What benefits does the supply chain receive from achieving net zero?

 

To help you as Net Zero Carbon, Larger firms are beginning to make corporate promises to achieve carbon neutrality by 2050. Thus, if you are in a corporate supply chain, you will soon be expected to report on your greenhouse gas emissions. Small businesses can start utilizing the benefits of annual carbon footprint estimates to get access to supply chains where this information is required. For some, this may even be a prerequisite for supplier onboarding.  Though it only applies to contracts over £5 million annually, implementing the UK Government's Procurement Policy Notice (PPN) may influence small businesses involved in large contracts. Possessing a verified carbon reduction plan, also known as a carbon management strategy, for potential suppliers can offer the business community a competitive advantage. As a result, their attractiveness to bigger businesses and for government contracts over £5 million will rise. 

We are a Net Zero Consultant, the 2021 PPN includes extensive requirements, including asking the bidder to demonstrate their current emission sources, including Scope 3, and promise to attain net zero by 2050. Bidders must now reveal the environmental management practices they have implemented, like targeted carbon reduction projects or certification programs. An essential requirement is an annual update to the carbon reduction plan. This needs to be endorsed by a director, show a clear commitment to reducing emissions at the highest level, and be put up on the supplier's website. Occasionally, comparable guidelines and limitations are in place for the private sector's supply chain. When a smaller company applies to be pre-qualified and onboarded as a supplier, it may have an advantage if it shares its carbon footprint data and reduction targets.

In our opinion as Net Zero Consultancy, the most recent recommendations for gathering data, calculating emission factors, and calculating significant carbon footprints can be found in the freely downloadable Greenhouse Gas Protocols. This includes the written technical guidelines—free of technical jargon—for assessing scope three emissions. If you own a small business, you may receive inquiries about your carbon footprint and your attempts to lower it from customers or suppliers. You will have a competitive advantage if you have this information and plan available, as there will be a legitimate reason for this request. By committing through the SME Climate Hub, you, as a business owner, may show that you are heading toward net zero. The free platform provides SMEs with case studies, downloadable information, recommendations, and more advice on energy reduction and net zero.

As a Net Zero, if your organization already has a formal management system, such as ISO 9001 or ISO 14001, incorporating carbon footprint goals and targets into it is viable. This will allow for a formal annual evaluation, which is mandated by these requirements for management reviews, and preserve all of the data in one place. Consider further specialized frameworks if your company can't implement PAS2060 Carbon Neutrality due to financial constraints. All small firms, whether or not they employ more than 200 people, are part of a supply chain, and many small and medium-sized businesses participate in the tendering and procurement process. In a supply chain, you may be asked about your carbon footprint.  If we are to reach net zero emissions by 2050, the public and private sectors must report and account for their greenhouse gas emissions.

 

 

Being a Net Zero Carbon, gaining access to new supply chains and customers is necessary for business expansion. Considering the increasing focus on net zero, it makes sense for your company to adopt this strategy. Implementing strategies to reduce greenhouse gas emissions can result in cheaper energy costs when the price of energy surges worldwide. This strategic advantage supports the bottom line of companies looking to reduce operating expenses and aligns with current market trends. Reducing greenhouse gas emissions is the main objective of the net zero aim. As a result of this decrease, the ecosystem has fewer pollutants—like mercury, sulfur oxides, and nitrogen oxides—and the earth is healthier. Two words that have been increasingly popular in the current conversation on climate change are "carbon neutrality" and "net zero.