The oil palm industry has made impressive strides in ESG reporting during the initial phase. However, addressing Scope 3 and traceability can be challenging without the right tools. Recent international sustainability standards and stringent deforestation regulations have intensified the need to tackle these issues concurrently.
According to estimates, over 70% of total carbon emissions originate from industrial enterprises’ supply chains. The International Sustainability Standards Board (ISSB) and European Sustainability Reporting Standards (ESRS) require comprehensive and transparent ESG reporting, including GHG emissions from supply chains. Non-compliance can lead to market share loss, reputation damage, and penalties.
The EU Deforestation Regulation (EUDR) mandates that companies prove their products are deforestation-free and not linked to illegal activities in forests by December 2024. Failure to trace products to their origin point, such as plantations, may prevent access to European markets.
To remain competitive in the European market, it is crucial to address Scope 3 and traceability simultaneously as there are often overlaps throughout the supply chain. HCLTech and Eco-Business are hosting a half-day event where industry experts will discuss the challenges faced by the oil palm sector, data management’s significance, and how technology can be used to manage Scope 3 and traceability effectively.
