According to KPMG’s 2020 Survey of Sustainability Reporting, “The Time Has Come.”, 80% of the top 5,200 companies now report on sustainability. A majority of polled companies now have plans in place to reduce carbon emissions.
More and more companies are dedicating themselves to environmental impact, level of carbon emissions, and waste management across their global supply chains. Operating a global supply chain involves orchestrating numerous processes that drive up the consumption of energy, natural resources, raw materials, and the creation of waste. This is why it’s important for companies to examine each stage of their supply chain to consider efficiencies that should be implemented to reduce environmental impact.
Companies are now looking to decrease the carbon footprint of freight transportation across their end-to-end network to build a more sustainable supply chain. Air pollution emitted from transportation contributes to smog and poor air quality, which has negative impacts on the health and welfare of large populations.
According to the United States Environmental Protection Agency recent research:
Projections are that by 2025, as international commerce increases and supply chains become more global and complex, shipments of U.S. goods will grow another 23.5%, and by 2040, a total of 45%.
As freight activity in the United States increases, projections are that during this same time frame, growth in air emissions from freight will exceed growth in emissions from all other transportation activities, including passenger transportation.
Supply chains are too complex to generalize and each business has unique supply chain needs and demands. However, we analyzed the best practices based on the experience of top global companies (including various industries, such as Automotive, Life Sciences, Electronics, etc.) to indicate the most efficient common practices in improving supply chain sustainability.
As you can see, there are a number of ways to reduce your supply chain’s footprint ranging from how you manage suppliers and shipping to what materials you use in packaging.
Companies involved in the production, distribution, and transportation of goods can make a difference. You can make a difference. Digital supply chain solutions such as TransVoyant P2E™ can help you with this by leveraging advanced technologies to analyze, measure, and optimize your supply chain’s environmental impact.
Innovation and sustainability are a perfect match.