3:05 AM
The need to mitigate the effects of climate change has never been greater. However, the important question is how to do it? This challenge is so great that no government in the world can tackle it alone. Eighty percent of the world's carbon emissions come from the global supply chain, so it is natural to expect businesses to play their part in solving this most important problem. That is why the COP26 conference invited government leaders as well as private sector corporate leaders to come and highlight their role.
According to the World Economic Forum, corporate leaders have a sense of urgency and responsibility for this issue. That is why, since 2020, we have seen many corporates repeat their net-zero goals. Several companies have begun large-scale work to address the issue of carbon emissions, including 'Scope 3' emissions, for which their suppliers are responsible.
Companies with a "supply chain approach" have broader goals and are working more effectively for climate change.
After all, what can be done to shift global supply to net-zero?
Of the 100 trillion required by 2050 to achieve the net zero supply chain target, 25 to 50 trillion will have to be invested in small and medium enterprises, according to a research report.
On an annual basis, the estimated volume of this investment is 6 0.6 to 1.5 trillion for small businesses, 0.5 0.5 to 3 1.3 trillion for medium-sized enterprises and 1.5 to 3 3 trillion for large enterprises. This situation makes the environmental challenge more difficult, as environmental experts are not available at the institutional level in small and medium enterprises.
These figures, however, are not conclusive, and as industries invest in climate change, the desired volume will be better assessed. The research report suggests the following 7 steps to protect against the effects of climate change.
Product Design Review
Businesses should sit back at the drawing board and review product design. It is not enough just to take the current process to the level of utility. The Net Zero supply chain cannot be established by simply making a few changes from the outside, but by re-examining every step, from the development of a product to its use by consumers.
Adopt a partnership
There is no uniformity in the supply chain. High-quality talent, education and resources are provided to large enterprises, while small and medium-sized enterprises that are already more affected by climate change have neither the talent nor the resources available. In such cases, it is imperative that all small, medium and large enterprises work together and tackle this challenge together.
Creating the potential for change
The biggest problem in the process of shifting the global supply chain for trade to Net Zero will be the gap between the knowledge and capabilities required for it and this gap should be felt in most of the small and medium enterprises. Will This requires intensifying efforts to build capacity and provide training in global enterprises.
Investment in eco-friendly technology
The United Nations has reaffirmed its commitment to achieve
the Net Zero target by 2050, and the World Bank has pledged to all countries.
However, paper goals alone will not work. For this, the world will have to
invest in research and development. This will be possible only when the
departments of industry, science and finance work together to facilitate the
introduction of this innovation on a large scale and provide every possible
facility to each other.
Getting better statistics
There is a need to create systems that can timely collect operational data in the supply chain so that transparent, comparable and consistent ESG indicators can be obtained and are widely available. It includes statistics for every step from the factory to the consumer so that the consumer can make informed decisions at the time of purchase.
Collective thinking about policy and standards
It has been observed that due to the lack of collective uniformity in policies, standards and market practices, businesses face difficulties in meeting the ever-changing needs of their partners, which increases the complexity and cost of doing business. Is.
Business processes need to be consistent and predictable, otherwise unforeseen circumstances can lead to cost overruns and delays. Bringing global supply chain uniformity requires policies that strive to achieve high standards as well as common standards.
Availability of capital
The availability of capital is essential to improve the global supply chain, but banks alone cannot ensure the supply of money. Banks can operate in syndicates, partner with corporations and establish public-private partnerships to provide capital where it is most needed. This requires transparent and accessible statistics to know where the capital is going, how it is being used and who is using it.
Corporate leadership ready for change
The way businesses do business in the world is changing, so corporate leaders have to open their minds to adopt new ways, otherwise the closed minded corporate leaders of yesterday will lead their organizations to decline.
Businesses can not only expect environmental requirements or investments in technology, this will be done only by their suppliers, but on the contrary businesses will have to invest together with their suppliers to achieve these goals.
Governments will need to create incentives to rebalance economic equality and bring the various phases of business together through policies. In this, big businesses have to take more responsibility and make the process simple and easy for small businesses so that they do not lag behind in the process.
This is important because if large businesses think that they can outperform small businesses, they will be mistaken, because if small businesses do not achieve net zero goals, then large businesses Labor, policies and investments will also be lost.
Industry and business organizations and NGOs must play their part in disseminating information and resources in this regard, and make all partners aware of the benefits of the Net Zero Targets in the supply chain and its importance in order to scale up. Everyone can work together on a strategy to achieve the goals.
No comments
Post a Comment