Optimizing supply chain operations to cost less and be more effective has long been a top priority for businesses. Now, companies must consider new sustainability measures such as carbon. Identifying, tracking and managing supply chain emissions is quickly becoming essential to optimization efforts, with the primary goal of detecting inefficiencies in fuel, electricity and water consumption and then correcting those inefficiencies to help eliminate waste and reduce costs. But improving one benchmark in an optimization effort may adversely impact another. It's rare that everything aligns perfectly.
Corporate executives and workers from dozens of refineries, glass-makers and other business groups bombarded members of the California Air Resources Board with complaints about an upcoming auction of credits allowing them to release greenhouse gases.
Without trucks, the supply chain would screech to a halt. Yet, the rising cost of fueling these workhorses, not to mention the toll truck emissions take on the environment and public health, are forcing shippers and carriers alike to retool their fleets.
European climate commissioner Connie Hedegaard and Australian climate change minister Greg Combet have announced that Australia and Europe will link their emissions trading systems, which will allow businesses to use carbon trading units from either trading scheme for compliance under either system.
Ian Darley, an inventory specialist in the mining industry, tells how he helped to pioneer a new method for storing materials on site - and eliminating a substantial amount of unnecessary packaging.
Lufthansa Cargo reduced CO2 emissions by more than 700 tonnes through the use of lightweight containers in May and June alone. For the first time, more than half of the standard containers utilised for freight and baggage transports were made from light composite materials. By reducing weight, the composite materials lower fuel consumption and carbon emissions.
Before Jeff Piccolomini joined Henkel Corp. in 1997, he was dubious about corporate efforts to address environmental concerns - a "typical skeptical CFO," as he puts it. A CPA by training and a longtime finance executive, Piccolomini wasn't accustomed to dealing with the kind of green goals that the German-owned personal-care company had set in motion, such as reducing carbon emissions.
An analysis of 600 U.S. companies finds pockets of leadership on sustainability practices and performances - but overall the group has fallen short of expectations in four measured categories.