Digital Twin Architecture for Scope 3 Emission Transparency in Sustainable Supply Networks

Abstract

The escalating urgency of climate change mitigation has intensified corporate focus on comprehensive supply chain emission monitoring, particularly Scope 3 emissions which represent 70-90% of organizational carbon footprints. Traditional emission tracking methods prove inadequate for managing complex, multi-tiered supply networks, creating an urgent need for innovative technological solutions. This research investigates how digital twin architecture transforms Scope 3 emission transparency through dynamic virtual representations of physical supply networks. The study employs a comprehensive literature review and case analysis methodology, examining implementations across automotive, consumer goods, and technology sectors. Our four-stage framework encompasses data acquisition and integration, virtual modeling and simulation, real-time monitoring and analytics, and predictive optimization capabilities. Findings demonstrate that digital twin technology enables unprecedented supply chain visibility, facilitating proactive environmental management rather than reactive reporting. Organizations implementing digital twins report enhanced decision-making through granular emission data, improved regulatory compliance, optimized transportation routes, and dynamic supplier selection based on environmental performance. Strategic benefits encompass strengthening relationships with stakeholders, competitive market advantages, and support for setting science-based targets. However, implementation challenges relate to the complexity surrounding data integration across the almost impossibly varied supplier networks, huge infrastructure investments at the start, resistance from within regarding the transformation by technology, and privacy concerns on that information that is considered sensitive in the supply chain bureaucracy. The overall picture of adoption includes partnering collaborations, phased implementation approaches, standardized data protocols, and sharply vertical governance frameworks. This research offers new insights on technology-enabled solutions for sustainability while offering actionable advice for practitioners. Future lines of inquiry should consider an industry-oriented framework, standardization protocols, and longitudinal environmental impact assessments to empower digital twin applications for sustainable supply chain transformation.