The Climate in Your Supply Chain

Our decisions have consequences, some intentional and some unforeseen. This is especially true for the decisions we make about the products we buy and sell and the consequences for climate change. Sure, it’s easy to connect some decisions directly to climate change. If we run the heater or the air conditioner more, we use more energy resulting in more greenhouse gas emissions and, likely, contribute more to a changing climate. An easy cause and effect connection to make, much like many others we make every day. But what about decisions where the effects are not as clear?

Coke vs. Pepsi is not longer just about taste, calories, or secret ingredients.

Every day we make purchasing decisions where we select the product we need from a variety of options, yet how often do we think of the climate change impacts of those decisions? Coke vs. Pepsi, Chevy vs. Ford, Mac vs. PC, beef vs. chicken, paper vs. plastic. We make these decisions because there are real differences in the options; differences due to different materials used, sourced from different regions, assembled with different techniques. And these differences mean that the products have a different impact on our changing climate.

Now consider the decisions a typical company makes about the thousands of products it buys. Traditional procurement practices base purchasing decisions on factors such as total ownership costs, delivery terms, and product quality. As Mike Canes pointed out, there is a real cost to greenhouse gas emissions. When an organization starts managing its effect on the climate, clearly the effects of the products it buys must be considered. By including climate change in procurement decisions, companies can find greater greenhouse gas emissions reductions than can be found looking internally.

The benefits of managing climate change in the supply chain do not end with a single company. Industries, such as electronics and outdoors products, have shown that, working together, they can change practices across the industry. Industry wide standards, such as the Electronics Industry Code of Conduct, can shift the perception of climate management across the entire industry, making the supply chain a force of change, not just a tool of commerce. A focus on climate-friendly solutions can even spur innovative was to source and deliver products, as Matt Daigle described with using local waste products to build roads and erosion control in Nicaragua.

Each of us and the organizations we work for can take actions to reduce greenhouse gas emissions. When we extend those actions to the things we buy, we can have an even greater impact. This is why managing sustainability in the supply chain is important. And this is how supply chains can be a force of good in an industry and across the economy.