Global management consulting firm McKinsey has launched a software solution that draws on emissions data to create a Scope 3 baseline.
Spendscape brings together data on up to 300,000 emissions factors across the entire supply chain to create the baseline.
It works by breaking down data silos in organisations. The software then analyses market data and possible risks.
Such environmental risk is set to increase with the upcoming expansion of the CSRD directive (Corporate Sustainability Reporting Directive). The CSRD came into effect in January 2023, and means an estimated 40,000 EU companies are obliged to disclose transactions across their value chains and – unlike the previous system – the data will have to be digitised.
But from 2024 onwards, the new directive will progressively impact around 10,000 non-EU companies, who will be required to disclose data relating to enterprise-wide ESG performance. Non-EU organisations that will be affected include small and medium enterprises that are listed on the European regulated market, small and “non-complex” credit institutions and also captive insurance companies (wholly owned subsidiary insurers who provide risk mitigation services for a parent company, or related entities.
McKinsey Spendscape shapes procurement decisions
Spendscape offers sustainability insights through an SaaS platform that helps organisations shape critical procurement decisions – everything from category strategy and supplier relationships to carbon tracking.
Among the features of Spendscape are an Analytics Innovation Hub, which predicts and adapts to the changing needs of businesses.
It also offers Carbon & Sustainability Analytics, which aligns spending patterns with a Catalyst Zero solution that is able to fact-check Scope 3 emissions data and insight.
Its Wave module, meanwhile, ensures insights lead to measurable action, and that it aligns reported savings with actual financial baselines.
Spendscape’s ‘alert’ and ‘recommend’ capability autonomously monitor KPIs, prompt necessary action, and minimise user workload.
The solution is also designed to enhance client engagement and results through workshops, upskilling and ‘data-centric performance conversations’, helping clients leverage the Spendscape platform.
“Our software turns your procurement data into opportunities, creating lasting impact not just across operations, but across the entire organisation,” says McKinsey Partner Björn-Uwe Mercker, who is heading-up Spendscape.
With McKinsey since 2004, Mercker has driven operational impact for a diverse range of clients in sectors such as automotive, chemical, high-tech, oil and gas, and telecommunications. He has specialised in procurement transformations and value-capture initiatives.