Decarbonization

As a consequence, original equipment manufacturers (OEMs) and numerous manufacturing companies in the automotive and manufacturing sectors are affected by the EU taxonomy. However, these companies quickly reach their limits in terms of both collecting and reducing their CO₂ emissions as soon as they address the issue of decarbonization for the first time. Even at the outset, most companies face many questions:

• Which emission categories (Greenhouse Gas Protocol Scope 1-3) do I have to verify?
• How or where do I start collecting data?
• Can I replace missing data with blanket values?
• Do I need a special ESG tool?
• Do I need to include suppliers in the accounting?
• What measures do I need for effective and successful decarbonization?
•  etc.

New and unfamiliar topics are usually difficult to implement, and so companies in the automotive and manufacturing sectors also have to overcome many hurdles on their way to successful decarbonization. Particular challenges for these companies are the scope of the value chains as well as the depth of the supply chains and thus the collection of the carbon footprint at single product level. In addition, there are frequent supplier changes at short notice and regular adjustments to production processes. ESG data is usually only collected per business location or business unit and then extrapolated for the entire company. It is currently widespread to use blanket assumptions for individual Scope 1-3 emissions. Unclearly defined organizational boundaries also make it difficult to extrapolate to an entire group of companies. This makes detailed tracking of the data difficult. In addition, there is a lack of processes for systematic and uniform collection and processing of the necessary data. Large companies usually have a heterogeneous system landscape, which requires a central ESG tool for use across an entire group of companies. Ideally, this ESG tool should be able to calculate the emission values of each individual asset, such as products, buildings, machines, travel, etc., and compensate for poor quality and availability of data with the help of reference values. Only then can targeted measures for effective decarbonization subsequently be defined and implemented.

At the latest, a big question mark arises when selecting a suitable ESG tool. Existing ESG solutions are rapidly evolving and new providers are constantly entering the market. As a result, the market is currently very disruptive and characterized by a plethora of heterogeneous players. Many established providers promise extensive functionalities that go beyond mere reporting, whereas start-ups advertise industry-specific solutions. In order to select a suitable solution for decarbonization in one's own company, process experts, data scientists and IT specialists are needed to compare individual solutions on the basis of their functionalities and select a suitable one.

For the successful, short-term implementation of CO₂ tracking and decarbonization of your company, steps 1-4 must go hand in hand. At the beginning of the project, we clarify the essential framework conditions with you. These include topics such as the organizational form, processes for collecting, recording and evaluating the data, the availability of the data and necessary technologies. In addition, (non-)functional requirements may be used to evaluate solution providers. In the second step, we use an architectural requirements analysis to evaluate the required software from both an operational and strategic perspective. To derive non-functional requirements, the focus is on legal aspects and IT governance. Furthermore, topics such as functional data architecture, development planning, and measure tracking are considered. The third step is the selection of a suitable software. After a market review of over 150 vendors, we make a pre-selection and pre-assessment based on technical and business requirements. This is followed by tendering and selection using the best-fit approach, in which vendors must meet at least 90 percent of the requirements. As a final step, msg supports the implementation planning and takes over the overall organization as well as the final rollout.

QUICKLY AND PRECISELY TO A TAILOR-MADE ESG TOOL

The experts from msg specifically address your individual needs. Our extensive know-how in processes for the automotive and manufacturing industries as well as in the area of sustainability enables a successful implementation of your project. In this way, you not only comply with the legal framework, but also deliver an attractive message to your customers.