Morten Johansen, the COO of DP World Americas, believes that in the current era of global commerce and environmental challenges, companies in the logistics industry have a responsibility to prioritize sustainability efforts. This is not just about compliance anymore; it has become a key strategy for corporate responsibility and a way to gain a competitive edge in a crowded market.
On March 6, 2024, the U.S. Securities and Exchange Commission introduced climate disclosure rules that require publicly listed companies to disclose their Scope 1 and 2 emissions, which include both direct and indirect emissions from a company’s operations and energy use. However, Scope 3 emissions, which encompass indirect emissions from a company’s supply chain and product use, were not included in these mandates. This leaves a gap that companies must voluntarily address to fully account for their environmental impact.
Despite the focus on cost reduction and efficiency in global trade, Johansen emphasizes the importance of companies taking a unified approach to managing supply chains that includes meticulous data practices, proactive engagement with suppliers, and the strategic adoption of technology to reduce emissions. This requires companies to improve their carbon accounting practices, collect high-quality data, enhance supplier engagement, and elevate sustainability in procurement.
To improve carbon accounting practices, companies must develop methodologies for measuring and reporting emissions accurately across all scopes. They should also collect high-quality data from suppliers by defining precise data requirements and using technologies to automate data aggregation. Artificial intelligence advancements could transform traditional carbon reporting into predictive tools that track and drive improvements in corporate sustainability efforts.
Supplier engagement is crucial in fostering collaborative relationships and promoting shared investment in sustainable technologies. Companies should also integrate sustainability into procurement to influence their entire supply chain towards adopting more sustainable practices. By finding a collaborative path forward, industry-wide partnerships and initiatives can help advance the reduction of global emissions and contribute to a healthier planet while building trust with stakeholders and enhancing operational efficiency.
