How can companies reduce their carbon footprint in the supply chain?

The consumer world is changing. Consumers are increasingly paying attention to whether products are produced according to environmental standards and whether sustainability strategies are anchored in corporate philosophies. Businesses are also recognizing the competitive advantage that comes with long-term sustainable supply chains. A key factor here is the reduction of pollutant emissions. But how can those responsible implement their plans and reduce their CO2 emissions?”

Success Factors Green Supply Chain Management

The ecological footprint in product manufacture is increasingly becoming a responsible indicator of corporate management. In addition, public regulations such as the increase in the CO2 tax and the German supply chain law, which will come into force in January 2023, require proactive action. According to current studies on green supply chain management, companies are becoming more and more active in making their supply chain processes more sustainable. About half (56%) of the 200 logistics decision-makers surveyed state that they have set themselves ambitious goals to reduce CO2 emissions in the future. But what can companies really do to minimize CO2 emissions in their supply chains and where exactly should those responsible start?


No short-term solution

The current situation in the world shows that the issue of ecological and economic sustainability is more relevant than ever. It’s not just about reducing CO2 emissions, but also about ensuring the company’s profitability. You cannot fight the problem with the same means that caused the situation. Anyone seriously considering a sustainable strategy will quickly realize that there are no quick and cheap solutions. While short-term measures such as traffic optimization, compensation and modernization are important, it is also important to work towards a long-term perspective.


Analysis of your own CO2 emissions as a first step

Companies should first analyze the current situation. Where in the supply chain is CO2 emitted? The more accurate your data is, the better. Businesses can get help here. In this way, companies can help to calculate the „carbon footprint“, evaluate existing data and help to identify areas for sustainable design and individual strategies for reducing CO2 emissions. The majority of CO2 emissions are generated over long distances on the transport route. However, there is often a lack of transparency here and customers have little influence on this. Accurate analysis and evaluation of transport data will help to make effective changes. Changes in the means of transport, improved container utilization, low-emission means of transport or warehousing strategies can lead to CO2 savings. Topics such as near sourcing are also gaining attention again. Procurement and production relocations to geographically close regions will shorten transport routes and reduce CO2 emissions.