TRANSLATING PURPOSE INTO PRACTICE
Actionable and data-driven insights to accelerate progress
In this section, we step out of the detail and look at how the data and insight generated from The Benchmark are addressing the three challenges we set out in our purpose, helping organizations understand:1 | How and where to start2 | How to see a realistic pathway to drive progress, and 3 | How to make a case for funding and resourcing to get it underway.
From a holistic view, the participating companies represent a wide-ranging spectrum of organizational maturity, reflecting the different stages in their decarbonization journeys. Let’s take a closer look at each question the data addresses:
1 | HOW AND WHERE TO STARTThere is no uniform approach to starting on Scope 3 decarbonization but for most, basic emissions visibility and target setting feature prominently in early discussions. Within The Benchmark data, only around 14% of organizations had yet to set a target of some form.
With the 86% that had set a target, there is a mix of comfort in their emissions visibility. From what we have seen from leading organizations, scoring 3.8 in this area, improving emissions visibility is fundamental to creating a realistic target for your organization. Moreover, it provides a baseline to shape the rest of your structural change around, such as the ‘Net Zero Procurement Strategy.’
The Greenhouse Gas Protocol (GHG Protocol) methodology for calculating your footprint is designed to enable visibility for incremental improvements in emission visibility. The sliding scale of accuracy—from a spend-based methodology to a supplier activity-based methodology—enables organizations to understand that they can still make informed decisions without waiting for perfect data.
The organizations that take advantage of the easier-to-implement spend-based methodology are making greater initial progress. They are getting started, using their supplier spend profile to inform their emissions footprint and initial hotspots and improving the accuracy of key focus areas over time. Alongside this first step of visibility, (Science-Based) Target Setting is a relatively straightforward process.
SETTING YOUR NORTH STAR
2 | HOW TO SET A REALISTIC PATHWAY TO DRIVE PROGRESSOnce these initial steps around base visibility and target setting have been taken, organizations face the next hurdle of what to do next with the data they now have and how to create a plan. For leading organizations, scoring high on Strategy and low on Process and Talent suggests they have a view of what they want to do with the data but are unsure how to get there. So, how do you build a credible plan?
The Benchmark model, while not included in the report in its entirety, contains actionable steps within each maturity bracket that are shared with participating organizations through 1-2-1 briefings. Behind these steps lie processes and templates either gathered from the group or created by Proxima to enable us to help organizations plan and accelerate their progress.
The insights from The Benchmark have enabled the creation of a Net Zero Procurement Strategy that targets some of the fundamentals, such as accelerating initial progress on supplier engagement, category planning, and sourcing activities.
The framework can be tailored to organizational needs and is currently being deployed into organizations through a side-by-side coaching program. More information can be found in Section 5 of this report.
FRAMEWORK TO BUILD A NET ZERO PROCUREMENT STRATEGY
3 | HOW TO MAKE THE CASE FOR FUNDING AND RESOURCINGA common challenge amongst all participating organizations has been defining how much funding and resources are required. Investing enough that it creates progress but not so much that it impacts BAU. The case for change requires calculating the cost of doing nothing and articulating the impact change can have.
The challenge is that Scope 3 progress is not savings-led, at least in the short term, nor is it FTE-led. The specifics to emphasize in the business case will depend on the organization, sector, and personas of decision-makers. This will guide whether the framing is on the benefit or risk, numbers or vision. There could be various lenses to look through.
