Daily Archives: February 8, 2009

Carbon: Hype, Reality, and Management

Supply Chain Consulting recently published a pair of white-papers on Carbon, Hype & Reality and Mastering Proactive Carbon Management, that provide a decent starting point for a company just starting down the path to addressing it’s carbon footprint and getting it under control.

In Hype & Reality, Supply Chain Consulting cuts through the hype to the simple facts of carbon management, which are:

  • Everyone can contribute to effective energy management
  • You can’t compete on green unless you are green
  • You can’t claim carbon emission improvements without benchmarks and auditable processes
  • If you’re not committed to carbon management, you’re not corporately responsible in today’s marketplace

It also summarizes the status of global green house gas regulations in the US, Australia, China, and the UK. Highlights include:

  • Australia
    Mandatory legislation that requires mandatory reporting of any company facility that emits more than 25,000 tons of carbon dioxide-equivalent annually. Companies that don’t register or that report inaccurate numbers will be fined as much as $220,000.
  • China
    China has set a target to reduce per unit GDP energy consumption by 4% annually by 2010 with an aim to raise this to 20% in the near future.
  • United Kingdom
    The UK Climate Change Bill became law in 2008 and brought the Carbon Reduction Commitment with it that makes base-line emission reporting mandatory in 2008 and 2009 and reductions mandatory starting in 2010.
  • United States
    President Obama plans to set ambitious reduction goals and some states, like California, have moved ahead on their own.

In Mastering Proactive Carbon Management, Supply Chain Consulting presents their 5-Step Model for achieving a green supply chain.

  1. Master the Basics
    Start by educating employees about the importance of carbon management and going green to build awareness and develop an internal focus on improving basic operations.
  2. Involve the Company
    Begin your carbon journey by completing a static carbon footprint analysis which will help you identify improvements that will reduce energy usage and lower carbon emissions.
  3. Map Your Processes
    Progress to automating your carbon management efforts that will allow you to capture a “live” footprint at any time that includes internal and external supply chain processes. This allows you to consider carbon impacts in your sourcing and production decisions and reduce emissions up-front.
  4. Footprint Your Products
    Take your processes to the next level so that you can allocate your carbon footprint by product line. This allows you to target your worst offenders first and identify which lines have the most reduction opportunities.
  5. Optimize Your Supply Chain
    Re-design your entire supply chain to create an eco-friendly network.