Who’s piloting the approach and what have they learned?

Pilots companies demonstrate the feasibility and value of E-liability carbon accounting. Learn more about who is piloting E-liability and how E-liability is helping organizations to decarbonize their supply chains.

We currently have over 40 organizations exploring E-liability and E-asset pilots in a variety of sectors, including:

Any organization can find value from E-liability or E-asset pilots, so long as they are committed to decarbonization and looking for innovative approaches to help them in their strategy. In particular, the following organizations make good pilots of E-liability accounting:

1. Those with significant upstream and direct emissions for a given product or service.

2. Those with a potential competitive-advantage in GHG emissions from their own production and/or supply-chain.

3 Those with GHG-sensitive customers and investors.

There are many advantages to running an E-liability pilot:

– Improved oversight over emissions at each step of the value chain for a given product or service.

– A better understanding of internal emissions down to a granular level informed by activity-based cost accounting principles.

– Managerially useful information for decision making to drive cost-effective and efficient decarbonization.

– New strategies to streamline current carbon accounting practices and cut down on double counting and guesstimates.

– Being a part of cutting edge innovation and continual improvement in sustainability practices.

Are you interested in piloting E-liability in your organization?

A Southeast Asia-based company, Giti Tire, was among the first to pilot the E-liability approach. It calculated the total emissions to produce a standard passenger-car tire, a product that is both crucial to the global economy and, given its high carbon-footprint, one where emissions-reduction excellence will be essential to fighting climate change. As part of its pilot, Giti Tire will now collaborate with its steel suppliers to learn how to source low-emission, high-durability steel cord that reduces fossil-fuel usage over a car’s lifetime operations.

Curious about how the E-liability method can support companies to factor a product’s environmental footprint into purchasing decisions? This article is a deep-dive into two of our pilot studies – Giti Tire and Heidelberg Materials — that illustrate how the E-liability approach can create a competition dynamic that leads to reduced carbon outputs.

Over the past year, we partnered with Hitachi Energy and three tiers of their supply chain to analyze the E-liabilities of electrical transformers. The case study, published in November 2023, describes the fascinating insights into the copper supply chain and cradle-to-gate emissions of Hitachi products discovered during the course of the pilot.

Curious about how the Hitachi pilot calculated and analyzed the emissions data according to the E-liability method?

We also partnered with Tata Steel, which is part of India’s largest conglomerate Tata Group, to analyze the carbon content of steel produced through various methods. The compelling element of the pilot is that Tata Steel was able to differentiate what is effectively a commodity product on emissions grounds by using the E-liability methodology.

In 2022, the president of Soprema, an international building materials supplier, committed to reporting the carbon footprint of each product on every customer invoice, and to help customers reduce the embedded GHG emissions in the products they purchased. Soprema used the Pilot Playbook to implement the E-liability methodology in a pilot focusing on the company’s bitumen waterproofing systems. Soprema estimates a potential carbon footprint reduction of 34% from the project.

A world leader in serving science, Thermo Fisher Scientific, undertook a pilot to understand the embedded emissions in its 96-well PCR plate, a widely used molecular biology tool for scientific research and molecular diagnostics. It engaged with its Tier 1 and Tier 2 suppliers to obtain primary data and identify “hot spots” for emissions reductions opportunities which, in turn, will inform its decarbonization strategy and investment decisions.

Our most recent case study is with IDG Security, a security services firm working in high-threat locations, which conducted a pilot project in Afghanistan. They began by identifying the major activities associated with providing that daily service together with “overhead” activities, such as running their headquarters out of Dubai. IDG then gathered data on the emissions generated in their major activities, discovering to their surprise that 38.5% of their total emissions came from feeding their staff. Lastly, IDG allocated the costs to personnel categories, which allowed their customer, the UN, to see clearly what the emissions impact would be for each unit of service in Afghanistan purchased from IDG.

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