Quantifying Scope 3 Supply Chain Emissions using IoT Devices

Utkarsh Mathur, Saurav Bansal

Abstract: Scope 3 emissions, representing indirect emissions from a company's supply chain, significantly contribute to the overall carbon footprint but are challenging to measure due to supply chain complexity and the need for standardized frameworks. This research explores using Internet of Things (IoT) devices to improve Scope 3 emissions measurement and reporting. IoT, combined with big data analytics and cloud computing, offers companies enhanced visibility and insights into supply chain operations. IoT-enabled sensors and tracking devices collect real-time data on energy use, transportation, and resource flows, enabling accurate Scope 3 emissions measurement. This data feeds into advanced analytics models, identifying emissions hotspots and optimizing supply chain processes for reduction. However, implementing IoT across a global, multi-tier supply chain is challenging, requiring significant investment, collaboration, and standardized data collection frameworks. Despite these challenges, IoT can help companies take essential steps toward quantifying and reducing their Scope 3 footprint. A critical application of IoT is real-time tracking and monitoring of products, assets, and transportation, collecting data on energy consumption, miles traveled, and more. For instance, sensors on delivery vehicles track fuel usage and routing inefficiencies, providing insights to optimize logistics. IoT transforms supply chain visibility and enables agile management to reduce emissions by quickly addressing issues like product delays and inventory shortages.

Keywords: Sustainability, Internet of Things, Supply Chain, Carbon Footprint, Scope 3 Emissions