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Supply Chain

Your guide to supply chain decarbonization

A guide on how to effectively engage your suppliers in your climate action and meet joint targets.

Illustration of a factory
Author
Renaud BettinVP Climate Action & Sales Enablement
Category
Guide
Topics
Supply Chain
Published
15 February 2023

In this guide you will learn

  • Some of the common hurdles companies face when measuring supply chain emissions.
  • How you can start measuring the footprint of your value chain – and why you don’t have to wait for the perfect data. 

  • How you can efficiently and effectively engage your suppliers in emissions measurement.

  • How you can set joint reduction targets and report your progress against these.

You’ll also learn how Sweep for Supply Chain can help you achieve your climate goals and become a Forever Company. 

Introduction

Supply chains play a vital role in the global battle against climate change as they account for as much as 60% of the world's global emissions

That's why it's important for companies to take urgent action, not just on their own carbon footprint, but also that of their suppliers. Some are already doing so, but many have encountered hurdles at the very first step – carbon measurement. Supply chain emission calculations aren’t an easy feat, but we’re here to show you how to get started, and crucially – how we can help make the road to decarbonization smoother. 

But let’s delve deeper into this important question: 

Why should you measure your supply chain emissions? 

According to data from the CDP, a company’s value chain emissions are on average 11.4 times greater than those of your own operations. As they form such a significant part of your overall business carbon footprint, it's essential to incorporate them into your carbon management and reporting, and to use them to drive climate action. 

Acting on the carbon footprint of your supply chain can also bring you a range of business benefits. Here are just a few. 

1. Smarter procurement decisions – Carbon accounting can help you determine which suppliers are committed to taking action on climate change. This enables you to set joint climate goals.

2. Cost reduction opportunities – It can help you identify carbon hotspots and introduce plans to improve energy efficiency across your value chain.

3. Your compliance future-proofed – New legislation is already coming into force in some countries which makes it compulsory to report on your supply chain emissions - and this is likely to become more widespread. If you start taking action now, you’ll increase your regulatory resilience.

4. Improved reputation - Taking climate action across your entire supply chain will show your partners, clients, and stakeholders that you’re truly committed to sustainability, which will boost your competitive advantage. 

All this shows that taking a holistic approach to business sustainability can set you up for future success. And because our world is so interconnected through supply chains, the actions of a single company can have ripple effects throughout the global economy. 

Responsibility for supply chain emissions is shared. Without effectively engaging your suppliers, you won’t be able to achieve your climate goals. 

But get them on your side, and you have a good chance of driving collective and collaborative climate action. And in doing so, you’ll become a Forever Company. 

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