CARBON FOOTPRINT
Traditionally , challenges in the supply chain industry ranged from volatile supply and demand to rising costs and visibility . Today , supply chains have the added pressures of high prioritisation of environmental , social and governance ( ESG ) efforts , regulations and ratings . The driving force behind this transition comes in a variety of forms but includes consumers , society , banks and investors , the corporate sector , and auditing and service providers .
One crucial priority for those in the industry is meeting net zero initiatives and goals . Despite the urgency to reduce emissions , the road to net zero is “ flanked by multiple laws and regulations ,” as Jasmin Pennicke , Senior Manager at PwC , explains . To tackle this minefield , “ it is clear that you need transparency and reduction measures to achieve carbon neutrality ”.
Despite more than 90 % of an organisation ’ s greenhouse gas emissions ( GHG ) coming from the supply chain , many struggle to make a meaningful dent in them . “ One of the biggest challenges now for companies is to deep dive assess how many emissions they can reduce depending on a certain measure , product , or material ,” explains Pennicke , while they continue to battle the usual cost targets . “ The comparison of cost to product carbon footprint will become a decisive criterion in future award decisions ,” she adds .
“ The comparison of cost to product carbon footprint will become a decisive criterion in future award decisions ”
JASMIN PENNICKE SENIOR MANAGER , PWC
70 July 2023