Success Story
Krones
Transparency of the emissions of the upstream supply chain (Scope 3.1)
„When we wanted to calculate the emissions in the upstream supply chain internally, we realized that the amount and diversity of information stored in our systems made a digital approach indispensable.
With TELUSIO as an experienced partner in the field of data management, we can now tackle this in a targeted manner.“
Martina Birk,
Head of Sustainability
Starting Position
The Krones Group, headquartered in Neutraubling, Germany, plans, develops and manufactures machines and complete lines for the areas of process technology, filling and packaging. The company has over 7,058 registered patents and utility models.
Since on average around 80% of all emissions of a manufacturing company occur in their supply chain – the so-called Scope 3 emissions – this process step offers the greatest potential for reductions.
Statistically speaking, most emissions along the supply chain are caused in the upstream supply chain, i.e. in the production of the raw materials or goods purchased by the manufacturing company. This is referred to as Scope 3.1 emissions. Accordingly, Scope 3.1 emissions, (those from the upstream supply chain) should be calculated and analyzed as a priority
In order to be able to accurately and reliably calculate the emissions of goods for which no reliable primary values were available, a precise method was essential. Krones had already calculated the emissions in the upstream supply chain (Scope 3.1) using a spend-based approach.
„The precise calculation of emissions in the upstream supply chain is extremely relevant for us to meet our ambitious reduction targets.
TELUSIO offers us a data-driven, transparent and dynamic approach that we can scale up as required.“
David Meier,
Senior Risk- and Sustainability Manager Corporate Procurement
The activity-based approach makes it possible to precisely identify emission hotspots in the supply chain, set benchmarks for the plausibility of supplier data and achieve accurate values that serve as a basis for agile decisions in the event of regulatory changes. Like this, the company not only creates transparency, but also the basis for effective emissions reduction along the entire supply chain.
Krones faced various challenges when introducing the activity-based emissions calculation.
For the activity-based method of calculating emissions, the underlying materials of the purchased materials must be identified and assigned to the most up-to-date and scientifically sound emission factors.
A complex task that requires both a technical understanding of the purchased goods and specialist knowledge in the field of carbon accounting.
The complexity is further increased by the huge amounts of data, which made a manual approach, for example using Excel, impractical and inefficient.
Accordingly, a dynamic solution had to be selected to automatically recognize the underlying materials of the purchased goods and assign them to the corresponding scientifically based emission factors.
It was extremely important for Krones to find a transparent, data-driven solution that would ensure transparency in the upstream supply chain in the future and thus support the ambitious reduction targets.
Challenges
Current, spend-based calculation of supply chain emissions is too inaccurate
Hardly any (reliable) primary data from suppliers
High purchasing volume makes manual or Excel-based approach impossible
Resource-intensive data management required
Solution
The result is a dynamic calculation of emissions from the upstream supply chain (Scope 3.1), which provides Krones with complete transparency into its own upstream supply chain. This quickly reveals emission hotspots, which facilitates targeted reduction measures and supports the path towards the net zero target.
The results also serve as a reliable basis for checking the plausibility of the emission values submitted by suppliers. This has both increased transparency and created a solid basis for ensuring data quality.
What characterizes the collaboration?
Due to its ambitious emission reduction targets, Krones has been looking for a way to carry out the previously spend-based calculation on an activity basis for some time.
With the dynamic and individual solution from TELUSIO, Krones can now systematically carry out the activity-based calculation of emissions from the upstream supply chain. Krones now has access to the emission values of all calculated purchased goods – and can use this information for targeted reduction measures. This was made enabled by the AI-based processing of the purchased goods and the customized software solution.
„The AI-based filling of data gaps and the dynamic calculation of emission values for over 100,000 purchased goods make it possible to calculate supply chain emissions.“
David Meier,
Senior Risk- and Sustainability Manager Corporate Procurement
What are the next steps in the collaboration?
„The joint and successive coverage of the entire purchasing portfolio enables us to put together internal work packages according to priority and to adapt the project speed to internal resources.“
Linda Zimmerer,
Manager Procurement Business Development
Achievements with TELUSIO
AI-supported completion of master data
Detailed overview of the CO2e of purchased goods emissions
Establishing an accurate data-based foundation to make informed decisions on emissions reduction (SBTi)
Direct comparison of a supplier’s primary values with scientifically based literature benchmark values
Ideal preparation for calculating the activity-based Product Carbon Footprints (PCF) of the products manufactured and sold by Krones
Success Story Krones
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Would you like to learn more?
Please contact us via the contact form or send us an inquiry by e-mail to Dr. Johannes Weibl J.Weibl@telusio.com.
I am looking forwards to your message.
With kind regards
Dr. Johannes Weibl
Dr. Johannes Weibl
Founder and Managing Director
J.Weibl@telusio.com
(089) 24418366
Services
Supply Chain Emissions
PCF calculation
PCF conception
PCF reduction
PCF automation
Data preparation
