- More than 80% of leaders surveyed for this report view digitalization as essential to supply chain decarbonization, but only 33% have a system in place to measure the carbon footprint of their suppliers.
- The report includes recommendations for large enterprises, the financial sector, public administration, and shares a roadmap to help small-to-mid-sized enterprises (SMEs) transform Scope 3 commitments into action.
December 11, 2023, Louisville, KY: Schneider Electric has announced its collaboration with Women Action Sustainability (WAS), a non-profit association that promotes sustainability among companies, institutions and society, to publish a new report entitled, "Decarbonizing the Supply Chain: An Essential Step Towards Net-Zero". Also developed with support from We Mean Business Coalition, this report highlights the interconnectedness of supply chains and its ripple effect on decarbonization initiatives, highlighting the collective responsibility and impact that supply chain partners have in achieving carbon neutrality.
This path requires a synchronized approach across the business ecosystem. The report spotlights the essential role organizations and their supply chain partners have in reducing carbon emissions generated indirectly through upstream and downstream operations - classified as Scope 3, which on average, can account for 75% of total emissions.
"This report underscores the need for closer collaboration across our supply chains to collectively address the challenge of decarbonization," said Raquel Espada, Vice President, EMEA Strategy, Sustainability, Schneider Electric & Partner, Women Action Sustainability. "One actor's actions directly affect others, and a unified approach is essential to make a meaningful impact. At Schneider Electric, we recognize the importance of supply chain decarbonization and are committed to leading this transition to a more sustainable future. This report not only highlights the challenges, but also addresses opportunities and best practices that can accelerate our path to Net-Zero."
More than 80% of the leaders surveyed for this report believe that digitalization is key to the decarbonization of their supply chain, however, only 33% have a system in place to measure the carbon footprint of suppliers, and less than 6% use digital tools to measure impact and progress.
In addition, the report reveals that while decarbonization conversations are moving forward, planning and implementation need to accelerate. According to results from this study, 43% of respondents have not yet disclosed their Scope 3 emissions. Incidentally, the remaining 57% of respondents who disclose Scope 3 emissions are found to demonstrate more mature practices than the overall global average (only 41% of companies that disclose to CDP, currently report supply chain emissions).
Furthermore, small-to-mid-sized (SMEs) continue to face specific challenges for Scope 3. With SMEs accounting for 90% of the world's firms (OECD), support provisions for SMEs and engagement with these key links of the supply chain are essential.
"The decarbonization of the supply chain is essential for the real decarbonization of the economy. Supporting SMEs in this challenge is a priority today. Support in terms of knowledge, provision of tools and access to financing," said Mónica Chao, President, Women Action Sustainability.
In addition, the report includes a series of recommendations for companies on their path to decarbonization. In this regard, the report designs a specific roadmap for SMEs to transform their commitments into action, identifying the driving factors, such as green finance, digital tools and strategic partnerships. It also provides recommendations for large companies to lead participation and action in supply chain initiatives. It also provides recommendations for the financial sector, a catalyst for change, as well as for public administration to accelerate and simplify the transition.
"The transition to a net-zero state is a major challenge. Instead of penalizing companies for not having perfect implementation plans, we should strive to remove the obstacles that prevent them from reaching their sustainability goals. The number of companies engaged must increase from thousands to millions. In addition, it is essential to provide companies with a new climate structure that offers flexibility and accelerates the decarbonization process," said María Mendiluce, CEO, We Mean Business Coalition.
About Women Action Sustainability
Women Action Sustainability is a non-profit association, made up of more than 200 women managers, whose goal is to ensure that sustainability is present at the tables where decisions are made at the highest level. Thus, through female leadership, WAS calls on companies, institutions, entities and society in general; to boost their commitment to sustainability through an integrative, informed, diverse and professional approach. https://wasaction.com/
About We Mean Business Coalition
We Mean Business Coalition works with the world’s most influential businesses to take action on climate change. The Coalition is a group of seven nonprofit organizations: BSR, CDP, Ceres, Climate Group, CLG Europe, The B Team and WBCSD. Together, we catalyse business and policy action to halve emissions by 2030 and accelerate an inclusive transition to a net-zero economy. Find out more at www.wemeanbusinesscoalition.org.
About Schneider Electric
Schneider’s purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. We call this Life Is On.
Our mission is to be your digital partner for Sustainability and Efficiency.
We drive digital transformation by integrating world-leading process and energy technologies, end-point to cloud connecting products, controls, software and services, across the entire lifecycle, enabling integrated company management, for homes, buildings, data centers, infrastructure and industries.
We are the most local of global companies. We are advocates of open standards and partnership ecosystems that are passionate about our shared Meaningful Purpose, Inclusive and Empowered values.