Jabil emphasizes that reducing Scope 3 emissions is crucial for industrial decarbonization, as they can account for up to 80% of a company's total climate impact. The article outlines five key strategies for manufacturers, including self-assessment, leveraging software for data management, collaborating with supply chain partners, addressing product lifecycles through sustainable design, and securing leadership commitment. Implementing these strategies not only contributes to environmental goals but also offers significant business advantages such as cost predictability, improved product design, attracting investors and talent, and ensuring compliance with emerging regulations.
Every atomic assertion extracted from the underlying record, ranked by evidence strength.
Supply-chain emissions are on average 11.4 times higher than operational emissions.
Large corporations cannot reach their net-zero goals without the action of their small- and medium-sized enterprise (SME) suppliers.
Scope 3 emissions may account for 80% of a company's overall climate impact.
Automating data collection through systems integration speeds up collection, improves data capture accuracy, and provides a central repository for reporting and compliance activities.
Collaboration with supply chain partners is a key component of any decarbonization strategy.
These straightforward measures for abating Scope 3 emissions include product and logistics optimization and procurement of low-carbon energy by suppliers.
A growing number of investors and customers are demanding that companies have a roadmap for achieving carbon neutrality as a condition for doing business.
Reducing greenhouse gas (GHG) emissions from manufacturing and its associated supply chain network begins with gaining an understanding of the emissions generated within the operations and across the value chain.
The Greenhouse Gas Protocol sets international corporate standards for accounting for GHG emissions.
The Greenhouse Gas Protocol breaks down a company's total emissions into three scopes.
Research by McKinsey supports the finding that Scope 3 emissions may account for 80% of a company's overall climate impact.
Scope 3 emissions cover emissions from upstream and downstream activities, including leased assets, investments, and franchises.
Scope 3 emissions would otherwise be excluded from a company's organizational boundary but are partially or wholly owned or controlled by the company.
Individual companies looking to report their overall emissions should ensure that an evaluation of their value chain's footprint is included.
Scope 3 emissions present manufacturers with the biggest opportunity to reduce their carbon footprint.
Reducing category one (purchased goods and services) is one of the highest impact areas for Scope 3 emissions.
Category one (purchased goods and services) includes emissions not otherwise included in other upstream Scope 3 emissions categories.
The Greenhouse Gas (GHG) Protocol standard divides Scope 3 emissions into upstream and downstream emissions.
A reduction in purchased goods and services emissions is an important piece of Jabil's overall strategy for reducing its value chain emissions.
Jabil has set targets to reduce its Scope 1 and 2 GHG emissions by 50% by 2030.
Jabil's Scope 1 and 2 targets are in line with scientific recommendations for limiting global warming to 1.5 degrees Celsius.
Jabil's Climate Action strategy and 2024 Sustainability Report outline its Scope 1 and 2 GHG emission reduction targets.
Collaborating with suppliers can decrease a manufacturer's own carbon footprint.
Collaborating with suppliers can help supply chain partners achieve their climate action ambitions.
Many potential employees prefer to work for companies that are socially and environmentally responsible.
Emerging legal requirements exist around greenhouse gas emission disclosures and mitigation.
Companies with a well-developed decarbonization strategy will be prepared to meet emerging legal requirements.
Self-assessment and boundary-setting are crucial milestones for supply chain partners lacking maturity in carbon accounting.
It is impossible to set a goal to reduce future emissions if you don't have a precise calculation of your current emissions.
Accurately calculating a carbon footprint requires collaborating effectively with supply chain partners, customers, employees, and other stakeholders.
A robust information system is required for the collection of data necessary to make carbon footprint calculations.
Connecting measurements from end to end is crucial to obtaining a true picture of an organization's and its suppliers' sustainability journeys.
End-to-end data connection is key to real-time decision-making, which enables supply chain and logistics organizations to make more sustainable choices that help reduce GHG emissions.
Manufacturers need to create a digital foundation for data management and system optimization to begin accounting for Scope 3 GHG emissions.
A digital foundation allows the organization to provide consistent data to their partners within the supply chain and unburdens employees from entering manual data, eliminating the risk of errors in inputs.
A digital foundation enables real-time comparisons, like deciding the most fuel-efficient delivery routes for shipping, which affects both upstream and downstream emissions.
Optimizing supply chain planning and design simultaneously works toward supply chain decarbonization.
Accurate and timely data make supply chain planning decisions more impactful.
Building sustainability into the supply chain equation provides a more holistic overview of the true cost of a product's value chain beyond the financial investment.
A digital supply chain platform, like InControl, allows for forecasting and modeling possible future scenarios.
Indirect GHG emissions account for the majority of manufacturers' climate impact.
Working with suppliers to help find a more energy-efficient way to transport goods or materials is a great strategy to address Scope 3 emissions.
Working with suppliers on energy-efficient transport also has the added benefit of improving supply chain resilience.
Supply chain partners can collaborate to cut emissions by identifying the most greenhouse gas-intensive operations and replacing the equipment drawing the most energy.
Supply chain partners can collaborate to cut emissions by developing power purchase agreements to make sure that power is coming from renewable energy and not from fossil fuels.
Supply chain partners can collaborate to cut emissions by providing coaching and guidance to suppliers underdeveloped in the area of sustainability.
Supply chain partners can collaborate to cut emissions by installing building management systems that can monitor power usage throughout a worksite and help keep it optimized.
Sustainability can be baked in from the very beginning of a product's lifecycle with the proper decisions by both manufacturers and suppliers.
A company is responsible for the GHG emissions created by its products during their lifetime.
Product design is a crucial aspect of decarbonization.
An automobile manufacturer is responsible for the emissions of its vehicles over 10 years, including fuel economy and corporate average emissions.
Manufacturers are responsible for the end-of-life treatment of sold products.
Creating recyclable and reusable products reduces Scope 3 emissions.
Easing the burden on raw materials during the production process is a way to reduce emissions.
McKinsey research indicates that 30% of total Scope 3 emissions could be abated through relatively straightforward measures.
Optimizing product design can help address a considerable amount of industrial decarbonization.
Manufacturers and their supply chain partners should focus on sustainable design principles like reclaiming materials and reusing products.
Reclaiming materials and reusing products reduces the burden on raw materials and natural resources.
Determining a carbon footprint can be costly in the short term.
Savings from decarbonization are mainly seen in the long-term, once policies to improve energy efficiency are set.