A new report found that while some corporations have started taking our overheating climate more seriously by focusing on supply chain sustainability, many are missing the forest for the trees.
What's happening?
As Forbes detailed, a 2024 Deloitte survey revealed that 56% of organizations are moving the needle on two or three climate actions, which the report describes as a "profound business opportunity."
Many corporate leaders have concentrated on cleaning up their supply chains by reducing pollution or improving labor standards, for example.
Another report by the United Nations Global Compact and Accenture found that addressing supply chain sustainability is crucial to fighting the climate crisis since supply chains account for 60% of global carbon pollution.
Because of this, nearly half of all CEOs are implementing eco-friendly supply chain management strategies and circular business models — a closed-loop system where used products can be recycled or reused.
While these efforts are undoubtedly helpful, companies could have a much larger impact by incorporating "landscape-level solutions" — a multifaceted approach considering the complex ecological, social, and economic factors that affect business management, as Forbes explained.
Why is this integrated approach important?
If corporations focus on the bigger picture by considering environmental challenges — such as biodiversity loss, responsible land use, and water scarcity — when making business decisions, the positive impacts would be felt far beyond their direct supply chains.
For example, corporations can contribute to climate resilience by teaming up with government agencies, landowners, local communities, and other businesses to ensure sustainability efforts benefit the regions they rely on to source raw materials for their products.
Even though this takes more time and effort than focusing on supply chain sustainability alone, it would lead to more resilient business models in the long term by conserving Earth's resources.
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Absolutely 👍 Forbes explained that this landscape-level approach has already borne fruit with the Active Project in Indonesia — a collaboration between Mars Inc., the United States Agency for International Development, and other institutions.
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The project incorporates sustainable cocoa agroforestry practices, protecting Indonesia's agriculture industry and Mars' bottom line. Other corporations could follow this example to protect their investments and the communities they depend on for success.
"It's about trying to reduce the impact of your supply chain – but it's also about making a positive contribution to the broader system, to not only mitigate climate and nature impacts, but to become net positive in the long term," Sophie Persey, lead at LandScale, an initiative developed by the Rainforest Alliance and Conservation International, told Innovation Forum. "They need to look beyond the supply chain if we're going to successfully tackle big systemic issues like climate change, biodiversity loss, water quality, and poverty."
What are other corporations doing to help?
While most corporations can do more regarding sustainability, some have made major progress in their quests to go green. For example, theme parks like Disney World and Universal Studios have brought a massive solar facility online to power operations and unveiled electric-powered trams.
McDonald's and Mercedes-Benz have started incorporating UBQ — a more eco-friendly bioplastic — into some of their products. While there's no doubt that these companies need to ramp up the use of plastic alternatives, we should celebrate progress when it happens.
As individuals, we can support these efforts by using our purchasing power for good and buying from eco-friendly businesses. The more we back green initiatives, the greener our planet and future will be.
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