The global supply chain is a critical aspect of private sector operations that plays a crucial role in achieving the global decarbonization goals outlined in the landmark Paris Agreement—to reduce emissions by 45 percent by 2030 and achieve net zero by 2050, ultimately keeping global warming under 1.5°C.
However, with up to 90 percent of global businesses being small and medium enterprises (SMEs) embedded deep across the supply chains of large companies, the call to drive corporate decarbonization involves framing these SMEs with a progressive mindset, providing them with proper knowledge, and equipping them with the right tools and technologies.
In the Philippines, the dialogue on this challenging yet vital task of greening the local supply chain has been undertaken by the Net Zero Carbon Alliance (NZCA)—a pioneering consortium of Philippine-based businesses committed to attaining net zero emissions, organized by First Gen-owned geothermal energy leader, Energy Development Corporation (EDC).
As part of its Net Zero 101 learning series launched last year, NZCA recently held the Supply Chain Decarbonization Fundamentals workshop in partnership with the Corporate Decarbonization Exchange (CDx), Southeast Asia’s leading platform for corporate decarbonization. The session focused on the crucial strategy of jumpstarting most companies’ net zero transition through supply chain review and analysis.
“Greening the supply chain is a transformative act—a domino effect where a company’s desire to address emissions sets off a chain of difficult but necessary steps across its stakeholders, partners, and even customers. Hence, it takes not only a strong will to start on the journey but foresight and endurance to sustain it,” explains Atty. Allan V. Barcena, NZCA executive director and EDC Corporate Support Functions head.
CDx moderated a series of four modules designed with its trademark “fishbowl” approach to dialogue—after establishing the desired learning outcome at the start of each session, four contributors share information from distinct perspectives. A subject matter expert provides expert resource, followed by a case study provider who shares relevant experiences on the topic. An enabler then discusses strategies and practical solutions, while a protagonist offers a contrarian point of view to spark more meaningful discussion.
The first module, “Understanding the State of Play—Supply Chain Emissions & Regulatory Landscape,” served as an introduction to understanding Scope 1, 2, and 3 emissions and the importance of supply chains as part of the decarbonization strategies of companies. The second module, “Measuring & Setting Targets for Supply Chain Decarbonization,” delved deeper into leading methodologies and tools for emissions measurement.
The third module, “Implementing Decarbonization Strategies,” showcased best practices and cross-industry strategies in supplier collaboration and responsible procurement toward emissions reduction, as well as available tools for companies and SMEs, such as ESG-linked financing and green procurement incentives. The final module, “Transparent Reporting & Enhancing Brand Visibility,” underscored the importance of accurate and transparent sustainability disclosures utilizing global reporting frameworks.
The roster of speakers comprised moderator-experts from CDx, SBTi, Lock23, Southeast Asia Energy Transition Partnership, Yokogawa, Allotrope, Mt. Stonegate Green Asset Management, UL Solutions, and Eco-Business, along with sustainability practitioners and leads from NZCA member-companies such as EDC, Unilever, Arthaland, BSI, Mondelez, Ecolab, Container Living, ECCI, and Drink Communications.
Now in its fourth year, NZCA continues to advance the net zero agenda in the Philippine private sector, spearheading multi-sectoral dialogues such as the country’s first-ever Net Zero Conference and capacity-building initiatives, including the Net Zero 101 Media and Corporate Communications Training, a first in the country.
To date, NZCA counts a total of 34 partner members from various industries and enterprises, including manufacturing and consumer goods, real estate, hospitality, information technology, transport and logistics, mobility, finance, design and communication, as well as academia.
Visit www.netzerocarbonalliance.ph for more information.
