It’s Time to Reduce Your Supply Chain’s Carbon Footprint

The United Nations Climate Change Conference (COP26) has come to a close and media headlines have erupted with a common sentiment: it’s not looking good.

The Climate Action Tracker (CAT) warned last week during the conference in Glasgow that the world is heading to at least 2.4 degrees Celsius of warming by 2100, if not more, which is well above the 1.5-degree limit laid out in the Paris Agreement on Climate Change.

This global wake-up call has triggered many governments and corporations to pledge “net-zero” emission targets, but the pressure to put the words into action is ever-mounting.

One thing is for sure: the time to act is now.

What is “Net-Zero” and what does it mean for your supply chain?

You’ve probably heard the term net-zero a million times. But what exactly does this mean for you and your supply chain?

Net-zero refers to the balance of emitting greenhouse gases produced by humans (i.e., burning fossil fuels for electricity, heat, and transportation) and the removal of greenhouse gases (i.e., reforestation). In short, the world is emitting more than it’s removing. This severe imbalance can impact human health, food supply, water quality, and we’re already seeing these environmental impacts today. Achieving net-zero emissions means being able to shrink your carbon footprint and use less energy.

Supply chain emissions are on average 11.4 times greater than “those produced through their direct operations”, according to a 2020 report from the Carbon Disclosure Project (CDP). The same report suggests that US$1.26 trillion of revenue will be at risk over the next five years due to climate change, deforestation, and water insecurity.

Companies with global supply chains now have a responsibility to ensure not only their own initiatives for net-zero targets but aligning with their business partners on these initiatives as well. This can include investing in energy-saving initiatives or switching to wind and solar power.

How to engage your supply chains and take action on Scope 3?

Companies that have set emissions-reduction targets are deepening their engagements on Scope 3 supply chain emissions accounting and reductions. This includes a movement towards net-zero ambitions.

ELEVATE teams can support stronger, more collective engagement between companies and their suppliers via training, accounting, and emissions reduction initiatives.

Contact us to learn more about how we can work together to cut down emissions by:

• Participating in ELEVATE’s Scope 3 emissions pilot add-on available with ELEVATE’s standard audits to test calculate Scope 3 carbon emissions for a factory
• Initiating a stand-alone Environment Assessment and carbon data collection
• Accounting that will establish Scope 1, 2, and 3 baselines for your supply chain
• Setting science-based targets and plans
• Implementing tangible factory improvement projects on energy, emissions, and environment

The clock is ticking and with ELEVATE, businesses have the power to do more in raising awareness and taking action to ensure we do our part. If there’s ever been a time to believe that one small change can make an impact- the time is now.

Sources:

Glasgow’s one degree 2030 credibility gap: net zero’s lip service to climate action | Climate Action Tracker
Carbon Disclosure Project (CDP)_Supply ChainC_Report_2020.pdf (rackcdn.com)
Global Update – Glasgow’s 2030 credibility gap – Nov 2021 (climateactiontracker.org)

These blogs are written by ELEVATE staff members or associates and the views and opinions expressed are not necessarily those of ELEVATE