Unite partners with Yook on a pilot project for automated CO2 reporting

Why is choosing the right methodology such a challenge?

Essentially, three different methodologies are available to assess the carbon impacts of activities: spend-based, average-data, and supplier-specific. 

The supplier-specific methodology provides the highest level of precision as it involves using detailed primary data across a product's or material's life cycle. However, this level of information is typically not accessible to a buyer, making it challenging to implement. 

As the name suggests, the average-data methodology relies on using average life cycle assessment data for a specific unit of material, process, or item. It offers a more generalised approach but may lack accuracy compared to supplier-specific data. 

The spend-based methodology is the easiest to implement as it only requires financial data, such as the purchase price of an item or an order. However, it comes with its own set of limitations. Firstly, it often yields volatile results as rough categories are used to map purchases with emission factors and the emission factors are very rough averages. This often leads to significant over- or underestimations. Secondly, price changes can impact carbon intensity, for example during inflation. Lastly, if a company decides to invest in climate-friendly products at a higher price, the higher price results in more carbon emissions due to the calculation methodology. 

A major advantage of the spend-based approach is that companies can start reporting Scope 3.1 fast. If the spend-based approach is used, applying it on a product category level instead of a seller's level is recommended as it provides more accurate results. Overall, it is crucial to carefully consider where and how to apply each methodology and be aware of their restrictions. 

How does Yook address the challenge of calculating Scope 3 greenhouse gas emissions for Unite buyers?

We're thrilled to collaborate with Unite because we both recognise the importance of scientific-grounded yet pragmatic solutions for carbon assessment accounting. We understand buyers already face numerous requirements and are not sustainability experts. 

To address this challenge, Yook provides Unite with relevant CO2 data that seamlessly integrates into existing marketplace functionalities. This ensures a streamlined and efficient provision of carbon data to Unite buyers.  

We are testing a hybrid approach where the calculation and mapping methods are chosen based on the available data. This approach encompasses supplier-specific, average-data, and different levels of spend-based assessments. Our software considers various factors, including emission factors, activity data, and contextual information, to comprehensively assess greenhouse gas emissions across the value chain. Additionally, Yook supports data validation and quality control measures to ensure the integrity of the calculated emissions and assigns an accuracy score to each result. The software also identifies and addresses data gaps, inconsistencies, and outliers, enabling companies to obtain a more accurate representation of carbon emissions for each order. 

While the collaboration´s current focus is on delivering best-in-class carbon reporting, we are also working on providing relevant environmental data for decision-making. 

Can you explain the role of Yook in providing product carbon footprints and how it adds value for sellers? 

Through our intelligent algorithms, we can calculate product carbon footprints within seconds, eliminating the lengthy process that could take months. Our algorithms are designed to handle incomplete and unstructured data, while reflecting the complexities of value chains and covering the entire life cycle of any product. 

Yook ensures reliable and detailed product carbon insights with a comprehensive platform and extensive database. It can be used for external communication, enabling sellers to make credible green claims and comply with regulatory requirements. Furthermore, it offers valuable insights into decarbonisation opportunities throughout the supply chain and on the product design level, supporting informed decision-making. 

Why should sellers consider incorporating CO2 emissions into their e-catalogues?

It´s obvious that product-specific carbon data will become the norm in a few years. Therefore, starting today to understand the carbon impact of products and product portfolios offers significant advantages. 

First and foremost, it still provides a competitive edge, helping sellers differentiate themselves from competitors and build trust among stakeholders. Additionally, assessing the availability and quality of existing data helps identify areas for improvement and develop strategies accordingly. Lastly, incorporating CO2 emissions into e-catalogues allows companies to build the necessary capacities and expertise to stay ahead on future regulatory and market demands.