to decarbonize their operations and increase energy efficiency.

The focus is shifting from individual factories to the entire value chain because up to 90% of a product's emissions occur directly in the company's supply chain.

Many large corporations are already committing to the decarbonization of their supply chains, and they need enough and reliable data to manage this transition efficiently.

Consumers, investors, and governments want clear labeling on their green claims. Reliable and transparent information is important for the growth of the carbon offset markets. Suppliers need to comply with the requirements of customers and regulations.

There is a huge need for more information about CO2 emissions. It has not been easy to determine product carbon footprints. There are no worldwide standards for measuring PCFs.

Digitalization of the entire product lifecycle is giving rise to technological solutions. For a transition to a climate neutral, circular economy, manufacturers can now tap these solutions and join forces across supply chains.

Cedrik Neike is a member of the managing board at the company. We need to act efficiently in order to reduce emissions. They need to be transparent with each other. We can accelerate the move towards net-zero manufacturing by doing so.

In a digital "ecosystem of equals," manufacturers can gain insight into what happens in their supply chains, find trouble spots, and document positive contributions towards decarbonization.

There are three key supply chain trends.

Three key trends are needed to acquire reliable and comparable data.

The shift from isolated islands of understanding to collaborative ones is called decentralization.

Digitalization combines human intelligence with technologies such as sensors, data analytics, artificial intelligence, and machine learning to create value.

To form networks that bring diverse stakeholders together to act together is democratization.

Digital platforms are used to integrate and benefit from these three trends. Companies can use a broad-based collaborative platform to innovate. Decarbonization is encouraged across the entire supply chain.

The data on carbon footprints is shared.

The exciting but immense challenge of driving progress toward a net-zero industrial sector requires organizations to find ways to share emission data without revealing strategic secrets.

The experience of automation technology and industry software has been applied to the approach of exchanging climate-relevant information. The goal of the network is to allow manufacturers, suppliers, customers, and partners to exchange PCF data. Users can quantify their own PCFs with the help of Estainium.

SiGreen gives all parties involved in production the ability to securely capture, assess, track, query, and share PCF details in a single digital environment. All parties have reliable data to make the right decisions about abatement measures because of these capabilities.

The PCF data is exchanged using SiGreen's low-energyBlockchain technology. The distributed-ledger approach ensures sound data protection and makes it possible to create and exchange verifiable credentials and shared information among manufacturers, suppliers, customers, and partners.

1. Achieving this quantification at scale requires a significant commitment and an ecosystem-based approach, with three main characteristics:

   There is a distributed architecture with peer-to-peer data exchange that allows data sharing on a by-request basis.

2. Decentralized storage and aggregation of PCF data that lets local regulators verify that data stores comply with data-sovereignty requirements.
3. A common interface and data model for interoperability, using an open-source approach for PCF reporting and based on a semantic data model, to create common standards for exchanging information seamlessly and confidentially between systems and databases.

Neike says that we are on the verge of a data-driven revolution that promises sustainable value. A baseline for carbon emissions is needed. The network is all about that. It's why we're establishing an association. Decarbonize production operations is one of the aims of these two.

There are benefits to enhanced collaboration.

A deeper knowledge of emission chains can be gained through tracking, certifying, and auditing information. Monitoring carbon emissions helps to harmonize standards.

Business leaders can use this data to explore new ways to implement collaborative and secure measures for achieving a carbon neutral value chain.

It is possible to get and share accurate PCF data. Shrinking PCFs can drive growth by improving customer experiences, fostering consumer confidence and helping it prepare for regulatory changes.

An improved flow of information can help us understand how to reduce carbon footprints.

You can register to attend a virtual event. There will be a documentary on accelerated digital transformation.