In a time of increasing demands for ESG reporting, the upcoming digital product passport, and complex tax models, it is becoming crucial for companies to understand their products down to the component level – a sustainability approach that can help strengthen supply chains and enhance competitiveness.
“ESG reporting must not become a side project,” says Niels Stenfeldt, Group CEO of 9altitudes, who explains that there are several benefits to embedding sustainability in a company’s strategy and systems.
“Placing sustainability in a separate reporting unit is neither the most meaningful nor the most optimal approach. We need to view sustainability as an integrated process that should be embedded in everything – from supplier selection to the decisions we make every single day,” explains Niels Stenfeldt. He adds:
“At 9altitudes, we work with technological solutions that help companies understand, manage, and improve their entire value chain – all with the goal of increasing competitiveness and making the supply chain more resilient.”
To make their supply chains more secure, it is important that companies understand their products down to the component level, according to Niels Stenfeldt and Jan Mårtensson, Managing Director of 9altitudes Denmark.
“For us, sustainability is about doing things smarter. By definition, sustainability is not just about conserving the Earth’s resources – it’s also about creating something that is enduring,” says Niels Stenfeldt, and continues:
“Among other things, we guide manufacturing companies through the digital transformation of their business. We always take a long-term perspective, but we move step by step to ensure the organization can keep up.”
“It’s very much about being in control of your products throughout production and the supply chain – including being able to trace them,” adds Jan Mårtensson.
“By leveraging the right technologies, companies can drill down to the component level and receive AI-generated optimization suggestions for their products. For example, it might mean switching to a cheaper, stronger, or more sustainable material.”
“In short, sustainability, resilience, and adaptability all meet in the bill of materials. It has a major impact on the rest of the company’s processes – and it’s also where the digital thread begins,” concludes Niels Stenfeldt.
At 9altitudes, we work with various technological solution areas supported by software from Microsoft and PTC. The goal is to manage, handle, and document data throughout a product’s lifecycle – from idea and design to production, disposal, or recycling.
“At 9altitudes, we can certainly support companies at individual stages of a product’s lifecycle – but the true value lies in the digital thread. It’s essential to understand how everything is connected, otherwise you won’t get the full value from your company’s data,” explains Niels Stenfeldt.
“By supporting the entire digital thread, we can capture data that serves both ESG reporting and digital product passports. This enables companies to optimize their resource consumption while ensuring compliance with legislation and regulations,” says Jan Mårtensson.
According to Niels Stenfeldt and Jan Mårtensson, it’s a common misconception that companies need to start over if they want to improve their sustainability efforts.
"Our core belief is that you don’t need to start from scratch. You need to activate what you already have and make it usable. Identify the data that matters most and what’s most important to your business and your customers,” says Niels Stenfeldt, and elaborates:
“By embedding technological solutions into the business systems you already use, you suddenly gain the ability to measure and report on ESG goals in a meaningful way.”
“Our advice to clients is to start small, but strategic. That way, you generate the right insights and make better decisions – both for the bottom line and for the planet.”
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If you’re unsure where to begin optimizing your processes, Jan and Niels suggest starting by taking a closer look at your bill of materials.
“A bill of materials is more than just a recipe. It’s a treasure trove of knowledge about the product, the suppliers, and the possibilities available,” says Jan Mårtensson. Niels Stenfeldt concludes:
“Sustainability, resilience, and competitiveness all come together in the bill of materials. When you can break it down to the component level, you essentially have everything you need. If your BoM is under control, there’s a lot you can do. If not, that’s where you should start.”
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