The CSRD requires companies to disclose detailed information on their environmental and social impacts, using standardized European Sustaina...
Sustainability isn’t just a buzzword — it’s now a business necessity. With Europe’s new Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence regulations in effect, businesses must do more than just measure their carbon emissions; they must prove they’re actively reducing them.
across the EU, but here’s the catch: any business with operations in Europe must comply—no matter where they’re based. As supply chain expert Oliver Hurrey, Founder & Chair of the Scope 3 Peer Group, puts it, “A lot of people assume these regulations only apply to European companies, but any business with operations in Europe will have to comply.” The challenge? There’s a massive gap between the ambition to meet sustainability goals and the ability to execute them. “I worked as a consultant and data analyst at Sustain Consulting, we helped large corporations and global players address sustainability challenges—primarily focusing on carbon emissions. Through this work, I noticed a significant gap between ambition and action,” says Johannes Scholz, co-founder of, a company focused on smarter sustainability and data solutions, “Many companies set ambitious sustainability targets, and there’s strong momentum with increasing regulatory requirements. Both regulatory pressure and corporate sustainability goals are driving the market forward. However, when it comes to supply chains, companies often lack the means to bridge the gap between their sustainability ambitions and actual implementation.”The CSRD requires companies to disclose detailed information on their environmental and social impacts, using standardized European Sustainability Reporting Standards . Here’s the problem: multinational companies rely on complex supply chains that span continents. They purchase thousands of products from thousands of suppliers, each with its own supply chain. To manage sustainability and reduce carbon emissions, they need tons of data. But gathering that data is like trying to build a house of cards in a windstorm.Trump Launching $5 Million ‘Gold Card’ Visas For Wealthy—What We Know About New Path To Citizenship Most companies still use old-school surveys to gather data from their suppliers, creating “survey fatigue”—a situation where suppliers are bombarded with countless questions about their sustainability practices. Many suppliers lack the resources or expertise to provide the necessary information, making the process inefficient at best, and impossible at worst. Beyond the challenges of data gathering, there is a lack of understanding of how to actually reduce supply chain emissions: “The myth that 'you can only manage what you measure’ is dangerous, adds Hurrey. "If you only measure, you’ll never manage.” The real issue? “The most difficult part is proving that reductions are actually happening,” Hurrey says. “You can track emissions all day, but you need to show that the actions you’ve taken have made a tangible impact.”“We saw an opportunity to make a real impact on a larger scale—beyond what was possible through consultancy alone, we knew there was a broader need and the right timing to create something truly impactful,” explains Scholz. Scholz and his team developed a solution that sidesteps the traditional survey model entirely. Instead of asking every supplier—and their suppliers—to report data, ctrl+s uses statistical models and key data points to create accurate baseline estimates of carbon emissions across the supply chain. This innovative approach reduces the burden on suppliers who often face “survey fatigue” and struggle with limited resources. “We combine simulation with minimal, targeted supplier engagement. By only asking for critical, easy-to-provide information, we refine our simulations while keeping the process efficient,” says Scholz. “We needed to give companies tools to take action. That’s what’s been missing—actionable data that drives real-world change.” ctrl+s hybrid model blends primary supplier data with statistical insights to provide businesses with detailed, actionable insights into their supply chain emissions and opportunities for improvement.The company launched in January 2022—just before geopolitical instability hit with Russia’s invasion of Ukraine. “It was a tough moment to build a startup focused on innovation, especially with all the global uncertainty,” Scholz reflects. But staying close to the market and the challenges faced by clients proved crucial: “That instability only highlighted the urgent need for resilient and well-managed supply chains,” he says. The company bootstrapped for three years, meaning every success and setback was tied directly to customer satisfaction and trust. “We had to deliver real value to clients from day one,” says Scholz. “Without external funding, we were forced to stay laser-focused on solving actual problems in the market.” Today sustainability is no longer just the job of a dedicated department. It’s now a key focus for procurement and operations teams. These teams need real, actionable data to make informed decisions about suppliers. However, companies are grappling with everything from changing regulations to supply chain disruptions and rising costs. But these obstacles are also creating a surge in demand for smarter, more efficient solutions. New sustainability-focused technologies can reduce bureaucracy, improve efficiency, and ultimately save businesses money - making their supply chains more resilient in an unpredictable era.However, businesses can’t easily tackle supply chain challenges alone. Strong industry collaboration for supplier capability-building at scale is becoming increasingly important.“Collaboration between industry peers, suppliers, and internal teams is crucial. When companies align on targets, data, and tools, it accelerates the process of decarbonization,” Hurrey explains. For companies looking to engage suppliers, Hurrey advises segmenting suppliers by maturity, rewarding them commercially, and “being conscious that everyone else is engaging them too—so collaborate with your peers.” Surveys, he adds, do very little: “they lack capacity, capability, and finance—so solve those problems for suppliers.” On a shared platform for sustainability data, companies can align incentives and foster a spirit of cooperation instead of traditional adversarial buyer-supplier relationships. With thousands of key suppliers already on the platform, ctrl+s is working toward an industry-wide, standardized approach to handling sustainability data. “Our goal is to make sustainability scalable,” Scholz explains. “Once we reach a critical mass of suppliers using the platform, businesses will be able to share data seamlessly, without duplicating efforts. That’s when we’ll see real impact.”Further trends driving supply chain decarbonization include large-scale investment in renewable energy with suppliers, says Hurrey, along with a shift toward using product carbon footprints and activity data, rather than just spend data. “Emerging innovations like AI will help companies manage the time-consuming tasks of data and reporting, freeing up human resources to focus on actual decarbonization,” he says. The future of supply chain sustainability is likely to see more consolidation of solutions in the market. As Scholz notes, “There are too many fragmented solutions right now. The industry will move toward a few dominant platforms that can serve multiple companies efficiently.” Hurrey views greater industry-wide collaboration as key to accelerating the transition to net-zero supply chains, “consistency, efficiency, and scalability are crucial,” he says. The way forward will involve shared resources, aligned strategies, and collaborative efforts between companies and their suppliers. The new supply chain sustainability regulations may feel daunting, but as Scholz points out, they’re also an opportunity. “For companies that embrace this shift, sustainability won’t just be about compliance—it will be a competitive advantage.”By adopting smarter tools, collaborating with peers, and staying focused on actionable data, companies can meet the new regulations—and gain a competitive edge in the process."
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