The Covid-19 pandemic and resulting economic crisis had an impact on almost every aspect of how energy is produced, supplied, and consumed around the world. It defined energy and emissions trends in 2020, driving down fossil fuel consumption. As stated by the International Energy Agency (IEA), the decline in CO2 emissions from oil use in the transport sector accounted for well over 50% of the total global drop in CO2 emissions in the past year, this due to the impact of lockdown measures on transport activity.
While the rate of emissions is declining, researchers warn emissions could keep increasing for more than a decade unless energy, transportation and industry policies change dramatically worldwide; thus, it is important to consider the role supply chains play in meeting sustainability goals.
According to McKinsey, the typical consumer company’s supply chain creates much greater social and environmental costs than its own operations. Supply chain impacts account for more than 80% of greenhouse gas emissions and more than 90% of the impact on air, land, water, biodiversity and geological resources. Moreover, companies are also seeing the effects of climate change on bottom lines and revenues.
Because supply chains consume resources at a large scale, they are responsible for a disproportionately large share of the world’s carbon emissions.
In a world where organizations understand how they operate their business and more companies are ready to fight for sustainability, find an ally in ALGI. Take the first step on your path towards improving your supply by visiting https://www.algi.net/environmental-audits/sac-higg-index-fem/