IBM announced an expansion of its ESG data platform, Envizi ESG Suite, with the introduction of a new Supply Chain Intelligence module. This module equips companies with tools to collect and analyze emissions data across their supply chains, facilitating Scope 3 emission calculation and reporting.

The launch comes amidst growing pressure for companies to track and report Scope 3 emissions, which encompass indirect greenhouse gas emissions generated across their upstream and downstream value chains. New sustainability reporting standards, such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and the IFRS’s ISSB standards, mandate Scope 3 disclosure. While these emissions often represent the majority of a company’s carbon footprint, they remain the most challenging to monitor and report due to their occurrence outside direct operational control.

IBM emphasizes that the new module empowers users to capture and aggregate large volumes of supplier and product-level data. Automated data request and analysis functionalities ensure improved data quality for reporting, while also enabling the identification of emission reduction opportunities within the supply chain.

“Assessing supply chain emissions for reporting and performance improvement presents a significant data challenge,” stated Kendra DeKeyrel, VP of ESG & Asset Management at IBM, in a release announcing the new features. “IBM Envizi offers an integrated, centralized system to seamlessly combine supply chain data with broader ESG data, streamlining and scaling Scope 3 accounting and reporting.“

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The introduction of the Supply Chain Intelligence module underscores IBM’s commitment to strengthening its ESG solutions portfolio through AI-powered technology. This acquisition of Envizi in 2022 signifies their ongoing efforts to empower companies with comprehensive tools for managing their environmental impact.