Schneider Electric last week announced an enhanced global supply chain decarbonisation service which is designed to help organisations address emissions contained in their value chains.

The announcement comes on the heels of the company’s new ambition to increase its own efforts to decarbonize its supply chain, committing to reduce carbon emissions from the top 1000 suppliers’ operations 50 per cent by 2025.

For many companies, a majority of their carbon footprint rests in the supply and value chain. 

CDP research, based on 2020 data from more than 8,000 companies, found supply chain emissions are more than 11 times higher on average than operational emissions. These volumes can be even larger in industry segments like retail, apparel, and services. 

Schneider Electric’s offer, which is nested inside the company’s broader Climate Change Advisory Service, helps organisations tackle this staggering figure through a unique combination of supplier engagement, measurement, strategy setting, and implementation via efficiency, renewable energy procurement, and carbon offsetting.

The offer builds on successful supply chain solutions already developed for clients including Walmart, Maple Leaf Foods and Takeda Pharmaceuticals.

Schneider Electric VP, Steve Wilhite, said the momentum on corporate climate action today is tremendous, driven in large part by increasing investor pressure for environmental, social and governance (ESG) risks transparency and disclosure.

He said for a majority of companies, the next frontier beyond their own operations is the supply chain.

“The good news is that by engaging suppliers in decarbonization efforts, companies can not only respond to these pressures but also identify cost savings, develop innovations, and increase the value of their supplier relationships,” Wilhite said.

 Schneider Electric is aiming for a net zero supply chain by 2050.


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