With the promise to intrigue and inspire companies to embrace and work towards the Net Zero Goal, team Celerity achieved yet another and the most important first in the year 2024 by hosting industry-first event on Scope 3 Emissions, which compelled industry stakeholders to actually put utmost emphasis on the most crucial sustainability parameter – Reporting Scope 3 Emission, which often remains amiss in most of the sustainability reports as it is the most complex to report too. While the crucial start has been made, we are not going to stop here… In fact, our readers will see an increased coverage on sustainability from here on wherein we would present industry insights on the possibilities and expanse of reducing overall emissions to prepare the supply chain professionals for the interesting journey ahead… Here’s offering you some of the most powerful quotes we captured this year…
Shailesh Haribhakti, ESG Champion, Board Chairman, Independent Director at some of the country’s most preeminent organizations
To bring Scope 3 emissions into focus, companies must embrace three fundamental principles: collaboration, innovation, and technology. First, collaboration is crucial. Large corporations should work closely with their suppliers, particularly MSMEs (Micro, Small, and Medium Enterprises), to integrate them into carbon emissions measurement efforts. This involves paying a portion of the costs and ensuring that payments to MSMEs are made on time. By doing so, MSMEs will be more motivated to participate in the value chain, contributing to the overall sustainability effort. Moreover, companies should diversify their supplier base, prioritizing those with the lowest carbon footprints. By doing so, Scope 3 will become a “Must Do” rather than an afterthought. The role of collaboration cannot be overstated; it is the bedrock upon which sustainable supply chains are built.
Prabodha Acharya, Chief Sustainability Officer, JSW Group
Organizations aiming to accurately manage/control Scope 3 emissions need an integrated ecosystem that includes robust data-sharing platforms, supply chain transparency tools, and collaborative frameworks. Infrastructure should support real-time tracking of external activities, involve suppliers in emission reporting, and utilize technologies like IoT and blockchain for reliable data. Emerging technologies are pivotal for organizations’ sustainability goals. AI-driven analytics aids in smart decision making, while IoT enhances supply chain visibility. Circular economy initiatives benefit from blockchain. Clean energy tech and carbon capture contribute to emission reduction. Integration of these technologies is essential for achieving sustainability goals. Technology companies are leveraging their innovation prowess to lead in sustainability. AI, IoT, and data analytics optimize resource use. Renewable energy adoption and circular economy models reduce waste. Smart supply chains, enabled by blockchain, enhance transparency.
Shipping industry can work towards decarbonation by regressively adopting the renewable energy investment and deployment. Producing fuels like hydrogen, ammonia, and methanol demands substantial energy, and these fuels can only effectively mitigate emissions if the energy used for their production is also decarbonized. Presently, only 30% of the world’s energy is renewable, indicating a need for rapid scaling up of renewable energy investment and deployment for the shipping industry to produce enough zero emissions fuel to achieve net-zero targets by 2050. Initiatives like the Green Shipping Challenge, supported by the Ocean Panel, encourage commitments toward net-zero emissions, illustrating progress in this realm.
Jaswinder Saini, VP - Procurement, Tata Play Ltd.
Sustainability serves as a key factor in attracting customers to an organization. Today’s customers are informed and savvy about a company’s operations. They can readily access information on whether a company sources its raw materials ethically or delivers goods sustainably. Customers tend to favor organizations that adhere to sustainability over those that do not. We, too, are consumers, both individually and corporately. Would you consider endorsing organizations that engage in unsustainable practices? I believe the unanimous response would be negative. At an individual level, we must all be cognizant of ESG principles to progress on this path. From my experience in the manufacturing sector, implementing ESG is more challenging in manufacturing than in services due to the significant role of technology. Without technological support, contributing to ESG can be difficult, regardless of the resources committed. In contrast, the service industry, with the correct measures, can implement ESG initiatives with greater probability and ease.
As a supply chain professional, sustainability is a subject close to my heart. Today, there can be no discussion of supply chain without reference to sustainability. Embracing the 3Ps of sustainability – Planet, People, and Profit – is essential for organizational success. There can be no trade-offs. Climate change is for real and the impact of GHG emissions cannot be ignored. By integrating ESG considerations into risk management, organizations can identify and address potential threats, build resilience, and create long-term value for shareholders, customers, and communities. Organizations have to assess the potential impacts of climate change (e.g., extreme weather events, scarcity of resources, etc.) on operations, supply chain, and assets in order to develop effective adaptation and mitigation strategies.
Ashwin Kak, Sustainability Consultant and Start-up Advisor
For organizations just starting off on their journey, they need to get their scope 3 materiality baselining correct – it could be a mix of actual emissions and scientific assumptions-based working – depending on how mature the supply-chain is already in terms of their own emission mapping – many guidelines and frameworks exist to help an organization get kick-started on their journey. The second point has to be a digital ecosystem which binds and integrates all of this vast information together into analyzable and actionable bits of information. The third, and the final one, has to be putting a roadmap in place for addressing these emissions thenceforth. The first two are almost like the base foundation, while point three is where we end up spending more time with our problem-solving hats.
Vishal Bhavsar, Head – ESG, Multiples Alternate Asset Management
Sustainable supply chains enhance corporate reputation and consumer trust by demonstrating a commitment to ethical practices, including human rights and traceability. Initiatives like the Better Cotton Initiative promote sustainable cotton production while supporting farmers’ rights, appealing to eco-conscious consumers. Addressing issues like conflict minerals also ensures responsible sourcing, fostering trust. Corporates can leverage this impact by promoting their sustainability initiatives through marketing and social media, sharing success stories such as Trustea, which focuses on sustainable tea sourcing. Transparency in reporting sustainability metrics builds consumer confidence, while third-party certifications enhance credibility. By positioning sustainability as a core value, companies can differentiate themselves in the market and attract a growing base of socially and environmentally conscious customers and investors focused on ESG criteria.
Veeshwass Kulkarni, General Manager, Legrand India
Weighing the costs and benefits of sustainability activities, particularly in terms of reducing Scope 3 emissions, we need a strategic approach that considers both current trade-offs and long-term gains. While sustainability activities are typically seen as costly, they can yield significant long-term benefits, ranging from financial savings, risk management, and increased brand value to regulatory compliance and customer loyalty. Authorities globally are increasing restrictions on emissions, waste management, and sustainable operations. By taking proactive steps to address sustainability now, businesses can prevent incurring future expenses or fines related to more stringent regulations. At times, early implementation may make companies eligible for tax deductions or perks.
Nitin Varkey, VP – Strategic Projects, Organization Excellence and Innovations, Blue Dart Express
Supply chain excellence is vital for maintaining competitive advantage and achieving customer satisfaction. It enhances efficiency, productivity, and reduces errors. Achieving this requires leadership commitment, a culture of “Right First Time,” with a robust planning and execution mindset. Companies should focus on continuous improvement, adopt new technologies, and foster strong stakeholder relationships. Achieving supply chain excellence requires a holistic approach that encompasses collaboration, technology adoption, continuous improvement, talent development, performance measurement, and sustainability. By focusing on these areas, companies can optimize their supply chain operations, enhance customer satisfaction, and gain a competitive advantage in the marketplace.
Sandeep Chatterjee, Supply Chain and Sustainability Leader, IBM Consulting
To drive real improvement, ESG data and metrics should be embedded into core operations, processes, functions, and workflows. Such integration is key to weaving sustainability into day-to-day tasks and activities. The role of the CSO becomes paramount here in driving this integration. ESG leaders are far more likely to have ESG metrics incorporated into their innovation and digital transformation efforts and integrated into finance functions. Across all organizations, the integration of ESG metrics into core functions is limited, mostly focused on risk management (44%), brand strategy (40%), and customer service/engagement (39%). Only 20% are integrating ESG metrics into supply chain operations; 26% into procurement and sourcing; and just 11% into real estate and facilities management. This offers a window into huge, missed opportunities. Companies pursuing value-driven sustainability must look for change opportunities that will create a ripple effect. Their view should cut across traditional functional silos and processes—unlocking opportunities for rapid improvement at scale.
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