ISO 14083:2023 – Greenhouse gas emissions in your supply chain

Sam Miles Date published: Apr 26, 23

On March 20th, the new ISO 14083:2023 standard was published, and it promises to have a substantial bearing on supply chains across the globe.

ISO 14083 will focus on the ‘quantification and reporting of greenhouse gas emissions arising from transport chain operations’. So, specifically it will look to give structure to the management of greenhouse emissions from your supply chain, otherwise known as scope 3 emissions.

Let’s break down where this ISO has originated from, and what it means for your organisation and your supply chain emissions.

The basis for ISO 14083:2023

ISO standards come about when the market has a need. They are requested from within an industry or via stakeholders like consumer groups. So, ISO 14083 has been published because industry experts have identified that there needs to be an international consensus on the reporting of emissions from supply chains (scope 3 emissions).

What are scope 3 emissions?

The Greenhouse Gas Protocol is a set of standards and guidance that aims to measure and manage emissions. 92% of Fortune 500 companies use the GHG Protocol to account for their greenhouse gas emissions. The GHG Protocol breaks greenhouse emissions into three separate categories or ‘scopes’. Scope 1 refers to the emissions that a company makes directly itself – for example with its vehicle usage. Scope 2 refers to indirect emissions that your company makes from purchased electricity, steam, heat, and cooling.

Scope 3 emissions are the key focus here and they refer to emissions that are produced from your supply chain. There are significant carbon emissions that come from the manufacturing and processing of raw materials. Scope 3 emissions account for 70% of a business' carbon footprint but often aren’t included in ESG reports. This is an issue that ISO 14083 looks to address.

Understanding the root cause of supply chain emissions

According to stats provided by the United States Environmental Protection Agency, transportation generated 28% of greenhouse gas emissions in 2021, in the U.S. This was the largest share of greenhouse gas emissions by economic sector. Additionally, over 94% of the fuel used for transportation is petroleum based. This needs to be countered if net zero targets are to be met.

Net zero by 2050

Net zero by 2050 is often stated as the primary target when it comes to emissions. Net zero being the target of removing an equal amount of CO2 from the atmosphere as is added through energy consumption in transport and manufacturing, for example. This ties in with the UN goal of limiting global warming by 1.5c, which is what net zero emissions is necessary to achieve, by 2050.

The UN have already stated that the net zero by 2050 goal may be outdated, as the climate crisis has worsened. United Nations Secretary-General António Guterres proposed that more economically developed countries instead target 2040 for their net zero goals.

How can you prepare for ISO 14083:2023?

It’s very clear that early adopters of ISO 14083 are going to be at an advantage over their competitors for a couple of reasons.

• Demonstrating a substantial effort towards sustainability and net-zero
  By obtaining ISO 14083 certification early, you’re demonstrating a significant commitment towards sustainability and net zero goals. Movement towards sustainable manufacturing is a inevitability for all businesses, but those that get their first will inspire confidence and trust in their customers and their share holders, as well as creating long-term goodwill for the reputation of the business.

• Increasing the transparency of your supply chain will reduce risk
  Naturally, in order to report on and reduce the emissions from your supply chain, you’ll need complete transparency to accurately collect data. Gaining this oversight will provide additional benefits beyond the reporting and reducing of carbon emissions. It will also help you to spot areas of risk or obstruction with your suppliers.

Existing guidance

An excellent place to start is to look at what already exists in terms of guidance around dealing with scope 3 emissions. The GLEC framework is an existing and widely used method for calculating and reporting on emissions from your logistics. Importantly, ISO 14083 is largely built off of the GLEC framework, adapting GLEC to fit the formalised ISO structure. If that isn’t enough, the GLEC framework is also aligned with the Greenhouse Gas Protocol and the Carbon Disclosure Project.

Investing in an effective digital QMS

It’s impossible to accurately report on and reduce your carbon emissions without an effective digital QMS like Ideagen Q-Pulse. Here’s exactly how the modules of Q-Pulse can help you get control and oversight of greenhouse emissions in preparation for ISO 14083.

• Sustainable supply chain management
  A QMS is an undoubtable necessity in order to gain complete visibility of your supply chain. Access to real-time information helps identify quickly where suppliers might be falling down on their sustainability targets. This will allow you to make informed decisions about next steps in terms of working with your existing contractors to improve emissions or sourcing alternative suppliers.
  Aside from the direct impact this has on capturing scope 3 emissions, it will also allow you to identify risks within your supply chain, particularly when it comes to delays and obstructions, which can increase greenhouse gas emissions.

• Data driven
  Implementing a future-proof QMS is all about working smarter, not harder. Collecting data from across your supply chain, as well as your own business, is great when it comes to reporting on emissions. But it also enables you to save time in multiple facets of your operations. You can resolve supply chain issues remotely, but you can also ensure you’re managing risk and protecting your brand long-term.
• Audits
  The audit module will allow you to monitor suppliers on an ongoing basis against KPIs. Plan, schedule, and implement any type of quality audit with dedicated question banks and checklists. Develop and implement action plans with suppliers if required.

Manage your supply chain emissions more effectively

Discover how you can manage your supply chain emissions more effectively, in preparation for ISO 14083 by downloading our 5 step guide to supplier management.