Apple, Nike, and other industry giants are spearheading an initiative to decarbonize supply chains. Called the ‘Clean Energy Procurement Academy,’ the project aims to lower greenhouse gas emissions by equipping businesses with ”technical readiness to adopt clean energy.”
This venture aims to facilitate the shift towards renewable energy sources within supply chains, which in turn would assist in the fight against climate change.
Pioneering a sustainable future
Supported by PepsiCo, REI Co-op, Apple, Amazon, Meta, and Nike, the Clean Energy Procurement Academy vows to provide companies with a practical approach to adopt clean energy.
The academy will offer educational programs around renewable energy goals to reduce Scope 3 emissions. It says collaboration, data, and support between buyers and suppliers is essential in tackling this issue.
Tackling Scope 3 emissions
Research from the Carbon Disclosure Project (CDP) shows that the average company’s Scope 3 emissions – indirect emissions that occur in a given company’s supply chain – are 11 times higher than direct emissions (Scope 1 and 2).
PepsiCo cites an example of 78% of its emissions coming from packaging, agriculture, and third-party transportation. Apple claims 65% of its emissions are a result from third-party manufacturing.
VP of global sustainability at PepsiCo, Roberta Barbieri, says the planet is ”already feeling the effects of climate change; faster, bolder action is needed.” Therefore, the company plans to reduce Scope 1 and 2 emissions by 75% by 2030 and achieve net-zero emissions by 2040.
”Addressing climate change is not only critical for the benefit of society, but also for the viability of our businesses as we are experiencing the impacts within our own supply chain,” says Barbieri.
Meanwhile, Apple’s 2022 Environment Progress Report highlights its plans to achieve carbon neutrality for its entire footprint (including Apple products) by 2030. It also wants to reduce related emissions by 75% compared to 2015.
Noel Kinder, Nike’s chief sustainability officer, says Scope 3 emissions ”are one of the things” that keep him up at night. He adds that cross-industry collaboration ”has become really, really important.”
The Clean Energy Procurement Academy ”is key to breaking down barriers to clean energy adoption while also helping us demonstrate demand and advocate for clean energy solutions in essential regions,” he says.
The bigger picture
Decarbonizing supply chains is a massive undertaking, fraught with financial uncertainties and challenges. But the academy highlights how shared expertise and insights from tech giants such as PepsiCo, Nike, and Apple can pave the way.
The World Economic Forum calls on businesses and organizations to proactively implement strategies now – from incentivizing suppliers to take action to advocate for climate action and funding renewable energy projects.
With initiatives like the Clean Energy Procurement Academy, the stage is set for transformative action in supply chain sustainability. The journey is complex, but the path forward is clear: united, innovative efforts are key to a greener future.
After all, UN Secretary-General António Guterres says decarbonizing supply chains is no longer optional – it’s a must.
About the author
Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.