Pathways to Decarbonization: Why IT Companies Can and Need to Do More to Reduce Supply Chain Carbon Emissions
The efforts of six global IT brands are assessed, including levels of commitment to reducing carbon footprint, progress in supply chain decarbonization, practices in energy transition, and advancements in managing greenhouse gas emissions. In addition, various gaps in supply chain decarbonization are revealed. Then, a roadmap to decarbonize the supply chain is proposed emphasizing the collective responsibilities of brands and suppliers as well as encouraging coordinated and joint action to achieve an energy transition.
While efforts are being made across the six brands, which are publicly disclosed, these remain insufficient. In the way towards supply chain decarbonization, several gaps in practice continue to exist, including:
- Insufficient Initiatives in Asia: Asia remains under prioritized by the assessed brands. This is concerning especially when considering that many production countries are already disproportionately facing negative impacts of the climate crisis. This reflects a broader problem across the industry given that these companies are among the most significant players in the IT industry in terms of global leverage and influence. The failure to address decarbonization and fossil fuel dependence in Asia indicates a broader neglect in mitigating greenhouse gas emissions
- Over Reliance on Renewable Energy Certificates: Some IT companies heavily rely on unbundled Renewable Energy Certificates (RECs) to claim carbon neutrality. This is problematic because it potentially masks actual carbon emissions and a continued reliance on, and demand for, fossil fuels.
- Limited Industry-Wide Collaboration: There remains a substantial lack of meaningful collaboration and unified action among sector leaders to address climate change, leaving significant potential for industry-wide climate strategies unexplored.