Forgetting Your Supply Chain (The Hidden Carbon Footprint)
You've started using recycled packaging. You've installed energy-efficient LED lighting.
Great steps, no doubt.
But here's the thing: if your raw materials are being manufactured by factories burning coal, all those green initiatives are a drop in the bucket. Your environmental footprint is still massive.
A common blindspot is Scope 3 emissions, hidden way down deep in your supply chain that account for 70% or more of your total carbon footprint. Not addressing them is like trying to bail water out of a boat, while you've got a giant hole in the hull.
No matter how many "green" actions you take at the surface level, your overall footprint won't change until you look at what is going on in your supply chain.
Here's the thing: Sustainability is not just what you do within the org. Who you purchase from, how those materials are discovered or created, and how they're produced matter just as much – if not more. Supply chains are complex and many companies don't go back far enough to actually figure out what environmental (and ethical) impact their suppliers have.
How to Fix It:
- Map Your Supply Chain: Get to the source of your materials. How’re they made? Who’s making them, and under what conditions? Don’t just take suppliers’ at face value when they slap on an “eco-friendly” or “sustainable” label. Track the materials’ entire journey, and figure out where the real environmental and social impacts are.
- Work with the Right Suppliers: Going for the cheapest option might seem like a win, but hidden costs can wreck your reputation & business in the long run. Pollution, unethical labor, and environmental harm are real risks, even if they’re not the most obvious ones. Find suppliers who are as committed to sustainability as you are, and transparent about how they do things.
- Use Tech to Track Sustainability: Tools like EcoVadis or CarbonChain help you keep tabs on suppliers’ sustainability efforts and show you where they’re succeeding & where they’re slacking. This is data you can use to make smarter choices aka sustainability gold.
Remember: Supply chain ≠ sustainable, your company isn’t either. No amount of carbon credits will save you if you’re not addressing the full scope of your emissions. Own your business’ impact, inside and out.