Supply Chain Energy Initiatives ‘Putting Pressure’ on Suppliers
Initiatives by firms such as Tesco and Walmart and recent research by bodies including the University of Minnesota Institute highlight the impact suppliers within a supply chain have on a company’s energy footprint, but research by renewable energy company Urban Wind suggests that policies targeting vendors’ energy use are piling pressure on suppliers.
As being green becomes an increasing priority for businesses, companies across the UK are now having to respond to the challenge or face missing out on contracts, according to Corporate Social Responsibility and Sustainability – An Insight.
The trend is being driven by legislation as well as shareholder and consumer pressure, according to Urban Wind managing director Phil McVan.
For instance, food sector business Bernard Matthews is set to hit its deadline for becoming an energy neutral business three years ahead of target, bosses have predicted. It has been developing a pioneering partnership with renewable energy developers, securing £90 million ($139 million) of third party investment to utilize the land it owns to house solar and wind farms.
It’s a corporate trend that Urban Wind sees is developing, according to its research data, with companies such as BT also keen to buy green energy.
However, according to McVan, they are passing that burden right down the supply chain – with smaller operations being told by the major companies they supply of the pressing need for them to embrace the “green agenda” and switch to renewables or possibly lose their place on that supply chain. But with costs in the millions many suppliers are feeling the pinch, the research suggests.
Launched in 2010, the Tesco Knowledge Hub aims to help to reduce the energy costs, waste and environmental impacts of the products Tesco buys, and aims to cut 30 percent of the carbon emissions from the company’s supply chain by 2020, compared to 2006-07 levels. The private, online community curently includes supplier members from more than 630 global companies, plus independent experts, Tesco representatives and partners including WRAP, IGD and the Carbon Trust.
- How "Fixed" is the Fixed Price Product?
- Guide to Energy, Carbon and Environmental Software
- 2014 Environmental Leader Product and Project Awards
- What You Need to Know About Demand Charges
- How to Automate the Collection & Delivery of Utility Billing Data
- Smarter Asset Management for the Nuclear Power Imperative
- Meeting the GHG Challenge: Reporting Solutions
- Harness the Value of Big Data to Build Smarter Infrastructures
- Alarms Management: The Future is Now
- 2014 Energy and Sustainability Predictions: Findings from Leading Professionals
- Energy Procurement in 2014: Products & Programs to Optimize Savings
- BUYING STRATEGIES IN A VOLATILE MARKET: What Businesses Need to Know about Retail Electricity Procurement
- Smart Building Technology: The Key to Comprehensive Building Performance
- What Energy Managers Need to know about Procuring Natural Gas: Guidance for 2014 Natural Gas Contracts
- Energy Optimization from the Boiler Room to the Board Room