Building a Scope 3 Emissions Platform for a Multinational Insurance Company

Case Study

Building a Scope 3 Emissions Platform for a Multinational Insurance Company

Challenges

We partnered with a multinational insurance company to develop an innovative solution aimed at reducing their carbon footprint, focusing specifically on Scope 3 emissions. These emissions are particularly challenging, as they encompass emissions throughout the entire supply chain. This case study showcases how the NAX platform played a pivotal role in developing this strategic carbon reduction solution, addressing key challenges in the process.

Key challenges included:

  • Lack of Transparency on Emissions and Solutions

    Difficulty in accurately measuring and tracking Scope 3 emissions throughout the supply chain, particularly in incorporating primary data, hindering the identification of emission hotspots and effective reduction strategies.

  • Limited Guidance in Emissions Measurement

    Standard bodies provide loose guidance for Scope 3 emission reporting, while regulatory and customer pressures quickly increase.

  • Operational Complexities in Reduction

    Operational complexities in implementing emission reduction measures across diverse supply chain operations, including logistical challenges, technological integration, and stakeholder engagement

These challenges underscore the necessity for innovative approaches and solutions, highlighting the critical role NAX played in overcoming the substantial obstacles associated with managing Scope 3 emissions.

Objectives

  • Robust
    Reporting

    Provide accurate Scope 3 measurement and reporting for regulatory compliance.

  • Actionable
    Insights

    Provide detailed breakdown and actionable insights to drive strategic decision-making for emission reduction measures.

  • Accelerate
    Net Zero

    Develop actionable emission reduction strategies to reduce the companys Scope 3 emissions and emissions of stakeholders in the supply chain.

Approach

In addressing the complexities of Scope 3 emissions, traditional methods often struggle due to fragmented data sources and insufficient stakeholder engagement. However, with NAX's innovative methodology and platform, we have successfully navigated these challenges to develop a robust strategy for reducing carbon emissions throughout the supply chain.

  • Analysis of Market Opportunities

    Investigated the competitive landscape to discover gaps in the market for potential new solutions to capture market share.

  • Strategy Development

    Designed and implemented go-to-market and business model strategies to launch Klerra in market as a standalone enterprise SaaS venture.

  • Product Development

    Leveraged NAX platform capabilities to build the front-end and back-end of Klerras platform within weeks of development at a fraction of the cost.

  • Validation

    Conducted 100+ customer conversations and attended 10+ sustainability conferences to validate Klerras value proposition and carbon platform.

  • Deployment and Release

    Released the minimum viable product (MVP) after thorough testing and validation.

The approach outlined in this section exemplifies the transformative impact of leveraging the NAX platform to address Scope 3 emissions management challenges, achieving significant advancements in a fraction of the time and cost traditionally required.

Solution Overview

Klerra is a data-driven platform designed to simplify Scope 3 emissions management, focusing on three core pillars to assist corporations in achieving their decarbonization targets

Klerra Data-Driven Platform
  1. Measurement

    • Scope 3, Category 1 Baselining: Klerra establishes a comprehensive baseline for Scope 3 emissions, specifically targeting Category 1, which includes emissions from purchased goods and services. This involves collecting and analyzing data from suppliers to create an accurate inventory of initial emissions, setting a foundational reference point for future reduction efforts.
    • Emission Hotspot Identification: The Klerra platform identifies emission hotspots within the supply chain by pinpointing areas with the highest levels of greenhouse gas emissions. This process involves detailed data analysis to detect the most significant contributors to the company’s overall carbon footprint, enabling targeted intervention and effective resource allocation for emission reductions.
  2. Analyze

    • Emissions Breakdown From Tier 1 to N: Klerra provides a detailed breakdown of emissions across all tiers of the supply chain, from direct suppliers (Tier 1) to subsequent suppliers (Tier N). This granular analysis helps companies understand emission contributions at each level, facilitating a thorough assessment of the entire supply chains environmental impact.
    • Supplier Engagement and Enablement: Klerra supports companies in engaging with their suppliers to foster collaboration and drive sustainability initiatives. This includes providing tools and resources to help suppliers measure their own emissions, set reduction targets, and implement effective strategies. It also facilitates communication and data sharing, ensuring alignment and transparency across the supply chain.
  3. Reduce

    • Supplier Swapping Recommendations: Klerra offers data-driven recommendations for replacing high-emission suppliers with more sustainable alternatives. By analyzing the environmental performance of various suppliers, Klerra identifies those capable of providing similar goods or services with a lower carbon footprint. This helps companies reduce their Scope 3 emissions without compromising on quality or cost-effectiveness.
    • Decarbonization Project Suggestions: Klerra proposes tailored decarbonization projects based on the specific needs and emission profiles of each company. These initiatives may include energy efficiency improvements, adoption of renewable energy, and process optimization. Its recommendations are designed to maximize emission reductions while aligning with the companys operational goals and sustainability commitments.

Outcome

The implementation of Klerra's data-driven platform resulted in a transformative impact on the insurance companys ability to manage and reduce its Scope 3 emissions. By leveraging Klerra's comprehensive suite of tools and capabilities, the company achieved significant milestones in their sustainability journey.

  • Enhanced Emissions Transparency

    The platform provided unprecedented transparency into Scope 3 emissions across the supply chain. Accurate baselining and detailed emissions breakdowns enabled the company to identify major emission hotspots and prioritize areas for intervention.

  • Improved Reporting and Compliance

    With Klerra, the insurance company was able to generate precise and reliable Scope 3 emission reports, ensuring compliance with evolving regulatory requirements and meeting stakeholder expectations for environmental responsibility.

  • Strategic Emission Reductions

    The actionable insights and recommendations offered by Klerra empowered the insurance company to implement effective emission-reduction strategies. This included optimizing supplier relationships through data-driven supplier swapping and initiating impactful decarbonization projects.

Conclusion:
Transforming Scope 3 Emissions Management

Klerra's implementation represents a significant milestone in revolutionizing Scope 3 emissions management for our multinational insurance partner. Leveraging the NAX platform, Klerra not only met but surpassed our objectives, setting a new benchmark in sustainability practices within the insurance industry. Looking ahead, Klerra remains committed to supporting our partner in leading sustainable practices and driving impactful environmental change, reinforcing our shared dedication to innovation and sustainability leadership. With these advancements, the manufacturer is poised to maintain its leadership in sustainability and foster meaningful industry-wide transformation.

Discover how Klerra is revolutionizing Scope 3 emissions reduction. Visit their website to learn more.