Supply chains are the key to the fight against climate change. Why? Because they generate around 60% of all carbon emissions globally. So fixing supply chain sustainability is an essential step in getting to net zero.
New research from the UNGC—Accenture CEO Study shines a light on how that can happen. With input from 1,232 CEOs in 113 countries and 21 industries, it opens the lid on executive thinking on supply chains. And it provides insights into their role in battling climate change.
Building resilient and responsible supply chains for the future
Blockchain is another potential game-changer. Especially when it comes to real-time carbon transparency across the supply chain. It’s one reason why 60% of CEOs say the technology will have a significant impact on sustainability in their industry in the next five years.
CEOs are digitizing their supply chains, using advances in technology to expand the frontier of sustainability
Geographic diversity is equally important. Businesses should be looking to diversify their workforce footprints to hedge against climate and other disruption. But less than a quarter of CEOs say their geographical diversity is at an advanced level today.
And what about the impact of climate change on workers’ physical and mental health? 42% of CEOs see workforce health as a major climate-related risk. It makes actions like health coverage provision and contingency planning even more pressing.
of CEOs globally say they have begun geographically diversifying their workforce
#3 Treat carbon as a business cost
Carbon pricing will be critical to driving down emissions and meeting climate goals. This can happen at both a micro and a macro level.
For example, individual companies can consider placing an internal carbon cost on activities like air travel. The money collected can then be kept for operational expenses, returned to shareholders or used for sustainability projects.
of CEOs from the largest companies have called on policymakers to ratify Article 6 of the Paris Agreement
#4 Focus on Scope 3 emissions
To meet supply chain climate goals, Scope 3 greenhouse gas emissions are particularly important.
Scope 3 emissions are the indirect upstream and downstream emissions that result from company operations. These are typically over 11 times larger than Scope 1 and 2 combined. And the supply chain is a major source.
The key is to focus initiatives through value chain mapping, emissions assessments and benchmarking. Companies can then work with ecosystem partners and suppliers to create long-term sustainable impact.
of overall emissions from fast-moving consumer goods (FMCG) companies are Scope 3 emissions