Exploring Emissions-Tracking Capabilities for Technology Leaders

Technology leaders at profitable companies are focusing on building complementary enterprise business capabilities, such as risk management and digital innovation, according to a new research briefing from the MIT Center for Information Systems Research. However, a new addition to this list of capabilities is emissions-tracking practices, as carbon emissions reduction becomes a top concern for many companies.

The research briefing highlights that many companies are creating emissions reduction metrics based on three categories outlined in the Greenhouse Gas Protocol. This includes Scope 1 emissions from company-owned sources, Scope 2 emissions from purchased electricity, and Scope 3 emissions generated by corporate suppliers, partners, and customers.

To track emissions effectively, technology leaders are relying heavily on digital technology and accurate data. The research briefing provides examples from global companies on how technology leaders can build capabilities to help reduce emissions, both internally and externally.

One opportunity highlighted is the need to track and optimize technology emissions, such as making data centers more energy efficient and replacing old equipment with less carbon-intensive options. For example, health care company Bupa committed to becoming a net zero company by 2040 and aligned IT spending with this goal.

Another opportunity is to track and optimize product emissions, where technology leaders can play a key role in tracking product development and manufacturing emissions. Specialty chemicals company Clariant saw success in reducing emissions through tracking energy data and creating a carbon footprint platform.

Lastly, technology leaders can open up emissions-tracking capabilities as a digital offering to customers and suppliers. Building materials company Cemex launched a pilot initiative using artificial intelligence to optimize delivery plans in real time, reducing carbon emissions and saving gas.

Overall, the research briefing emphasizes the importance of technology leaders in driving sustainability efforts within companies and offering digital solutions to help reduce emissions.