We worked with thyssenkrupp to create a value chain footprinting tool to evaluate the upstream and downstream impact of the business globally, providing a better understanding of how the company's product innovations and technical expertise can be used to achieve reductions beyond their direct operational control.
thyssenkrupp is a large multinational industrial group employing nearly 155,000 staff across 80 countries, with sales of €43 billion in 2015. The business provides components and systems for a number of sectors, including the automotive industry, elevators, material trading and industrial engineering. It is also one of the largest steel producers globally.
A key part of thyssenkrupp's strategy is to work with its customers around the world and provide them with innovation solutions that help them to secure sustainable success, taking into account environmental, economic and social considerations. To support this goal, thyssenkrupp recognised the importance of mapping out the broad value chain emissions associated with its products and business operations across different regions, to improve decision-making.
thyssenkrupp is made up of six large business areas: Steel Europe; Steel Americas; Materials Services; Elevator Technology; Industrial Solutions and Components Technology. So a major challenge in measuring the company's value chain emissions is the sheer size and complexity of the organisation, with a huge diversity of applications for its products across many different regions of the world.
The sustainability team at thyssenkrupp wanted to ensure each individual area would be able to understand its own value chain emissions and needed a way to collect and bring together huge amounts of data to complete a value chain analysis at a sufficiently granular level of detail.
The Carbon Trust helped thyssenkrupp's team to develop a scope 3 footprinting tool that analyses data to support a range of different business decisions. Another key task was modelling the lifetime emissions of product applications with a distinct level of uncertainty. This support was delivered through development workshops and webinars.
thyssenkrupp's progress on the footprinting model and the broader data collection exercise was then regularly reviewed and detailed feedback provided throughout the process.
Undertaking a value chain footprinting exercise indicated the significant impact of downstream emissions and highlighted key areas to address. thyssenkrupp is now working to further quantify how product innovations and the company's technical expertise can be used to help customers gain advantage by increasing their energy and resource efficiency, which will in turn result in emissions reductions.
The value chain data and footprint model is also being used by thyssenkrupp to evaluate and improve the company's strategy to reduce the impact of particular products, regions or business areas, allowing the sustainability team to identify and target parts of business which may need additional support to meet ambitious goals.
Finally, the work on value chain emissions is also helping thyssenkrupp take a leadership position on climate change issues.
To find out more about how the Carbon Trust can help your business to make the most of understanding your sustainability risks and opportunities please contact us.