The Carbon Heatmap is an easy-to-use carbon emissions risk-mapping tool. With this tool, you can quickly identify your carbon emissions risk across your network to prioritize high-risk partners for engagement so that you can take the necessary steps to tackle your Scope 3 emissions.
Note that the Carbon Heatmap is available to requesting companies with the Carbon Action Module in their subscription.
How is the carbon emissions risk calculated?
The Carbon Heatmap considers representative indicators and factors developed by EcoVadis to calculate the carbon emissions risk – the overall risk related to the carbon activity of your trading partners.
See how it’s calculated on the graph below:
The factors taken into consideration to calculate the carbon emissions risk are:
- Carbon impact risk: an estimation of carbon-related risks, comprising the GHG intensity risk (75%) and transition risk (25%).
-
- GHG intensity risk: an estimation of how much a company may contribute to global GHG emissions, considering the company’s industry and country.
- Transition risk: estimating the company’s ability to face societal and economic shifts towards a low-carbon future. Depending on the nature, speed, and focus of these changes, transition risks may pose varying financial and reputation risk levels to companies.
- Procurement risk: an estimation based on high-level purchasing information about your partner’s spending and criticality levels. You can provide this information voluntarily to refine the final carbon emissions risk calculation to your particular situation. If you choose not to disclose the procurement information, carbon emissions risk will be calculated solely based on the carbon impact risk.
Similarly to what you may know from EcoVadis IQ, each risk factor and the final carbon emissions risk calculation is expressed in one of the following six risk levels: very low, low, medium-low, medium-high, high, very high.
Frequently asked questions
Do my partners need to provide any data?
No, we won’t ask your partners to provide any data to calculate the carbon emissions risk. The Carbon Heatmap calculates risk using information about your partners’ industries and countries. Your partners’ SBTi statuses are also automatically sourced from the SBTi website.
What is the source data you use to calculate the risk?
For the source data, check the references at the end of this article under the Frequently asked questions section.
Can I risk-profile all my trading partners with the Carbon Heatmap?
Yes, you can risk-profile all your partners across your supply chain.
Why do some of my trading partners have undefined risks?
EcoVadis Carbon Heatmap covers a comprehensive set of countries and industry sectors. However, it does not assign risk levels to a very limited number of industry sectors, such as military organizations, religious organizations, NGOs or membership organizations. For such industry sectors, “undefined risk” will be displayed.
Does Carbon Heatmap assess physical risks of climate change?
No, for now, the Carbon Heatmap does not assess physical risks of climate change because EcoVadis collects only the information about your partner’s headquarters location. This means we don’t always know all locations of your partners’ facilities.
Why does the industry risk have a higher weight than the country risk?
Because industry risk is not dependent on location and provides a clearer outlook on activities that contribute to climate change, in most cases, economic activity is more decisive than location regarding carbon emissions.
Why does the GHG intensity risk have a higher weight than the transition risk?
Supply chain decarbonization is currently a common goal of most leading companies. Therefore, we have designed the Carbon Heatmap to clearly focus on supporting supply chain decarbonization by concentrating more on GHG emissions proxies. However, we have decided to factor in long-term supply chain resilience with the transition risk to provide a more holistic approach to carbon-related risks.
References
- EcoVadis GHG Database & Assessment Insights. All rights reserved.
- International Energy Agency (IEA), Energy Efficiency Indicators, 2022. All rights reserved. [URL: https://www.iea.org/data-and-statistics/data-product/energy-efficiency-indicators-highlights - Accessed Feb 2023]
- EEA, 2021 proxies on primary and final energy consumption. [URL: https://www.eea.europa.eu/data-and-maps/data/approximated-estimates-for-the-primary-5 - Accessed Feb 2023]
- Climate Watch, 2019 GHG Emissions. [URL: https://www.climatewatchdata.org/ - Accessed on Feb 2023]
Comments
0 comments
Article is closed for comments.