8 ways a company can reduce carbon emissions from their supply chain

I am on a mission. A mission to get used to using AI to get more done. This blog is AI-enabled. The watercolor art at the top of this post was made in Midjourney. AI can't do everything yet but I'm determined to explore and see the limits how how we entrepreneurs can use it to go further better faster and stronger.

This morning I asked ChatGPT how a company can reduce emissions from their supply chain. This is something I know a bit about however I wanted to see what the AI would come up with, and it gave me 8 points:


  1. Conducting a carbon footprint analysis: This allows companies to identify and prioritize areas of their supply chain where they can have the greatest impact on reducing emissions.
  2. Partnering with suppliers: Companies can work with suppliers to set emissions reduction targets and collaborate on implementing sustainable practices.
  3. Optimizing transportation and logistics: This can include using more efficient modes of transportation, reducing the distance goods need to travel, and consolidating shipments.
  4. Encouraging sustainable practices in the supply chain: Companies can use their purchasing power to incentivize suppliers to adopt sustainable practices, such as using renewable energy or reducing waste.
  5. Investing in green technologies: Companies can invest in technologies such as electric vehicles, renewable energy and energy-efficient equipment in their supply chain.
  6. Implementing sustainable procurement: This can include taking into account the environmental impact of products and services when making purchasing decisions.
  7. Collaborating with industry groups and other organizations: Companies can collaborate with other organizations to share best practices and work on common goals for reducing emissions in the supply chain.
  8. Implementing green certifications and standards: Companies can use certifications and standards such as ISO 14001 and GRI to help ensure that their suppliers are meeting certain environmental standards.
It's not a bad list honestly. It's always easier to come up with a list when you know more specifics about the specific company you're dealing with and the sources of emissions they have, and for giving the AI really nothing to work with these are good places to start exploring.

One thing that is worth highlighting is the aspect of supply chain collaboration. The green transition is more than recycling, using solar power, or shipping by train instead of truck. It is about changing the fundamental way the industry operates, from a traditional linear economic model to a circular one. 

This is a massive shift in the way companies operate. Companies will need to collaborate with their suppliers and customers to plan and design for circularity. They will need to adopt circular thinking at all levels of operation. They will need new tools to manage their products' life cycles, and they will in many cases need to add value in different ways than they have in the past. Opportunities for arbitrage will be replaced by opportunities for supply and logistics planning, finance, refurbishment, and material recovery. Many suppliers will become service providers in this new industrial reality, supplying not only materials, components and products to their customers, but also second life plans, takeback schemes, and ESG reporting.

The change is already happening. 

Comments

Post a Comment

Popular posts from this blog

Battery Passports e-book Review!

Image
My company, Minespider, recently released an e-book about electric vehicles, their supply chains, and battery passports. This is an important but complex topic so I thought I'd ask ChatGPT to help me summarize it. 1. According to the document, what is a battery passport? A battery passport, as described in the chapters, is a document or digital record that contains detailed information about a battery, including its technical specifications, design, performance, and history of maintenance and repairs. The purpose of a battery passport is to provide a comprehensive understanding of the battery and its behavior over time, which is useful for managing its performance and ensuring safe and efficient operation. The information in a battery passport can be used by engineers, operators, and maintenance personnel in the battery industry, as well as other stakeholders, to make informed decisions about the battery's operation and maintenance.  2. Who should read this e-book? The person
Read more

Is it time to herd some cats?

Image
If you want to go fast, go alone, if you want to go far, go together.  I used to think of this with a focus on the second half. Like it was an admonishment to be patient and work with others to achieve more than you could on your own. Now that I'm a bit more experienced as an entrepreneur, I view it a bit differently.  I see it more as there's a time and a place for everything.  There are times to go fast, and there are times to go far. Both options have their pros and cons, and the key is understanding when each approach is most appropriate. One of the challenges many startups face is knowing when to go alone and when to bring in a team. As an entrepreneur, you'll have to make this decision many times throughout your journey. Both options have their pros and cons and understanding when each approach is most appropriate is essential. Going alone, also known as "solo entrepreneurship," can be a great option when you're just starting out. When you're first g
Read more

The challenges of a sustainable economy

Image
The urgency of the climate crisis has shifted the discussion on sustainability. Our economic model incentivizes growth and profit above all else, and we are starting to recognize that this cannot continue. Four out of five corporates have adopted a climate pledge, and almost all have some form of sustainability goals.  Nevertheless, in practice when the goals of people and planet conflict with profits, profits tend to win. It is a fundamental problem with the incentives of the economic system that companies who make more profit are rewarded, and the consequences for missing sustainability targets pale in comparison to the consequences for missing financial targets.  To that end, a number of different economic models have been proposed over the years that could better take sustainability goals into account. The Doughnut Economy, the Sharing Economy, the Steady-State Economy, the Circular Economy, and others have gained varying levels of interest but have had trouble gaining actual momen
Read more