3047 CommerceTrends_NL 2023 LR los

Supply chain decarbonisation: an industry’s global challenge Supply chains are responsible for generating around 60% of all carbon emissions globally, according to a recent study by Accenture. That means addressing supply chains sustainability is an essential step in achieving net zero goals and maintaining global temperature increases to the 1.5 degrees set out in The Paris Agreement.

T he topic of supply chain decarbonisation represents a giant, (until now, largely) untapped opportunity to address the climate crisis. However, reducing Scope 1, 2 and 3 emissions is easier said than done. To meet climate goals, Scope 3 greenhouse gas emissions are particularly important. But, it is clear that decarbonising supply chains is not something that can be achieved overnight, or at the click of a switch, due to the challenges of measurement, reporting and reductions within broader value chains beyond the direct control of any one organisation. Costs Interestingly, the costs of getting to net zero may not be as expensive as previously thought as only a small proportion of emissions are produced during final manufacturing, with most embedded in the

supply chain; such as in base materials, agriculture, and the freight transport needed to move goods around the world. According to Boston Consulting Group, even full decarbonisation across five key global industries would only increase end consumer prices between 1% to 4% in the medium term. To put that into context, that’s less than €1 on a €40 pair of jeans, €600 on a €35,000 new car. If not prohibited by price then, what is preventing the decarbonisation of supply chains and the pursuit of net zero goals? In short, it’s much the same as the challenge behind mapping Scope 3 emissions - complexity, lack of a clear path forward and a lack of tangible incentives. Four steps Here are four steps worth considering ahead of making any meaningful move towards a more sustainable, decarbonised supply chain:

Pieter Van den Broecke

Managing Director Benelux, Denmark, Germany and Eastern Europe at Manhattan

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COMMERCE TRENDS - 2023/2024