Carbon emissions from the supply chain represent a significant part of companies' total emissions. In fact, according to the World Economic Forum, supply chain emissions represent between 70 and 80% of companies' total emissions.
Supply chain carbon emissions occur at all stages of the chain, from the extraction of raw materials to the distribution of finished products. The main sources of carbon emissions in the supply chain are:
- Transportation: Transportation is the main source of carbon emissions in the supply chain. The transportation of raw materials, intermediate products and finished products generates large amounts of greenhouse gases, such as carbon dioxide (CO2).
- Production: The production of goods and services also generates carbon emissions. The combustion of fossil fuels to generate energy, the use of carbon-intensive materials and polluting manufacturing processes are some of the sources of carbon emissions in production.
- Waste management: Waste management also generates carbon emissions. Waste incineration, composting and waste storage generate greenhouse gases.
Carbon emissions from the supply chain have a significant impact on the environment. Climate change, air pollution and the depletion of natural resources are some of the environmental problems caused by carbon emissions from the supply chain.
Companies have an important role to play in reducing carbon emissions from the supply chain. Companies can reduce their supply chain carbon emissions by taking the following measures:
- Optimize logistics: Companies can reduce carbon emissions from the supply chain by optimizing their transportation routes and using more efficient modes of transportation.
- Promote sustainable production: Companies can promote sustainable production by using recycled and renewable materials, reducing waste and improving energy efficiency.
- Improve waste management: Companies can improve waste management by reducing, reusing and recycling.
Reducing carbon emissions from the supply chain is an important challenge for companies. However, companies that take measures to reduce their supply chain carbon emissions will be able to improve their sustainability and competitiveness.
There are already companies working together with their supply chain to reduce emissions.
Lego was one of the first companies to embark on this challenge when it discovered that 98% of its emissions were due to its supply chain.
Coca-Cola has set a goal to reduce carbon emissions from its supply chain by 30% by 2025.
Apple has set a goal of being carbon neutral by 2030. The company is working to reduce carbon emissions from its products, operations and supply chain.
And so many others, but not all yet.
When companies present their sustainability data, they must include the entire supply chain so that this data is complete and we can trust it.
Today there is still a lot of “Green Washing” generated with the topic of sustainability in companies, since many of them do not offer complete data, and blatantly hide the most important and worst data.
It is the authorities who must force all companies to present all data equally, including that of their supply chain.
And we're already late.
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