For all the scientific (and not so scientific) hullabaloo over human induced climate change, the corporate sector is facing some stark and irrefutable truths.
First, at over 400 parts per million, atmospheric carbon is skyrocketing. The reasons are complex and contested, but fossil fuelfed industrialisation is undoubtedly one of them. Corporations are increasingly acknowledging their responsibility to take action. Over two-thirds of the FTSE100, for example, now have carbon reduction targets in place.
But cutting your carbon footprint doesn't – regrettably – happen at the click of a chief executive's fingers. Why? Because corporations' direct emissions typically comprise just a fraction of their carbon output. The bulk of the problem lies further afield – among suppliers, sub-suppliers, sub-sub-suppliers and so on down the chain.
If large companies are going to achieve their carbon reduction targets, it's imperative that they engage their supply base. Here are three top tips on how to kick-off doing so.
(1) Spot Your Hotspots
Every corporate supply chain is a complex, inter-connected, often messy-looking web of connections. To complicate matters further, none are the same. Mapping the 'who', 'where' and 'what' of your own supply chain is essential to making progress. With the picture clarified, you can determine where the primary carbon 'hotspots' lie and therefore where to prioritise your efforts.
(2) Make contracts work harder
Wagging fingers won't cut it with suppliers. Some might want to save the planet; but most need to know what's in it for them. So be ready to explain the bottom-line benefits of, say, energy efficiency (lower fuel costs, most obviously) or the use of renewables (energy security, for instance). And assure themthis is not a "you" and "us" exercise, but a shared way of working, which you should document within your contracts. Ideally, structure rewards for those pushing ahead with low-carbon strategies. If you have eco-management tools or insights about green tech, share them. In short, promote collaborative thinking and joint effort however, wherever and whenever possible.
(3) Set meaningful goals
Atmospheric carbon won't come down with vague intentions. Make your targets meaningful (so they make a real difference) and clear (so suppliers understand them). Once set, make sure you have the systems in place to check on progress. Suppliers will want to know where they stand. So too will your customers, regulators and others. Remember: when it comes to going public with carbon data, keep the message engaging. Sure, provide the spreadsheets for the intellectuals, but winning the ear of the wider world is what reporting is all about.
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