Key Takeaways:
- Most emissions are hidden deep in the value chain, making supply chain sustainability non-negotiable.
- Supply chains are where the bulk of emissions are generated, and unsustainable ones are wasteful, high carbon and messy.
- Transparency is essential so companies know where materials come from, how suppliers operate and how much carbon their supply chain is emitting.
Understanding how companies tackle their environmental impact is essential as modern industries face rising pressure to clean up their operations. With most emissions hidden deep in the value chain, supply chain sustainability and sustainable practices are non-negotiable.
Scope 3 emissions shape corporate environmental responsibility, and our latest article explores 15 examples of leading companies to demonstrate this.
We explore why green supply chains are important, the responsibility of corporations, and a few key strategies that kickstart a company into a successful, green business.
Beyond huge corporations, we show how your company can begin today, with Gaia carbon accounting software, allowing you to both grasp and tackle your supply chain.
Why Green Supply Chains Are Critical
Supply chains are not just one part of a company, but where the bulk of emissions are generated. Unsustainable supply chains are wasteful, high-carbon carbon and messy.
They’re not only guaranteed to lose business for the company, but contribute heavily to pollution with anything from constant transport emissions to toxic manufacturing waste.
The Role Of Corporations In Reducing Carbon Emissions
It is the corporations’ role to reduce carbon emissions, as they are the number one contributor towards climate change.
Shipping, manufacturing, energy use and more are corporate-driven on a major scale, leaving the responsibility with them to ensure their operations safeguard future generations.
Companies Leading In Green Supply Chains
IKEA
Industry: Home furnishings and global retail
Headquarters: Älmhult, Sweden
Start of green journey: 2012
Main methods used: Renewable energy in operations, FSC certified wood, responsible cotton sourcing, circular design, supplier standards and lower carbon logistics
Key achievements: Sourcing nearly all wood from FSC certified or equivalent sources, using only cotton from more sustainable sources, committing to renewable or recycled materials by 2030
Future plans or goals: 90% net zero emissions by 2028, and 90% of product recycled or renewable by 2030
Patagonia
Industry: Outdoor apparel and gear
Headquarters: Ventura, California
Start of green journey: 1985
Main methods used: Recycled materials, organic cotton, fair trade partnerships, supply chain traceability, circular repair and reuse programmes, lower impact dyeing and manufacturing
Key achievements: Early switch to organic cotton, long standing repair and reuse system, major expansion of recycled polyester and nylon across core products
Future plans or goals: Aiming to be net zero by 2040
Interface
Industry: Modular flooring and carpet tiles
Headquarters: Atlanta, Georgia
Start of green journey: 1994
Main methods used: Recycled and bio based materials, renewable energy in manufacturing, closed loop carpet recycling, supplier standards, low carbon product design and logistics
Key achievements: Pioneering recycled nylon use, achieving carbon neutral flooring products, long term investment in closed loop carpet recovery
Future plans or goals: Responsible materials by 2025/2030, zero hazardous discharge, net-zero by 2040
Link: https://www.interface.com/GB/en-GB/sustainability/sustainability-overview
Puma
Industry: Sportswear and footwear
Headquarters: Herzogenaurach, Germany
Start of green journey: 2005
Main methods used: Certified cotton, recycled polyester, supplier environmental standards, chemical management programmes, lower impact manufacturing, improved logistics efficiency
Key achievements: Broad adoption of recycled materials across key product lines, long running supplier environmental audits, early commitment to phasing out hazardous chemicals
Future plans or goals: Lowering supply chain emissions by a sizeable amount by 2030, shifting fully to recycled polyester, and ensuring all leather comes from deforestation-free sources
Link: https://about.puma.com/en/sustainability
Unilever
Industry: Consumer goods and personal care
Headquarters: London, United Kingdom
Start of green journey: 2010
Main methods used: Sustainable sourcing programmes, palm oil traceability, recycled and recyclable packaging, supplier environmental standards, renewable energy in operations, waste reduction across factories
Key achievements: Major progress on certified sustainable palm oil, large scale switch to recycled plastics in packaging, long standing zero waste to landfill approach in manufacturing
Future plans or goals: Huge emission cuts by 2030,
Link: https://www.unilever.com/sustainability/nature/
Walmart
Industry: Retail and supermarkets
Headquarters: Bentonville, Arkansas
Start of green journey: 2005
Main methods used: Renewable energy expansion, supplier sustainability standards, sustainable sourcing programmes, logistics efficiency improvements, packaging reductions, waste and recycling initiatives
Key achievements: Large scale supplier engagement through sustainability programmes, broad improvements to fleet efficiency, major efforts to increase responsibly sourced products across key categories
Future plans or goals: Power its global operations with 100% renewable energy.
Link: https://corporate.walmart.com/purpose/sustainability
Apple
Industry: Consumer electronics and technology
Headquarters: Cupertino, California
Start of green journey: 2014
Main methods used: Renewable energy across operations, recycled materials in devices, supplier clean energy programmes, low carbon product design, closed loop recycling systems, strict supplier standards
Key achievements: Rapid expansion of recycled content across core components, major supplier adoption of clean energy, long standing investment in proprietary recycling technology
Future plans or goals: Make its entire supply chain and all products carbon neutral by 2030.
Link: https://www.apple.com/uk/supply-chain/
Nestlé
Industry: Food and beverage
Headquarters: Vevey, Switzerland
Start of green journey: 2010
Main methods used: Responsible ingredient sourcing, sustainable agriculture partnerships, packaging redesign, supplier environmental standards, renewable energy uptake, improved logistics efficiency
Key achievements: Long running work with sustainable farming programmes, major push toward recyclable packaging, strengthened traceability for key raw materials
Future plans or goals: Aims to reach net-zero greenhouse gas emissions by 2050.
Link: https://www.nestle.com/sustainability
Nike
Industry: Sportswear and footwear
Headquarters: Beaverton, Oregon
Start of green journey: 2005
Main methods used: Recycled polyester, sustainable cotton programmes, low impact dyeing, supplier environmental standards, circular design pilots, logistics efficiency improvements
Key achievements: Major shift to recycled polyester in core ranges, long standing supplier environmental monitoring, early adoption of lower impact dyeing technologies
Future plans or goals: Achieve a 65% reduction in GHG emissions per unit by 2030 (from its 2015 baseline) under its science-based target
Link: https://about.nike.com/en/resources/supply-chain-sustainability-index
Procter & Gamble
Industry: Consumer goods and household products
Headquarters: Cincinnati, Ohio
Start of green journey: 2010
Main methods used: Renewable energy uptake, sustainable palm and pulp sourcing, packaging redesign, supplier environmental standards, waste reduction programmes, logistics efficiency improvements
Key achievements: Expanded use of certified sustainable palm and pulp, major packaging changes across key brands, long term work on reducing manufacturing waste
Future plans or goals: Achieve net-zero GHG emissions by 2040 in operations and supply chain
Link: https://us.pg.com/environmental-sustainability/
Siemens
Industry: Industrial manufacturing and technology
Headquarters: Munich, Germany
Start of green journey: 2015
Main methods used: Renewable energy in operations, energy efficient manufacturing, low carbon product design, responsible sourcing standards, circular materials use, digital tools for supply chain transparency
Key achievements: Broad adoption of energy efficient production systems, strong supplier sustainability requirements, long standing integration of circular materials in key product lines
Future plans or goals: Carbon-neutral in its own operations by 2030
Link: https://www.siemens.com/global/en/company/sustainability/sustainable-supply-chain.html
Grupo Bimbo
Industry: Bakery and food manufacturing
Headquarters: Mexico City, Mexico
Start of green journey: 2012
Main methods used: Renewable energy expansion, sustainable agriculture partnerships, efficient transport fleets, packaging improvements, supplier environmental standards, waste and water reduction across facilities
Key achievements: Large scale rollout of electric delivery vehicles, expanded renewable energy use across operations, strengthened sustainable wheat sourcing programmes
Link: https://www.grupobimbo.com/en/sustainability
HP Inc.
Industry: Technology and electronics
Headquarters: Palo Alto, California
Start of green journey: 2016
Main methods used: Recycled plastics in devices, renewable energy in operations, responsible sourcing standards, closed loop recycling, low carbon logistics, supplier environmental programmes
Key achievements: Significant expansion of recycled plastic use in core products, long running closed loop printer cartridge recycling, strengthened supplier sustainability requirements
Future plans or goals: Achieve carbon-neutral delivery of all their products and supplies by 2030
Timberland
Industry: Outdoor footwear and apparel
Headquarters: Stratham, New Hampshire
Start of green journey: 2007
Main methods used: Responsible leather sourcing, recycled materials, regenerative agriculture partnerships, circular design pilots, low impact manufacturing, supplier environmental standards
Key achievements: Broad use of Leather Working Group rated leather, strong push toward regenerative agriculture sourcing, long running use of recycled materials across footwear
Link: https://www.timberland.com/en-us/responsibility
Arvato
Industry: Logistics, supply chain and business services
Headquarters: Gütersloh, Germany
Start of green journey: 2013
Main methods used: Energy efficient warehouses, renewable energy uptake, low emission transport options, packaging optimisation, digital tools for supply chain visibility, supplier sustainability standards
Key achievements: Expanded energy efficient warehouse tech, increased use of lower emission transport solutions, strong focus on reducing packaging waste across fulfilment operations
Link: https://arvato.com/our-focus/sustainable-supply-chains
Strategies Used By Leading Companies
Renewable Energy In Operations
Swapping from fossil-fuel based gas or electricity to renewables is a go-to way for companies to optimise their supply chain.
This looks like using solar panels on-site, or buying wind with long-term contracts.
Factories get swapped over to green electricity sources, and offices are powered with renewable supplies.
Sustainable Sourcing And Materials
A key way to improve the supply chain is to find sustainable suppliers and materials.
If you’re sourcing from unsustainable suppliers, you’ll face higher costs from tightened regulations and when raw materials become scarce.
Swapping to green boosts business with reputational appeal, and builds a more stable supply chain ready for future pressures.
Low-Carbon Logistics
Logistics are the moving of products across suppliers, warehouses and customers.
This can equate to an immense amount of emissions across transport, storage, distribution and more.
Low-carbon logistics involve using cleaner vehicles, shorter routines, energy-efficient warehouses and optimising overall systems.
Circular Economy And Recycling Initiatives
The world’s leading economies rely on finite raw materials and a fragile global supply chain, which in 10–20 years could very well become too costly, volatile, or depleted to sustain current levels of production and consumption.
Circular economy business practices are designed to reuse resources through repairing, recycling or sustainable production methods, reducing waste.
This actively counteracts overexploitation by reusing resources, not exploiting new raw materials.
Transparency And Sustainability Reporting
Companies of all shapes and sizes should be transparent about their inner operations.
Knowledge of where materials come from, how suppliers operate and how much carbon their supply chain is emitting should be accessible.
Annual carbon accounting reports are becoming increasingly common, especially for regulated or larger businesses, but not fully universal yet.
We can expect a shift in the coming years from static, curated presentations to constant, open, live dashboards that clearly lay out how a company is operating with no room to tweak or hide.
Lessons For Other Businesses
Companies can learn that they have to stay ahead and understand their supply chain using a carbon accounting software like Gaia Carbon Accounting.
It’s aligned with the Greenhouse Gas Protocol framework, lets you generate compliance reports in one click, and removes the admin burden with AI powered data collection.
Gain a full understanding of your supply chain and comprehensive insights through an advanced analytics dashboard to support net zero goals.
FAQs
Why are green supply chains critical?
Supply chains are not just one part of a company, but where the bulk of emissions are generated. Unsustainable supply chains are wasteful, high carbon and messy.
Why do corporations have a responsibility to reduce emissions?
Because they are the number one contributor towards climate change.
What parts of corporate activity drive emissions?
Shipping, manufacturing, energy use and more are corporate-driven on a major scale.
Why is transparency important for supply chain sustainability?
Knowledge of where materials come from, how suppliers operate and how much carbon their supply chain is emitting should be accessible.
What shift can we expect in sustainability reporting?
We can expect a shift in the coming years from static, curated presentations to constant, open, live dashboards that clearly lay out how a company is operating with no room to tweak or hide.
What can other businesses learn from these companies?
Companies can learn that they have to stay ahead and understand their supply chain using a carbon accounting software like Gaia Carbon Accounting.