How green supply chains can boost carbon-neutral road transport?
After adopting the Paris Agreement, governments set targets to control C02 emissions, and environmental regulations have become stricter. For example, France instituted its 2050 carbon-neutral target into law, making a political signal about its environmental commitments. The law aims to reduce fossil fuel consumption by 40% in 2030 and stimulate low-carbon energy sources and renewable hydrogen development. While achieving zero emissions is challenging, green supply chains could boost decarbonization efforts globally. In this article, we look at why are green supply chains a game-changer to achieve zero emissions.
What is Green Supply Chain and Why Does it Matter?
Green supply chain management (GSCM) integrates sustainable environmental processes into the supply chain of a firm. It can encompass all businesses areas, from product design to operations. Yet, GSCM goes beyond lessening the environmental impact of supply chains. It aims to drive value creation while reducing environmental impact. A successful green supply chain fosters transparency and integration between all parties involved. While businesses often choose to reduce their CO2 emissions, GSCM has tangible gains. Besides the perception of added value to clients, waste and cost reduction and driving innovationare a few concrete benefits of GSCM.
According to a recent World Economic Forum report 2021, 90% of a company’s carbon emissions come from supply chains, including transportation. Consequently, addressing supply chain emissions has a more significant impact than decarbonizing a company’s operations. The report observes that end-to-end emissions in most customer-facing companies are higher than their direct emissions. This finding presents an opportunity for food, FMCG, and electronics companies to influence their suppliers to drive carbon neutrality, thus accelerating climate action.
How can you make your supply chain greener?
A first step to making your supply chain greener is to examine each process and improve inefficiencies. The key is to understand your carbon footprint and identify the sources of your emissions. In this step, you can redesign your products and sourcing strategy to become more sustainable.
A big obstacle to the decarbonization of supply chains is the lack of transparency. Sharing data with suppliers and publicly report ambitious goals can increase transparency. Technologies, such as blockchain, can be a powerful ally in building a transparent value chain. Additionally, integrating emissions metrics in procurement can be another way to simulate transparency, leading your organization to work with suppliers that address their emissions.
Furthermore, enabling your organization to introduce low-carbon governance is essential. For example, when choosing a logistics road partner, you can ask them about their sustainability goals and compare how they align with yours. Questions about supply chain optimization, fuel alternatives, and fleet can also guide your decisions.
While achieving carbon-neutrality is challenging, companies can use their influence to speed up climate action in their supply chains and have a higher impact on the volume of emissions. Undoubtedly, green supply chains are an opportunity to make significant progress in climate action.
Sustainability is a top priority for Emons Cargo 2WIN. We invest in technology and innovation to help businesses move towards zero waste. From alternative fuel to supply chain optimization, we improve operational performance to lessen the impact on the environment with high-cost savings. Let’s take the greener road together!