Sustainable Supply chain- One eco-conscious step at a time

Sustainable Supply chain- One eco-conscious step at a time

As decarbonization rises to the forefront of the global agenda, it has become a widespread phenomenon for organizations to establish targets aimed at achieving carbon neutrality. It is widely acknowledged that this goal encompasses the need to neutralize carbon footprints across all three types: Type-1, Type-2, and Type-3. However, measuring the Type-3 carbon footprint poses a formidable challenge, particularly for the corporate sector, making the path to carbon neutrality easier said than done.

To illustrate this complexity, consider the insights provided by Suzanne Greene, a researcher specializing in Sustainable Supply Chains at MIT. It may be assumed that a seemingly innocuous product like a banana is carbon neutral, but in reality, this is not the case. The production of a banana involves the consumption of fertilizers and pesticides, transportation with associated packaging, carbon footprints incurred by retail stores, and the environmental impact of disposal. For instance, according to Greene's research, a single banana sold in Boston contributes 118 grams to its carbon footprint. This seemingly minor figure becomes significant when we consider that the banana industry produces approximately 100 billion bananas annually.

Therefore, achieving carbon neutrality necessitates a comprehensive understanding of the Type-3 carbon footprint associated with a product. Given that Type-3 encompasses the entire supply chain of an organization, attaining carbon-neutral status requires a collaborative effort from all stakeholders within the end-to-end value chain of companies aspiring to achieve carbon neutrality.

However, what are the driving forces compelling organizations to embark on the path of decarbonization and invest significantly in the current carbon neutrality buzzword? Several factors validate these investments, two of them are:

  1. Substantial shifts in consumer behaviors.
  2. Heightened priority among investors.

Now, let's explore the levers available to advance towards a more environmentally sustainable supply chain and outline the steps for monitoring and optimizing our carbon footprint:

  1. Sustainable procurement practices.
  2. Localization and local sourcing of materials.
  3. Optimization of logistics and the adoption of sustainable transportation methods.
  4. Implementation of value engineering techniques.
  5. Integration of digital technologies to enhance operations, such as digital augmentation and the establishment of a digital thread.
  6. Utilization of artificial intelligence (AI) and machine learning (ML) for data-driven decision-making.

And many more..................


I shall be elaborating these leavers in my forthcoming publications. Please continue to stay connected with my work.

Your feedback and suggestions will consistently motivate me to enhance the quality of my content.





References:

https://bwdisrupt.businessworld.in/article/Sustainable-Logistics-Moving-From-Problem-To-Solution/30-06-2022-434781/

https://www.thomsonreuters.com/en/careers/careers-blog/new-global-supply-chain-how-technology-can-break-boundaries.html

https://www.youtube.com/watch?v=xD0OJEBepF8

https://www.financialexpress.com/opinion/climate-emergency-is-business-urgency/2579266/

https://www.mckinsey.com/business-functions/operations/our-insights/coca-cola-the-people-first-story-of-a-digital-transformation

https://www.protocol.com/braintrust/biggest-supply-chain-mistakes?rebelltitem=13#rebelltitem13

https://hbr.org/2022/03/the-messy-but-essential-pursuit-of-purpose

Vikas Agnihotri

Thought Leader. Mentor & Policy Advisor in area of steel Industry and Information & communications technology .

1 年

Hi I am working on exactly the same concept in the steel industry. the so-called net zero is a fools paradise unless they consider the type-3 emissions, especially the carbon footprints during transportation from manufacturer to customer. There are systems available to do that. will revert to you once I post my blog on the net.

Rohit Kanaglekar

Product and Services Delivery, Program Management, Customer Outcomes, and Team Building

1 年

Good article. It would help if you could elaborate with a use case %impact created by each lever in achieving the goal of sustainable supply chain. Thanks!

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