Planet Price® Methodology
What exactly is the Planet Price metric?
Simply put, it’s our unique approach to simplifying the rather complex and daunting task of quantifying the environmental and social impacts of your supply chain in monetary terms. The Planet Price metric is a powerful tool to help procurement and sustainability teams make more sustainable and circular procurement decisions.
THE PLANET PRICE METRIC
Planet Price provides a single metric, expressed in monetary terms, that calculates the societal cost of products and services.
In other words, the real cost of everything.
To calculate the Planet Price, we leverage artificial intelligence, environmentally extended input/output data, life cycle impact analysis and environmental pricing techniques.
It’s heady stuff, but completely automatic. No expertise required by users.
Top-Down, Bottom-Up Analyses
To deliver the most accurate Planet Price possible, we conduct a top-down approach that analyzes your entire procurement landscape and combine it with a bottom-up analysis that drills down on specific material and product hotspots.
To analyze your entire procurement landscape.
To drill-down on specific hotspot material and product hotspots.
Data is extracted from your corporate procurement system as
a simple CSVPlanet Price imports and exports data as simple Comma Separated Value text files file.
The data is automatically checked for errors.
The artificial intelligencePlanet Price uses a Natural language Processing (Machine Learning) model to map procurement text information with environmental impact databases model uses Product Categories and Purchasing Descriptions to automatically match procurement spend with industry codes. You can manually change these if you like.
Environmental and Social Impacts
Using the industry type, the algorithm calculates the values for nine different environmental and social impactsThe Planet Price algorithm considers: Greenhouse Gases, Land, Water, Smog, Acid Rain, Ozone, Respiratory Disease, Ecotoxicity and Eutrophication for the procurement spend amount.
The Societal Cost The marginal cost to society resulting from emissions and other environmental impacts for each of the impacts is applied to calculate the overall Planet Price.
Now you can explore your data from every angle to identify opportunities and hotspots using our powerful, interactive visualisations.
Data from the analysis can be exported and used to support your Scope 3 Indirect emissions resulting from an organisation’s upstream and downstream value chain reporting according to standards.
Product Planet Price
Now that you have identified the Product Categories and Suppliers of most interest, you can calculate the Planet Price for specific products and material mixes.
Using a simple web-based calculator, suppliers can enter
information about their products.
Suppliers enter data about materials, packaging and
recycled content …
… and also information about
Further Environmental Information
If it is available, Suppliers can also enter data from a Life Cycle
Analysis study or Environmental Product Declaration.
Calculate Planet Price
Using all of this information. The algorithm calculates the Planet Price for the
product or material mix and generates a digital certificate.
Product and Material Library
Develop and share a library of Planet Price data for Products
Inform Procurement Decisions
Planet Price in the Platform can be used to inform