Climate change is no longer a distant threat. It’s a reality we’re living with today. And one of the most critical and often hidden contributors is the global supply chain. It’s easy to point fingers at cars or factories. But what about the emissions from making and shipping the products we buy every day? That’s where the real story is.
1. Global supply chains account for 60% of total global carbon emissions
Why This Number Is So Important
When you hear that more than half of the world’s carbon emissions come from global supply chains, it’s a wake-up call. It means that even if companies reduce their own direct emissions — say by installing solar panels or switching to electric fleets — they’re still leaving a huge chunk of their footprint untouched if they don’t clean up their supply chains.
This is especially true for industries like retail, automotive, electronics, and food. The emissions from extracting raw materials, manufacturing goods, transporting them across the world, and delivering to customers — all of that adds up.
What You Can Do About It
First, you need to know what you’re dealing with. A carbon footprint assessment is your starting point. Not just for your own operations, but for your full supply chain. This includes suppliers, logistics partners, and even the packaging providers you work with.
Once you know where the emissions are coming from, you can:
- Work with suppliers who use cleaner energy or sustainable practices
- Choose transportation partners with low-emission fleets
- Streamline your product design to reduce materials or weight
You don’t have to do it all at once. Start with your top 10 suppliers or highest-emission categories. Build from there. Every step reduces risk, improves your brand’s reputation, and could even cut costs in the long run.
2. Scope 3 emissions, primarily from supply chains, can be 5.5 times higher than a company’s direct emissions
What Are Scope 3 Emissions?
There are three types of emissions businesses deal with. Scope 1 covers your direct emissions — like fuel you burn on-site. Scope 2 includes purchased energy. But Scope 3? That’s the beast. It covers all the emissions from activities you don’t directly control — like your suppliers, customers, and partners.
And here’s the kicker: for most companies, Scope 3 is more than five times larger than the rest combined.
Where Do They Come From?
Think about the things you buy to run your business — computers, coffee, packaging, furniture, transportation. Now think about how all those items were made, shipped, and used. That’s Scope 3.
And it doesn’t stop there. It also includes things like business travel, waste, and even employee commuting.
Tackling the Big Hidden Footprint
You can’t manage what you don’t measure. And Scope 3 is notoriously hard to measure. But there are ways to get started:
- Use industry-average emissions data from databases like EcoInvent or DEFRA
- Engage suppliers directly with carbon reporting questionnaires
- Invest in software tools that automate Scope 3 tracking
Once you know the numbers, build internal goals around reducing these emissions. That might mean consolidating shipments, choosing regional suppliers, or moving toward more circular practices (like reuse and recycling).
This is also where collaboration is key. You won’t succeed by going it alone. The more your partners are on board with emission reductions, the better off everyone is.
3. Over 90% of a company’s environmental impact is embedded in its supply chain
This Shouldn’t Be Surprising, But It Often Is
Many companies still focus on greening their office buildings, switching to LED lights, or recycling paper. All of that’s good — but it’s barely scratching the surface.
The truth is, your company’s true environmental story is written far away from your headquarters. It’s being written in the factories, trucks, ships, and warehouses that power your supply chain.
And over 90% of your impact? That’s a number no brand can ignore.
So How Do You Shift the Focus?
You need to realign your sustainability strategy to look outward, not just inward. That means:
- Bringing sustainability into procurement decisions
- Asking suppliers tough questions: What’s your energy mix? How do you handle waste? Do you use water responsibly?
- Looking beyond Tier 1 suppliers — because a lot of emissions are buried deeper in the chain
Use lifecycle assessments (LCAs) to map out the full impact of your products from raw material to end-of-life. LCAs help uncover emissions hotspots and opportunities to cut waste and carbon.
Also, embed sustainability into product design. Choosing fewer materials, or lower-carbon options like recycled aluminum or organic cotton, can shrink supply chain emissions significantly before you even place your first order.
Make It Part of Your Brand DNA
Sustainability can’t live in a silo. Make it part of how you do business. Train your teams — especially sourcing, operations, and product development — on how to think about emissions at every stage.
Being able to say your company is cutting emissions where they matter most is not just good PR — it’s becoming a necessity in a world of ESG reporting, conscious consumers, and competitive markets.
4. The transportation sector contributes 17% of global GHG emissions, much of it linked to supply chains
Transportation Is the Unsung Villain in the Supply Chain Emissions Story
When people think about carbon emissions, they usually imagine smoke from factories or tailpipes. But in the world of supply chains, it’s not just about what’s produced — it’s about how it gets from one place to another.
Transportation — including road, rail, air, and sea — is responsible for 17% of all global greenhouse gas emissions. And guess what? A big chunk of that is due to moving raw materials, parts, and finished products around the globe.
Now think about how often that happens: A shirt designed in New York, made in Vietnam, dyed in China, and shipped to warehouses in Europe. That’s a carbon trail that adds up quickly.
Why This Matters for Your Business
Transportation emissions are often underestimated in corporate carbon footprints. That’s because they’re easy to overlook if you don’t directly own the trucks, planes, or ships.
But just because it’s outsourced doesn’t mean it’s invisible. Regulators, investors, and customers are increasingly expecting companies to account for these emissions in their sustainability reporting.
And here’s the opportunity: If you reduce transport emissions, you’re not just shrinking your carbon footprint — you’re improving efficiency and often reducing costs.
Tactical Advice to Reduce Transport Emissions
Start by mapping out your logistics routes. Look at where your products come from, where they go, and how they get there. Ask yourself:
- Are you shipping more frequently than needed?
- Could you shift from air freight to ocean or rail?
- Are your distribution centers strategically located?
Consolidating shipments can make a big difference. Instead of sending 10 small shipments a week, aim for 2 or 3 larger ones. That reduces fuel usage and emissions significantly.
Partner with carriers who have low-emission fleets or use alternative fuels. Some logistics providers now offer carbon-neutral or offset shipping options.
And finally, use transportation management systems (TMS) to optimize routes and modes. These tools can identify smarter, greener paths with fewer stops, less idling, and better fuel efficiency.
5. Maritime shipping accounts for 2.9% of global CO₂ emissions, expected to rise to 10% by 2050 if unregulated
Why Ships Are a Bigger Problem Than You Think
Maritime shipping is the lifeblood of global trade. It’s cheap, efficient, and moves 90% of global goods by volume. But it’s also dirty — relying mostly on heavy fuel oil, one of the most polluting fuel types out there.
Right now, shipping accounts for 2.9% of global CO₂ emissions. That might not sound huge, but if this sector were a country, it would rank among the top 10 emitters in the world.
Even more concerning is the trend. If no major policy or technological changes occur, shipping’s share of emissions could jump to 10% by 2050. That’s not just a climate problem — it’s a business risk.
The Impact on Supply Chains
For companies dependent on global suppliers or international customers, this is a red flag. Shipping costs and regulations are going to change. Carbon taxes, emission trading schemes, and port-level rules are already being discussed and implemented in some regions.
This means your shipping-related costs could rise — and fast. But companies that plan ahead will have the upper hand.
What You Can Do Right Now
First, start talking to your freight forwarders about emissions. Ask them if they track their carbon output. Many large shippers already do, and some provide emissions calculators based on distance, weight, and mode.
Explore alternative fuels like LNG, biofuels, and even green hydrogen. While these options aren’t mainstream yet, forward-looking logistics companies are already testing them.
Also, explore slow steaming strategies — reducing a ship’s speed can cut fuel consumption by up to 30%. This might extend delivery times slightly but can significantly reduce carbon intensity.
If you have leverage over your shipping partners, use it. Prioritize those who commit to decarbonization. In the long run, being selective about your maritime partners will protect your bottom line — and your brand.
6. Air freight emits 500 times more CO₂ per tonne-kilometer than shipping
The High Price of Speed
Air freight is the fastest way to get products around the globe. But that speed comes with a steep carbon cost. Per tonne-kilometer, air cargo emits about 500 times more CO₂ than sea freight. That’s not a typo.
Think about that for a second. A few urgent pallets flown halfway across the world could easily outpace the carbon footprint of an entire container ship’s worth of goods.
This stat should be a flashing red light for any company using air freight regularly — especially if sustainability is part of your brand promise.
Why Companies Still Use It
Speed is the obvious answer. Businesses rely on air freight to meet tight deadlines, respond to demand spikes, or deliver high-value items. In industries like electronics, fashion, or pharmaceuticals, air cargo can feel unavoidable.
But much of the air shipping that happens isn’t truly necessary. It’s often a result of poor planning, delayed production, or inefficient inventory management.
Which means there’s plenty of room for improvement.
Steps to Take Today
Audit your use of air freight over the past 12 months. Break it down by product, lane, and reason. Identify what percentage was “urgent” vs. what could have been avoided.
Then, work backward. What processes need tightening to eliminate the need for air?
- Can you forecast better to reduce last-minute orders?
- Would earlier supplier engagement prevent delays?
- Are there alternate suppliers closer to home?
You might also find that air freight is being used out of habit, not necessity. In that case, create new guidelines: reserve air only for specific use cases, and require approvals for anything outside that.
Some companies go a step further by putting a price on carbon internally. For example, every air shipment gets an internal surcharge based on its emissions, which is added to the budget of the requesting team. It creates accountability and behavior change.
The bottom line? Air freight should be your last resort — not your default.
7. Carbon emissions from e-commerce logistics grew by 30% between 2020 and 2023
The Dark Side of the Online Shopping Boom
The e-commerce industry exploded during the pandemic — and it hasn’t slowed down since. People now expect same-day or next-day delivery, free returns, and round-the-clock availability. But this convenience has a cost.
Between 2020 and 2023, carbon emissions from e-commerce logistics grew by 30%. That’s an enormous jump in just three years. Most of it comes from the last-mile delivery segment — vans, bikes, and trucks making thousands of trips every day, often for just one or two packages.
This increase doesn’t just affect the environment. It creates congestion, increases fuel costs, and puts a spotlight on sustainability claims that many retailers make but don’t always back up.
Why E-Commerce Logistics Are So Carbon-Intensive
There are several reasons:
- Short delivery windows mean carriers can’t consolidate packages
- Free returns encourage wasteful behavior and reverse logistics
- Lack of warehouse proximity to customers leads to long trips
- Packaging for individual items adds bulk and material waste
All of these things add up fast. Even though a single delivery might seem small, multiplying it by millions of packages daily paints a much bigger picture.
Making E-Commerce More Sustainable
Retailers and logistics providers need to rethink how they handle deliveries. Here are a few strategies to explore:
- Invest in Micro-Fulfillment
Locate small, automated fulfillment centers closer to customers. This cuts delivery distances and allows for faster, lower-emission options like bikes or EVs. - Offer Greener Delivery Choices
Many customers are willing to wait an extra day or two if it means a lower environmental impact. Give them that option at checkout — and explain why it matters. - Rethink Returns
Implement return limits, restocking fees, or digital try-on tools that reduce the need for returns. Reverse logistics are a big contributor to your carbon footprint. - Switch to Sustainable Packaging
Use right-sized boxes, compostable fillers, and avoid plastic where possible. Train fulfillment staff to optimize packaging so air isn’t being shipped around the world.
E-commerce is here to stay. But if the emissions keep rising at this rate, companies that ignore the problem will be left behind — especially as carbon taxes and consumer scrutiny grow.
8. Only 12% of companies can currently trace emissions across Tier 1 and Tier 2 suppliers
The Visibility Problem
Tier 1 suppliers are your direct vendors — the ones you have contracts with and likely interact with frequently. Tier 2 suppliers are their vendors. And Tier 3? Even further down the line.
Here’s the issue: only 12% of companies today can trace emissions beyond their first-tier suppliers. That means 88% are essentially blind to where most of their upstream carbon footprint is coming from.
It’s not just about data — it’s about control. If you can’t see what’s happening at Tier 2 or Tier 3, you can’t fix it. And you certainly can’t report it accurately, which is going to become a major compliance issue in the years ahead.
Why This Blind Spot Exists
Tracking emissions beyond Tier 1 is hard. Smaller suppliers often lack the technology or resources to measure and report accurately. Language, location, and infrastructure gaps only make it harder.
Also, there’s a trust issue. Many companies fear suppliers won’t want to share sensitive data or expose weak spots. That means supply chain mapping has often taken a back seat — until now.
What You Can Do to Fix It
- Start With a Mapping Exercise
Before you ask for data, you need to know who your suppliers actually are — including who they buy from. Use supplier relationship management (SRM) tools or manual audits to map your full chain. - Collaborate, Don’t Demand
Instead of making sudden demands, start with conversations. Explain why emissions data is important and how it will be used. Provide templates, training, or even co-investment in tracking tools. - Use Proxy Data and Estimates
For suppliers that can’t report yet, use emission factor databases to estimate their impact. It’s not perfect, but it’s better than ignoring them altogether. - Prioritize the High-Impact Players
You don’t need 100% coverage on day one. Focus on the suppliers that contribute the most to your revenue, materials, or emissions. This helps you move the needle fast without overwhelming your team. - Make Visibility a Requirement
Over time, update your supplier contracts to include sustainability clauses. Tie incentives or preferred status to emissions transparency. That encourages long-term behavior change.
The goal isn’t just to trace emissions — it’s to influence them. But you can’t change what you can’t see.
9. Supply chain decarbonization could reduce global emissions by 40% over the next decade
A Hidden Lever for Massive Impact
If there was a button you could press to slash global emissions by 40%, you’d press it, right?
Well, decarbonizing supply chains may just be the closest thing we have to that magic button.
Most people don’t realize just how much opportunity is locked inside these global networks. From raw materials to packaging, manufacturing to delivery — supply chains are full of inefficiencies, outdated technology, and carbon-intensive practices that can be replaced or reimagined.
In fact, if companies around the world made even moderate efforts to clean up their supply chains, the resulting emissions drop could rival that of the entire energy sector’s transformation.
Why It’s More Doable Than It Sounds
This isn’t about shutting down industries or reinventing the wheel. It’s about optimization, innovation, and smarter decisions.
Here’s why this shift is within reach:
- Many carbon-intensive processes have greener alternatives
- Technology for tracking, reporting, and optimizing emissions is improving rapidly
- Investors and customers are rewarding sustainable practices
- Regulations are starting to push companies in the right direction
The building blocks are already in place. What’s needed now is leadership.
How to Lead the Shift in Your Supply Chain
- Set Ambitious But Realistic Targets
Don’t aim for vague net-zero goals by 2050 with no roadmap. Break your goals down by year, supplier, and product line. What does a 10%, 20%, or 40% reduction actually look like? - Redesign Product Life Cycles
Can you extend product life spans, shift to circular models, or reduce the number of parts in your products? Every change has upstream benefits. - Green Your Inputs
Choose suppliers that use renewable energy or lower-carbon materials. Prioritize recycled over virgin content. Every input you change reduces embedded emissions. - Rebuild the Transportation Model
As we explored earlier, logistics are a huge part of supply chain emissions. Think slower, smarter, and closer. Could you move production closer to your markets? Could you bundle shipments differently? - Make Emissions Data a Core KPI
Treat emissions like you treat costs or delivery times. Track them monthly, share them across teams, and hold leaders accountable for reductions. - Use Real-Time Tools
Invest in emissions management platforms that give you real-time visibility into your carbon impact. The ability to act in the moment — not retroactively — is where you’ll win.
This isn’t just a sustainability play. It’s a business strategy. Companies that move early will be more efficient, more attractive to stakeholders, and far more resilient in the face of rising climate risk.
10. Around 45% of global emissions come from the production of goods and services
Why What We Make — And How We Make It — Matters Most
Almost half of the world’s greenhouse gas emissions come from the production of the goods and services we use every day. Think about that for a moment. That’s not just factories. It’s farms, mines, steel mills, chemical plants, tanneries, paper mills — the entire web of activity that creates everything from your morning coffee to the engine in your car.
And for every product made, there’s an invisible trail of carbon: emissions from energy, waste, land use, and processing. The scary part? Many businesses have no idea how large their own slice of that 45% really is.
The Problem: Efficiency Is Still Far Behind
Despite new technology, many production processes still run on outdated methods or fossil fuel-heavy energy sources. Steel and cement production are major offenders, as are meat and dairy. But even low-tech industries can have a high carbon impact if they’re operating inefficiently or relying on coal-based electricity.
Most companies focus on what’s within their four walls — and miss the much larger impact embedded in their product manufacturing.
What You Can Do: Redesign Your Production Thinking
You don’t have to be the manufacturer to influence how things are made. Whether you’re a retailer, a product-based startup, or a major distributor, you can shape the impact of the goods you sell. Here’s how:
- Rethink Your Materials
Start with what your products are made from. Can you switch to recycled inputs? Are there lower-carbon options that serve the same purpose? Many brands are already moving from plastic to bamboo, from virgin cotton to organic blends. - Push for Clean Energy Use in Manufacturing
Ask your producers what type of energy powers their facilities. Are they open to solar, wind, or biogas alternatives? Some major brands co-invest in renewable energy with their factories — a move that pays off in brand equity and emissions. - Simplify Product Design
Fewer parts = fewer emissions. Can your product be simplified without losing performance? Modular design, collapsible packaging, and lean assembly are all low-hanging fruit. - Switch to Local or Regional Production
Moving production closer to end users doesn’t just cut transport emissions — it allows better oversight, faster feedback loops, and often leaner inventory cycles. - Use Product Lifecycle Assessments
Don’t guess. Measure. Use LCA tools to trace carbon from cradle to grave for each product. You’ll quickly see which SKUs are your biggest carbon culprits — and which need redesigning.
Reducing emissions from production doesn’t mean producing less. It means producing smarter — and companies that embrace that mindset will thrive in the coming decade.
11. Over 70% of fashion industry emissions come from upstream activities like material production
The Hidden Emissions Behind That T-Shirt
Fashion is one of the most emissions-intensive industries in the world — and over 70% of those emissions happen upstream. That means before clothes even reach the store or your closet, the bulk of their impact has already been locked in.
Dyeing, weaving, spinning, and especially the production of raw materials like cotton or polyester — these are the carbon hotspots of the apparel world. And because so much of this happens deep within global supply chains, it’s easy to miss.
Fast Fashion Makes It Worse
The rise of fast fashion has put even more pressure on emissions. Short production cycles, disposable garments, and constant trend shifts lead to overproduction and underuse. Clothes are made quickly, worn a few times, and tossed — often into landfills.
All of this churn drives demand for more fabric, more water, more energy — and more carbon.
Turning the Trend Around
If you’re in the fashion industry, whether as a brand, a retailer, or even a material supplier, this is where you need to focus. Here’s how you can change the story:
- Choose Lower-Impact Materials
Swap conventional cotton for organic, which uses less water and fewer chemicals. Opt for recycled polyester instead of virgin. Explore emerging materials like hemp, mushroom leather, or Tencel. - Source Close to Manufacturing Hubs
If your dyeing happens in Bangladesh, try to source fabrics nearby rather than shipping them from across the globe. This reduces transport emissions significantly. - Work With Cleaner Facilities
Many mills now advertise the energy sources they use. Prioritize partners who use solar, hydro, or other renewables — and avoid those relying heavily on coal. - Reduce Overproduction
Use demand planning and limited production runs to reduce inventory waste. The fewer garments you need to destroy or discount, the lower your embedded emissions. - Educate Consumers on Longevity
Build campaigns around caring for clothes, reusing, and repairing. The longer a product stays in use, the lower its carbon footprint per wear.
Fashion has a chance to become a sustainability leader — but it starts by confronting what happens before a garment ever hits the runway.
12. The electronics sector contributes 4% of global emissions, largely due to supply chains
Why Tech Isn’t As Clean As It Looks
Electronics may seem sleek, modern, and efficient — but their carbon footprint tells a different story. The sector contributes around 4% of global emissions, and the majority of that comes from supply chains.
Why? Because manufacturing smartphones, laptops, servers, and other devices is an energy- and resource-intensive process. From mining rare earth metals to assembling microchips, every stage of electronics production carries a heavy carbon cost.
Servers and data centers also require huge amounts of electricity, especially for cooling — and often, that power still comes from fossil fuels.
From Mine to Microchip
The supply chain for a simple phone might involve over 60 different elements — from cobalt mined in the Congo to lithium from Chile to circuit boards built in Taiwan. Each of these steps requires energy, transport, and processing.
And the problem isn’t just creation — it’s obsolescence. Devices are discarded quickly, adding e-waste to landfills and increasing pressure on supply chains to produce more, faster.
Building a Lower-Carbon Tech Industry
The good news is, tech companies tend to be fast adopters. Here’s how the industry can reduce supply chain emissions:
- Use Recycled Metals
Many devices now use recycled aluminum or gold. Recycled inputs can cut emissions by more than half in some cases. Push your suppliers to shift toward closed-loop materials. - Design for Longevity and Repair
Make it easier to replace batteries or upgrade chips. Products that last longer require fewer replacements — and fewer emissions over time. - Shift to Modular Supply Chains
Keep certain elements of your supply chain closer to your manufacturing base. Fewer international shipments = lower emissions. - Monitor Scope 3 Emissions
Electronics companies often lead in Scope 1 and 2 tracking but lag in Scope 3. Use automated tracking tools and work directly with component suppliers to gather accurate emissions data. - Invest in Green Data Centers
If you’re in software or cloud services, this is critical. Choose hosting partners powered by renewables. Look for carbon-neutral data centers, or co-invest in renewable energy for your own infrastructure.
Electronics aren’t going away. In fact, demand is growing fast. But if the industry doesn’t get its supply chain in order, it could become one of the largest emitters of the next decade.
13. Only 26% of companies have Scope 3 emission targets in line with science-based targets
Most Companies Are Missing the Big Picture
Scope 3 emissions, as we’ve discussed earlier, are the largest and most complicated slice of a company’s carbon footprint. Yet, surprisingly, only 26% of companies have targets in place that align with science-based goals for reducing these emissions.
This means nearly three out of four businesses are either not tracking Scope 3 emissions at all or have goals that fall short of what the climate actually demands. That’s a problem — not just for the planet, but for the companies themselves.
Why? Because regulatory requirements are tightening. Investor expectations are shifting. And public trust increasingly depends on transparency.
What Are Science-Based Targets?
Science-based targets are goals aligned with the global effort to limit warming to 1.5°C above pre-industrial levels. They’re not arbitrary. They’re calculated based on what the science says is necessary to avoid catastrophic climate change.
When it comes to Scope 3, these targets demand deep, measurable cuts in emissions throughout the supply chain — not just a few tweaks or offsets.
Closing the Scope 3 Gap
If your company is part of the 74% without a science-aligned Scope 3 target, here’s how to fix that:
- Start With a Baseline Assessment
Use available data to build a rough emissions profile for your value chain. You don’t need perfect precision on day one — but you do need a starting point. - Join the Science Based Targets Initiative (SBTi)
This globally recognized body provides frameworks, resources, and validation services for setting emission targets. It adds credibility and structure to your strategy. - Engage Your Supply Chain
You can’t hit your targets alone. Work with suppliers to identify reduction opportunities. Help them access cleaner tech or alternative materials. Consider co-funding changes when needed. - Avoid Over-Reliance on Offsets
Offsets can help in some cases, but they should be a last resort — not the foundation of your Scope 3 strategy. Focus first on real reductions. - Integrate Emissions Goals Into Procurement
Make emissions a core part of supplier selection. Add scoring systems to your RFPs (requests for proposals) and vendor reviews that favor low-carbon suppliers. - Update Internal Incentives
Make it part of your team’s KPIs. The more accountability and visibility Scope 3 targets get, the more likely they’ll be taken seriously.
This isn’t just about compliance. Science-based Scope 3 targets show the world — and your stakeholders — that you understand where the real impact is and that you’re serious about solving it.
14. Switching to sustainable materials can cut upstream supply chain emissions by 15–30%
Materials Are Half the Battle
One of the most direct ways to reduce carbon emissions in your supply chain is by changing what your products are made from. The materials you choose at the start of a product’s life often determine its entire carbon footprint.
Whether it’s plastic, cotton, metal, or concrete — every material carries an embedded carbon cost. And here’s the good news: simply switching to more sustainable options can cut those emissions by as much as 30%.
That’s a massive win, especially since material decisions are typically made early in the product design process — before any production, packaging, or transport even begins.
What Makes a Material “Sustainable”?
A sustainable material typically has some or all of the following traits:
- Lower emissions during extraction or processing
- Made from recycled or renewable sources
- Biodegradable or easily recyclable
- Sourced from suppliers using renewable energy or ethical practices
For example, recycled aluminum uses only about 5% of the energy compared to producing new aluminum. Organic cotton emits significantly less CO₂ and uses less water than conventional cotton. And bamboo grows faster and absorbs more carbon than traditional wood sources.
Turning Material Changes Into a Strategy
- Run a Material Emissions Audit
Go through your top product lines and evaluate what materials you’re using. Where are the high-impact culprits? Which ones have lower-emission alternatives? - Build a Preferred Materials List
Create a list of approved, low-impact materials for designers and engineers to choose from. Make it easy for product teams to make sustainable choices. - Engage Suppliers for Transparency
Ask for emissions data, life cycle assessments, and certifications (like FSC, GOTS, or Cradle to Cradle). This helps you make informed comparisons. - Balance Sustainability With Performance
Materials still need to perform. Test new options thoroughly to ensure they meet the quality, safety, and durability standards you need. - Communicate the Change
If you switch to a greener material, don’t keep it a secret. Let your customers know. It’s a great brand story and a competitive differentiator. - Revisit Material Choices Regularly
As technology improves, better materials become available. What wasn’t feasible last year might be viable today — or cheaper.
Reducing emissions doesn’t always require complex restructuring. Sometimes, it starts with a simple decision about what goes into your products.
15. A 10% increase in supply chain transparency correlates with an 8% drop in emissions intensity
Transparency Isn’t Just a Buzzword — It’s a Climate Solution
The more you know about your supply chain, the more power you have to reduce its emissions. That’s not just theory — it’s proven. Research shows that a 10% improvement in supply chain visibility leads to an 8% decrease in emissions intensity.
That’s a huge return on effort. It means that just by improving how you track, document, and understand your operations, you can drive meaningful cuts in carbon output.
Transparency helps you uncover inefficiencies, expose risk, and — maybe most importantly — start important conversations with your suppliers.
Why Visibility Reduces Emissions
When companies improve supply chain transparency, they usually:
- Discover high-emission suppliers they weren’t aware of
- Find redundancies in manufacturing or transport
- Eliminate double-counting or missing emissions data
- Create accountability by making metrics visible across teams
It also makes it easier to report accurately, comply with regulations, and win over stakeholders like investors or climate-conscious customers.
Building a Transparent Supply Chain
- Start With Data Collection
Ask suppliers to share energy usage, emissions metrics, waste data, and resource consumption. Use supplier questionnaires, audits, or platforms like CDP or EcoVadis to gather insights. - Create a Single Source of Truth
Avoid data silos. Use centralized dashboards or software that lets you track metrics across regions, teams, and suppliers. Make it visual, easy to understand, and updated in real time. - Map the Full Chain, Not Just Tier 1
Visibility shouldn’t stop at your first set of suppliers. Dig deeper — into Tier 2 and Tier 3 — to find where the hidden emissions lie. - Reward Transparency
Suppliers that share data and make efforts to reduce emissions should be rewarded — with preferred contracts, better terms, or co-marketing. Make transparency a competitive advantage. - Be Transparent Yourself
Share your own supply chain emissions openly. Publish sustainability reports, set goals, and be honest about your progress. When you lead with transparency, your partners are more likely to follow. - Train Your Teams
Everyone from procurement to finance needs to understand why transparency matters. Build it into KPIs, performance reviews, and training sessions.
You can’t change what you can’t see. And with a clear line of sight across your supply chain, emissions don’t stand a chance of hiding.
16. Carbon intensity in global freight grew 11% from 2010 to 2019
Freight Got Dirtier — Not Cleaner
Over the last decade, most industries have tried to become more efficient. But global freight? It moved in the wrong direction. Between 2010 and 2019, carbon intensity in freight grew by 11%. That means more emissions per ton of goods moved.
Why? Because freight volumes exploded, but the systems didn’t keep up. More trucks, more last-minute air shipments, longer distances, and congested routes all added up. And while logistics technologies improved, widespread adoption lagged behind.
Why This Matters Now More Than Ever
Freight is the invisible backbone of global commerce. Without it, supply chains fall apart. But if we don’t clean it up, it will remain one of the most stubborn sources of emissions.
As customer expectations for speed rise and global sourcing expands, companies are at risk of increasing their emissions even further unless they redesign their logistics strategies from the ground up.
Your Action Plan: Lowering Freight Emissions Today
- Start With a Freight Audit
Map out your freight activity. Include all modes: road, rail, sea, and air. Track distances, weights, and shipment frequency. You’ll probably uncover a few surprises. - Optimize Shipment Size and Frequency
Are you sending multiple half-full trucks or containers per week? Consolidation is your best friend. Reducing shipment frequency cuts fuel usage immediately. - Switch to Rail Where Possible
Rail emits 75% less CO₂ per ton-mile than trucks. In regions where rail is viable, consider shifting a portion of your domestic or long-haul transport. - Avoid Air Unless Absolutely Necessary
As we’ve already covered, air is extremely carbon-intensive. If you’re still using air as a standard option, create an internal policy that requires sign-off or cost justification. - Embrace Smart Routing Technology
GPS-based optimization software can significantly reduce wasted miles, idling, and delays. This is especially important for last-mile delivery. - Work With Emission-Tracking Carriers
Ask for carrier emissions reports. Choose logistics partners that are transparent, set reduction targets, and offer electric or low-emission fleets. - Push for Intermodal Solutions
Intermodal shipping — combining rail and truck, for instance — often reduces both emissions and cost. It’s an efficient hybrid model for long distances.
The key takeaway? Freight emissions won’t fix themselves. Without strong, deliberate strategies, that 11% growth will continue upward — and companies will feel the pressure from all sides.
17. The average product’s supply chain generates more emissions than the product’s lifetime use
Products Aren’t Just Polluting While They’re Used
Most people assume a product’s environmental impact comes during its use phase. For example, a gas-powered car burning fuel or a washing machine using water and electricity. But for many products — especially in sectors like fashion, electronics, and packaged goods — that assumption is wrong.
In fact, most of the emissions come before the product is ever sold. From raw material extraction to manufacturing, assembly, and transport — the supply chain stage often generates far more emissions than the actual use phase.
Why This Changes Everything
If you’re designing a new product, you probably spend a lot of time thinking about functionality, aesthetics, pricing, and performance. But if you want to reduce its carbon footprint, your first priority should be the supply chain.
And if you’re a sustainability officer or founder trying to lower emissions, this stat tells you exactly where to focus: upstream.
Practical Moves to Reduce Pre-Sale Emissions
- Audit the Full Lifecycle
Use lifecycle analysis (LCA) to calculate how much carbon each product generates during production, transport, use, and end-of-life. The supply chain will likely stand out. - Cut Emissions Before Assembly
Can parts be produced using renewable energy? Are you sourcing from low-carbon suppliers? Are there fewer-emission materials available? - Shorten the Distance Between Suppliers
If one component comes from China, another from Germany, and final assembly happens in Mexico — you’ve got a carbon-heavy logistics trail. Consider regionalizing production. - Reevaluate Packaging Choices
Packaging is often overlooked. Bulky or unnecessary packaging increases volume, which increases emissions during transport. Reduce, flatten, or change materials. - Design for Durability, Not Just Use
Longer-lasting products reduce demand for frequent replacements. That lowers the number of supply chain cycles needed per customer — and therefore emissions. - Educate Your Product Teams
Bring engineers, designers, and procurement folks into the conversation early. Help them understand that emissions come from the choices made at the drawing board.
Remember: the use phase is just one part of the story. If you only focus on that, you’re leaving the bulk of your emissions unchecked.
18. Food supply chains contribute 25–30% of global GHG emissions
Food Is Fuel — and a Huge Source of Emissions
The global food system is responsible for roughly a quarter to a third of all greenhouse gas emissions. This includes everything from growing crops and raising animals to processing, transporting, packaging, and distributing food around the world.
Agriculture itself is a major emitter — but when you include supply chain activities like cold storage, fertilizer production, shipping, and food waste, the numbers grow fast.
And while food is essential, the way we grow and move it around the planet is far from sustainable.
Where the Emissions Come From
- Deforestation for grazing and crop farming
- Methane from livestock like cows and sheep
- Fertilizers and pesticides, which require fossil fuels to produce
- Cold-chain logistics, especially in meat and dairy
- Packaging and transport, often across long distances
- Food waste, which produces methane in landfills
Every bite we take carries an emissions tag — and businesses involved in food production or sales have a big role to play in shrinking that tag.
How Food Brands and Suppliers Can Reduce Emissions
- Source Locally and Seasonally
Reduce transport emissions by buying from nearby farms or regional producers. Seasonal produce also requires fewer artificial inputs like heating or chemicals. - Invest in Regenerative Agriculture
Work with farmers who focus on soil health, crop rotation, and carbon capture. These practices reduce emissions and increase resilience. - Cut Down on Meat and Dairy
If you’re a food manufacturer or retailer, consider reformulating products with more plant-based ingredients. Offer customers plant-forward options that require less land and water. - Upgrade Cold-Chain Infrastructure
Efficient refrigeration systems use less energy and fewer harmful coolants. Smart monitoring also reduces spoilage — which leads to waste. - Design Smart Packaging
Food packaging should extend shelf life while minimizing material usage. Recyclable and compostable packaging helps cut emissions at the end of life. - Fight Food Waste
Food that’s produced but not eaten still carries a full supply chain footprint. Reduce overstocking, donate unsold items, and engage customers in waste education.
The food system is foundational to our survival — but it’s also ripe for innovation. Companies that tackle emissions here will have a profound impact on climate change and public health.
19. Cold-chain logistics add up to 15% more emissions compared to non-refrigerated transport
Why Keeping Things Cool Comes at a Cost
Cold-chain logistics are essential for certain industries — especially food, pharmaceuticals, and cosmetics. But they come with a hidden cost: emissions. Maintaining controlled temperatures throughout transport, storage, and handling can add up to 15% more emissions compared to traditional logistics.
This extra footprint doesn’t just come from refrigeration units. It also includes increased fuel use, insulation materials, and spoilage-related waste — all of which add to your carbon total.
As more consumers expect fresh goods and more supply chains rely on global networks, cold-chain logistics are expanding rapidly. That makes reducing their emissions a priority.
Where the Emissions Come From
- Diesel generators powering refrigeration in trucks and containers
- Energy-heavy warehouses keeping goods at stable temperatures
- Refrigerants like HFCs, which are thousands of times more potent than CO₂
- Insulation and packaging waste, often unrecyclable
- Spoilage, which leads to additional emissions from waste
All of these elements make cold chains not just expensive — but carbon-heavy.
How to Reduce Emissions in Cold-Chain Operations
- Upgrade to Electric Refrigeration
Use electric-powered cooling units instead of diesel-based systems. These are more efficient and can be powered by renewable energy sources at warehouses. - Switch to Low-GWP Refrigerants
Transition from high global warming potential (GWP) gases like HFC-134a to low-impact options such as CO₂ or hydrofluoroolefins (HFOs). This can dramatically reduce environmental impact. - Improve Warehouse Insulation
A well-insulated cold storage facility uses less energy to maintain temperatures. Retrofit older buildings to boost efficiency and seal air leaks. - Use Smart Temperature Monitoring
IoT sensors and data loggers allow for real-time monitoring. This helps avoid unnecessary cooling and reduces spoilage due to temperature fluctuations. - Optimize Delivery Routes
Refrigerated deliveries should be fast and efficient. Route optimization reduces the time units spend running on fuel, cutting emissions per trip. - Educate Your Teams
From loading dock workers to delivery drivers, everyone plays a role in maintaining efficiency. Simple actions — like minimizing door openings or reducing idling — add up. - Consider Nearshoring
If your product allows, moving cold-sensitive production closer to your consumer base can slash the need for long-haul refrigerated shipping altogether.
Cold-chain is often unavoidable. But smarter technologies and tighter processes can significantly reduce its environmental toll.
20. Deforestation for supply chain purposes (e.g., palm oil, soy) contributes 10–15% of global emissions
The Forest Is Disappearing — And Supply Chains Are Behind It
Every year, millions of acres of forest are cleared for farming, mining, and development. Much of this deforestation happens to make way for supply chain staples like palm oil, soy, timber, and cattle ranching. And this process — clearing trees and releasing stored carbon — accounts for 10–15% of global greenhouse gas emissions.
That’s more than the emissions from the entire EU.
The link between deforestation and supply chains is undeniable. Companies often source materials indirectly from regions with weak forest protections or hidden deforestation in their commodity chains.
Why It Matters to Business
Besides the climate impact, deforestation increases risk exposure. It’s tied to biodiversity loss, regulatory scrutiny, supply chain disruptions, and reputational damage.
Consumers care more than ever. Brands seen as complicit in deforestation — even indirectly — face boycotts, bad press, and investor backlash.
How to Eliminate Deforestation From Your Supply Chain
- Trace Your Raw Materials
Know where your soy, palm oil, cocoa, beef, and wood-based products come from. Use satellite monitoring tools or supplier audits to verify sourcing regions. - Use Certified Materials
Look for third-party certifications like RSPO (palm oil), FSC (wood), RTRS (soy), or Rainforest Alliance. While not perfect, these programs offer stronger assurance of no-deforestation practices. - Add Forest Clauses to Contracts
Require suppliers to sign deforestation-free agreements. Include clauses for land-use practices, conservation efforts, and verification mechanisms. - Support Landscape-Level Solutions
Rather than working with individual farms only, invest in broader conservation and regeneration programs in key sourcing regions. This has a more lasting impact. - Engage in Collective Action
Join platforms like the Accountability Framework initiative or Consumer Goods Forum’s Forest Positive Coalition. These initiatives promote industry alignment and faster progress. - Regularly Report on Forest Risk
Include deforestation metrics in your sustainability disclosures. Transparency builds trust and keeps pressure on internal teams and suppliers. - Set Time-Bound Goals
“Zero deforestation” can’t be an open-ended promise. Set specific deadlines for full traceability and compliance — and communicate them clearly.
Protecting forests is one of the fastest and most effective ways to fight climate change. And it starts with how we source.
21. By 2030, digitization in supply chains could reduce carbon emissions by 5.5 billion tons
Going Digital Could Be the Climate Game-Changer We Need
The digital revolution isn’t just about efficiency or speed. It’s also a powerful tool for decarbonization. Studies show that digitizing supply chains could reduce carbon emissions by up to 5.5 billion tons by 2030 — that’s more than the annual emissions of the entire U.S.
How? Through better visibility, smarter decisions, faster feedback loops, and data that actually drives behavior.
When companies rely on spreadsheets and phone calls, they miss inefficiencies. But with real-time data, automation, AI, and IoT devices, you can find and fix problems instantly — before emissions pile up.
Where Digital Tools Make the Biggest Impact
- Tracking freight in real time to reduce idling, delays, and backhauls
- Monitoring factory energy use to identify carbon hotspots
- Predicting demand more accurately, which reduces overproduction
- Automating inventory to avoid rush orders and last-minute air shipping
- Digital twins that simulate and improve supply chain design before implementation
The result? Less waste, fewer emissions, and smarter decisions.
Building a Digitized, Low-Carbon Supply Chain
- Invest in Supply Chain Visibility Platforms
Tools like SAP, Oracle SCM, Coupa, or custom-built dashboards provide end-to-end insight across your value chain. These systems can centralize data, flag anomalies, and identify carbon-heavy processes. - Use IoT Sensors and RFID
Smart tags and trackers let you monitor temperature, location, humidity, and more. This is especially useful in perishable or sensitive goods and helps avoid spoilage and rework. - Implement Predictive Analytics
Use machine learning to forecast demand, shipping needs, and production cycles. This helps avoid overproduction and unnecessary shipments — two major causes of emissions. - Adopt Blockchain for Traceability
Blockchain isn’t just hype. It can be used to trace product journeys, verify sustainability claims, and prevent fraud in carbon reporting or supplier data. - Simulate Before You Ship
Digital twins can model your supply chain under different scenarios. Before launching a new route or warehouse, simulate its carbon impact — and choose the best alternative. - Train Teams in Digital Tools
Adoption matters. Don’t just install software and walk away. Train procurement, logistics, and planning teams on how to use data to reduce emissions, not just boost efficiency. - Work With Tech-Forward Suppliers
Choose partners who are digitizing their own operations. Collaboration is easier when everyone speaks the same digital language.
Digitization doesn’t just drive performance. It drives sustainability. And it’s one of the most scalable strategies for achieving deep decarbonization across your supply chain.
22. Use of electric vehicles in logistics could cut transport emissions by 30% by 2030
Logistics Is Ripe for an EV Overhaul
Electric vehicles (EVs) are no longer a futuristic concept — they’re here, they’re growing fast, and they’re proving their worth. For logistics, especially last-mile and short-haul transport, EV adoption has the potential to cut transport-related carbon emissions by up to 30% by 2030.
That’s huge. And it matters because transportation remains one of the most stubborn sources of supply chain emissions. As regulations tighten and cities push for clean air, electric logistics will shift from a “nice to have” to a “must have.”
Why EVs Are Gaining Ground in Supply Chains
- Lower fuel and maintenance costs over time
- Regulatory incentives for clean fleets in many countries
- Better public image and alignment with ESG goals
- Rapid improvements in range, charging infrastructure, and payload capacity
Plus, many delivery routes — especially in urban or regional settings — are a perfect fit for EVs, which typically operate best in short-distance, frequent-stop environments.
How to Transition Toward Electric Logistics
- Start With Route Mapping
Identify which delivery routes are ideal for electrification. Shorter, predictable routes with easy access to charging are the low-hanging fruit. - Run a Pilot Program
Don’t go all-in at once. Test EVs on select routes or regions. Monitor performance, cost savings, driver feedback, and charging needs. - Explore Leasing Instead of Buying
Leasing allows for flexibility and upgrades as tech improves. It also reduces up-front capital costs and makes pilot projects more feasible. - Use Telematics to Maximize Efficiency
EV fleet management platforms can monitor battery health, optimize charging schedules, and reduce unnecessary mileage — all of which contribute to lower emissions. - Build Charging Infrastructure Early
If you control your own facilities, install chargers now. For outsourced logistics, work with partners who have charging capacity or co-invest in infrastructure. - Work With EV-First Couriers
New courier networks focused entirely on electric fleets are emerging. Partnering with them can help you reduce emissions quickly without retooling your own operations. - Promote the Switch
Let customers know you’re delivering sustainably. Use it in your marketing to differentiate your brand, especially in industries where green choices matter.
The transition won’t happen overnight, but every electric vehicle added to your logistics network is a step toward cleaner, smarter supply chains.
23. Only 20% of companies assess carbon emissions at the supplier level
The Blind Spot in Supplier Engagement
While many companies are trying to clean up their emissions, only 1 in 5 are looking closely at how their individual suppliers contribute to the problem. That’s a huge gap — and a missed opportunity.
Assessing supplier emissions allows you to identify where carbon is hiding in your value chain. It also gives you leverage to influence change in a direct, measurable way.
When supplier-level data is missing, you’re relying on assumptions or industry averages. And that opens the door to greenwashing, inefficiency, and poor decision-making.
Why Supplier-Level Tracking Is Hard — But Essential
It’s not that companies don’t care. It’s that tracking supplier emissions is difficult:
- Small suppliers may not know their own carbon footprint
- Data formats vary wildly
- Emission sources differ across materials and geographies
- Suppliers may be hesitant to share what they see as sensitive info
But if you want a supply chain that’s truly low-carbon, you can’t afford to fly blind.
Steps to Start Assessing Supplier Emissions
- Build a Supplier Emissions Framework
Decide what data you want: Scope 1 (their direct emissions), Scope 2 (their purchased energy), and ideally Scope 3 (their own supply chain). Start simple and expand over time. - Segment Suppliers by Risk and Impact
You don’t need to assess every supplier at once. Start with your highest-spend, highest-impact vendors. These usually represent 80% of the emissions footprint. - Offer Templates and Tools
Help suppliers succeed. Provide emission calculation templates, tools, or access to platforms like CDP Supply Chain or EcoVadis. - Tie Emissions to Performance Reviews
Include emissions tracking in your supplier scorecards and quarterly reviews. Reward transparency and effort, not just results. - Introduce Emissions Clauses in Contracts
Future supplier agreements should include language about emissions disclosure, goals, and reduction plans. Make expectations clear from the start. - Use Proxy Data If Needed
For smaller or less mature suppliers, use category-based emissions factors to estimate their footprint until they can report directly. - Create a Supplier Emissions Dashboard
Centralize everything in one place. Visualizing emissions by supplier makes trends clear and helps procurement teams prioritize conversations.
Ultimately, what gets measured gets managed. If supplier emissions are invisible, they’ll never get better.
24. Emission tracking costs can be reduced by 50% using blockchain and IoT technologies
Technology Is Making Carbon Data Smarter and Cheaper
One of the big challenges with supply chain decarbonization has always been tracking. Measuring emissions accurately — especially across borders, industries, and tiers — can be expensive and complex. But with the rise of blockchain and IoT, that’s changing fast.
Companies using these tools are cutting their emission tracking costs by up to 50%. They’re also gaining real-time insights, better traceability, and more confidence in the numbers they report.
This isn’t just about cost savings. It’s about speed, trust, and competitive advantage.
How Blockchain and IoT Help
- Blockchain creates secure, tamper-proof records of transactions, product movements, and carbon data.
- IoT sensors collect live data on energy use, temperature, motion, and emissions from factories, trucks, and warehouses.
- Together, they create a transparent, automated, and verifiable system — far better than spreadsheets and email chains.
How to Apply These Tools in Your Supply Chain
- Start With a Pilot Project
Pick one high-emission process — like palm oil sourcing or cold-chain transport — and test how IoT and blockchain can improve visibility and reduce tracking costs. - Use Smart Contracts for Emissions
Smart contracts on blockchain can automatically trigger actions based on emissions thresholds. For example, if a supplier’s emissions spike, it could notify your procurement team. - Install IoT in Emissions Hotspots
Focus on machinery, delivery fleets, warehouses, and refrigerated units. Real-time monitoring helps prevent overuse, identify leaks, and reduce waste. - Integrate With Emissions Management Software
Don’t let data sit in silos. Feed blockchain and IoT insights into your carbon accounting system for seamless tracking and reporting. - Share Verified Data With Stakeholders
Verified blockchain data builds trust. Share it with investors, regulators, or even customers as proof of your sustainability performance. - Collaborate With Tech Partners
Work with logistics providers, manufacturers, or startups specializing in traceability tech. You don’t need to build everything yourself. - Stay Updated on Standards
As digital carbon tracking becomes more mainstream, new protocols and standards will emerge. Stay aligned with best practices so your reporting holds up under scrutiny.
Tracking emissions doesn’t need to be expensive or slow. With smart technology, it becomes a strength — one that drives both sustainability and bottom-line results.
25. Packaging accounts for 3% of global emissions, with huge variation across supply chains
Small in Size — Big in Impact
Packaging might seem like a minor part of your product’s footprint, but globally, it contributes around 3% of greenhouse gas emissions. That might not sound massive at first — but think about this: packaging touches nearly every product, in every industry, every single day.
And the variation between companies is huge. Some businesses use smart, efficient, recyclable materials. Others ship tiny items in oversized plastic-filled boxes. The difference? Measured in millions of tons of CO₂ every year.
Why Packaging Shouldn’t Be an Afterthought
Aside from its direct emissions, packaging influences your product’s weight, shape, and volume — which all affect how it’s transported and stored. So, poor packaging design doesn’t just waste materials. It increases freight emissions, warehouse energy usage, and customer frustration.
And let’s not forget — your packaging is the first thing customers see. It’s a visual cue for how seriously your company takes sustainability.
How to Rethink Packaging With Emissions in Mind
- Measure the Carbon Footprint of Packaging Materials
Different materials carry different footprints. Virgin plastic is high-emission. Recycled cardboard is much lower. Use LCAs or emissions factor databases to compare. - Right-Size Every Box
Avoid shipping small items in large boxes. Use automated box-sizing equipment or switch to poly-mailers for small goods. This reduces emissions from both materials and transport. - Design for Lightweighting
Every gram counts, especially in air freight. Choose packaging that protects but doesn’t overbuild. Consider thinner materials, molded pulp, or lighter fillers. - Go Recyclable or Compostable
Choose materials with end-of-life in mind. Recyclable packaging reduces landfill emissions. Compostable options go even further — especially when paired with clear disposal instructions. - Cut Out Mixed Materials
Avoid mixing plastic and paper unless they can be separated. Multi-material packaging is hard to recycle, increasing both emissions and waste. - Audit Return Packaging
If you offer returns, make sure packaging can survive a round-trip. Or better yet, test reusable return mailers — especially in apparel and DTC retail. - Educate Your Customers
Include disposal instructions on your packaging. Better behavior leads to fewer emissions from landfill or improper recycling.
Packaging may be only 3% of emissions globally — but it’s 100% in your control. And small changes here can lead to big improvements across your full supply chain.
26. Re-shoring manufacturing can reduce transport-related emissions by 20–40%
Bring It Home — and Cut the Carbon
Globalization has dominated supply chain strategy for decades. Lower labor costs and access to specialized manufacturing hubs drove companies to spread their operations across the globe. But this strategy comes at an environmental cost — especially in transport.
Re-shoring (or near-shoring) — moving manufacturing closer to your customer base — can reduce transport emissions by as much as 40%. That’s a massive opportunity hiding in plain sight.
And it’s not just about carbon. It also reduces lead times, increases resilience, and minimizes geopolitical risks.
Why Re-Shoring Is Gaining Momentum
- Rising international freight costs
- Supply disruptions from pandemics and conflicts
- Emissions pressure from regulators and investors
- Customer demand for locally made products
Re-shoring won’t be the answer for every company. But where it’s viable, it can be both a sustainability win and a strategic upgrade.
Making the Case for Local or Regional Manufacturing
- Evaluate Total Cost — Not Just Labor Cost
Overseas production often seems cheaper — until you factor in freight, delays, tariffs, and risk. A full-cost view often reveals near-shore options are more competitive than they appear. - Use Emissions as a Decision Factor
Add carbon cost to your supply chain evaluations. Estimate transport-related CO₂ for each production location, and factor it into sourcing decisions. - Start With High-Volume or High-Cost SKUs
Test re-shoring with key products. Prioritize goods that are expensive to ship, time-sensitive, or frequently backordered due to long transit times. - Build Redundancy Into Your Sourcing
Instead of moving everything home, consider a dual-sourcing model. One supplier close to your home market, one overseas. It boosts agility and reduces total emissions. - Tap Into Local Incentives
Many countries offer tax breaks, grants, or green energy credits for building local manufacturing. Explore what’s available before committing. - Tell the Story
Consumers love hearing that your products are made locally or regionally. Use this as a branding advantage — especially when combined with faster shipping and lower carbon. - Optimize Fulfillment Networks Too
Re-shoring works best when combined with smart warehousing. Bring fulfillment closer to customers for an end-to-end transport emission reduction strategy.
Re-shoring isn’t just about patriotism or convenience — it’s a real, powerful lever to decarbonize your supply chain while making it stronger and faster.
27. Supply chain circularity initiatives can reduce emissions by 39% in some industries
The Circular Economy Isn’t Just Buzz — It’s a Climate Solution
In traditional supply chains, resources flow in a straight line: extract, make, use, dispose. But this linear model is wasteful — and carbon-intensive. Circularity flips the script by keeping materials in use longer and extracting more value from them.
And the payoff? Circular supply chains can cut emissions by up to 39% in certain sectors like apparel, consumer electronics, and automotive.
That’s not just theory. It’s been proven. When you reuse, repair, remanufacture, or recycle, you avoid the emissions associated with creating something new from scratch.
What Circularity Looks Like in Practice
- Products designed for repair, not replacement
- Components that can be reused or remanufactured
- End-of-life products collected and recycled
- Business models based on leasing or sharing, not owning
- Material recovery loops built into the supply chain
Circularity isn’t about perfection. It’s about rethinking your entire value chain to minimize waste and maximize resource value.
How to Make Your Supply Chain More Circular
- Design for Disassembly
Make it easy to separate parts at the end of life. Avoid adhesives and complex fasteners. This enables reuse and recycling — and reduces waste. - Use Recycled and Recyclable Materials
Choose inputs that already have a life behind them. And make sure they’re ready for another one after your customer is done. - Create Product Take-Back Programs
Offer drop-off points, trade-in discounts, or prepaid mailers for used products. Make the return path as easy as the purchase. - Explore Repair-as-a-Service Models
Especially in electronics or appliances, offering in-house or third-party repair reduces churn and keeps emissions in check. - Partner With Recycling Innovators
Look for startups or local recyclers that specialize in hard-to-process materials. Partnering helps close your material loops. - Track Product Lifespan Data
Monitor how long products last and when they typically get returned or discarded. This insight helps you optimize future designs and circular strategies. - Turn Waste Into Inputs
Can you use manufacturing scrap, customer returns, or packaging waste as raw material for new products? Look within your own system first.
Circularity is more than a sustainability trend — it’s a strategic opportunity. Lower emissions, lower costs, stronger customer loyalty. What’s not to love?
28. Carbon pricing in supply chains could cut global emissions by 12% if universally applied
Put a Price on Pollution — and Watch Behavior Change
Carbon pricing works. Whether it’s through carbon taxes, internal carbon fees, or emissions trading systems, putting a financial cost on carbon makes businesses think twice about their emissions.
If carbon pricing were implemented across global supply chains, emissions could fall by 12%. That’s a massive potential win — and it comes from one thing: aligning environmental impact with financial incentives.
Today, carbon is often treated as an externality — something companies don’t pay for directly. But that’s changing. Governments are introducing taxes, import tariffs (like the EU’s Carbon Border Adjustment Mechanism), and corporate stakeholders are calling for internal carbon pricing strategies.
Why Carbon Pricing Is So Effective
- It changes the economics of high-emission choices
- It rewards efficiency, innovation, and clean operations
- It creates a level playing field for greener suppliers
- It sends a clear signal to investors and regulators
The more emissions cost, the more valuable reduction becomes.
How to Use Carbon Pricing in Your Supply Chain
- Introduce an Internal Carbon Price
Even if you’re not legally required to, create a shadow price per ton of CO₂ (e.g., $50 or $100). Apply it to procurement decisions, project evaluations, or capital expenditures. This reveals the true cost of high-emission choices. - Incorporate Carbon Costs Into Supplier Selection
When choosing between two vendors, factor in their emissions — and apply your internal carbon price. The supplier with the lowest combined financial + carbon cost should win. - Track Carbon Cost Per Unit
Just like you track cost per unit of raw material, track carbon cost per unit of product. This creates clear KPIs that guide improvements. - Use Emissions Fees to Fund Reductions
Don’t just record carbon costs — put them to use. Invest in low-emission equipment, supplier training, or sustainable R&D using the “revenues” from internal carbon charges. - Model Future Regulatory Exposure
Use your internal pricing system to model what would happen if carbon taxes were introduced in key markets. This helps de-risk your supply chain for long-term resilience. - Educate Suppliers on What’s Coming
Many suppliers still operate in regions without carbon pricing. Help them understand where the market is heading. Incentivize them to lower emissions before they’re forced to.
Carbon pricing is one of the most powerful tools we have — and you don’t have to wait for governments to act. Companies can lead the way by making carbon a real cost today.
29. Only 10% of suppliers have carbon reduction targets validated by third parties
Most Suppliers Are Still Flying Without a Plan
Carbon reduction goals are great — but only if they’re real. And right now, only 10% of suppliers worldwide have targets that are actually validated by third parties like the Science Based Targets initiative (SBTi) or verified carbon standards.
That means 90% are either setting vague internal goals, relying on outdated data, or not setting any goals at all.
For companies that care about their Scope 3 footprint, this is a major problem. Because if your suppliers aren’t reducing their emissions, neither are you.
Why Third-Party Validation Matters
Validation makes a target credible. It ensures that reduction goals are:
- Based on science, not guesswork
- Aligned with international climate goals
- Measurable, time-bound, and independently reviewed
It also forces companies to build real roadmaps — not just greenwash.
How to Get Suppliers On Board With Real Targets
- Ask About Current Goals First
Start the conversation by asking what reduction goals they have in place. Even if they’re early in the process, it gives you a baseline. - Introduce the SBTi
Point them toward resources from the Science Based Targets initiative. Many suppliers are unaware of these frameworks and how they work. - Offer Help and Templates
Provide support — even if it’s just a checklist, sample goals, or a call with your sustainability team. Make it easy for them to start. - Use Tiered Expectations
Set different timelines for different tiers. Ask Tier 1 suppliers to have validated goals in 12–24 months. Give Tier 2 and 3 a bit more time — but with a deadline. - Make It Part of the Contract
Embed carbon target requirements into new supplier agreements. Over time, you can phase out vendors who don’t comply or make progress. - Reward Early Movers
Highlight and reward suppliers who act fast. Public recognition, preferred partner status, or co-marketing opportunities can all be motivators. - Integrate Progress Into Procurement
Don’t let carbon goals live in isolation. Tie them into quarterly business reviews, vendor scorecards, and pricing models.
Your emissions are only as strong as your weakest supplier. Helping them set science-based targets helps you hit your own.
30. Collaborative supply chain platforms improve emission data accuracy by 35% on average
You Can’t Solve This Alone
Supply chains are not solo acts. They’re networks — complex webs of relationships, data flows, and dependencies. So when it comes to reducing emissions, collaboration is everything.
Companies using shared digital platforms to collaborate with suppliers and partners improve their emission data accuracy by an average of 35%. That’s a game-changer.
Because let’s face it: most emission numbers today are based on estimates, outdated databases, or incomplete reports. The result? Decisions get made on shaky ground. And opportunities for reduction are missed.
What Makes Collaboration So Powerful?
- Everyone sees the same data
- Updates happen in real time
- Transparency increases accountability
- Gaps are spotted faster
- Reduction efforts can be coordinated, not duplicated
Whether it’s co-developing a sustainable packaging solution or aligning on greener transport, shared platforms keep everyone focused, aligned, and moving faster.
Building a Collaborative Emissions Ecosystem
- Choose the Right Platform
Look for systems like CDP, EcoVadis, SAP Ariba, or custom-built dashboards that allow both you and your suppliers to log, share, and analyze emissions data securely. - Standardize Your Metrics
Use common units, protocols, and frameworks. This avoids confusion and ensures everyone’s reporting aligns with global standards. - Train Suppliers to Use the System
It’s not just about software — it’s about people. Offer onboarding, videos, and workshops to help suppliers get up to speed. - Enable Real-Time Collaboration
Let suppliers comment on reports, upload documentation, and view shared dashboards. Make data interactive and actionable — not static. - Build Cross-Functional Teams
Bring together sustainability, procurement, IT, and operations to manage the platform. Collaboration starts from within. - Use the Data to Drive Action
Don’t just track emissions — reduce them. Use the insights to pinpoint hotspots, compare vendors, and develop joint action plans. - Scale Up
Start small, then invite more partners. Over time, aim to connect your entire supply network through a single collaborative system.
Shared platforms bring transparency. Transparency builds trust. And trust is the foundation for a truly low-carbon supply chain.
Conclusion:
As we’ve seen across these 30 critical statistics, carbon emissions in global supply chains are not just a side issue — they’re the issue.
From materials and manufacturing to transportation, packaging, and returns, emissions are hiding in every corner of the value chain. And while measuring them can feel complex, doing nothing is far riskier.
