Understanding the impact of supply chain carbon footprint will help companies prepare for the imminent regulatory
environment and explore long term cost saving opportunities.
With the number of carbon regulated markets increasing, suppliers around the world will face additional carbon costs. In Australia, the recently introduced carbon tax has already shown increase of energy prices to as high as 20 - 25%. Suppliers will pass on this additional cost to companies.
For most Fortune 500 or G-2000 organizations, over 75% of product related emissions occur outside their operational boundary. Suppliers with high carbon footprint are exposed to risk of increased operational cost and could even face shutdown due to stringent regulatory cap on emissions and energy.
With easy opportunities to mitigate procurement costs already explored, organizations that include Green measures into procurement metrics today will gain significant long term economic and environmental differentiators over competition. It will also help in shifting the focus of procurement from short term cost advantages to long term sustainable differentiators.
Are you equipped with the right tools and metrics to assess the environmental impact of supplies across all tiers (from feedstock to delivered product) of your supply chain?
Do you know the benchmark carbon footprint of your supplies and products?
You only audit my main suppliers. Is there a cost-effective way to assess the risk associated with all the other suppliers?
To estimate, discover, plan and mitigate emissions in your entire supply chain with little or no incremental effort from you or your team.
So far, supplier sustainability assessment program involved sharing a standard questionnaire with thousands of suppliers, evaluating their responses and based on the response, initiating a few detailed, expensive audits that ensure compliance and act as deterrents to the entire supply chain.
With Beroe’s signature offering - ‘Managed Services’ - the cost and complexity of sustainability assessment program is mitigated. This is a comprehensive package that evaluates, assesses, records and mitigates emissions across your supply chain with almost no effort or involvement from you or your team.
Once you indicate the products, process or suppliers you want evaluated, Beroe takes complete ownership of your internal and external sustainability needs. From creating assessment material to interviewing & validating suppliers to developing supplier or process specific carbon footprint mitigation strategies, Beroe’s Managed Services is a simple and cost-effective alternative to involved, lengthy & complex carbon emission studies.
Initiate a pilot project for a single supplier category and develop necessary material to assess suppliers
Set up a workshop with procurement professionals to identify opportunities and set future priorities
Work with suppliers to gather supplier data, collate responses, and analyze metrics for rating and ranking suppliers
Generate action plan with results from supplier analysis and communicate it to the suppliers
Engage with high risk suppliers and initiate joint implementation programs to improve supplier’s emission performance
These tools are easy to use applications that assess emissions based on real time parameters.
Upon filling a short questionnaire the tool gives you the emission estimation for the process, along with suggested mitigation strategies.
This tool allows you to benchmark your carbon footprint vis-à-vis the industry averages.
It goes into specifics of product specific carbon footprint and helps you turn that knowledge into a competitive advantage.
(Pic Courtesy: KPN ) Michelle Baker, the Chief Procurement Officer (CPO) of Dutch telecom giant KPN, has an undergraduate degree in Dramatic ...
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