Assessing decarbonisation impact and ROI for global cotton sourcing
Quantifying the emissions reduction potential of cotton supply substitution initiatives helped this global apparel brand to identify the greatest return on investment (ROI).
With cotton accounting for more than 60 per cent of raw material volume, the company used the Risilience-powered platform, Riise, to secure insights from ‘what if’ scenarios and marginal abatement cost analyses to prioritise initiatives that offered optimal ROI intervention.
Solution
01.
Created digital twin of the business
02.
Applied cotton sourcing strategies using Riise Transition Planner: an emissions reduction platform and consulting package.
03.
Substituted 80% cotton from top five sourcing locations.
04.
Performed a ‘What if?’ analysis, scaling up alternative sourcing regions and recycled fibres.
05.
Initiatives’ feasibility validated with procurement and finance teams.
Results
60% emissions reduction potential (global cotton sourcing)
Considered risk of long-term price increases for recycled cotton
Identified optimal ROI intervention: shifting regional sourcing
Risilience
Climate risk is business risk. Find out how the Risilience platform delivers insights for global corporates to understand the financial implications of climate-and-nature-related risks and opportunities.
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Risilience helps you identify the material climate-related financial risks your company faces. Our analysis covers both physical risks that could impact your operations and supply chain and transition risks as the world moves towards a lower-carbon economy. Our solution helps pinpoint relevant risks based on your operational footprint, industry sector, and value chain, aligning with the qualitative and quantitative disclosure requirements
Summary financial impact of climate risk.
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