6 Actions Leaders in the Metals Industry Take to Reduce CO2 Emissions
“Let that be the common purpose here in Paris. A world that is worthy of our children. A world that is marked not by conflict, but by cooperation; and not by human suffering, but by human progress. A world that’s safer, and more prosperous, and more secure, and more free than the one that we inherited.”
This is the vision that Barack Obama announced when in 2015 nearly 200 countries committed to the “Paris Climate Agreement”, an ambitious plan to fight climate change.
If we want to achieve our CO2 reduction goals in the metals industry, we must tackle Scope 3 emissions, i.e. the emissions which come from suppliers upstream in the supply chain.
What are the specific actions leaders in metals companies can take?
Putting sustainability firmly on the agenda (and the bonus agreements) of procurement teams. Determining a baseline for Scope 3 emissions, define ambitious reduction targets and developing actions to drive down these emissions.
Engaging suppliers in a discussion on how to measure and report their CO2 emissions in an audit proof way. Suppliers that make progress towards their CO2 reduction goals should be rewarded.
Developing new products and production pathways with a reduced carbon footprint and test their customers’ willingness to pay a premium.
Educating suppliers, customers and employees why Scope 3 emissions matter– just focusing on Scope 1 & 2 can lead to carbon leakage where carbon heavy production steps are offshored to jurisdiction with weaker environmental standards.
Discussing with policy makers on the right regulation to ensure a level playing field which sufficiently rewards companies that actually drive down emissions.
Invest in better, digital supply chain solutions to track Scope 3 emissions. Metalshub has created a Scope 3 feature which helps our clients to do exactly that.
The challenge is enormous to decarbonise the metals value chain. But if we succeed, we can inherit our children a better world.
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