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Only 10% Of Companies Actively Manage Their Supply Chain Carbon Footprints, Study Finds

Mon, 06/14/2010 - 11:40am
Material Handling Industry of America

Only 10 percent of companies actively model their supply chain carbon footprints and have implemented successful sustainability initiatives, according to a recent Accenture survey.

The global survey of 245 supply chain executives also found that supply chain “masters” (organizations that have achieved top performance in both cost effectiveness and customer service) are more than twice as likely as non-masters to actively model their supply chain carbon footprints and implement successful sustainability initiatives.

“Supply chain masters are making great strides in linking cost effectiveness, customer service and sustainable supply chain practices,” said Jonathan Wright, senior executive in Accenture’s Supply Chain Management practice. “Despite today’s reduced energy costs, there continues to be a business case for greening the supply chain, resulting in lower costs as well as environmentally responsible processes.”

The study also found that 37 percent of supply chain executives have no awareness of the level of supply chain emissions in their supply chain network. However, 86 percent have undertaken at least one green initiative in their warehouses. These measures were predominantly in the areas of recycling and using natural light, lighting management systems and energy efficient bulbs. In addition, 38 percent said they have undertaken at least one green initiative in their transportation fleet, such as streamlined vehicle design, green fuels and vehicles with hybrid engines.

“The study findings demonstrate that the vast majority of organizations are taking steps to reduce carbon emissions,” said Wright. “However, most are implementing carbon-reduction solutions without understanding their carbon footprint and are therefore unable to measure real impact those solutions are having on their emissions.”

Learn more about the High Performance Supply Chain Study.

World Economic Forum Report: Supply Chain Decarbonization: The Role of Logistics and Transport in Reducing Supply Chain Carbon Emissions.

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