Nine out of 10 firms ignoring supply chain carbon footprint

Just 10 per cent of companies are tracking the carbon footprint of their supply chains, according to a major new study from consultancy Accenture.

The global survey of almost 250 supply chain executives found that while the majority of firms are now committed to reducing greenhouse gas emissions from their supply chains, only one in 10 has accurate data on the carbon footprint of different components of their supply chain.

Moreover, the study found that more than one third of respondents had no awareness of the overall emissions from across their entire supply chain network.

However, the survey found that this absence of data is not stopping a growing number of firms from embarking on initiatives to reduce the carbon footprint and energy use of their supply chain infrastructure.

More than three quarters of respondents said they had undertaken at least one green initiative in their warehouses, primarily focused on recycling or installing more efficient lighting, while 38 per cent had implemented at least one green transport initiative, such as switching to greener fuels or buying hybrid vehicles.

Jonathan Wright, senior executive at Accenture's Supply Chain Management practice, said that while these initiatives resulted "in lower costs as well as environmentally responsible processes", the failure to undertake analysis of the supply chain's carbon footprint meant it was unclear if firms were getting the maximum returns from their green supply chain investments.

"Most [firms] are implementing carbon-reduction solutions without understanding their carbon footprint and are therefore unable to measure the real impact those solutions are having on their emissions," he warned.