Sustainability includes many aspects.

Global goals to battle climate change

Paris agreement: limit global warming to 1,5-2,0°C. Halve emissions by 2030 UN global goals to reduce emission by 45% 2030 and NetZero by 2050.

Greenhouse gas emissions need to be halved every decade. Requirements are rapidly increasing for industry de-carbonization.

Increased focus for industry:

European climate law, EU countries must cut greenhouse gas emissions by at least 55% by 2030. Their goal is to make the EU climate neutral by 2050
EU legislative package
EU CSRD reporting directive. Increased sustainability and climate reporting from 2024
EU and National industry sectors with tougher targets and requirements.
Financial sector increasing requirements and Banks implementing requirements on Climate targets and actions as a financial risk parameter.
Leading companies committing to ambitious Near-term and NetZero targets

Increased customer requirements

Larger companies has made leading commitments
Taking action to decarbonize their supply chain
Increasing requirements of their suppliers.
By the end of 2023 over 4,000 companies and financial institutions were leading the transition to a net-zero economy by setting emissions reduction targets and having them validated by the SBTi
66 % of Fortune Global 500 have publicly committed to achieving climate targets

Sustainability and Supply Chain decarbonization

To handle the sustainability has become a “must-have”

Recent global climate targets, regulations, and social pressures have posed radical challenges for supply chain professionals. The industry landscape is changing rapidly as a result.

The pace of change is simply too slow.

Most organizations are at early stages of their journey toward meeting the increasing global targets, legislation and customers requirements.

A company’s carbon footprint isn’t just about its own operations. Direct greenhouse gas emissions (Scope 1 and 2) show clear progress and are easier to manage internally. However, the carbon emissions from all activities in the supply chain (Scope 3) are more complex. These indirect emissions can account for up to 90% of a company’s total footprint.

Prioritize Supply Chain Decarbonization need to Shift from Targets to Action

Global reviews at COP28 and recent studies reveal a significant gap in addressing Scope 3 emissions, highlighting an urgent need to accelerate supply chain decarbonization. Encouragingly, advancements in technology and available solutions offer pathways forward. However, many companies face challenges in tackling emissions within their supply chains and engaging with suppliers. It’s now crucial to shift focus from setting targets to taking concrete actions.

At InnovationTech, we help companies assess their current situation, prioritize actions that are feasible and critical, and leverage our experience to implement reduction strategies. We specialize in reducing carbon footprints in challenging sectors such as steel, aluminum, cast iron, and batteries.

Sustainable and resilient Supply Chain

Recent global trends in climate targets, geopolitics, regulations, economy, and social pressures have posed significant challenges for supply chain professionals. Supply chain resilience and sustainability are now essential, yet most organizations are in the early stages of adopting these concepts. Awareness is growing, but the pace of change needs to accelerate to meet the commitments and expectations of companies and stakeholders.

In practice, integrating sustainability into the supply chain can enhance resilience, and vice versa. Leveraging the synergy between these goals offers significant potential for competitive advantage and long-term efficiency. Given today’s complex global challenges, ignoring this opportunity is increasingly expensive and risks the long-term survival of organizations worldwide.