What do Ikea , Ericsson , Mastercard and Microsoft have in common ? All are putting an emphasis on members of their supply chain tracking and reporting their emissions data . It ’ s an important part of shippers ’ efforts to reduce the carbon footprint of their entire supply chain operations . Whether you ’ re delivering a sofa or a computer , what these and other major shippers will be demanding within the next few years is data about your company ’ s carbon emissions . For example , Microsoft now requires that its suppliers disclose consistent and accurate emissions data all the way down to their delivery partners . Another company , BT , included a clause in their 2021 commercial contracts with 12 of its key suppliers that commits them to reducing their carbon emissions over the term of the contract .
“ Lots of big companies have made net-zero goals , but have few plans on how to achieve them . They will be looking to their supply chain partners to help them show progress ,” points out Shawn Stockman , VP of Sustainability Solutions at
OnePak . “ In the foreseeable future , you can expect your customers to require their vendors , including final-mile partners , to share analytics about their carbon footprints . This is especially true for public companies that come under the scrutiny with the SEC .”
“ We work heavily in the electronics sector , and this is already happening there in a big way ,” says Stockman . His company , Onepak describes itself as one that ‘… bends the traditional linear supply chain into a sustainable circle … The company has sustainably executed more than two billion pounds of product returns for a global customer base that features leading organizations such as Dell Technologies , IBM , United Technologies , Carrier , Diebold , General Motors , Toyota , USBank and DLL Group .” They have an online reverse logistics platform that connects businesses and consumers with others who can reuse , repair , resell , or recycle their used or returned products .
Stockman expects that within the next few years many members of the CLDA will be approached when contracts are up for renewal with a requirement that they track and report their emissions as a condition of the new contract . “ If you ’ re a final-mile partner for a big shipper , you can expect to hear something like this at contract renewal time : ‘ I need you to start telling me what the emissions are for all the deliveries you made for me last year .’ What will your company do the first time a big customer asks those questions ?”
Compliance Driven Emissions Tracking
Stockman says that initial requests for emissions stats will be compliance driven . “ The SEC has put out a lot of smoke signals about this . Something ’ s coming . The regulations are currently being finalized . It ’ s not a question of whether it ’ s coming . It ’ s a question of how demanding they will be ,” he says .
Those proposed regulations would require companies to provide an accounting of their greenhouse gas emissions , the environmental risks they face , and the measures they ’ re taking in response to them . Many expect the regulations to be finalized and become effective by December 2022 . And , while the first round of regulations isn ’ t likely to include all components of the supply chain in 2023 , they are expected to apply to last-mile providers by 2025 . Here ’ s how an
article in Fast Company describes the impact of those SEC regulations : “… the new rule would require all public companies to report on their direct emissions , as well as the emissions from their energy use . Larger companies also will need to have those numbers vetted by independent auditors ; and most companies will have to report on indirect , or so-called ‘ Scope 3 ,’ emissions in their supply chains — typically the greatest source of emissions for an average company .” CLDA members fall into that Scope 3 category .
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