Supply chains account for 90% of a company’s greenhouse gas emissions and, as sustainability continues to be a core business issue, organizations are under pressure to reduce their carbon footprint while maintaining operational efficiency. To recognize our part in helping companies reduce their carbon footprint and help recognize Earth Day, we sat down with Hessam Lavi, Cofounder and CEO at Climatiq, a leading provider of carbon intelligence solutions, to discuss how their partnership with John Galt Solutions is empowering organizations to integrate actionable carbon insights into supply chain planning.
Together as strategic solution partners, John Galt Solutions and Climatiq deliver carbon intelligence directly within the Atlas Planning Platform to provide companies visibility into emissions data. This enables supply chain teams to make more informed decisions to drive sustainable practices. From automating carbon measurement to aligning with net-zero goals, this collaboration is transforming how supply chains approach environmental responsibility.
In this Q&A, Hessam Lavi shares his insights on the state of supply chain sustainability, the challenges, and the opportunities, offering valuable insights for supply chain leaders navigating today’s complex sustainability landscape.
Q1: Why is sustainability more critical than ever, and what trends are shaping the future of sustainable supply chains?
H. Lavi: Climate change isn’t going anywhere. We just had the hottest January on record globally, making it the 18th month out of the previous 19 in which we exceeded 1.5°C warming levels.
While recent political shifts have delayed some regulatory action in the US and Europe, pressure from consumers, investors, and global institutions is only increasing. Carbon transparency is becoming a prerequisite for doing business.
Demands for emission transparency are growing, and sustainability remains a strategic imperative for companies worldwide. Supply chains are in the spotlight. They account for most of a company's emissions, making them a core focus for decarbonization. Large buyers are pushing suppliers to provide emissions data, driven by procurement policies, investor expectations, and upcoming regulations. According to the 2024 Sustainable Procurement Barometer by EcoVadis and Accenture, 50% of mainstream procurement programs now use integrated ESG data to inform decisions operationally. Carbon transparency is no longer just about compliance. It’s a lever for resilience and long-term value.
Q2: Many companies struggle with data gaps and complex measurement methods. How does Climatiq help address these challenges?
H. Lavi: Yes, tracking supply chain emissions is notoriously difficult. The data is scattered, the carbon accounting methods are complex, and most planning tools weren’t built with carbon in mind. Climatiq solves this with automated, science-based carbon intelligence. Our platform offers two key components:
- The world’s largest emission factor database, continuously updated and vetted by climate scientists. Emission factors are the data backbone of carbon accounting, and our database ensures that companies work with reliable, standardized data from day one.
- We also offer a plug-and-play emission calculation engine that turns raw data into actionable emissions intelligence. It is embeddable by design, which allows supply chain solution providers like John Galt Solutions to embed carbon intelligence capabilities directly into the planning environment. It provides transparent, science-backed emission insights, avoiding any black-box calculations.
Q3: John Galt Solutions and Climatiq deliver carbon intelligence into the Atlas Planning Platform. Can you share how this collaboration enhances supply chain decision-making?
H. Lavi: By embedding carbon metrics directly within supply chain workflows, companies can factor sustainability into their decisions, just like they do with cost, lead time, or capacity. For example, planners can see the emissions impact of different sourcing or shipping options or compare suppliers based on carbon footprint.
This added visibility empowers teams to model scenarios that balance environmental and operational priorities, making it easier to align daily decisions with long-term sustainability goals and stay ahead of evolving regulations and rising customer expectations.
Q4: Scope 3 emissions often present the biggest challenge for companies. How does real-time visibility into these emissions help organizations drive sustainability initiatives?
H. Lavi: Yes, Scope 3 emissions typically make up 70-90% of a company’s total footprint. They include emissions from suppliers, transportation, and outsourced services, but they’re the hardest to track. Many companies lack access to emissions data from their suppliers. With Climatiq integration, companies can estimate these indirect emissions based on industry data, even without supplier-specific inputs.
With emissions data surfaced contextually, for example, when evaluating suppliers or selecting shipping options, teams can prioritize low-carbon alternatives, set emission thresholds, and reduce their activity footprint.
Reliable emissions insights also allow businesses to set realistic science-based Scope 3 reduction targets and track their progress towards sustainability goals.
Q5: As ESG regulations continue to evolve, what steps should companies take to stay ahead of compliance requirements while also achieving meaningful sustainability outcomes?
H. Lavi: While regulatory uncertainty is making headlines, forward-looking companies aren’t hitting pause. In fact, they’re doubling down on industrial decarbonization and supply chain sustainability, not just as a compliance measure but as a long-term business advantage.
Why? Because sustainability is no longer just about reporting, it’s about resilience, efficiency, and reputation. Companies that understand and reduce their emissions today are better positioned to lower operational risks, respond to customer demands, and future-proof their supply chains.
That’s why we believe it’s critical to go beyond box-ticking exercises. Companies that treat emissions as a performance metric, and not just a reporting obligation, will be more resilient.
Q6: Looking ahead, how do you see technology playing a vital role in the future of sustainable supply chains?
H. Lavi: We have seen carbon emerging as a new business KPI, taking prominence alongside other metrics such as efficiency and cost. Technology is making that shift possible. Enterprise software platforms now embed sustainability into planning tools, giving teams the insights they need to make smarter, lower-impact choices.
Looking forward, AI and machine learning will play a central role in carbon accounting by automating core tasks such as the classification and mapping of emissions-related data, streamlining the calculation of carbon footprints, and reducing the need for manual input. These technologies will help organizations handle complex and fragmented datasets more efficiently, enabling faster, more scalable emissions reporting and decision-making.
About Hessam Lavi
Hessam Lavi is the CEO and co-founder of Climatiq, the carbon intelligence API that provides scientifically backed emissions data to help businesses automate and scale carbon measurement. Before Climatiq, Hessam held leadership roles at Google and founded several tech ventures, including Jobspotting, an AI-driven job-matching platform acquired by SmartRecruiters. With a background in computer science and over 15 years in digital product development, he now focuses on building tools that embed carbon data into everyday business decisions.
