Guidehouse Cultivates Collaborations for Climate Action

Once, “aspiration” and “pledging” were the popular buzzwords in climate change conversations. Now, “accountability” and “implementation” are gaining traction. Expectations are growing for companies to show regular progress in reducing greenhouse gas (GHG) emissions, and that can only happen with action throughout their value chain in accordance with the Science Based Targets initiative. But what happens when suppliers lack the knowledge and resources to fulfil their role in the GHG reduction equation?

Groundbreaking Consortium Unites Companies around Climate Cause

In November 2019, Guidehouse convened six consumer packaged goods (CPG) companies along with a handful of NGOs and trade groups to explore the challenge of achieving emissions reductions in the supply chain. My colleagues at Guidehouse and I were honored to join three leaders in the food and beverage sector—Mars, PepsiCo, and McCormick & Company—in launching a groundbreaking learning consortium called the Supplier Leadership on Climate Transition (Supplier LoCT). Representatives from over 100 companies (including ingredients, packaging, transportation, and contract manufacturers) participated in a series of monthly virtual seminars on how to inventory, track, and report GHG emissions and how to set a GHG target—the first steps toward action.
Showcased at the COP26 Goals House in Glasgow, this innovative partnership between CPG companies and their suppliers revealed several valuable lessons in how to facilitate a win-win path toward net-zero emissions for all parties and ultimately protect the climate:

1. Start with the Basics: Pursuing GHG emission reductions requires the engagement of many people across a company with varying degrees of knowledge and experience. Even organizations that are well along the sustainability journey need help integrating the numerous internal stakeholders required to move forward. By providing a common language and frameworks for pursing science-based targets, we’re paving the way for productive conversations between CPG companies and their suppliers and within the supplier organizations themselves.
   
2. Be Practical: Suppliers are under numerous internal and external pressures exacerbated by the COVID-19 pandemic. They need easy-to-implement milestones to begin climate action planning. Something as simple as a spreadsheet template can unlock the key to improved emissions calculations. We’re listening closely to supplier needs to offer the counsel they truly need. For example, Guidehouse is expanding its curriculum to include content on Scope 1, 2, and 3 footprint tracking.
   
3. Be Hands-On: Suppliers tell us that they value timely and personalized assistance from our instructors with deep knowledge in climate action planning. Suppliers also value learning from one another’s experiences. It is incredibly important to build and nurture relationships in a learning and coaching collaborative and to create space for open discussion and sharing.

The Supplier LoCT Climate Journey

(Source: Guidehouse)

Scaling the Collaboration to Involve More Brands and Suppliers

As we continue to learn how to best support suppliers in their climate change journeys, we are excited to be expanding the number of brands participating in the Supplier LoCT, adding Atlantic Packaging, Keurig Dr Pepper, Nestlé, Restaurant Brands International, and Yum! Brands. And we’re now employing a user-friendly online learning platform that will facilitate our ability to scale the opportunity for more suppliers. Already, more than 200 suppliers are registered for entry-level, practical, and hands-on support in our second season of seminars. 

Governments around the world are awakening to the urgency of addressing climate change. Customers and investors are pushing even harder for action. No one can go it alone, and collaborations such as the Supplier LoCT are a great way to build and scale the capacity for progress. The Supplier LoCT model is already reaping benefits for both brands and suppliers. At Guidehouse, we welcome the opportunity to engage with more companies moving from pledges to progress.