PCF
Supply Chain
Scope 3
Sustainable Herbs Initiative: Transparent Supply Chain Data for the Herbal Sector
Promoting supply chain transparency and standardized emissions calculations through pre-competitive collaboration

The US-based Sustainable Herbs Initiative (SHI) is a non-profit organization that provides a platform for companies along the herbal value chain to collaboratively advance sustainability throughout their supply chains. 

Challenge: Lack of emission factors and inconsistent methods in the herbal sector  

Calculating emissions along the supply chain poses significant challenges for companies in the herbal sector.

  • Lack of industry standards: No established guidelines for GHG accounting  
  • Database gaps: Official databases do not contain suitable emission factors for most herbs   
  • Heterogeneous structures: The diversity of raw materials and production methods makes standardization difficult   
  • Complex supply chains: Multi-tiered supply chains with suppliers on different continents 
  • Lack of collaborative structures: There are no established processes in place among competitors for jointly developingemission factor databases.  


This issue is of central importance to the Sustainable Herbs Initiative, as sustainable change first requires transparency, and successful implementation requires the combined efforts of many market participants.  

 
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Project approach: Pre-competitive collaboration for emissions transparency  

The overarching goal of the project is to promote industry-wide collaboration in order to advance sustainability as a whole. Specifically, the aim is to share knowledge and establish common processes, with the long-term goal of building a shared, industry-wide database that will benefit all market participants.  


The approach was based on a Scope 3 working group within the Sustainable Herbs Initiative, initially comprising eight companies from the tea and herbal industry (including Yogi Tea and Traditional Medicinal) that collaborated with suppliers located around the world across various production systems. 

Key elements included:  

  • Development of a systematic method for evaluating the quality of emission factors  
  • Use of the farmpact software as the primary tool for primary data collection and analysis  
  • Collaborative work among competitors 

Results: Standardized emission factors & shared database

The project made significant progress in addressing the initial challenges:  

  • Standardized methodology for calculating emission factors 
  • Shared emission factor database (managed by SHI with support from Sustainable in Farmpact)
  • Knowledge and capacity building for working group members in the following areas: working with primary data from their own supplychains and calculating emissions in cultivation, wild harvesting, and primary processing 
     

Supplier Motivation as a Key Success Factor  


Supplier motivation is more critical to data collection than the selection of raw materials. Gaps in the standards for the agriculture and land use sector, as well as the lack of guidelines addressing the specific characteristics of the herbal sector, call for even more comprehensive industry-wide collaboration. 


The customer plans to take the following next steps:  

  • Expand the collaboration to include additional members  
  • Expand the group of companies that can enter emission factors into the shared database and use them for their Scope 3 calculations  
  • Continue the collaborative learning process, which has proven to be very valuable 

 
With standardized emission factors and a shared database, transparency becomes a competitive advantage.

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Project managers

Eric Kowalewski Kreishintergrund
Eric Kowalewski
Senior Consultant

Sustainable AG Unternehmensberatung

Verena Weigert-Munoz Kreishintergrund
Verena Weigert-Muñoz
Senior Consultant

Sustainable AG Unternehmensberatung

Kreishintergrund

Let’s work together to define your transparency and climate protection goals in the supply chain. Inquire now.


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Eric Kowalewski Kreishintergrund
Your contact person
Eric Kowalewski
Senior Consultant
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+49 (0) 172 708 3802

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