Coordinate effort with Clients having the same Suppliers (same industries / different industries) - ADVANCED

Cost
LOW
Cost
MEDIUM
Cost
HIGH
EFFORT
low
EFFORT
medium
EFFORT
HIGH
IMPACT
low
IMPACT
MEDIUM
IMPACT
HIGH

Companies recognise that it is not feasible to tackle systemic sustainability challenges alone, and that achieving their goals requires a scale that can only be achieved by pooling resources.

With all customers demanding CO2 measurement and reduction targets from their suppliers, suppliers are likely to face overwhelming demands. The lack of standardised methodologies exacerbates the impact, with a significant risk of low quality results and low commitment rates. At the very least, companies sharing common suppliers should coordinate their efforts within their respective ecosystems.

When a single company commits to a sustainability target, progress may be slow and the overall impact minimal. However, if a consortium of companies adopts the same standard and collaborates to address the issue, the path becomes more manageable and the impact is exponentially greater.

Collaboration between major customers and their suppliers is on the rise, facilitated by the emergence of prominent international environmental organisations such as the 1.5-degree Supply Chain Leaders (https://exponentialroadmap.org/supply-chain-leaders/), digital platforms such as CDP's Supply Chain Program (https://www.cdp.net/en/supply-chain), and initiatives such as the Energize Program (https://hub.zeigo.com/energize) launched by the pharmaceutical industry to access decarbonisation solutions, particularly in renewable electricity.

The message is clear: do not embark on the decarbonisation journey alone!

46%

of consumer-facing companies do not prioritize the role of ecosystems in innovation.
(EY)

231 million tons CO2e

of emissions reduction initiatives were driven in 2020 by over 200 suppliers reporting to CDP.
(CDP Global Supply Chain Report - 2021)

ADDITIONAL RESOURCES
  • In "1.5 degree Supply Chain Leaders", large companies collaborate to promote climate action in global Supply Chain and support SMEs. They openly share tools or their own experience. Big players in the telecom industry (British Telecom, Telia…) or in the Food industry (Nestle, Unilever..) are part of the initiative.
  • CDP is an NGO that encourages companies to publish their environmental impact data and provides tools (standardized and certified method) for measuring, evaluating and communicating this data within the scope of the CDP Supply Chain programme. This reduces Supplier fatigue as customer demand increase. The CDP support customers and suppliers in their reduction strategies by providing them benchmarks and analyses.
  • The Energize program has formed its first PPA buyers’ cohort of nine companies, aggregating 2 TWh of electricity demand in Europe and North America. The program has recruited 369 suppliers and 15 sponsoring companies. For some of them, this is the first time they have explored renewable energy procurement, which was made possible by the comprehensive support and guidance of Schneider Electric. A PPA is a contract for the purchase of green electricity from renewable energy sources with garanty of origin and prices are predefined and stable.