Information Systems for Environmental Sustainability

IT, Resource Productivity, Environmental Preservation, and the Fourth Industrial Revolution

SAP’s Sven Denecken: Only 8% of a company’s total carbon footprint is under its direct control.

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As reported on ITWeb, SAP’s Sven Denecken, VP of sustainability co-innovation, stated at the SAP Sustainability Summit in Johannesburg yesterday that more than 90% of a company’s emissions occur in the supply chain, i.e., not under its direct control.

Is this true? Using the GHG protocol, what emissions  are under a firm’s “direct control”?

  • Scope 1: direct emissions (direct control)
  • Scope 2: purchased energy (mostly direct control, but for the fuel mix used to produce energy, which changes the emission).
  • Scope 3: purchased materials and other supply chain emissions (indirect control at best).

So assuming S1 and S2 are direct control and S3 is indirect control, are there figures available to check the 90% S3 claim? Is this meant to be an average figure? Specific to a particular industry? Not clear… For Nokia Group’s reported figures in CDP, the number is consistent with the claim:

Reporting Period   1/1/07 12/31/07
Scope 1     13,034
Scope 2     223,053
 Scope 3*   Employee Business Travel 187,000
    Logistics 420000
    Use/disposal of co. products 790000
    Supply chain 900000
    TOT S3 2,297,000
    TOT S1 & 2 236,087
    Percent Direct 0.91
       
*Details of the most significant Scope 3 sources for your company
all values in m tC02e    
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Author: nigelpm

Associate Professor of Information Systems, Stephen M. Ross School of Business, University of Michigan - Helping organizations to navigate digital transformation.

One thought on “SAP’s Sven Denecken: Only 8% of a company’s total carbon footprint is under its direct control.

  1. Pingback: Deloitte & dcarbon8: supply chain orientation « Information Systems for Environmental Sustainability

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