Supply Chains as a Game-Changer in the Fight Against Climate Change
Supply-chain decarbonization will be a ‘game changer’ for the impact of corporate climate action. Addressing Scope 3 emissions is fundamental for companies to realize credible climate change commitments.
In most supply chains, the costs of getting to net zero (the state in which as much carbon is absorbed as is released into the atmosphere) are surprisingly low. Even full decarbonization would result in end consumer price increases of only 1% to 4% in the medium term—less than $1 on a $40 pair of jeans.
Eight global supply chains account for more than 50% of annual greenhouse gas emissions. Only a small proportion of these emissions are produced during final manufacturing. Most are embedded in the supply chain—in base materials, agriculture, and the freight transport needed to move goods around the world.