At a time when companies must seriously tackle the biggest challenge of supply chain decarbonization — Scope 3 emissions (indirect CO2 emissions upstream from suppliers and downstream from carriers) — Berlin-based startup Ctrl+S is highlighting the limitations of the Corporate Carbon Footprint (CCF) methodology commonly used by major international corporations.
Significant volatility in Scope 3 data
The startup’s findings are based on a study conducted several months ago with researchers from Switzerland’s University of St. Gallen, analyzing carbon footprint data from 62 European “top performers” according to the CDP (Carbon Disclosure Project) environmental reporting system. The scientific findings are striking: all of these companies show fairly high volatility in their Scope 3 data between 2018 and 2023. According to Moritz Nill, CEO of Ctrl+S, these sudden and sometimes very significant changes have little to do with actual emission reduction activities, which would be limited to a few percentage points per year.
A bias that prevents action
Ctrl+S is convinced that this instability in estimates is linked to the simplistic calculation method generally used, whereby a supplier estimates its total emissions and allocates a fraction to each of its customers based on the share of production purchased. While this approach does ensure that any emission reduction benefits achieved by the supplier are passed on to its clients, numerous irrelevant factors — acquisitions, divestitures, product range changes, evolving accounting methodologies — also distort the estimates.
“Using CCF neither allows a fair comparison between suppliers nor ensures consistent emission tracking over time,” summarizes Clément Gaspais, partner at Ctrl+S and head of the French market.
A two-module digital platform
To address this problem, the startup founded in 2022 in Berlin has developed a digital platform comprising two modules:
- item+s: converts procurement data into CSRD and GHG Protocol-compatible carbon footprints, based on an emissions mapping covering more than 500 sectors and numerous countries.
- supplier+s: a tool designed to engage suppliers at scale on their clients’ decarbonization objectives, using accountability, benchmarking, and training levers.