Schneider Electric and Avarni partner to expand AI-enabled Scope 3 decarbonisation solutions

Schneider Electric, the global leader in the digital transformation of automation, energy management and sustainability, and Avarni, a leading carbon management platform helping companies quickly understand their emissions exposure, have announced a new collaboration leveraging AI-enabled technology to accelerate decarbonisation across the value chain. 

The scale of a company’s footprint beyond its own operations is significantly higher, with the Carbon Disclosure Project (CDP) estimating Scope 3 emissions to be 11 times greater than a company’s direct emissions. As a result, corporations are increasingly pursuing Scope 3 emission reduction targets in response to rising legislative and investor pressures to act on climate change. However, the quantification and reduction of emissions beyond Scope 1 and 2 has been difficult for many organisations due to complexities in extracting data and insights from the value chain. The reliance on technologies that accurately track and assess Scope 3 data has now become critical for organisations to reach decarbonisation targets.

Under the new global partnership, Schneider Electric and Avarni will pair their leading-edge technologies to help clients understand, report, and forecast the Scope 3 footprint of value chains, accelerating the availability of quality data to drive better decisions and increase impact. Schneider Electric clients will benefit from Avarni’s digital AI capabilities and emissions insights, delivered via Schneider Electric’s award-winning EcoStruxure™ Resource Advisor software. The combination of these technologies, paired with Schneider’s global value chain decarbonisation consulting services, will improve the quality and accessibility of Scope 3 and value chain data, helping companies understand their complete climate exposure to set actionable targets for emissions reductions. 

“Most of the decarbonisation process to date has been focused on Scope 1 and Scope 2 operational reductions, but addressing Scope 3 emissions has increased in priority for organisations here in Australia and across the globe. Companies are now seeking to understand the impact of Scope 3 emissions on their ability to reach net zero and address the complex footprint of their value chain,” said Tony Yammine, Avarni CEO and Co-Founder. “A tangible solution is required, which is why we couldn’t think of a better partner than Schneider Electric to fundamentally change how organisations process their Scope 3 footprint to address value chain decarbonisation.” 

The combined approach will give companies access to tangible insights, encouraging faster and more comprehensive decarbonisation program development and engagement strategies, and helping corporations build greater supplier capacity for environmental impact while improving business outcomes.

“Decarbonising a global value chain is a significant undertaking that impacts enterprise companies and their partners, creating new challenges and expectations for both parties,” said Steve Wilhite, President for Schneider Electric’s Sustainability Business. “Schneider Electric is proud to be a trusted advisor to many companies tackling this challenge, and we are pleased to collaborate with Avarni on pragmatic digital solutions that will accelerate the Scope 3 decarbonisation pathway: from data aggregation, to commitment, to action.”

Corporations are increasingly pursuing emission reduction targets in response to the growing impacts of climate change coupled with rising legislative and investor pressures. The reduction of emissions beyond Scope 1 has been difficult for organisations due to lagging data insights from the value chain. The scale of a company’s footprint beyond Scope 1 is also higher than predicted with the Carbon Disclosure Project (CDP) estimating Scope 3 emissions to be 11 times higher than a company’s direct footprint. The reliance on technologies that accurately track and assess Scope 3 value chain data has now become critical to organisations reaching 2030 decarbonisation targets.

Schneider Electric is a recognised provider of comprehensive value chain decarbonisation services. The company was the first to develop programs to aggregate renewable energy demand in the supply chain through its ground-breaking partnership with Walmart (the Walmart GPPA program) and is also committed to the decarbonisation of its own value chain. The company has pledged to achieve net zero emissions across the value chain by 2050 and in 2021, launched its Zero Carbon Project, a program to help its top 1000 suppliers reduce emissions 50 per cent by 2025.

Top image: Avarni CEO and Co-Founder Tony Yammine

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