Supply Chain Decarbonization: What Actually Works?

We need to decarbonize our supply chains. It isn’t a vague or distant goal, a can to kick down the road. It’s an immediate necessity. Supply chains account for the vast majority of corporate carbon emissions — sometimes, more than 90%. Yet the way forward often seems shrouded in confusion, smothered by contradictory advice and empty talk.

So what works? What actually reduces emissions?

Identifying your carbon drivers. The first step to solving any problem is to define exactly what it is, and where it lies. In this case, that means pinpointing the main sources of carbon emissions. You can’t address what you don’t know exists.

If we look at a typical case study. The top two issues that telecommunications companies are focusing on are corporate social responsibility (CSR) risk and carbon reduction. These are addressed by helping suppliers identify areas for improvement. The suppliers then work to develop plans for reducing their emissions, while increasing overall sustainability and addressing issues associated with the welfare of their workers.

The results are impressive. In a typical case study, looking at CSR factors, suppliers cut overtime by 20% percent, workplace accidents fell by 25%, and productivity jumped by 10%. Money was saved, morale increased and risk eliminated. Regarding carbon in the telco sector, emissions at a product level were reduced by an average of 49% for infrastructure suppliers, and 29% for consumer products suppliers —all within a typical timeframe of just two years.

Breaking down the problem. Grand declarations achieve nothing if not followed by concrete action. To tackle supply chain issues, you need to dig deep and get into the details.

Lifecycle assessments (LCAs) of carbon emissions are essential. They break down a product’s existence into stages and show where emissions occur, be it at the raw-material, production, transportation or disposal stage.

Telcos using this