ESG environment social governance software.
IBM (NYSE:IBM) has a new way to help companies accelerate the capture, calculation and analysis of Scope 3 greenhouse gas (GHG) emissions through an AI tool it developed called Envizi. The new text classification capabilities in this software is designed to help enable a leap forward in efficiency and accuracy by helping organizations automatically ingest, organize and manage the spend data required for emissions calculations and external disclosures.
Taking stock of greenhouse gases is a liability and a headache but when you do it right you can also get good green press and earn a Butterfly Mark (Positive Luxury) or B Corp status. Companies like Estee Lauder have taken it very seriously, aiming to not buy carbon credits but stop them at the source by using upgrades like solar energy.
Findings released in the the IBM 2023 Sustainable Business Snapshot revealed that there’s a perception gap among corporate sustainability professionals, including sustainability and IT decision-makers. Some 93% of respondents think their company is somewhat or very mature in using data to track sustainability progress. But only 45% say they are ready to report on Scope 3 emissions. The sample included 250 participants from 13 markets, including US, UK, UAE, Australia, Brazil, France, Germany, India, Italy, Japan, Mexico, Singapore, and Spain.
Applying AI to green the gaps
IBM’s new AI and emissions reporting tool called called Envizi has been helping organizations to collect, calculate, analyze and report on GHG emissions for over a decade. The product isn’t a new startup promising the moon: it offers coverage for all 15 Scope 3 categories, using a calculation engine to apply GHG Protocol calculation methods that are underpinned by a robust data management system, says material provided by IMB.
IBM sustainability GHG dashboard
It includes automated data capture, supplier survey data capture, Scope 3 emissions factor libraries, reporting framework templates, a dedicated Scope 3 analytics dashboard, audit tools and functionality to support supplier benchmarking analysis.
A spend-based emissions factor library that is harmonized across over 180 countries, creating uniformity in Scope 3 calculations for purchased good and services. These datasets are designed to help organizations to produce their emissions calculations quickly, accurately and efficiently.
“Growing regulatory requirements and external interests are driving organizations to disclose GHG emissions, including those from Scope 3,” said Christina Shim, VP and and Global Head, Product Management and Strategy, IBM Sustainability Software. “As requirements increase and as organizations prioritize enhancing operational insights, so does the need for robust, auditable data management, calculation, and reporting processes. IBM Envizi is now integrated with the new capabilities to help organizations seamlessly garner insights from spend data to facilitate Scope 3 emissions calculations for ESG reporting.”
For example, a manufacturer may buy computer and electronic components from various suppliers. In one entry, these components may be recorded as ‘chips,’ and in another, they may be called ‘hard drives.’ Ultimately, they all need to be in the category of ‘computer and electronic components’ so the correct emissions factor can be applied.
This application of text classification can help to automatically categorize potentially thousands of lines of spend data so teams can focus on higher value work.
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Author: Karin Kloosterman
Karin Kloosterman is an award-winning journalist and publisher that founded Green Prophet to unite a prosperous Middle East. She shows through her work that positive, inspiring dialogue creates action that impacts people, business and planet. She has published in thought-leading newspapers and magazines globally, owns an IoT tech chip patent, and is part of teams that build world-changing products to make agriculture and our planet more sustainable. Reach out directly to [email protected]
