Knowledge & Insights about Environmental Impact & Carbon Management | Carbmee

Visit the Carbmee Knowledge Hub for blogs, whitepapers, events, and webinars on carbon management and environmental reporting.

Explore a curated selection of our resources designed to empower your journey toward sustainable transformation, from insightful blogs and thought-leading webinars to in-depth whitepapers and in-person events.

Expertise to drive sustainable transformation

The Carbon Border Adjustment Mechanism (CBAM) is one of the European Union’s (EU) most critical tools in combating carbon leakage—the practice where companies relocate production to countries with less stringent emissions regulations to avoid carbon costs. Introduced as part of the European Green Deal, CBAM places a carbon price on imports from sectors like steel, cement, aluminum, fertilizers, and electricity, ensuring that non-EU producers are subject to the same carbon pricing as their EU counterparts under the Emissions Trading System (ETS).

CBAM’s goal is twofold: to prevent industries from moving outside the EU to avoid carbon pricing, and to encourage other countries to implement stronger environmental regulations. As the world’s first climate-related border adjustment mechanism, it serves as a major milestone in global climate policy, addressing the need for fair competition while keeping environmental integrity at its core.

For companies that import goods into the EU, CBAM introduces new reporting obligations and compliance requirements, making carbon footprint tracking essential. Businesses will need to calculate the embedded emissions of their products and pay corresponding tariffs based on those emissions. This presents new challenges, but also opportunities for businesses that embrace sustainability as a core part of their operations.

Carbmee offers solutions that help businesses stay ahead of CBAM requirements by providing tools to accurately measure and report their carbon emissions, particularly for imports. Carbmee’s Emission Intelligence Solution (EIS) allows companies to manage these complexities efficiently, ensuring smooth compliance with CBAM while minimizing operational costs and emissions. Learn more about carbmee’s CBAM solutions.

Introduction to the Carbon Border Adjustment Mechanism (CBAM)

Carbon Pricing on Imports

Under CBAM, companies must declare the carbon emissions embedded in the products they import into the EU. The system applies to high-emissions sectors, particularly those already regulated under the EU ETS. Importers will be required to buy CBAM certificates that cover the carbon content of their goods, with the price reflecting that of the EU ETS allowances.

Phase-In Period (2023-2026)

CBAM will roll out gradually, with full implementation expected by 2026. Between 2023 and 2026, businesses are required to report their emissions without paying any additional carbon costs, providing them with time to adapt to the new system. However, companies are encouraged to start preparing early by establishing robust emissions tracking systems to ensure compliance once the financial aspects of CBAM take effect.

Preventing Carbon Leakage

The primary goal of CBAM is to prevent carbon leakage—the shifting of production to countries with lower environmental standards. By placing tariffs on carbon-intensive imports, the EU ensures that foreign producers face similar carbon costs to EU manufacturers, creating a level playing field and encouraging other nations to adopt stricter emissions policies.

Impact on Global Trade

CBAM is designed to influence global trade, affecting exporters to the EU who will need to comply with the new regulations or face competitive disadvantages. The regulation has sparked discussions about how global supply chains will adapt, particularly in developing countries that may not have as stringent climate policies. However, CBAM is expected to drive global improvements in sustainability standards as companies align with EU expectations.

CBAM compliance will require companies to develop new strategies for monitoring and reporting emissions across their supply chains. Businesses that fail to comply may face increased costs from carbon tariffs and reduced competitiveness in the EU market. To minimize these risks, companies need to start implementing emissions reduction strategies and preparing for the new reporting requirements well in advance.

Reporting Obligations

Importers will need to provide detailed reports on the carbon footprint of their goods, with emissions data verified by third parties. This adds an additional layer of complexity for companies, particularly those with global supply chains. Carbmee’s Emission Intelligence Solution provides businesses with the tools to track emissions in real-time and generate accurate, auditable reports, simplifying the CBAM reporting process.

Supply Chain Emissions

CBAM will likely lead to greater scrutiny of supply chain emissions, as companies are held accountable for the environmental impact of their suppliers. Carbmee’s Supply Chain Emissions Module helps businesses map their supply chains, calculate the carbon emissions of suppliers, and identify opportunities for emissions reduction, thus improving overall sustainability performance.

Opportunities for Innovation

Companies that invest in clean technologies and emissions reduction strategies can turn CBAM into a competitive advantage. By lowering the carbon content of their products, businesses can reduce the number of CBAM certificates they need to purchase, lowering operational costs while improving brand reputation. Carbmee supports businesses in this journey by offering innovative tools for carbon management, empowering companies to cut emissions and thrive under the new regulatory framework.

As with any major regulatory shift, early preparation is key to minimizing risks and taking advantage of opportunities. Companies that begin preparing for CBAM compliance now will be better equipped to manage the financial and operational challenges the regulation brings.


Cost Savings
By accurately tracking and reducing emissions, companies can lower the number of CBAM certificates they need to purchase. Carbmee enables businesses to track their carbon footprint in real-time, identify high-emission areas, and implement cost-effective emissions reduction strategies.


Regulatory Compliance
As CBAM reporting becomes mandatory, businesses need to ensure they are fully compliant with the EU’s carbon pricing requirements. Carbmee’s automated reporting systems streamline compliance, reducing the administrative burden while ensuring accuracy.


Sustainability Leadership
By adopting sustainable practices and meeting CBAM requirements ahead of schedule, businesses can position themselves as leaders in sustainability. This not only enhances reputation but also opens up opportunities in the growing market for eco-friendly products and services.

The Carbon Border Adjustment Mechanism (CBAM) represents a significant shift in global climate policy, designed to prevent carbon leakage and level the playing field between EU and non-EU producers. While CBAM presents new challenges, it also offers opportunities for businesses that are proactive about emissions reduction and sustainability.

Carbmee provides the tools and insights businesses need to meet CBAM requirements while driving innovation and cost savings. With carbmee’s Emission Intelligence Solution, companies can accurately track and report their emissions, optimize their supply chains, and ensure full compliance with EU regulations. Explore how carbmee can support your CBAM compliance efforts.

To gain a complete understanding of EU climate regulations and explore how your business can achieve compliance, visit our Comprehensive Guide to EU Climate Regulations.

CBAM: A Complete Business Guide | Carbmee

See how CBAM (Carbon Border Adjustment Mechanism) affects trade and carbon pricing. Carbmee helps track embedded emissions, meet reporting rules, and cut costs via proactive carbon management.

Carbon Border Adjustment Mechanism (CBAM) – A Comprehensive Guide

As part of the EU’s path to hitting net-zero greenhouse gas emissions by 2050, a new Carbon Border Adjustment Mechanism (CBAM — a.k.a carbon border tax) was adopted from July 14th 2021. Here’s how the CBAM impacts industry, and how you can avoid high costs by reducing your supply chain emissions.

Global trading has finally begun to take action against climate change: and the result is the world’s first carbon border tax. The European Union’s new Carbon Border Adjustment Mechanism (CBAM), poised to start in 2023, puts pressure on companies to reduce their greenhouse gas emissions in a way that directly affects their bottom line: with a carbon border tax that will soon impact all levels of scope 3 emissions.

The Carbon Border Adjustment Mechanism (CBAM)

While EU businesses are already required to measure, report, and account for the costs of their own production’s carbon footprint, this will now extend to businesses importing from outside the EU. It is a vital step in tackling global trading emissions.

Border tax is another way of saying import tariff. Specifically, it relates to the amount of carbon dioxide emitted during the production of certain goods imported into the EU.

From January 2023, some impacted importers will have new carbon reporting requirements to which they must comply. From January 2026, carbon import permits will be introduced; their cost linked to the EU’s domestic carbon price (estimated to reach at least €75 by then). If the carbon pricing in the producing country is compatible with the EU’s, the carbon border tax will not apply. As we mentioned before, carbon emissions clock in at a high price. So if you don’t know how much your entire carbon footprint is, it’s time to prepare for the CBAM and do a life cycle assessment (LCA) of your supply chain activities.

Watch our CBAM webinar with expert insights from EY

If your company works with non-EU suppliers who don’t comply with EU climate standards (including carbon price), the carbon border tax is highly likely to affect your business in the near future. However, it will initially apply to certain products, including:

Ultimately, this means that the automotive, construction, and packaging industries will be heavily taxed. Indian steel imports could see a 32% rise, while Chinese ones could see a 17% rise. It could also impact the EU’s reliance on Russian oil, and get businesses looking for cleaner supply sources, with a smaller carbon footprint.

The CBAM is to be gradually implemented, giving businesses enough time to prepare and readjust their emissions. It starts with taxing direct emissions first, and the EU will later discuss whether to include more goods and/or indirect emissions in the CBAM’s second phase, due to start in 2026.

If CEOs are not proactive now, they could end up paying a high-price down the line. For example, could your business be importing a crucial component from the US? Since the US does not yet have a carbon pricing mechanism in place, you could be caught out. Leaders of any organization importing from outside the EU will need to rethink their sourcing decisions with a more holistic view of cost-effectiveness: a greener, cleaner impact item may actually save money in the near future and ensure a minimum is passed on to the customer.

With the carbon border tax, EU importers will have to match the corresponding EU carbon price (i.e. the price paid if the goods had been made in the EU) by buying certificates. They have to buy the CBAM certificates from the EU country they are trading with.

Every year, importers will have to declare the emissions and the goods for the year before, and present the CBAM certificates corresponding to these emissions. The price already paid within a third country will be, of course, deducted. However, if the emission information is not available, default carbon prices will be applied.

With this in mind, we can expect to see new trade agreements and the renegotiation of existing ones to ensure the carbon prices correspond with the EU’s, significantly reducing the carbon border tax.

In fact, many EU companies have already been paying for carbon emissions. The EU’s Emissions Trading System (ETS), initiated in 2005, places caps on emissions for most companies. If they go over their quota, they need to buy emission permits from other businesses.

Carbon-intensive EU manufactures, such as the steel and chemical industries, can sometimes find themselves at a disadvantage against the low prices from manufacturers without the EU green standard (and price).

Here, a carbon border tax could mean a fairer field for EU manufacturers, and international pressure to raise environmental standards in general.

It’s well-known that carbon emissions hide in most businesses’ supply chains. Since Scope 3 emissions are complex to track, many CEOs avoid focusing on the carbon impact they have on their businesses.

However, the most important step that affected businesses can take to prepare for the upcoming carbon border tax is to find out where and how much their emissions are. This is crucial for understanding exactly how the CBAM will affect them — not only in the immediate future (taxing only direct emissions) but also long term (indirect emissions).

carbmee is already empowering some of the world's largest enterprises to take control of their emissions for effective carbon reduction strategies. If you want to learn more about how EIS™ Carbon Management can help your organization start on its decarbonization journey, or even just level up existing initiatives, talk to one of our industry experts today.

What is the Carbon Border Adjustment Mechanism? What will it mean for your industry? Could there be new hidden costs in your supply chain because of it? Check out our quick guide to find out.

Carbon Border Adjustment Mechanism (CBAM): All you need to know | Carbmee

What is the Carbon Border Adjustment Mechanism (CBAM)? What will it mean for your industry in EU? Could there be new hidden costs in your supply chain because of it?

Carbon Border Adjustment Mechanism (CBAM): A Quick Guide

Ensuring consistent quality across automotive parts is vital. A lapse can severely damage brand reputation and compromise safety. The push towards a sustainable supply chain adds another dimension by incorporating environmental and ethical standards. Eco-friendly materials, for instance, require rigorous checks to satisfy both quality and sustainability standards.

Deep Dive: A significant automobile brand encountered a major setback due to quality issues linked to non-sustainable practices. It's a testament to the intertwined nature of quality and sustainability in the automotive industry.

While sustainable practices for OEMs aim to promote eco-friendly production, they often come with higher costs. Balancing sustainable actions with competitive pricing is a challenge, more so given the fierce competition in the automotive sector.

Solution Spotlight: Platforms like carbmee EIS™ aid companies in achieving carbon transparency in automotive production. These tools help manage carbon footprints cost-effectively without impacting product quality.

The automotive sector is susceptible to various disruptions, from geopolitical tensions affecting raw material supply to natural disasters stalling production. Such challenges underscore the importance of robust automotive supply chain solutions.

Insight: The recent pandemic underscored the value of a resilient supply chain. Predictive tools are now essential to preempt and counteract potential disturbances.

As the drive for sustainability results in increased collaboration, the risk of intellectual property infringements rises. It's crucial to keep proprietary processes secure while still fostering cooperative ventures.

Case in Point: An incident involving an electric car manufacturer showcased the risks of not safeguarding intellectual property in the pursuit of sustainability.

The automotive sector's regulatory landscape, especially concerning automotive environmental standards, is continually evolving. Ensuring worldwide compliance without hampering operational efficiency remains a top challenge.

EIS™ in Action: carbmee’s platform offers insights into global regulations, ensuring businesses align with regulatory compliance in automotive. Automated reporting further streamlines regulatory adherence processes.

In conclusion, while there are substantial challenges in creating a sustainable supply chain in the automotive sector, they are surmountable. Modern solutions, such as carbmee EIS™, illuminate the path to a greener and more robust supply chain. Embracing these solutions is pivotal as the industry progresses towards a more sustainable future.

The automotive sector, characterized by its complex web of suppliers, manufacturers, and partners, is undergoing a significant transformation. A mix of technological advancements, automotive environmental standards, and evolving consumer demands are reshaping the industry's landscape. Central to this transformation is the need for a sustainable supply chain, especially crucial for Original Equipment Manufacturers (OEMs). Let's delve into the pressing challenges and highlight automotive supply chain solutions that can lead the way forward.

Automotive Supply Chains: Path to Sustainability | Carbmee

Explore challenges in the automotive sector's journey towards a sustainable supply chain and discover solutions for a greener future with carbmee EIS

Challenges in the Automotive Sector: The Path to a Sustainable Supply Chain

To accurately calculate and reduce Scope 3 emissions, companies must access reliable emission data. It is with detailed and accurate carbon data that companies can identify emission hotspots and develop effective mitigation strategies. 

Comprehensive environmental databases, such as those provided by carbmees partner ecoinvent, are therefore crucial for collecting carbon data along the supply chain and supporting decarbonization strategies. These databases offer baseline values that enable companies to assess their Scope 3 emissions. 

carbmee is committed to provide the most accurate data for calculating CCF, PCF, and SCF, and is utilizing the best existing databases, yet identified opportunities to extend the existing data to unlock reduction potential even better. Learn more about carbmee's comprehensive carbon solution.

Understanding emissions for complex Bill of Materials (BOM) or Tier 1 automotive parts is difficult with existing databases. This is mostly due to the complexity of global supply chains, which makes tracing the origins and production processes of every component difficult. These components often contain a diverse array of materials, including rare earth elements and specialty alloys, complicating the quantification of their environmental impacts due to varied extraction and processing methods. 

carbmee DB is specifically designed to meet these challenges and provide pre-built datasets and more granular data where needed, so industrial companies can thoroughly and easily access accurate emission data for all their materials and identify significant reduction opportunities.

The Essential Role of Databases in Decarbonization Efforts

Developed in partnership with industry leaders, the carbmee database enhances existing resources with supplier-specific data. It features a higher geographical resolution that spans all countries, allowing for precise evaluations of potential suppliers' emission levels without the need for extensive data collection. Additionally, the carbmee database provides pre-built datasets for complex BOM parts, such as electronics or automotive components, allowing companies to easily break down SKU-level into LCA key components. 

These pre-built datasets also dramatically reduce the effort for suppliers to provide emission data. With carbmee DB, the process of acquiring the required, accurate primary data is simplified and sped up, allowing carbmee customers to only focus on hotspots, instead of the entire supply chain.

Simplifies Primary Data Collection: Reduces the workload on suppliers by providing tailored datasets, thereby simplifying the data collection process and enhancing data accuracy on product-level.

Need to collect Primary Data for CBAM? Explore our CBAM module 

Accurate LCA-breakdowns on SKU-level: Delivers in-depth LCA details for all materials at the SKU- level, enabling precise environmental impact assessments without relying on industry averages.

Enhances Strategic Decisions:  Supports informed decisions in sourcing, supply chain management, and eco-design, eliminating the need for extensive supplier questionnaires.

carbmee DB provides a critical tool for industries looking to navigate the complexities of carbon management and decarbonization. By offering high-resolution geographical data and industry-specific datasets, it enables more accurate and efficient environmental assessments. These capabilities allow companies to identify emission reduction opportunities more effectively and make informed decisions without extensive data collection from suppliers. Ultimately, carbmee DB aids industrial businesses in aligning their decarbonization efforts with both regulatory requirements and company objectives, supporting a more strategic approach to achieving net-zero emissions.

Get Actionable high ROI Data Insights with carbmee database

carbmee DB: better data where it is most impactful

Navigating the complexities of industrial decarbonization requires robust tools that can provide clear and actionable data. This blog explores how carbmee DB empowers companies to make informed decisions and accelerate their journey towards net-zero emissions.

Decarbonize Supply Chains with carbmee Database | Carbmee

Explore how carbmee DB accelerates effective decarbonization in industrial supply chains, providing clear data for net-zero goals

Effective Decarbonization in Industrial Supply Chains with carbmee Database (carbmee DB)

The financial implications of carbon management are often underestimated. However, strong carbon performance doesn’t just protect the environment — it unlocks significant financial benefits. From preferential financing terms to tax incentives, companies with effective decarbonization strategies are finding new avenues for financial growth.

Research reveals that many companies are unprepared for the financial risks related to carbon and environmental regulations. According to the Carbmee Sustainability Intelligence Report 2025, only 8% of companies believe they are well-prepared for carbon-related financial risks. This lack of preparation exposes businesses to vulnerabilities, with research indicating that unprepared companies may face 5-25% of their EBITDA at risk by 2050 due to climate-related risks.

For companies taking proactive steps toward decarbonization, the rewards can be substantial. Sustainability-linked loans, which now account for a significant portion of the EMEA loan market, offer interest rate discounts for meeting environmental targets. Additionally, reducing carbon emissions can lead to lower capital costs, as companies with strong ESG performance often enjoy better financing terms.

Studies have shown that each ton of emissions reduced can translate to lower financing costs, potentially saving millions for companies in carbon-intensive sectors like manufacturing and automotives. Moreover, government incentives and subsidies for green investments can significantly offset initial costs, allowing companies to save money while improving sustainability.

The Financial Benefits of Decarbonization

Investors are increasingly focused on companies’ carbon performance. As ESG regulations tighten, businesses that fail to meet sustainability targets risk losing investor confidence. Companies that can demonstrate progress in decarbonization are seeing preferential access to capital, strengthening their financial position and competitive advantage.

Decarbonization is no longer just an environmental issue — it’s a financial opportunity. CEOs should view carbon performance not as a cost but as a strategic advantage that can drive cost savings and improve financial access. By prioritizing sustainability, manufacturing companies can unlock valuable financial benefits while safeguarding against future regulatory risks.

Decarbonization is no longer solely an environmental imperative; it has transformed into a significant financial opportunity that astute CEOs are recognizing and capitalizing on. Forward-thinking leaders should perceive carbon performance not as an unavoidable expenditure, but rather as a profound strategic advantage that can profoundly influence a company's bottom line. This paradigm shift enables businesses to realize substantial cost savings and concurrently improve financial access to crucial capital and investment.

By proactively embedding sustainability into their core operational strategies, manufacturing companies are uniquely positioned to unlock a myriad of valuable financial benefits. These benefits extend beyond mere compliance, encompassing enhanced operational efficiencies, reduced resource consumption, and the potential for new revenue streams through eco-friendly product development. Furthermore, prioritizing sustainability serves as a critical safeguard against an increasingly complex and stringent landscape of future regulatory risks, which could otherwise impose significant penalties, operational disruptions, and reputational damage. Ultimately, a strong commitment to decarbonization empowers manufacturing firms to achieve long-term resilience, attract environmentally conscious investors, and build a competitive edge in a global economy that is rapidly reorienting towards a sustainable future.

Decarbonization & Financial Advantage | Carbmee

Carbon performance unlocks financial value. Strong management cuts risk, saves costs, and boosts returns—beyond environmental benefits.

Decarbonization and Financial Advantage: How Carbon Performance Can Save You Money

carbmee recognized in 2023 Gartner® Hype Cycle™ for Environmental Sustainability

Masterclass : Building Dynamic Product Carbon Footprints: Accelerating Accuracy Across Products, Suppliers, and Scope 3

The CPOs Guide to Carbon Management: The Hidden Source of Procurement Savings

Most carbon accounting platforms take a rigid approach: pre-set fields, fixed templates, and a universal model that struggles to capture the complexity of real-world operations, especially for companies with complex supply chains. But carbon management is not one-size-fits-all.

Whether you’re tracking the share of renewable energy at specific manufacturing sites or mapping the repairability score of every product in your portfolio, your business needs ESG data that mirrors your operations—not the other way around.

"Custom Properties is a major leap forward for our customers. It gives them the power to adapt their carbon models to the exact realities of their operations—no compromises, no workarounds. This feature was born directly from the needs of our users, who told us they needed more flexibility to stay ahead of regulations, integrate internal systems, and track the metrics that matter most. With Custom Properties, we’re delivering a capability that can solve virtually any ESG data challenge—especially the complex, dynamic demands of managing supply chain emissions and performance. Carbontology starts now."

 — Robin Spickers, Co-Founder of carbmee

Track Recycled Content Percentage to support circular economy metrics and demonstrate material reuse in products.


Measure Waste Recovery Rate and Product End-of-Life Treatment to fulfill CSRD & ESRS reporting requirements and align with regulatory sustainability disclosures.


Assess Supplier Carbon Scores to manage Scope 3 emissions and drive decarbonization efforts across the value chain.

Integrate ERP Material Codes to directly link product-level carbon data with enterprise systems for streamlined reporting and traceability.


Analyze Share of Renewable Energy by site, region, or product line to evaluate decarbonization progress and inform energy procurement strategies.

Implement a Repairability Score to enhance product lifecycle analysis and improve circularity and customer value.


Apply Carbon Pricing Models to evaluate emissions cost exposure, improve risk management, and gain a competitive edge through carbon efficiency.


Embed Ecodesign Principles into product development to reduce environmental impact, comply with regulations, and unlock sustainable innovation.

Use Marginal Cost Abatement Curves to identify and prioritize low-cost emissions reduction opportunities with maximum return on investment.

Organizations that excel at ESG data management don’t just report more—they act faster, reduce costs, and outperform peers. McKinsey reports that companies with strong ESG credentials cut costs by 5–10%, largely through operational efficiency, better resource use, and waste reduction. The key enabler? Deep, accurate data.


Meanwhile, a World Economic Council report shows that over 70% of companies cite data fragmentation as a major barrier to ESG progress. It’s not that the data isn’t there—it’s that businesses can’t consolidate or contextualize it effectively. This is where Custom Properties delivers unmatched strategic value.

By allowing teams to map internal KPIs and external requirements directly into carbmee’s platform, companies gain a unified, coherent data model that grows with them. This not only saves hours—sometimes days—of manual work per reporting cycle but also unlocks cross-functional clarity between sustainability, procurement, finance, and operations.

Why Customization Matters: The Strategic Value of Data

The sustainability reporting landscape is shifting rapidly. The EU’s CSRD and ESRS regulations alone introduce dozens of new mandatory disclosure points. Add to that voluntary frameworks like TCFD, ISSB, or sector-specific guidelines, and suddenly a fixed reporting model simply can’t keep up.

With Custom Properties, carbmee equips your team to respond in real time. Need to add a new field to align with an emerging regulation? Done. Want to track a unique decarbonization metric for internal dashboards? Add it in seconds. The system adapts as your needs evolve.

 Real-Time Flexibility Meets Future-Proof Reporting

Here’s what’s possible when you build your data model around your business:

Faster, smoother ESG reporting: Save significant time by auto-populating carbon models with exactly the data you need—no cleaning, no duplication, no guesswork.

Better collaboration: With shared, customized data fields, teams across departments speak the same language—accelerating workflows and reducing friction.

Clearer insights: By capturing the nuances of your operations, your sustainability reports become more than compliance checklists—they become strategic tools for decision-making.

Reduced risk: Flexible data fields allow you to respond quickly to regulatory changes, ensuring you stay ahead of ESG disclosure requirements.

According to Gartner, by 2026, 70% of organizations will use ESG reporting software as part of their digital strategy. But only those with customizable, scalable platforms will be positioned to derive real strategic value.

 A Smarter Data Model = A Smarter Organization

At carbmee, we believe flexibility should empower—not overwhelm. That’s why Custom Properties are intuitive by design. Add new fields from a simple interface, assign them to any object in the system (like sites, suppliers, products, or materials), and instantly make them available for calculations, dashboards, or exports.

Whether you're a sustainability lead embedding climate metrics across your business or an IT manager integrating with internal systems, Custom Properties offer a smarter, more scalable way to manage ESG data.

Custom Properties are available today—at no additional cost—for all users of the carbmee Environmental Intelligence System (EIS). No hidden fees. No limits. Just the freedom to make your carbon model reflect the full complexity of your business.

Because no two businesses are alike, and your carbon software should know that.

Available Now. Free for All carbmee EIS Users.

In today’s climate-driven economy, sustainability isn’t a side project—it’s a core business function. And yet, nearly half of all sustainability decision-makers (47%, according to the carbmee Sustainability Intelligence Report) identify data availability as their single greatest challenge. That’s why we're proud to launch Custom Properties: the industry’s most powerful new tool to make carbon data as dynamic, detailed, and adaptable as your business.

With Custom Properties, carbmee becomes the first carbon management platform to let you data model to your exact operational, regulatory, and reporting needs—without workarounds, without compromise. That’s what we call carbontology.

Custom Properties for Precision Carbon Modeling – Discover Now

Make carbon data fit your business. carbmee’s Custom Properties enable precise, flexible modeling for ESG, CSRD, and Scope 3 - without workarounds or complexity.

Unlock Precision Carbon Modeling: Custom Properties for Every Metric, Every Team, Every Regulation

In the evolving landscape of global business, managing the carbon footprint across the supply chain has become a critical challenge. Scope 3 emissions, which encompass all indirect emissions occurring in a company’s value chain, often constitute the bulk of a company’s total carbon footprint. Tackling these emissions requires comprehensive strategies, robust data management, and innovative solutions. 

This blog post provides comprehensive guidance on how to manage emissions in the supply chain efficiently and drive effective decarbonization initiatives and enable companies to uncover business levers. 

Studies indicate that for many industries, up to 80% of their total emissions originate from the supply chain. This underscores the importance of addressing Scope 3 emissions to make a meaningful impact on overall carbon reduction efforts. Focusing solely on direct emissions (Scope 1 and 2) will not suffice if the larger portion of emissions remains unchecked.

Achieving sustainability targets and transitioning to a low-carbon economy hinges on effectively managing Scope 3 emissions. Companies are increasingly setting ambitious reduction targets, and delivering on these promises is crucial for long-term environmental and economic sustainability.

Regulatory landscapes are evolving, with enhanced Environmental, Social, and Governance (ESG) regulations requiring accurate and comprehensive reporting of Scope 3 emissions. Compliance with these regulations not only helps avoid penalties but also positions companies favorably with investors and consumers who are increasingly valuing transparency and sustainability.

With the advent of carbon pricing, managing Scope 3 emissions becomes essential for maintaining profitability. Companies that proactively reduce their carbon footprint can mitigate the financial impact of carbon taxes and leverage sustainability as a competitive advantage.

The Importance of Scope 3 Emission Reduction

The Importance of Scope 3 Emission ReductionWhat is the CSRD?

Challenges of Managing Scope 3 Emissions in Complex Supply Chains

Managing Scope 3 emissions is inherently challenging due to the complexity of modern supply chains. Companies often deal with multiple tiers of suppliers across different countries, each with varying environmental regulations and technological capabilities. Gathering accurate and comprehensive data requires cross-departmental collaboration within the company and across the supply chain.

Spend-based carbon accounting estimates emissions by multiplying the financial value of goods or services by emission factors. It provides a quick overview but lacks accuracy and granularity.

Activity-based accounting focuses on specific activities and processes, using detailed data on physical flows such as energy use, material consumption, and transport distances. It provides more accurate and granular data that enables companies to gain a comprehensive understanding of their Scope 3 emissions and identify hotspots.

The most actionable and accurate method, supplier-specific data, gathers precise information from the supplier's operations and production processes. This data is the most actionable carbon data that empowers companies to drive high ROI reduction strategies, collaborate with existing suppliers or source new low-emission suppliers, and innovate new production processes or materials.

Integrating carbon data into existing corporate data systems is crucial for informed decision-making. Within procurement and supply chain management (SCM), the primary challenge lies in gathering precise and granular data across the entire value chain. This involves connecting data from various Enterprise Resource Planning (ERP) systems and ensuring it is specific enough to influence meaningful decisions.

Understanding Carbon Data Management for Complex Supply Chains

- Awareness and Stakeholder Onboarding: Educate stakeholders about the importance of managing Scope 3 emissions and the associated risks. Establish company-wide reduction targets and communicate these targets clearly to managers, defining their responsibilities and specific objectives.

- Developing an RFP: Create a Request for Proposal (RFP) tailored to your Scope 3 emission use cases and select a suitable software solution provider like carbmee.

- Supplier Carbon Footprint Modelling: Develop models to quantify the carbon footprints of your suppliers using certified calculation methods to ensure data transparency across the supply chain.

- Achieving Data Transparency: Ensure data transparency and set a baseline for your Scope 3 emissions.

- Transition to Activity-Based Calculations: Move from spend-based to activity-based calculations and increase the collection of supplier-specific data.

- Identifying Emission Hotspots: Utilize transparent and accurate data to pinpoint emission hotspots within your supply chain.

- Strategic Use of Carbon Data: Integrate carbon data into operations and strategic planning to support the path to net zero with clear roles and responsibilities.

- Fostering Supplier Collaboration: Encourage collaboration with suppliers to share sustainability goals, implement data-informed reduction initiatives and reduce the Supplier carbon footprint.

- Achieving High ROI in Reduction Initiatives: Focus on sourcing low-emission goods and identifying low-emission alternatives to enhance procurement decisions and achieve sustainable procurement. 

- Opting for Low-Carbon Transportation and Waste Management: Reduce emissions further by choosing more sustainable transportation and waste management options.

- Innovating Eco-Friendly Products: Use granular carbon data to innovate and track the success of eco-friendly products.

- Data-Driven Optimization: Leverage data for supplier emissions tracking and to continuously monitor and optimize your carbon footprint reduction strategies 

- Staying Compliant: Ensure compliance with evolving ESG regulations by providing validated, high-quality carbon data.

- Regular Reporting: Report achievements and milestones to stakeholders regularly to maintain transparency and accountability.

- Considering Premium Pricing: Explore premium pricing for low-emission products to reflect their added value and sustain profitability.

Act Now: 4 Steps to Supply chain sustainability

carbmee’s Environmental Intelligence System (EIS™) offers a comprehensive solution for managing carbon across complex supply chains. The Supplier Carbon Footprint (SCF) module within carbmee EIS™ enables companies to achieve data transparency and accuracy swiftly. By transitioning from spend-based to activity-based calculations and incorporating supplier-specific data, companies can gain detailed insights at the SKU level. This facilitates the identification of high return-on-investment (ROI) hotspots and empowers companies to develop and implement effective reduction initiatives.

Key Benefits of Using the SCF Module in carbmee EIS™

1.Achieving Data Transparency and Accuracy: carbmee EIS™ allows for complete data transparency and the highest level of data accuracy. By incorporating supplier-specific data, companies can achieve detailed granularity, making the data both actionable and reliable.

2.Driving High ROI Carbon Reduction: With superior data quality, companies can easily identify emission hotspots and develop targeted reduction initiatives. This enables effective collaboration with suppliers and strategic sourcing of low-emission suppliers.

3.Simplifying Compliance: Using certified calculation models, carbmee EIS™ ensures that carbon data is validated and emission reports adhere to international standards, easing the reporting process and avoiding penalties.

4.Streamlining Supplier Collaboration: The platform streamlines supplier communication across the value chain, enabling efficient onboarding, training, and collaboration on reduction initiatives. Suppliers can submit their primary data in a standardized and compliant format, ensuring data quality and consistency.

Carbon Management for Supply chain transformation with carbmee EIS™

Managing carbon in the supply chain is no longer optional but a strategic necessity. With the increasing regulatory requirements and the financial implications of carbon pricing, companies must take proactive steps to measure, report, and reduce their Scope 3 emissions. carbmee’s carbon management software offers a comprehensive solution to achieve data transparency, drive high ROI carbon reduction, simplify compliance, and streamline supplier collaboration. By leveraging accurate and actionable carbon data, companies can future-proof their supply chains, achieve sustainability goals, and maintain competitiveness in an increasingly carbon-conscious market.

Want to have data confidence in your decision-making? Talk to one of our Experts to learn more about carbmee's solutions.

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Life Cycle Assessment (LCA) is a methodology used to evaluate the environmental impact of a product or service throughout its entire life cycle. This includes all stages, from raw material extraction and processing, production, distribution, use, and disposal. LCA helps to identify the environmental impacts of a product or service and provides insight into areas where improvements can be made to minimize negative impacts on the environment.

LCA is governed by the international standard ISO 14040, which outlines the principles and framework for conducting LCA. This standard provides guidelines for conducting a life cycle assessment, including the definition of the scope, the selection of the assessment methods, and the interpretation of the results. There are many LCA tools and software available that comply with the ISO 14040 standard, such as OpenLCA, Gabi LCA, and other life cycle assessment software.

When done right, LCA can be a powerful tool to uncover both emission hot spots, a key environmental impact of products or services, but also reduction potential throughout their life cycle. This approach to assessing impact allows decision makers to compare alternatives and to select inputs with the lowest impact on the environment.

LCA is useful for measuring a company's GHG emissions impact because it provides a comprehensive assessment of the entire life cycle of a product or process. This methodology can identify "hot spots," or areas of a product's life cycle that have a high GHG emissions footprint. For example, LCA can help companies understand the carbon footprint of their supply chain, including the energy used to extract and transport raw materials. By identifying these hot spots, companies can focus their efforts on reducing GHG emissions in the areas that have the greatest impact. 

LCA also enables comparisons between different products or processes, helping companies make informed decisions about the environmental impact of their choices. For example, a company can use LCA to compare the carbon footprint of two different paper products to determine which has a lower environmental impact.

Why is LCA useful for measuring a company's GHG emission impact?

Manufacturing companies use LCA to evaluate the environmental impact of their products and services, from the extraction of raw materials to the final disposal of the product. For example, a furniture manufacturer could use LCA to assess the environmental impact of a new chair design. The assessment would include the environmental impacts of the raw materials used to make the chair, the energy consumed during production, the transportation of the materials and the finished product, the use phase of the chair, and the disposal of the chair at the end of its life cycle. LCA can provide valuable insight into the potential environmental impacts of a product or process and help companies identify areas for improvement.

What is an example of how a manufacturing company would use LCA?

With classic LCA solutions, the accuracy of results for any individually analyzed product is very high. However, to achieve company-wide net-zero and regulatory compliance, there are significant drawbacks to consider, such as:

your LCA expert(s) is working in a silo, increasing communication friction and alignment with other teams across your organization

there is no automated way to compare various carbon footprints to efficiently determine hot spots. When using GaBi, for example, this process is manual, time-intensive, and not scalable.

once you have manually identified hot spots, any comparison of materials or suppliers is highly manual and there are no software-generated recommendations for alternatives – making it less scalable.

carbmee EIS™ Carbon Management solution takes the trusted Life Cycle Analysis methodology and uses automation and AI technology to create tailored platforms, purpose-built for enabling industry enterprises to achieve impactful decarbonization. 

Collaboration for better engagement: the EIS™ is the single source of truth for the entire company emissions and enables LCA teams to request information about specific products’ materials, suppliers, transportation, and production processes from multiple teams. 

Certified methodology: our product Carbon Footprint (PCF) methodology is certified by TÜV and enables companies to measure and report entire product portfolios compliant with ISO 14064 and GHG Protocol.

Corporate Carbon Footprint (CCF) Integration: the EIS™ optimizes the demands from your sustainability team and re-use the work done for PCFs on CCF reports, reducing time and cost.

Supplier Data Integration: our holistic solution that integrates not only scope 1, 2 and 3 emissions on the PCF modeling but analyzes the entire supply chain and highlights supplier hot  spots so the company can identify and tackle areas with high reduction potential. 

Scenario planning: the EIS™ enables the customer to benchmark alternative material, transportation modes, production processes and more and plan high return-on-investment reduction initiatives and work on a product redesign that leads to competitive advantage. 

All about Life-cycle assessment (LCA) | Carbmee

Explore what LCA means, why manufacturers use it, and how carbmee’s approach elevates LCA to measure and reduce GHG impact more effectively.