Major brands such as Coca-Cola need to wake up to their role in leading the charge toward net zero, according to a leading industry voice.
Speaking in a panel at Innovation Zero, James Butcher, CEO of Supply Pilot, discussed what he describes as “carbon tunnel vision”, where brands focus solely on reducing carbon emissions on the route to net zero to the detriment of other areas.
Butcher said: “With all the focus on carbon, it’s easy to forget that the 17 Sustainable Development Goals set by the UN cover a broad range of different areas. We need to consider the biosphere, our resource limitations and social impact, but this myopic approach to aiming for “low carbon” is holding us back.
“It’s an area where government, retailers and large brands have the ability to force the issue, but unfortunately there aren’t too many that are walking the walk. Take Coca-Cola for example – they know that glass bottles and aluminium cans are both more sustainable than plastic, so why don’t they stop plastic being an option?
“Put simply, it’s because their consumers like plastic. Those customers may say they are against plastic containers and bottles, but the reality is that they are lighter, more convenient and - unlike a can – they can put the lid back on.
“If Coca-Cola was to put all its effort into returnable bottles and aluminium cans, it would be more circular, more sustainable and – in the long term – create less carbon. However, it doesn’t have the short-term, headline-hitting carbon impact they’re looking for, so it isn’t on their agenda.”
As part of the discussion titled ‘Reconciling Resilience and Net Zero For Supply Chain’, Butcher also stated that the balance between supply chains being sustainable and resilient isn’t an either/or decision.
Butcher said: “The multi-year impact we’ve had from the long tail of the pandemic, the Russian invasion of Ukraine, the subsequent fuel crisis and inflation has meant that companies have a renewed focus on availability within their supply chains.
“In some cases, this has come at the expense of sustainability initiatives, but this misses the point - more sustainable supply chains are more naturally resilient.
“Going back to the Covid lockdown days, I’m sure everyone remembers the flour shortage. However, what most people won’t know is that there were stores full of flour across the country – the issue was the packaging, which had to come from China.”
The panel also discussed the lessons learned from Scope 1 and 2 initiatives that can be taken over to the “net zero iceberg’ that is Scope 3, to which Butcher challenged the notion that the areas are similar.
“Whether it’s burying heads in the sand or just a lack of knowledge and understanding, there seems to be a feeling that you can directly transfer your approach towards Scope 1 and 2 to Scope 3, but that is simply not the case.
“Scope 1 and 2 are very much focused on primary energy sources and things that are within your control, but Scope 3 requires a much broader look at materials, and a fundamentally different approach to supplier engagement which leans heavily on collaboration.
“Many suppliers focus on applying a Pareto principle to supplier engagement, putting most of their efforts into working with the top ten-to-twenty per cent of their supply chain. While this can be effective in some areas, the reality is that when it comes to working towards sustainability, the approach needs to be more inclusive and bring all suppliers on the journey.
“There is currently a lot of focus on reporting, but not enough on action. There is an arms race for our “green” resources which is going to have a serious economic impact, but some businesses not only haven’t started, but don’t even know the race is going on.
“Businesses need to get ahead of the challenges, or risk a highly uncertain future.”
For more information about Supply Pilot, visit supply-pilot.com.