New Supplier Leadership on Climate Transition collaborative guides suppliers on science-based targets and renewable energy to reduce emissions
Guidehouse, a leading global provider of consulting services to the public and commercial markets, has joined forces with Mars, Incorporated, McCormick & Company, and PepsiCo for the formation of the Supplier Leadership on Climate Transition collaborative (Supplier LoCT), an initiative to help engage suppliers in climate action and solutions.
Recognizing the impact that global supply chains have on the health of the planet, the collaborative aims to mobilize collective climate action by providing suppliers with resources, tools, and knowledge to support their own climate journeys.
“Emissions reductions are now essential, and global supply chains contain some of the most significant and difficult-to-reduce emissions. While organizations across the world have made bold commitments to science-based climate reductions, most are struggling to deliver progress, and the clock is ticking,” said Britt Harter, Guidehouse’s sustainability lead and partner in the firm’s Energy, Sustainability, and Infrastructure (ES&I) segment. “We have joined forces with Mars, McCormick, and PepsiCo to demonstrate our combined leadership and go beyond target setting to drive real action.”
Through the collaborative, the organizations will mentor and train suppliers in emissions reduction strategies and recognize their achievements. In turn, supplier progress will accelerate the ability of Mars, McCormick, and PepsiCo to deliver against their individual science-based targets to reduce greenhouse gas (GHG) emissions in their full value chains. These targets were set to align with the overall goals of the Science Based Targets initiative and RE100 to limit global warming to be consistent with the established goal of the 2015 Paris Agreement.
“Suppliers play a critical role in combatting climate change and in helping brands reach their climate targets,” said Matthew Banks, communication director of Supplier LoCT and associate director in Guidehouse’s ES&I segment. “The Supplier LoCT collaborative is a true team effort across companies and sectors to reduce supply chain emissions. We will enlist more brands and suppliers to join us in our mission, which is aligned with what scientists indicate is required to mitigate the worst impacts from climate change.”
To help suppliers advance their sustainability journeys, Guidehouse will leverage its 30+ plus years of experience in sustainability consulting. In future years, it will also rely on its newly launched sustainability management platform, Guidehouse PapayaTM, to track progress. The co-founding business participants will tap into their own experiences in reducing their environmental impacts:
- Mars, Incorporated is committed to reducing absolute scope 1, 2 and 3 greenhouse gas (GHG) emissions 27% by 2025 and 67% by 2050 from a 2015 base year.
- McCormick & Company is committed to reduce absolute scope 1 and 2 GHG emissions 20 % by 2025 from a 2015 base year and to reducing absolute scope 3 GHG emissions 16% by 2030 from a 2017 base year.
- PepsiCo is committed to reducing absolute scope 1 and 2 GHG emissions 75% and scope 3 GHG emissions 40% by 2030 from a 2015 base year.
“As the world looks to rebuild from the pandemic, this will be a critical year in altering the trajectory of climate change. It’s never been more vital for global businesses, suppliers, and key actors to come together in this time of crisis, and protect the health of our planet and global communities for generations to come,” said Barry Parkin, chief procurement & sustainability officer at Mars, Incorporated. “By forming this collaborative and actively engaging our suppliers on sustainability, we believe we can drive a meaningful, truly global impact.”
“People, planet, and communities have been at the heart of our Purpose Led Performance for many years, supported and championed at the highest levels within McCormick,” said Michael Okoroafor, VP Global Sustainability and Packaging at McCormick and Company. “This collaborative LoCT partnership further demonstrates our commitment to sustainability and doing right for our planet. We are looking forward to engaging our suppliers on this journey to mitigate the climate change impact, and benefit the world around us.”
“PepsiCo has learned a great deal on our journey to a science-based, net-zero target,” said Roberta Barbieri, vice president of Sustainability at PepsiCo. “Our suppliers’ climate action is critical to achieving our goal, and it’s collaborative efforts like these that will help ensure what we’ve learned is shared with our entire supplier base.”
Other industry organizations, including FMI, the Food Industry Association, and sustainability nonprofit Ceres, applaud the collaborative’s efforts to convene suppliers on this important topic.
“Pre-competitive collaborations like this are a critical component to industry progress toward science-based targets,” said Marjorie DePuy, senior director, Supply Chain & Sustainability at FMI. “Every company’s supply chain practices are important in the drive to reduce overall GHG emissions.”
“With leading companies increasingly setting science-based targets, we see growing demand for peer-to-peer learning focused in particular on scope 3 emissions in corporate supply chains,” said Steven Clarke, director of Corporate Clean Energy Leadership at the sustainability nonprofit Ceres. “The challenge goes beyond motivating ambition that cascades through supplier tiers; meaningful impact will depend on building suppliers’ capacity to act.”