Tips for Managing Greenhouse Gas Emissions in the Supply Chain – Part 2

By: Alexandra Kueller

Last week, we published a blog post that highlighted some of the ways to help get your supplier to reduce greenhouse gas (GHG) emissions based on a report that BSR produced. The focus on part 1 was where to start when trying to reduce GHGs; this week, part 2 will focus on moving forward with your supplier.

Once you establish that you not only are committed to reducing GHGs in the supply chain, but also can provide the direction to do so, then it’s time for you to start looking to the future and think of ways you can move forward with your suppliers. The two points below – Reward the Suppliers and Build the Market – are key ways that you can improve GHG emissions in your supply chain:

Reward the Suppliers

What happens when you have suppliers that want to reduce GHG emissions, but the right incentives aren't there? Maybe it’s time to start considering potential incentive programs, such as rewarding suppliers for investment and performance in GHG reduction. Providing that extra motivation for suppliers might be the key to allowing reductions to soar.

One such way is connecting the suppliers to the benefits of GHG reductions. Sometimes the cost savings of reduction (IKEA and Dell are just two of the many companies that take this route) or potential government incentives are not as apparent right away and you might have to show the supplier their options to help motivate them.

Another way to keep your suppliers engaged is by rewarding them directly from your business. BSR lists some possible ways to reward your suppliers – both in financial and non-financial ways:

• Sponsor energy efficiency audits, training, and project planning for the suppliers who are willing to commit
• Initiate a pilot project with a leading supplier and provide support throughout – this can be later used as an example for other suppliers
• Get your public relations team involved and generate publicity through news articles to help make the supplier more visible to other potential clients
• Integrate energy metrics and scorecards in procurement conversations with suppliers

Build the Market

While you might have the plans and the direction of where your company is going, sometimes efficiency services are still developing in many regions and long-term GHG reduction projects face many barriers. By helping build that market through partnerships, you can help create an opportunity to allow future emissions reduction projects to flourish.

Some of the ways to help build the reductions market is by making the most of existing opportunities and by engaging in industry collaborations. While a region might still be developing the GHG reductions market, as a buyer you can look to see what expertise, information systems, and financing is already in place in those regions.

Ways Forward

It’s never too early to start looking ahead. Here are some ideas to keep in mind as your company moves forward:

• Research will help shed light on opportunities with the greatest potential
• Sharing of your company’s best practices is essential to help engage other companies
• Continuation of cross-sector partnerships to help to standardize GHG measurement

If you want to learn more about sustainable supply chains, you can do so by reading our white paper.

Tips for Managing Greenhouse Gas Emissions in the Supply Chain – Part 1

By: Alexandra Kueller

BSR recently published a report that focused on targeting greenhouse gas (GHG) emissions from Chinese suppliers in hopes of reducing said emissions. With looking to assist global companies in reducing GHG emissions, BSR’s report can be expanded and applied to suppliers all around the world.

We went ahead and broke down the report into two sections, with first part focusing on laying the foundation for successful GHG reductions with your suppliers. The two points below – Demonstrate Commitment and Provide Direction – are key opportunities to help overcome challenges your business might face when trying to reduce GHGs with your suppliers:

Demonstrate Commitment

All too often, collaboration among buyers and suppliers can become sidetracked when one party (or both) is too focused on short-term issues. Take the lead and show that you are committed to the long-term. Two ways of doing so are by ensuring internal alignment & capability and by signaling long-term climate engagement.

In order to move forward with reducing emissions with your suppliers, you first need to make sure that everyone within your company is on the same page. Some companies, like HP for example, aligned its supplier sustainability team with its broader supply chain cooperation to help ensure that everyone had the same goal across the board.

According to BSR, companies that are making progress in long-term climate engagement tend to have the following views:

• Climate is seen as both an urgent and long-term issue that needs to be taken seriously
• There is a need for integrating energy and climate considerations into a company’s business strategy and plan
• Actions are connected and reinforced through programs, policies, etc. to help reach business goals
• All offices – corporate, regional – are aligned to offer the same, organized, and clear message

So don’t be afraid to ruffle a few feathers and make some changes!

Provide Direction

How many times have you been working on a project with multiple people and no one’s ideas or vision seem to line up the same? This situation is also common among companies and their suppliers when it comes to reducing GHG emissions. It is important to provide direction, that way there is little to no confusion between you and your supplier (and that way you can start seeing some reduction results!).

In order for your company to provide the best direction possible, it is imperative that you find the best possible framework for your company. Once you have the best framework, you can start your plan of attack: do you go for the “low-hanging fruit” or do you want to have a goal that will take more time?

Once you figure out what direction your company is taking, it is also important for you to find suppliers that are willing to take your direction and make the most out of it. According to the BSR report, here are the three “A’s” to look for in supplier carbon management:

• Ambition – management commitment, previous energy work, willingness to collaborate
• Actionable information – desired potential actions, progress on potential actions, sector-specific energy priorities
• Ability – energy management experience, data collection capability, energy management team

No time is better than the present to start mapping out where you want your company to go and provide the direction that will help you reduce those GHGs!

Look for the second part in our next blog, but if you want to learn more about sustainable supply chains, you can do so by reading our white paper.

7 Tips for Achieving Sustainability Consensus

Ask a dozen people about their sustainability priorities, and you'll get a dozen answers. Just kidding -- you'll probably get a hundred answers, since people rarely restrict themselves to just one priority. So how do you narrow down the options enough to move forward with a plan? Is sustainability consensus even possible?

Getting People to Say Yes When Everyone Isn't on Board, by team development consultant Dana Brownlee, offers seven ways to move closer to consensus. While her article isn't targeted specifically for sustainability, it's easy to see the possibilities for sustainability professionals.

1. Set guidelines (about the decision-making process)
2. Separate and clarify (so you *really* understand any disagreements)
3. Get others involved (to ensure you have enough information to make a good decision)
4. Change things up (to get people out of their usual ruts)
5. Have a group decision (using collaborative decision-making techniques)
6. Ensure it isn't personal (and take personality conflicts offline)

Have you tried any of these approaches? Which ones work best for your team? At SSC, we insist on setting decision-making guidelines early (#1), but we could probably use some work on changing things up (#4). Maybe our next planning session needs to be in a picnic setting!

Thanks to 2degrees for publishing our article!

Have more ideas to add to the list?  Leave a comment or drop us a line!