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High Impact Commodities Module
High impact commodities are goods or materials that have significant environmental and social effects throughout their supply chain. Companies must assess at least 67% of their material procurement activities or bill of materials to identify and address the impacts of these commodities. They should aim to expand this coverage to at least 95% over a five-year period for comprehensive sustainability efforts. The assessment focuses on the most impactful stage in the supply chain, typically the primary production or "cradle" stage, but for certain commodities, other stages may be more critical, and companies must provide justification and references for their assessments.
The High Impact Commodity List (HICL) is a vital resource for all companies, including those engaged in purchasing commodities or directly involved in their production life cycle. To assess the importance of these commodities in their sustainability efforts, all companies must include high impact commodities in their upstream value chain assessment during Step 1b of the process. By leveraging the HICL, companies can comprehensively evaluate and address the environmental impact of these crucial commodities in their operations and supply chains.
High Impact Commodities (HICs) play a crucial role in assessing a company's environmental impact. Here's how you can review and refine the list of HICs in CarbonZE:
- 1.Access the High Impact Commodity List (HICL): Use the SBTN HICL provided in CarbonZE to identify and review the commodities directly linked to your company's operations and upstream activities.
- 2.Utilize the Materiality Screening Tool: Employ the Materiality Screening Tool to establish the relevance of each HIC to your company's specific activities. The tool will analyze existing environmental data and trade information to identify the most impactful commodities.
- 3.Review and Refine: Carefully review the list of HICs highlighted by the tool. Consider the particularities of your company's economic activities, products, or services. Ensure that the listed commodities accurately reflect your company's operations and supply chain.
By following these steps, you can confidently identify the HICs that have the most significant impact on your company's carbon footprint and integrate them into your sustainability strategy. Should you need further guidance or have questions during the process, our support team is available to assist you in making informed decisions for a more sustainable future.
As part of the value chain assessment process, companies are required to conduct an evaluation of the most impactful stages in the value chain for specific environmental pressures. This assessment can be qualitative and based on estimated environmental impacts, using either the High Impact Commodity List (HICL) or other peer-reviewed sources. Depending on the level of transparency, traceability, and environmental impact, companies may opt to perform cradle-to-assessment for upstream value chains. This approach ensures a comprehensive understanding of the environmental impacts associated with their operations and supply chains.