All companies have the potential to make a significant climate impact by taking action to decarbonize global supply chains. Focusing on decarbonizing own direct operations and power consumption alone will not be sufficient in this endeavor. If companies are willing to tackle the imminent threat at our hands, the more effective way is to get to the root of the problem: focus needs to shift from own facilities to the suppliers‘ emissions (so-called Scope 3 emissions). Here are five aspects to know about the path to net-zero supply chains.
Food, construction, fashion, electronics, automotive, fast-moving consumer goods, professional services, and freight – if you are operating in one of these industries, chances are that by cutting emissions of your deeper supply chain you are making a major contribution to climate action. A recent study from Boston Consulting Group shows more than 50 % of global greenhouse gas emissions derive from these sectors.
Decarbonizing supply chains is challenging because of an often-fragmented supplier landscape as well as difficulties communicating clear targets and maintaining an overview of the supply chain. A neat presentation of sources is valuable and much needed to keep track of developments and adherence to standards.
The cloud platform developed by sustainabill helps build a comprehensive emissions baseline that is gradually filled with actual supplier data. In the course of this, major sources of climate emissions can be identified, sourcing strategy revisited, measures to reduce emissions can be developed and together with the supplier, their implementation can be started.