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FEATURES / SCOPE 3 GHG TRACKING

Simplify Scope 3 Emissions Tracking and Compliance

New regulations and investor requirements are driving companies to map emissions in their supply chain.This is an arduous task for teams requiring extensive resources and time. FRDM’s GHG Module maps, monitors, and manages GHG emissions in your supply chain (Scope 3) in line with Carbon Disclosure Project, GHG Protocol  and other leading frameworks.

FRDM uses AI driven supply chain mapping and risk ranking to prioritize carbon intense verticals and delivers intuitive tools and workflows that suppliers can easily participate in.New regulations like CSRD and EU's Corporate Sustainability Due Diligence Directive (CSDDD) now require GHG accounting (Scope 3). This module makes data collection and calculations simple and saving you precious  time and resources.

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Why Now

Companies need to accelerate progress toward their emission-reductions goals, but are struggling due to a lack of supply chain visibility.

FRDM helps shed light on the biggest sources of emissions across the entire supplier network. These insights can help companies see where they need to focus their efforts to have the biggest impact.

Reducing scope three emissions in supply chains is crucial for companies looking to achieve their sustainability goals, and the statistics speak for themselves. According to a report by the Carbon Disclosure Project (CDP), supply chain emissions account for an average of 5.5 times the emissions of a company's direct operations. This means that even if a company manages to reduce its direct emissions to zero, it will still have a significant environmental impact through its supply chain.

By addressing scope three emissions, companies can reduce their overall carbon footprint and make a significant contribution to global efforts to combat climate change.

Scope 3 emissions are 11.4x greater than all other emissions combined.
Suppliers beyond Tier 1 represent 64% of total upstream emissions.
Up to 80% of upstream emissions come from international supply chains.

Primary Challenges Facing Companies.

Lack of Supply Chain Visibility is a blocker for companies with emission-reduction goals.

Hidden “Hot Spots” hard to identify within large supplier base.

Sources of emissions data coming from undetectable sources.

Increasing Regulations and Requirements from the SEC, the CSRD, and the ISSB.

Questionnaires and Audits provide limited information, only tell part of the story.

High Cost of gathering supplier data.

Emissions diversity across industry and country.

Features Include

  • Instant spend based factored emissions calculations (EEIO) for each supplier.
  • Industry / Country GHG intensity mapping.
  • Adverse media and legal alerts.
  • Product level GHG intensity mapping.
  • Cloud based multilingual supplier Scope 1,2,3 calculators (free to supplier).
  • Supplier policy assessment and certifications gather (free to supplier).
  • Sub-Suppier GHG intensity mapping.
  • Supplier improvement workflows.
  • Intuitive reporting

How It Works

Using AI mapping, predictive analytics and GHG supplier calculators, FRDM offers a heat map and emissions reporting for any supply in your supply chain. FRDM uses only your basic available vendor data (supplier name, industry, location, spend, and purchase) so you don’t have to overburden your team and suppliers with difficult data requests.

FRDM runs constant adverse media checks for any mentions of emissions issues related to your suppliers.  Using just your basic spend data FRDM drives insights like spend based factored emissions with no need for consultants or internal teams to manage suppliers.

Spend-based Factored Emissions

Each of your supplier’s industry code (linked on FRDM) is linked to an equivalent emission factor that calculates the emissions associated with each dollar spent on the supplier annually.

Emission factors are listed in kg of C02 per 2023 dollar (USD) spent (adjusted for inflation from the 2018 calculations). Emission factors come directly from the EPA.

Once the dollar (USD)  amount is found, calculate the dollars spent per code by the associated emissions factor, this will give a kg of C02, which is then converted into metric tonnes of C02.

You will find factored emission inside supplier profile, and total aggregated emissions on the impact page. FRDM allows you directly report spend based factored emissions into external reporting frameworks.

Supplier GHG Calculator

An optional tool any supplier can use to measure their Scope 1 and 2, each of which will be delivered to their supplier profile on your dashboard. Scope 1 calculations include heating, vehicles and machinery.

Suppliers input data into the GHG Calculator which gets scored against the emission factor for each country the supplier operates in. Ex.: TJ of crude oil is multiplied by the emission factor to give a kg of carbon.

All Scope 1 calculations are then added into a “Scope 1 total,” divided by 1000 to get metric tonnes and then shared with the supplier in the format “MT CO2e”. If a supplier has no machinery, or vehicles or heat on site paid for by them, they will report no Scope 1 emissions.

Scope 2 includes calculations of a supplier’s kWH. A supplier will input each request, if they have data for it, and then the calculator calculates against the emission factor based on the countries they operate in. All Scope 2 calculations are then added into a “Scope 2 total (g),” divided by 1,000,000 to get metric tonnes and then shared with the supplier in the format “MT CO2e”.

Benefits
Supplier emissions reporting at scale regardless of supplier base size
Roll up Scope 3 emissions data ready for reporting
Heat map up to commodities level without supplier engagement
100% cloud based - no spreadsheets, emails, or consulting fees needed
Simple performance tracking and training
Intuitive reporting tools

Reporting Frameworks

Carbon Disclosure Project
Greenhouse Gas Protocol
Sustainable Development Goals

Compliance Reporting

GRISEC
Climate Disclosure Rule
CSRD

Aligning with Leading Scope 3 Standards:
CDP & GHG Protocol

Scope 3 reporting frameworks related to supply chains provide a structure for companies to report on their indirect emissions and sustainability efforts throughout their value chain. Two prominent frameworks are the GHG Protocol and the CDP's Supply Chain program.

The GHG Protocol provides a standard methodology for companies to measure and report their greenhouse gas emissions, including scope three emissions. It also provides guidance on how to set targets and develop a strategy to reduce emissions.

The CDP's Supply Chain program focuses on supplier engagement and encourages companies to work with their suppliers to improve sustainability performance. The program requires companies to report on their supply chain emissions, risks, and opportunities, as well as their progress towards sustainability goals.

Both frameworks aim to improve transparency and accountability related to scope three emissions and help companies reduce their environmental impact throughout their supply chains. FRDM’s Scope 3 Module was primarily built around the CDP framework, but insights from this module can be used for GHG Protocol Reporting.

Get Started with Smarter Scope 3 Reporting

Start tracking supply chain emissions today.
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