Supply chains can account for three-quarters of a typical company’s Scope 3 emissions, which makes tackling the supply chain essential for manufacturers to reach net zero.
On a recent Edison Energy and Alfa Energy (an Edison Energy Company) webinar with 137 participants from the automotive, pharmaceutical, shipping, and other heavy industrial sectors, it became clear that when it comes to setting and reaching those net-zero goals, it’s still early days for many companies.
According to a survey of global manufacturers on their net-zero plans:
- 59% reported that their company has a supply chain decarbonization goal, while nearly 38% do not have a goal but plan on setting one.
- Of those who do have a decarbonization goal, just 17% reported having a decarbonization roadmap and a clear pathway for execution; 59% of those who do have a goal have a roadmap but no clear pathway; and a whopping 24% have a goal but no roadmap, and no insight into how that goal will be achieved.
In addition, respondents reported that their greatest challenges when it comes to understanding their supply chain emissions include accessing robust data; having minimal time, resources, and visibility into their supply chains; having too many suppliers; and not knowing where to start on their decarbonization journeys.
According to Joey Lange, Edison Energy’s Managing Director of Energy Supply Advisory: “If manufacturers are committed to curbing their CO2 emissions, they have to confront their supply chain emissions. And while these numbers are indicative of the challenges companies face, Edison Energy has the expertise and resources to put a solution in place. We help define the goal, create the roadmap, and clear the pathway for implementation.”
Meeting your suppliers where they are on their decarbonization journey is essential. At Edison Energy, we support our clients in supplier decarbonization through a variety of levers. These include strategy setting, supplier education and training resources, data collection, and implementation of decarbonization solutions such as energy audits, policy support and utility engagement, and onsite and offsite renewables, to help decarbonize supply chains at scale.
It all begins with building a tailored strategy, then deploying the most impactful tools that best address supplier sites, processes, and products.
“Edison Energy has been huge when it comes to education and support. We partner with Edison Energy so that our suppliers are getting the best customer service possible. That is how we’re going to achieve our goals at Honda because we need our suppliers to achieve their goals. We have approximately 500 suppliers that have already engaged with Edison and we have really great success stories.”
– Alissa Yakali, Supply Chain Sustainability Manager Honda Development & Manufacturing of America, LLC (HDMA)
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