Game Changing Supply Chain Climate-Fighting Opportunity

by Carolyn Mathas

The World Economic Forum (WEF) and Boston Counseling Group (BCG) are weighing in on the possibility of decarbonizing major global supply chains with available technologies at a low cost.

A just-published report by the WEF and BCG shows how tackling supply chain emissions can be a game-changer in the global fight against climate change. Net-Zero Challenge: The Supply Chain Opportunity analyzes the eight global supply chains that account for more than 50% of global greenhouse gas emissions. Decarbonization of these supply chains adds between 1% – 4% to end-consumer costs in the medium term.

The supply chains used represent food, construction, fashion, fast-moving consumer goods, electronics, automotive, professional services, and freight. The greatest opportunities for impact are especially high for consumer-facing companies.

Nine major actions recommended in the report include:

  • Build a robust view of emissions with supplier-specific data and set targets for emissions reductions
  • Redesign products and reconsider geographical sourcing strategies to optimize for CO2
  • Co-fund abatement measures and educate suppliers on implementing low-carbon solutions
  • Engage in industry ecosystems, share best practices, and create a demand for green products
  • Align incentives to ensure that decision-makers focus on low emissions

A copy of the report can be downloaded here.

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