But that doesn’t mean they aren’t trying. Only 10 percent of companies actively model their supply chain carbon footprints and have implemented successful sustainability initiatives, according to a survey released today.
The global survey of 245 supply chain executives also found that supply chain “masters†—organizations that have achieved top-quartile performance in both cost effectiveness and customer service — are more than twice as likely as non-masters (20 percent versus 9 percent) 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 (the group who designed the survey). “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.â€
The study also found that more than one-third (37 percent) of supply chain executives have no awareness of the level of supply chain emissions in their supply chain network. However, more than three-quarters (86 percent) of respondents have undertaken at least one green initiative in their warehouses, predominantly in the areas of recycling and using natural light, lighting management systems and energy efficient bulbs, while more than one-third (38 percent) of respondents said they have undertaken at least one green initiative in their transport 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.â€
What this says to me is that there is massive room for both cost savings and energy use reduction. What is most striking is that they companies that are leading the way are also the ones doing the most to clean up. Take home message for companies not currently managing and reducing their carbon footprint…do so, quickly, or be left in the dust.