Scope 3 & software
Daniel Usifoh of Axiom Sustainability Software explores how digital innovation is transforming Scope 3 supply chain management
As the third-highest contributor of carbon emissions in the industrial sector, the speciality chemicals industry is at a crossroads. Long-standing trends, including reliance on petrochemical feedstocks and fossil-fuel supply chains, are giving way to sustainability initiatives, resource-efficiency and technological innovation.
After decades of consistent expansion, companies are investing in more sustainable production methods and smarter ways of managing risk and complexity. Companies are reevaluating their operations and supply chains, from pharmaceuticals and agrochemicals to personal care and performance materials.
To decarbonise operations and work towards sustainability, the speciality chemicals industry must focus on three interconnected areas: processes, materials and value chains. For processes, reducing CO 2 emissions and cutting reliance on fossil fuels means adopting renewable energy and green production methods that eliminate pollution and waste. For materials, using biobased and recycled inputs – such as repurposed polymers as chemical feedstocks – helps avoid competitive pressure on food systems while supporting circularity.
Digital innovation sits at the heart of this transformation, unlocking new ways to address complex challenges such as Scope 3 emissions in the value chain.
Sustainability imperative
Sustainability is no longer a fringe consideration for speciality chemical companies – it is now a commercial and regulatory priority that is increasingly encouraged by end customers. While many organisations have taken steps to reduce Scope 1 and 2 emissions( those from direct operations and energy use), Scope 3 emissions remain the most significant and challenging to address, and can account for up to 80 % of the business’ s carbon footprint.
These indirect emissions span the entire value chain – from raw material extraction and production to transportation, distribution, product use, and disposal. In a sector with highly fragmented supply chains, significant energy use, and extensive global operations, Scope 3 is particularly challenging.
However, this complexity also presents a powerful opportunity, as building a sustainable supply chain can give companies a competitive advantage and long-term resilience.
An industry under pressure
Today’ s chemical companies are investing in three major areas to drive change:
• New digital ways of working
• Technologies to support sustainability goals
• Supply chain optimisation & resilience
The shift toward sustainability reflects a broader evolution in priorities across the speciality chemicals sector. As customers increasingly demand more sustainable solutions, reduced emissions and more transparent sourcing, companies must adapt or risk losing relevance, market share and even access to certain markets.
Meeting these expectations is particularly challenging in the industry, where complex supply chains support a wide variety of formulations, end-uses, and customer needs. Each product often requires inputs from multiple suppliers, which makes materials management a particularly complex task.
This complexity extends beyond traditional logistics or procurement
50 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981