RELEX Solutions unveils AI CO2 tool to aid retail sustainability

RELEX Solutions has launched an AI-driven CO2 Analytics tool designed to aid companies in tracking, reducing, and reporting the CO2 emissions of their purchased goods.

This development comes in response to global regulations, predominantly in the European Union and California, which mandate the reporting of Scope 3 emissions. Scope 3 emissions result from an organisation's activities that indirectly impact the value chain.

Organisations within the EU are affected by the Corporate Sustainability Reporting Directive (CSDR), while in the US, California's SB 253 Act imposes similar requirements. These regulations compel companies to track the CO2 emissions generated by purchased goods, a significant source of emissions in the retail sector.

Typically, calculating CO2 emissions for purchased goods is a complex and time-consuming task. However, the new RELEX CO2 Analytics tool automates this process by using AI algorithms to combine emission factors for products with data already existing in the RELEX platform. Through this method, RELEX customers can also integrate third-party data sources to enhance the accuracy and optimisation outcomes, employing the latest AI tools and techniques, such as natural language processing, to match emissions data to specific products.

Svante Gthe, Head of Sustainability at RELEX Solutions, highlighted the growing consumer demand for sustainable products and the importance for retailers to reduce their carbon footprint. "Consumers are increasingly seeking sustainable products and favouring retailers that demonstrate a commitment to sustainability. Reducing CO2 emissions, especially for retailers given how much emissions purchased goods create, exhibits the importance of reducing carbon footprints," Gthe said. "However, acquiring CO2 emission factors often requires big investments in terms of time and effort. Our aim is to simplify and reduce the amount of time it takes to calculate emissions and provide accurate visibility into the carbon footprint of purchased goods."

RELEX's CO2 Analytics tool provides data that can empower decision-making, streamline data collection and analysis processes, support regulatory compliance, and ultimately improve end-customer satisfaction by demonstrating a clear commitment to sustainability initiatives.

Simon Kangas, Supply Chain Manager at Menigo, shared his experiences with piloting the tool. "We have begun piloting CO2 Analytics to better understand our own emission factors. Initially, we already see high value in the ability to visualise the emission data within the RELEX platform, and be able to easily analyse and report against those figures. It's powerful to have this data directly in the RELEX platform, enabling decision-making for more sustainable supply chain planning at Menigo."

RELEX was founded with a focus on reducing waste throughout the consumer goods value chain, integrating sustainability as a core tenet across the organisation. This commitment is reflected in its key environmental achievements, such as annual savings of up to 40% of food waste, preventing 280 million kg of food waste, and saving 950,000 tons of CO2 equivalents. The company also released its 2024 Sustainability Report, detailing progress in reducing its global carbon footprint and other initiatives encompassing environmental and social responsibility as well as governance.