Transformation :
Six proven levers for reducing emissions
within chemical supply chains
Ben Moens and Stéphane Rapoport , managing directors of sustainability solutions at Engie Impact , discuss the immediate actions chemical companies can take to reduce their carbon footprints
No company ’ s action plan is complete without considering how to remove greenhouse gas ( GHG ) emissions from its supply chain . Corporations are ratcheting up their efforts and using science-based targets ( SBTs ) to set supplier emissions targets and address Scope 3 emissions . The complexity and opacity of global chemical supply chains mean that Scope 3 emissions are underreported and difficult to measure ( Figure 1 ). Organisations often lack the right information to effectively reduce emissions across their global supply chain . However , we cannot wait for perfect information before acting . Companies must move quickly to reduce emissions within their supply chains . The broad range and impact of Scope 3 emissions on our total carbon footprint call for action . Leaders must decarbonise their supply chains to accelerate progress towards ambitious goals . In our experience working with many multinational companies , we have seen the most significant emission reduction potential derived from six key levers that procurement and sustainability leaders can implement right now ( Figure 2 ). Each presents valuable lessons from industry leaders in the chemical sector .
Lever 1 : First-tier supplier projec ts
Projects to reduce emissions by first-tier suppliers take different forms , such as reducing energy consumption , switching to renewable energy or investing in R & D to improve processes and identify alternative feedstocks where possible . These projects can be catalysed by a buying company or developed by suppliers without any buyer intervention . Buying companies can start by identifying hotspots , such as strategic suppliers and categories responsible for much of their Scope 3 emissions . Taking a buyer-led approach to project development , companies must engage directly with suppliers , preferred relationships and the reporting requirements .
Figure 1 – Scope 3 emissions
Taking a supplier-led approach , companies can create multistakeholder coalitions to identify projects and facilitate their implementation . Supplier workshops , training and information portals are ideal platforms to foster awareness and share best practices . Collaboration is paramount in empowering suppliers to identify viable emission reduction opportunities and lead project implementation . How are companies matching action to ambition ? Bayer , for example , works only with suppliers with high sustainability ratings . Through an extensive sustainability assessment process , including audits delivered by external providers , Bayer provides its suppliers with recommendations for sustainability improvements .
48 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981