Guidehouse, a leading global provider of strategic consulting services, today announced the addition of nine global brands to the Supplier Leadership on Climate Transition (Supplier LoCT), a consortium created to accelerate action throughout the supply chain in the march toward net-zero greenhouse gas (GHG) emissions. Established in April 2021, Supplier LoCT has gained significant momentum in the past year expanding its business leadership from three founding members – Mars, Incorporated, PepsiCo, and McCormick & Company – to 12 corporations with the addition of Atlantic Packaging, The Coca-Cola Company, The Estée Lauder Companies, General Mills, Keurig Dr Pepper, Mondelēz International, Nestlé, Restaurant Brands International, and Yum! Brands.
Brand members of Supplier LoCT sponsor the participation of their suppliers in a series of Guidehouse-led instructional seminars on developing a GHG footprint, setting a science-based target, adopting GHG abatement measures, and disclosing progress. Participants get direct mentoring and actionable instructions on how to build internal capacity and earn recognition for their accomplishments as they move through each stage. As it enters its second year, the consortium has tripled supplier enrollment in the virtual learning seminars, with more than 1,200 representatives from over 400 supplier firms now embarked in the Supplier LoCT guided journey.
Until recently, most companies have focused on measuring emissions from their own operations and electricity consumption, referred to as scope 1 and 2 emissions. “For many brands, particularly in the food, beverage, and consumer goods sectors, the majority of their GHG emissions are in the supply chain referred to as scope 3 emissions,” said Britt Harter, Guidehouse’s sustainability solutions lead. “The Supplier LoCT model is proving to be both a practical and scalable approach to the complex challenge of how to drive down those supply chain emissions not directly under the brand’s control.”
The Supplier LoCT brands have also issued an invitation to join the collaboration to industry peers who have committed to climate goals recognized by the Science Based Targets initiative (SBTi.) “Effectively delivering against net-zero will require a deep transformation of global supply chains, which will only be possible if companies embed climate action deep into the core of their procurement strategy,” said Barry Parkin, chief procurement and sustainability officer at Mars, Incorporated. “With more than three-quarters of our emissions coming from the materials that we purchase at Mars, we recognise that supporting our suppliers on a low-carbon transition will be critical in mitigating our impact on the planet. Pre-competitive collaboration between global businesses and suppliers, such as through Supplier LoCT, will be vital in driving the scale and reach needed to overhaul global supply chains.”
“Our membership in Supplier LoCT has been instrumental not only in helping us manage our scope 3 greenhouse gas emissions but also in helping increase the resilience of the smallholder farmers who grow our iconic herbs and spices,” said Michael Okoroafor, the chief sustainability officer for McCormick & Company. “Through our partnership with Guidehouse, the resources we’ve been able to provide our suppliers is invaluable, and to date, we have provided access to financial support and ongoing training to help more than 90 of our suppliers manage their businesses more sustainably.”
Investors and regulators are increasingly calling for companies to be disclose emissions throughout the value chain, according to Steven Clarke, senior director for climate & energy at Ceres, a nonprofit working with capital market leaders to solve sustainability challenges. “The companies in Supplier LoCT are taking an important step by going beyond goal setting to address their scope 3 emissions through education and engagement with their suppliers,” he said.
“As businesses work to transition to a low-carbon economy, it’s absolutely integral to collaborate closely with suppliers to reduce scope 3 greenhouse gas emissions,” said Roberto Canevari, executive vice president and chief supply chain officer, The Estée Lauder Companies. “The Estée Lauder Companies is proud to be the first beauty company to join Supplier LoCT and is committed to partnering with our diverse supplier network to accelerate sustainability across our own value chain and the prestige beauty industry.”
Supplier LoCT participants are already reporting some of their progress and steps taken within their companies to place greater focus on decarbonization. “Through our involvement in Supplier LoCT, we gained a solid understanding of the science-based targets initiative and the importance of addressing our own scope 3 emissions,” said Damian O’Malley, sustainability program coordinator within the Silgan family, a leading supplier of consumer packaging goods. “As a result of our participation, we have successfully completed our first Carbon Disclosure Project submission and secured CEO support for signing the SBTi commitment letter.”
“We’ve learned a great deal on our journey to a science-based, net-zero target, and our suppliers’ climate action is critical to achieving our goal of net-zero by 2040,” said Roberta Barbieri, vice president of global sustainability at PepsiCo. “Collaborative efforts will help ensure what we’ve learned is shared with our entire supplier base. We welcome the new members and suppliers and look forward to learning from one another.”
“Atlantic has several of our key suppliers currently enrolled in Supplier LoCT, and we’re excited to say that all of them have been 100% engaged with the sessions thus far,” said Caroline James, director of sustainability at Atlantic Packaging. “One supplier told us that they were hearing about needing to measure their greenhouse gas emissions but didn’t know how to begin. Supplier LoCT has demystified the calculation process and helped them begin to chart a path toward reduction.”
Enrollment is currently open for supplier learning seminars to begin in September 2022 and will include a new track to guide suppliers as they explore abatement options. “We will continue to evolve the topics addressed in the learning seminars as suppliers share where they need additional support and guidance,” said Nicole DelSasso, associate director at Guidehouse and executive director of Supplier LoCT.