Quite a few companies that have pledged to achieve carbon neutrality have shifted from carbon offset scheme to reducing carbon footprint in supply chains, an approach that can prevent greenwash and increase brand credibility. Major brands such as Nestle, Gucci, and EasyJet have announced to decarbonize their supply chains. But what are the methods and challenges of supply chain decarbonization?
.jpg)
(Photo: Freepik)
Supply chain emissions account for as much as 80% of global corporate emissions, including the procurement and transportation of raw materials from suppliers, which is much higher than the emissions generated by the company's operations. Therefore, brand owners need to engage their suppliers to decarbonize their supply chains.
Apple, for example, has achieved carbon neutrality[1] for their own operations since 2020 by purchasing 100% renewable electricity and carbon offsets. However, more than 90% of their emissions come from the supply chain, prompting them to establish a series of supplier cooperation mechanisms to ensure net-zero emissions by 2030. Apple is not an exception. Industries that produce consumer goods tend to have a higher proportion of emissions coming from their supply chains. Therefore, how to work with suppliers to reduce carbon emissions will be a major challenge for businesses in the next five to ten years.