Schneider Electric’s Sustainability Index 2023 report has revealed that companies are concentrating more on supply chains to reduce their emissions with 78 per cent of business leaders agreeing that ‘companies can significantly address their carbon footprint through greater visibility of environmental outcomes across their supply chain’.
Based on a survey of over 500 business leaders, the data shows a 35 per cent rise year on year in the number of businesses that are planning to increase spending driving resilience in their supply chains.
This shows that business leaders understand that they cannot maintain their operations and achieve net zero on their own, Schneider Electric said in a media release.
“For many companies, Scope 3 emissions provide the biggest opportunity for decarbonisation, but they are also the most difficult to address as they are not directly under the company’s control,” said Michael Cox, APAC Director of Sustainability Consulting at Schneider Electric.
To ensure that corporate Australia can meet its net zero carbon emissions targets, he added that open collaboration both within and across industries is crucial.
With 78 per cent of organisations saying that “digital is playing a key role in achieving sustainability goals,” the findings also highlight the significance of data transparency in sustainable practices.
Companies can find areas for improvement and collectively implement strategies to reduce emissions by utilising data throughout the supply chain in close cooperation with suppliers and partners.
Furthermore, as part of the survey, businesses were asked about their engagement with supply chains to reduce emissions.
According to the breakdown, 51 per cent of enterprises are now receiving external support to handle decarbonisation initiatives.
This outside knowledge is invaluable in navigating the complicated world of emissions reduction and sustainability performance, the company said.
Value chain risks were highlighted as a motivating factor by 13 per cent of organisations that made a commitment to decarbonization.
Climate change has the potential to have an impact on supply chains across industries, from droughts and bushfires that have an impact on the manufacturing of goods to energy and water security.
Businesses said they are aware of this risk and realise how critical it is to deal with environmental effects in a proactive manner to protect their long-term viability.
“Addressing climate change requires a collective effort. Collaboration and transparency across the value chain is the key to success,” said Michael Cox.
“It’s encouraging to see that businesses are turning their attention to their supply chains in a bid to reduce their carbon emissions and I encourage those that are yet to start the journey to move on Scope 3 emissions now to be able to support the setting and achievement of their net zero targets,” Cox noted.
For more information about the report, you may download it through this link.
