The goal of decarbonization remains a top priority for the shipping industry. Now, a new research published today by the World Economic Forum and Boston Consulting Group (BCG) shows how tackling supply chain emissions can be a game changer in the global fight against climate change.
Specifically, the research called Net-Zero Challenge: The Supply Chain Opportunity focuses on the top eight global supply chains that account for more than 50% of global greenhouse gas emissions and finds that end-to-end decarbonization of these supply chains would add as little as 1% to 4% to end-consumer costs in the medium term.
The report points to nine major actions that CEOs should take today to address supply chain emissions, including:
- Building a robust view of emissions with supplier-specific data and setting ambitious targets for emissions reductions
- Redesigning products and reconsidering geographical sourcing strategies to optimize for CO2
- Co-funding abatement measures and educating suppliers on how to implement low-carbon solutions
- Engaging in industry ecosystems to share best practices and create a demand signal for green products
- Aligning incentives internally to ensure that decision makers focus on lowering emissions
Dominic Waughray, managing director, World Economic Forum, stated that “this important report shows how companies have the opportunity to make a hug impact in the fight against climate change by also decarbonizing their supply chains. The interaction between governments and companies to seize this opportunity is an important one. We welcome more leaders to join and help build momentum on this important agenda.”
In addition, the report analyzes the major sources of emissions along each of the eight major supply chains—food, construction, fashion, fast-moving consumer goods, electronics, automotive, professional services, and freight.
It assesses the key levers to reduce emissions in each supply chain and shows that many can be easily deployed today and cost very little to implement and also points to the global nature of many supply chains, enabling companies to support decarbonization across borders and in countries where governments do not yet prioritize climate action.
Ole Graa Jakobsen, Vice-President and Head of Fleet Technology, AP Moller-Maersk, comments that
The International Maritime Organization has a role to play in helping the shipping industry create transparency and close the competitiveness gap between fossil and renewable fuels. This work must start as a matter of urgency – time is of the essence and we know that defining global market-based measures will take time.
To learn more about the report, click herebelow
