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No Supply Chain Emission Reduction Equals No Green Net

The chain-leading enterprise promote value chain companies to share emissions reductions, which will be crucial for global climate change.

Supply Chain (Scope III) Emissions Reduction

According to the GHG Protocol, enterprise carbon emissions can be categorised into direct emissions (Scope I, e.g., fuel combustion), indirect emissions (Scope II, e.g., purchased electricity), and other indirect emissions from upstream and downstream segments of the supply chain (Scope III, which includes upstream purchases of goods and services, upstream and downstream transport and distribution, and business travel and commuting for employees, etc.).
While numerous companies have taken action to reduce Scope I and Scope II carbon emissions, about 70-90% of GHGs originate from Scope III upstream and downstream supply chain emissions. Therefore, supply chain carbon reduction is key for companies to achieve their carbon targets, and neglecting supply chain carbon reduction will not achieve their long-term carbon targets.

Supply Chain Emissions Reduction Process

01

Define Project Scenario

Clarify the life cycle scope or the range of scenarios covered by the Supply Chain Emission Reduction Scenario.

02

Define Baseline Scenario

To achieve the same ‘effect’, sort out the boundaries and scope of the project scenarios that can be replaced by historical scenarios.

03

Project Research and Data Collection

Understanding of the project phases, collection of information and data, and optimisation of the supply chain.

04

Carbon Emission Reduction Calculation

Comparison of carbon emissions between the project scenario and the baseline scenario, and calculation of emission reductions.

Standard Followed

ISO 14040

Environmental management-Life cycle assessment-Principles and framework

ISO 14044

Environmental management-Life cycle assessment-Requirements and guidelines

ISO 14067

Greenhouse gases-Carbon footprint of products-Requirements and guidelines for quantification

Greenhouse Gas Protocol

Requirements and Guidelines for Quantifying the Carbon Footprint of Products in Terms of Greenhouse Gas Emissions

GB 20230777

Greenhouse gases-Carbon footprint of products-Requirements and guidelines for quantification (Seeking comments)

GB 20232579

The quantification method of product carbon footprint-man-made fibre (Under drafting)

GB 20232445

Road vehicle-General requirements for greenhouse gas management-Part 2: Carbon footprint labels of road vehicle products (Under drafting)

For the supply chain, in addition to the manufacturer's own emissions reduction actions, it is also necessary to mobilise internal employees and product eco-chain partners to reduce emissions together in order to create greater value.

——SPS

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