Supply chain News and trends

For corporations like PepsiCo, most greenhouse gas (GHG) emissions originate in the supply chain, which is challenging to manage. PepsiCo believes three elements — expectations, economics, and enablement — are essential for effective supply-chain engagement and action. Clear expectations guide supplier partners, while understanding the economic realities aids in creating profitable GHG reductions. Lastly, enabling suppliers through support and resources can facilitate a smoother transition towards shared net-zero goals. PepsiCo’s plan reflects these principles, forging a path toward a sustainable and resilient future.

The Securities and Exchange Commission on Monday approved a landmark proposal to require all publicly traded companies to disclose their greenhouse gas emissions and the risks they face from climate change.

The pandemic has done more than just intensify the urge to travel, it has made us considerably more aware of the impact of our travel. According to Booking.com’s 2021 sustainable travel report, 61% of travelers said that the pandemic has made them want to travel more sustainably, and a further 81% intend to stay in sustainable accommodations at least once in the upcoming year. However, it is clear that barriers still remain, with 49% believing there simply aren’t enough sustainable options available to them.

Many hotels still largely depend on fossil fuels for their energy, and according to a recent green lodging trends report, a mere 21% have on-site renewable energy. These energy-intensive systems, used for things like heating water for showers and spas, and keeping guests’ rooms at comfortable temperatures create carbon emissions. These emissions, particularly at large resorts with an abundance of amenities add up, contributing to the roughly 8% of greenhouse gas emissions that estimates attribute to Global tourism.

HSBC, Walmart and CDP are teaming up to unlock more financing for Walmart suppliers. The catch? The suppliers must set validated science-based targets for emissions reductions and meet certain performance thresholds in ongoing ESG disclosures to reporting organization CDP.

The supplier financing program is part of Walmart’s Project Gigaton, the company's initiative to avoid 1 billion tons of greenhouse gas emissions from being released into the atmosphere by 2030. 

"For the average company, the vast majority of its greenhouse gas emissions are in its supply chain - four times its direct emissions" says Dexter Galvin, head of supply chain programme at CDP.

With businesses being increasingly urged to reduce their carbon emissions and adopt more sustainable business models, the logistics and transportation industry is under tremendous pressure to follow suit, and for good reason.  According to the Sustainable Freight Buyers Alliance (SBFA), freight transport accounts for 8 per cent of global CO2 emissions. By 2050, direct CO2 emissions from the logistics sector is set to rise by 42 per cent.

The alliance, a bridge between freight buyers and freight decarbonisation initiatives to support the industry’s transition to net-zero freight transport, states that decarbonising freight transport is critical to achieving the global goals of net-zero greenhouse gas emissions by 2050.

Growing consumer awareness and increased government initiatives around sustainability and climate change are adding pressure on industries to adopt sustainable practices. This is particularly true of the food and beverages (F&B) sector where food production is responsible for one-quarter of the world’s greenhouse gas emissions. Left unchecked, this figure will only rise due to the combined impact of a rising population and growth of the middle class – wealthier people consume more resource-intensive, animal-based foods. According to the World Economic Forum, by 2050, the demand for food will be 60 per cent greater than it is today.

Industrial thread manufacturer Coats has had its environmental targets validated by the Science Based Targets initiative (SBTi). 

Specifically, the firm will work to reduce its scope one and two greenhouse gas (GHG) emissions by 46 per cent, and its scope three emissions by 33 per cent by 2030 against a 2019 baseline.  

“Taking meaningful and effective climate action is vital and to have our ambitious targets validated is excellent. The future of Coats is net zero and circularity,” said the group’s chief executive, Rajiv Sharma.

An in-depth look into the sustainability measures employed by industry players in the dairy, ingredients and flavor sectors, to mitigate greenhouse gas (GHG) emissions reveal that pooled efforts are being undertaken to source raw materials with a reduced carbon footprint and production of plant-based products has been prioritized.

Commitment supports the Paris Agreement to limit global warming to 1.5 degrees Celsius; ServiceNow will also donate $1 million to decarbonization-focused nonprofit organizations
ServiceNow, the leading digital workflow company that makes work, work better for people, announced its global commitment to achieve Net-Zero greenhouse gas (GHG) emissions by 2030 to further its vision to “workflow a better world” – one that is more sustainable, more equitable, and more ethical.

CDP new report reveals that global supply chain emissions fell by 434 million tonnes last year - more than France’s total greenhouse gas (GHG) emissions in 2014.
The emissions reduction, which led to £10bn in cost savings, was driven by the world’s seeking to exploit the opportunities presented by the low-carbon transition, CDP says.

As the cost of renewable energy plummets and consumers demand social responsibility from their favorite brands, sustainability is becoming cost-efficient. Emerging technologies, including the Internet of Things, are catalyzing corporations to rethink supply chain strategies.