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Climate change and supply chains - opportunity knocks

This great GreenBiz article talks about the opportunities for businesses that concentrate on greenhouse gas (GHG) emissions reductions.

As "former U.N. climate chief and one of the foremost architects of the Paris Agreement Christiana Figueres told business leaders last month, getting to 1.5C will require "exponential progress" on emissions reduction. Supply chains offer that opportunity". Climate action is a question of when not if, and smart WA businesses and organisations will be ahead of the curve on supply chain opportunities.

GreenBiz explains: "In a world first for supplier agreements, BT is deploying a new contract clause that will require suppliers to benchmark their emissions for the supply chain of products and deliver emissions reductions over the term of the agreement".

And I love this next quote, particularly because many organisations still see climate action as a cost, and not relevant to BAU:

"Most of the savings will come from Huawei's suppliers switching to LED lighting, more efficient air conditioning and other energy-saving technologies. As well as saving carbon, this will deliver considerable cost savings for Huawei and its suppliers as well, a key driver in getting it to sign up to the clause...BT reckoned the clause has delivered an 8 percent reduction in energy spend across the supply chain, with suppliers typically securing a return on investment on any upgrade investments within one year to 18 months".

Granted, it took some convincing for Huawei to sign up, and it took a fair amount of work to get baseline data together and come up with a strategy, but ultimately it was worth investing time and resources, even in pure financial terms.

There would also be opportunities to get businesses in the supply chain together to co-create better services and products, with the shared goal of reducing GHG emissions. Done well, it can be a win for all businesses that participate. Check out my earlier post on the collaboration between textile companies, for instance.

Businesses can find the idea of co-designing new products or services a bit daunting, particularly if you need to work with people who are usually your competitors. But we're not just leveling the playing field here, we're building a new one.

Remember that you generally don't get new ideas by talking to the same people in the same old way. Get diverse groups together in processes that really let them co-create, and watch the fun!

#Cocreate #Emissionsreductions #Supplychain