SUPPLY CHAIN MANAGEMENT
BASF , meanwhile , has invited its suppliers to join a CO 2 management programme to improve transparency on product carbon footprints by leveraging a valuation methodology and specific tools . To achieve its goal of having 80 % of suppliers showing improvement upon re-evaluation , the company has audited a total of 135 supplier sites and initiated 1,044 sustainability assessments . These efforts have allowed BASF to support its suppliers in developing relevant measures to fulfil its sustainability standards . When no improvement is made , BASF retains the right to terminate a supplier relationship , as does Bayer . First-tier supplier projects arguably form the most critical lever that any company has for reducing supply chain emissions . While companies can make blanket requirements about emission reductions for the bulk of their supplier partners , identifying where the most necessary reductions are , and encouraging - or financing - projects that reduce emissions is the best way to drive reductions . Strategic suppliers or suppliers in strategic categories are more likely to be willing to develop projects to meet a buyer ’ s requirements .
Lever 2 : Upstream raw materials projects
Upstream raw materials projects encompass CO 2 capture , biobased materials , increased circularity and other interventions that reduce emissions and drive other positive impacts like biodiversity and sustainable livelihoods . These projects are undertaken within a supply shed ( specific supplier geography ) in a company ’ s upstream supply chain for a critical raw material . Companies may buy these critical resources directly and may include community projects where relevant . First , companies should assess the risks and opportunities across the upstream supply chain to identify priority ingredients or critical commodities . These projects require collaboration with key stakeholders like buyers , suppliers , NGOs and community stakeholders . Together , they can form coalitions that identify high-impact emissions reduction projects and even fund them . By partnering , companies can unlock shared value at a lower cost or larger scale . Coalition members must carefully evaluate the impact to ensure fair and correct emissions calculations and attribution of reductions . This approach is on the rise . It is helping companies find new and tangible ways to scale emission reductions , reduce biodiversity loss and tackle deforestation , which has proven incredibly challenging . How are companies matching action to ambition ? Unilever is committed to replacing the fossil carbon in its laundry and cleaning formulations with clean CO 2 carbon ( purple carbon or captured CO 2
; green carbon from plants and biological sources ; blue carbon from marine sources ; grey carbon recovered from waste materials ). It is also offering € 1 billion to finance biotechnology research ,
CO 2 and waste utilisation , and low carbon chemistry . Lanxess has entered a strategic partnership with BP to use sustainable biobased raw materials and produce high-tech plastics . Since Q4 2021 , BP has supplied Lanxess ’ s production site in Antwerp , Belgium , with sustainably produced cyclohexane . Finally , Domo Chemicals and Covestro , along with the Circularise initiative , are partnering to implement blockchain technology to improve traceability and transparency in plastics manufacturing . Upstream raw materials supply chain projects offer a heady mix of multi-stakeholder collaboration , R & D , innovation , and carbon emissions reductions . Projects to develop low-carbon alternatives for chemical processes can reduce emissions and
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