DMG MORI advances sustainable manufacturing and Scope 1, 2 and partially 3 transparency with Cozero

DMG MORI, a global leader in machine tools and manufacturing solutions, is strengthening its pioneering role in sustainability by deepening its decarbonization efforts. Partnering with Cozero, a leading carbon management software provider, DMG MORI has expanded its efforts from an initial focus on tracking Scope 1 and Scope 2 emissions in Germany to a global initiative. This expanded collaboration now extends to emissions measurement and management across Scope 1, 2 global and 3 at DMG MORI sites in Japan.

Utilizing Cozero’s Climate Action Platform (CAP), DMG MORI made significant progress in its climate journey. Cozero has helped DMG MORI to advance the carbon management efforts, specifically Scope 3 emissions tracking in Japan, with speed and precision. The approach of mapping complex business units via a digital twin and the possibility of integrating suppliers has proven to be very valuable.

Helen Tacke, Co-founder and CEO of Cozero, emphasizes: “Getting Scope 3 data, especially from suppliers, is becoming a major focus in the industry right now, and for good reason. Having reliable insights into emissions across the supply chain helps businesses make smarter decisions, stay competitive, and meet growing expectations for sustainability. We're proud to support DMG MORI on their journey to building a more transparent and future-ready supply chain.”

Tackling the Scope 3 data challenge

Scope 3 emissions, which include upstream and downstream activities, can account for over 95% of a company’s carbon footprint in the manufacturing industry. They typically represent the largest share of a manufacturer’s carbon footprint, whereas accounting for these emissions is far more complex than Scope 1 and 2.

Manufacturers are under increasing regulatory pressure, with frameworks like the Carbon Border Adjustment Mechanism (CBAM) demanding detailed emissions reporting. Yet, the complexity of supply chains and the lack of reliable data make accounting and reduction efforts challenging.

Companies who want to be at the forefront of sustainable transformation have recognized that they need actionable strategies to involve suppliers and customers to close data gaps in their supply chain.

Turning the Scope 3 challenge into an opportunity

In the autumn of 2024, DMG MORI's sustainability team set out to create an action plan with Cozero to engage multiple suppliers in Japan. The result: DMG MORI was able to collect raw material data for more than 45,000 items, representing up to 50% of DMG MORI Japan's Scope 3 emissions. A key success factor was the training and empowerment of suppliers and the use of Cozero's supplier engagement module.

Next steps on the roadmap

Building on the success of their initial supplier engagement initiative, Cozero and DMG MORI are now planning to expand the program to include a larger network of suppliers in Japan, aiming to significantly enhance Scope 3 visibility. With this strong foundation in place, DMG MORI plans to advance its decarbonization journey using Cozero’s decarbonization module “Act”. Progressing in this area can provide valuable lessons not only for DMG MORI, but also for other manufacturing companies navigating similar challenges.