Supply chain News and trends

Humans are facing an existential crisis in climate change. We are also facing a crisis of collective action. As a species, we have every reason to slow the rise of global temperatures, but taking steps to cut carbon emissions is generally not in the short-term interest of individuals, companies, or countries. Where does that leave IT organizations?

IT systems all around the world consume ever-increasing amounts of electric power, making them a critical factor in increasing carbon emissions. Many people in the industry are acutely aware of IT's climate impact and want to see it reduced, but minimizing IT's carbon footprint will entail a cost that many small businesses and multinational corporations are reluctant to bear.

Curious about what might incentivize a shift to greener tech, I spoke to IT leaders who are pushing back on climate change. I found people working at every level of organizational leadership—from the top down to the bottom up—and pursuing a variety of strategies to reduce carbon consumption in company products and business models.

Via EcoVadis

Heavy equipment users have a new tool from Volvo Construction Equipment to help with carbon reduction goals tailored to their operations.

The CO2 Reduction Program is designed to be integrated into an organization’s operational plans and offers insights, analysis, improvement possibilities and sustainability targets while working toward carbon neutrality. The approach will be designed specifically to each user’s goals and operations.

The program will start by analyzing where an organization stands on its carbon emissions to establish a baseline for making improvements. It will use data from connected machines to determine the carbon footprint for all machines, regardless of brand, that are in use. Volvo CE says this will help users visualize the impact of carbon reduction changes over time.

Via EcoVadis

An analysis developed for HSBC UK by a team at Harper Adams University forwards a list of ‘key suggestions’ to cut carbon emissions and the carbon footprint of the UK food supply chain.

Three academics from the University’s department of food, land and agri-business management prepared the report, which examines the issues currently facing the UK’s supply chain when it comes to sustainability – and makes recommendations as to how improvements could be made.

Via EcoVadis

Food wholesaler and retailer SpartanNash announced Thursday it is reducing the company’s carbon footprint in 2022 through an annual fleet mileage decrease in excess of 7 million miles, representing 10% of total fleet mileage. According to the company, this network optimization eliminates nearly 10,000 metric tons of greenhouse gas emissions and provides faster, fresher and more cost-effective deliveries for SpartanNash’s food retailer customers.

Via EcoVadis

The BMW Group is systematically pursuing its climate goals for the supplier network and significantly reducing the carbon footprint of its steel sourcing. Following initial contracts with European suppliers, the BMW Group has now concluded further agreements for the supply of CO2-reduced steel in the US and China.

“Steel is one of the main sources of CO2 emissions in our supply chain. That is why we are comprehensively reorganising our steel portfolio – so we can supply our global production network with over on third of CO2-reduced steel from 2026. This will reduce the carbon footprint of our supply chain by 900,000 tonnes per year, while at the same time driving the transformation of the steel industry,” said Joachim Post, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network.

Via EcoVadis

New research by the University of Exeter and Philips UK&I urges the NHS and its suppliers to systemically adopt circular economy (CE) practices in order to meet the NHS’s net zero by 2040 target and improve patient care.
The research follows a key commitment made by the Government to achieve a net zero NHS by 2040, a UK-led COP26 Health Programme and £280 million of funding to decarbonise the NHS estate between now and 2025.

The NHS’ Carbon Footprint and Carbon Footprint Plus (which includes the supplier footprint) are currently 6.1 MtCO2e and 24.9MtCO2e per year respectively.

Suppliers to the NHS are responsible for 62% of all NHS emissions. To achieve the target set by NHS Carbon Footprint Plus, the health service must achieve 8% CAGR reductions in carbon emissions from 2020 to 2036, a rate far higher than the 1% historical average.

Via EcoVadis

Dirk Holbach, chief supply-chain officer for Henkel’s Laundry & Home Care business unit, shares lessons from his seven-year journey in the role and what leaders should be prepared for in the future.
While current headlines about product shortages and empty shelves have highlighted the importance of the supply chain, that process began in early 2020. Companies that had labored to create a lean global supply chain needed to scramble to adjust to the effects of the pandemic. Beyond that, sustainability has also become a top priority on the CEO agenda, making the supply chain an integral part of managing an organization’s carbon footprint. Consider, finally, the imperative to incorporate digital technologies, and one could argue that managing the supply chain in the current landscape is one of the most complex roles in an organization.

Via EcoVadis