Supply chain decarbonization can boost corporate profits and help companies realize net-zero emission mandates.
This transformation is already happening in industries like retail. Recently, a retired executive from a Fortune 50 retailer pointed out that large retailers already have a track record of optimizing every tier of the supply chain. Food-related environmental, social and governance requirements have been a powerful driver of such change.
The key to reducing emissions is enabling transparency about emission drivers along the entire chain, according to Christian Heinrich, Co-Founder of carbmee, an environmental intelligence platform. “The category manager will need to understand where the hot spots of CO emissions are in the supply chain,” Heinrich explains.
A practical example within retail is the simple bicycle, which is typically made using energy-intensive materials and manufactured overseas.
As a result of the design changes, a greater number of involved parties—ranging from suppliers to package producers to the retailer itself—can benefit from added value:
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