The Scope 3 challenge in the Tech industry
The importance of technology in reaching the global sustainability targets is profound. Companies spend millions of dollars on IT solutions and advisory services in order to reach net-zero goals between 2030 and 2050.
Scope 1 emissions are a natural initial focus point for many companies, however with the ESRS directive from EU new reporting requirements will from 2024 put focus on ESG reporting across scope 1, 2 and 3.
Emissions from Technology suppliers fall within scope 3 (for IT companies it would fall in both scope 1 and 3), which means that in order to lower these scope 3 emissions, focus has to be applied to the emissions of the technology industry itself.
Henrik Bruun-Pedersen
- Chairman, TSi
Procurement calls for action
In a classic procurement tender process it is key to ensure objectivity in the supplier evaluation process. This calls for standardized and industry aligned specifications and abbreviations, which can be used in the company evaluation and comparison proces. The ESRS reporting requirements will ensure year-end reporting on ESG, however within a procurement tender process or during vendor management performance discussions, a simple and easily obtainable comparison concept is required in order to evaluate the sustainability maturity of a given technology company.
A key element for any model is, that it’s a widely recognized approach and that all companies can report using the same terminology. Leading to an objective supplier evaluation, and at the same time ensuring that decisions are based on requirements which drives the right agenda.
We want to be able to objectively identify the most sustainable software company, identify the most sustainable hardware components, and to be able to identify the highest sustainability maturity among a group of services companies.
The Technology Sustainability index (TSi)
With TSi we have developed a sustainability maturity rating, which Procurement professionals can access and implement directly in any given IT tender or vendor management process.
The concept is based on a list of yes/no questions covering ESG topics in relation to corporate strategies, certifications, sustainability ratings, company policies, reporting capabilities, EU legislation and supply chain focus.
Data is collected and presented using free of charge solutions, and TSi scores for participating companies are shared on the TSi Dashboard tab on this website.
A pro bono network
The mindset behind TSi is cross industry collaboration and intercompany networking. Getting key technology industry players behind the concept from day 1 has been crusial, and here we give special thanks to Cisco, Dell Technologies and Oracle, who have played a key role in the development and backing of TSi.
Henrik Bruun-Pedersen
TSi as a multidirectional door opener
Although originating in the procurement process landscape, the TSi concept also enables key dialogues and value adds across other departments such as Technology, Sales and corporate ESG teams.
Whether reports show supplier TSi trends, TSi spend mappings, or winning TSi vs. best in tender TSi scoring, such data will provide valuable insights for any company on their ESG improvement journey.
Adoption and implementation of TSi will drive sustainability focus opwards within selling, deciding, evaluating or buying of Technology.
Everyone using the TSi concept will play their part in pushing the Technology industry closer to a sustainable future.
Procurement professionals are able to rate, compare, and engage supplier on their sustainability agenda and maturity
TSi represents a simple and fast methodology to start sustainability considerations in a Technology organization
The public sharing of TSi scores ensures full visibility of the sustainability maturity within the Technology industry
TSi offers full transparency on the details on the rating, as weighting models and scoring principles are fully dislosed
