Accelerate your net zero ambition
Decarbonization is the pressing challenge of our time. Organizations not only have a moral reason to act, but also a business reason as they respond to customer and investor pressure. Carbon, cost, and profitability are becoming intrinsically linked it’s time to act.
The challenge for most organizations is that most of the emissions a business is responsible for, sit within Scope 3, ‘value chain’, and more precisely within the supply chain. This takes them outside of direct control, but not out of the equation or the P+L.
Over 85% of a company’s greenhouse gas emissions are in the value chain*
According to the Carbon Disclosure Project*, companies who are making the most progress on emissions reductions report that the majority sit within their supply chain. This correlates with where organizations spend their money with roughly the same % of revenues, being spent with suppliers. Suppliers hold the key to cost and carbon reduction.
Decarbonization entails profiling emissions and understanding how they are distributed across suppliers, categories, and product lifecycles and then making the short, mid-term, and long-term changes that reduce carbon. This most often means either choosing greener alternatives or innovating and changing how things are done, to reduce total reliance on carbon-intensive solutions.
So what is decarbonization?
Decarbonization means balancing the speed of ambition, with cost, complexity, and carbon. The elephant in the room is that while there is a business case behind decarbonization, in the short term there is also often a cost and supply bottleneck which makes it difficult and potentially costly to change in the short term. At Proxima, we focus on procurement and supply chain knowledge to provide profitable decarbonization solutions. We provide program management of supply chain decarbonization, including:
- Assessment of supplier data and supply chain emissions potential
- Baselining of current supplier plans vs in house target and glide path
- Running “Intent programs” to accelerate quick carbon wins with suppliers
- Collaborating on complex supply chain challenges and change
Proxima’s Decarbonization-as-a-Service delivers strategy, technology, and execution capability
Different organizations have different ambitions, capabilities, and possibilities within their supply chains. We use our procurement and supply chain expertise, and partner network to adapt to each business scenario and provide the appropriate mix of skills, technology, and knowledge to start and accelerate the change. You will benefit from a dedicated team to support analysis and change delivery, taking Into account your business and its needs.
- Initial analytical carbon cube and options assessment
- Partner carbon accounting, forecasting, and scenario modelling solution
- Deep sourcing knowledge and change expertise
- Self and partner delivered supply chain transformation solutions
- Commercial operating model transformation
Building the case
If you are looking for evidence to support the case for decarbonization and wider supply chain sustainability, download this free report assessing US and UK investor views on the matter.
According to the Carbon Disclosure Project (CDP), 125 of the largest global companies report almost $1 trillion at risk from climate impacts over the next five years. The risk could stem from lost revenue, fines and failures. Moreover, we see long-term consequences of not living up to customer, regulator, or shareholder expectations. (CDP) These risks are front of mind for investors, and this should therefore be front of mind for businesses and procurement teams alike.
How Proxima can help
Proxima delivers Decarbonization-as-a-Service for a range of clients globally. As decarbonization becomes an increasingly in-demand service we worked with organizations to align their suppliers with business purpose targets.
Proxima brings together an experienced data-driven team with a diverse skillset to offer a full end-to-end service to help accelerate businesses to meet their carbon zero supply chain goals faster.
If you are interested in speaking to someone about tackling decarbonization in your supply chain, please get in touch.