Nestlé plans to work with its 150,000 suppliers to reach net zero emissions
Latest corporate members of 1.5C Supply Chain Leaders group unveiled to mark fifth anniversary of Paris Agreement
Food giant Nestlé, telecoms company Telefónica, and waste firm Ragn-Sells have committed to slashing emissions across their global value chains in line with limiting average temperature rise to 1.5C, as they today became the latest corporates to join the 1.5C Supply Chain Leaders group.
They join existing members Unilever, Ericsson, BT Group, IKEA, and Telia in the initiative, which was launched in September by the Exponential Roadmap Initiative, the International Chambers of Commerce, and the We Mean Business Coalition.
It means companies committed to net zero value chains through the initiative now represent a combined turnover of €284bn, with significant reach across global markets through their multinational supply chains.
The initiative commits member companies to driving down emissions right across their business and wider supply chain, with a target to work with their customers and contractors to halve suppliers’ greenhouse gas emissions before 2030, before driving down to net zero by 2050 at the latest.
Small and medium sized businesses working in member company supply chains are also being encouraged to back the commitment through the SME Climate Hub, which was set up as part of the initiative and provides tools and support to help major corporates to collaborate with suppliers to decarbonise.
The initiative has won widespread backing from green corporate leaders, including Nigel Topping, the UK’s High Level Climate Action Champion for COP26.
“The 1.5C Supply Chain Leaders demonstrate the vital role that multinationals can play in accelerating climate action across their value chain by supporting and encouraging their suppliers to align with 1.5C targets,” he said. “Given the amount of suppliers multinational companies have, and with their huge purchasing value, this will be an exciting turning point – and we look forward to seeing exponential growth in corporate net zero commitments as we work towards COP26.”
An average supply chain can account for around 5.5 times as many emissions as those generated within its core business, and empowering companies to tackle the wider carbon impact of their business is therefore crucial to the climate fight, according to the Exponential Roadmap Initiative.
Elena Valderrábano, corporate ethics and sustainability global director at Telefónica, said around 60 per cent of the Spanish firm’s Scope 3 carbon emissions came from its supply chain, for which it has set a target to achieve net zero by 2040. “With the help of digitalisation, and joining forces with our SMEs will allow us to co-create in order to become part of the solution while supporting the Paris Agreement and limiting global warming to 1.5C,” she said.
