The jury is still out on whether or not the automotive logistics sector is really going to make carbon emissions a definable KPI ahead of government regulation. But as Maxine Elkin discovers, companies at least have plenty to talk about
We keep being told that carbon management will become a part of corporate supply chain strategy for major global companies, but in the absence of government legislation and customised guidance on how to measure and reduce carbon emissions, most of the work being done is by motivated individuals working within corporate constraints.
However, a recent report by the Carbon Disclosure Project revealed that 56% of its members expect to deselect some suppliers in future for failing to meet carbon management criteria set by those companies in the future. While automotive suppliers, such as Johnson Controls and Eaton Corporation, form part of that study, it is unclear whether a purely automotive poll would reveal such a high percentage. Nonetheless during the course of research for this report, many of you suggested that carbon reduction initiatives, or information gathering for carbon analysis, will become a standard part of logistics contracts.
One very good reason for this is that cutting carbon nearly always leads to cutting costs–always top of the agenda in this industry. Here we have canvassed the sector to learn about some of the new projects underway to address cutting supply chain emissions.