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.
