Supply Chains are central to a “green recovery”

The global lockdown and resulting fall in emissions has highlighted the impact our actions have on the health of our planet. But as economies around the world open up, unless we are careful many of the same negative climate impacts will rapidly return. Consequently, fuelling a ‘green recovery’ must be at the forefront of everyone’s thinking and the supply chain industry can lead the way.

One of the greatest contributors to air pollution and CO2 emissions is transportation, making up almost a quarter of the total global CO2 emissions. These numbers can be cut down dramatically. Yet, just 30% of companies are currently incorporating sustainability into their supply chain decisions. While sourcing a singular part from a manufacturer further away may be cheaper, if you end up shipping that part halfway round the world for assembly, it could be worth looking a little closer to home.

Supply chains have an impact on the entire planet: air, water and land. To reduce the effects, we must find ways to make supply chains shorter, smarter, and more circular. Companies will have to expand their focus beyond cost and service, placing greater focus on sustainability and risk considerations. However, sustainability can also provide a business benefit; making supply chains as efficient and eco-friendly as possible can help reduce operating costs and complexity, improving profit margins and brand image and reducing risk along the way. But if this is to be achieved, both the mentality and practice will need to be changed to factor in sustainability.

 

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