Supply Chain Logistics Carbon Management Framework Explained

What specifically should companies do? How to win? As far as green products are concerned, we should build a hierarchical system of green products, evaluate the carbon footprint of products through the whole life cycle, and differentiate them into carbon reduction products, low carbon products, carbon neutral products and net-zero carbon products, and at the same time, consumer-oriented, the green product brand, enterprise green brand to do external marketing, and the battle of the battle of winning is to build a green product brand. How to fight the sub-battle of green product brand? The first is to build green product clusters; the second is to do green brand marketing.

In the whole dual-carbon management, how to win after setting scientific carbon targets? The first battle to be won is the carbon management system, which should have a clear carbon target and a carbon reduction roadmap, as well as a corresponding internal management mechanism and effective control and continuous optimisation of the carbon reduction work on the ground. Therefore, we need to build a scientific carbon target, a clear carbon reduction roadmap and an internal dual carbon management system. The second must-win battle is the whole value chain carbon reduction action, for platform enterprises, we need to radiate the scope of 3 + the whole value chain carbon management, to achieve the whole chain of carbon reduction action, and ultimately in the research and development of product design, production, sales, after-sales service, recycling, reprocessing, remanufacturing and reuse, etc. to achieve the whole business cycle of the green circular economy system. The third must-win battle is dual-carbon digitisation, through the construction of carbon management system at the enterprise level to achieve carbon inventory of the enterprise, extending the perspective of carbon management from the enterprise itself to the carbon inventory system of the whole value chain, constructing the data management system of the whole life cycle of the products from PCR to EPD, and adapting the EPD of the products with the environmental ecosystem and the marketing of the whole green brand to present the Commercial value.

Under the sub-battles are support initiatives, such as organisational carbon inventory, carbon footprints of products and services, carbon emission reduction projects, continuous evaluation, analysis and improvement, release of corresponding plans, reports and certifications, and disclosure of carbon reduction results. In this way, a strategic house of dual-carbon planning is built for shippers.

Under this framework, returning to the enterprise itself, whether it is the green product strategy, carbon management, emission reduction roadmap, the first thing is to clarify the carbon neutral path of the enterprise. Based on the national dual-carbon strategy and the opportunities, challenges and responsibilities faced by enterprises, how can enterprises achieve carbon neutrality?

The carbon neutral practice path of enterprises can be divided into four parts. The first step is to do a carbon baseline inventory, including accounting boundaries, types of gases covered, and activities that generate carbon emissions. This includes three ranges of emissions: carbon emissions from direct production by the enterprise, carbon emissions from the enterprise's purchase of electricity, heat, etc., and carbon emissions from the enterprise's upstream and downstream partners' services to the enterprise. Once the carbon baseline is established through the mapping, the enterprise can set emission reduction targets. The setting of targets requires determination. Enterprises need to set the type of target, define the scope of the target, and set a timetable for the target. The third step is the implementation of carbon emission reduction behaviours, including direct carbon emission reduction behaviours such as improving operational efficiency and guiding partners to reduce emissions; innovative carbon emission reduction behaviours; and finally optional carbon compensation behaviours. At the same time, enterprises should build the whole carbon management system, including how to manage emissions, manage transactions, manage assets, manage carbon credits, and finally realise the whole carbon neutral management of the enterprise on the ground.

Through the example of carbon inventory discrepancy accounting in the supply chain of Enterprise S, we found that carbon emissions are closely related to the business of the enterprise, so to set carbon emission targets, predict carbon emissions and achieve carbon neutrality, it is necessary to design at least three scenarios, including the BAU scenario (developing routinely in accordance with the existing plan), the decoupling scenario (decoupling operations from carbon emissions) and the enhanced decoupling scenario (rapidly realising the decoupling of operations from carbon emissions). By predicting the future operating targets of the three scenarios and substituting them into the carbon emission model, the carbon emission prediction curves of the different scenarios will be obtained and the operating targets will be adjusted in a timely manner, so that a carbon emission prediction curve that is consistent with both the national "3060" target and the "Scientific Carbon Targets SBTi" will be selected. emission prediction curve. Based on the projected emission curves, the annual emission reduction targets are broken down year by year, and the amount of emissions to be reduced and the amount of offsets required to achieve each scenario within a reasonable cost are deduced, which is the basic logic of the whole emission reduction roadmap.