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After the failure of the Copenhagen UN Climate Change Conference a year ago, continued economic uncertainty across the globe, and the inability of the US Congress to pass meaningful climate change legislation, one might think that the reduction of carbon emissions is no longer a priority for businesses. Nothing could be further from the truth. Forward- thinking companies across the globe are finding that a focus on sustainability has both top and bottom line benefits in addition to addressing a pressing global need – carbon emission reduction.
Consider that the emissions of about 2,500 of the largest global corporations account for roughly 20-25% of the world’s GHG emissions. Many of these companies are already taking significant action to report, manage and reduce their GHG emissions as well as improve their overall sustainability performance in accordance with a triple bottom line approach. Most have done so not out of a legal obligation, but out of good business sense. When managed correctly, sustainability is a profitable strategy that helps to reduce costs, increase revenue and bolster a brand image.
The Carbon Disclosure Project (CDP) is the leading global organization addressing carbon emissions reduction. The Carbon Disclosure Project Supply Chain Report 2011 (third annual) is the most comprehensive study measuring corporate progress against carbon emission goals in the supply chain. It is also a key source of best practice. Data from the 57 global corporations that are members of the program and the more than 1,000 suppliers to these companies, provided the comprehensive information for this Report. The CDP Supply Chain Report 2011 shows that major companies and their suppliers
The A.T. Kearney Perspective
are focused on implementing strategies and programs that address carbon emissions across their global supply chains. The “greening of the supply chain” will have a tremendous impact both in environmental and economic terms, and defines new standards for procurement in all sectors of the economy.
A.T. Kearney has had the privilege of working first-hand with a number of global companies on projects to address carbon emissions in a way that makes business sense. We worked with a major consumer packaged goods company to develop an approach that included a base-case forecast for the company to attain end-to-end life-cycle sustainability. The forecast was used to develop individual targets for each business unit, ultimately helping the company reduce its overall environmental impact. We also worked with a global medical device company to develop a strategic plan for the company to conduct its business in a more environmentally sustainable way – within its four walls, across the value chain and throughout the product life cycle. The plan outlined a governance structure and new business processes for the company to achieve their sustainability goals. In addition to the environmental benefits, the program identified cost savings of between $23 and $77 million with a potential revenue increase of $225 million.
In line with the goals of our clients, A.T. Kearney has a commitment to reducing our own carbon emissions. We feel that if we are to provide sound counsel to our clients on these issues, we need to take an aggressive stance to address our own carbon emissions. In 2007 the A.T. Kearney Board of Directors made a commitment to achieve carbon
neutrality in all aspects of our operations by 2010. We knew that our biggest challenge would be in addressing carbon emissions from travel. It typically comprises 80% of our carbon footprint. We achieved carbon neutrality on July 19, 2010. We are proud of the fact that we were the first global consulting firm to achieve this goal.
Our carbon neutrality is built on four planks that reach across our entire organization: defining and measuring a rigorous set of carbon indicators, empowering employees globally to develop greener office protocols, innovating new models for client-service delivery and investing in climate- protecting projects meeting the highest international quality standards. The firm’s carbon neutrality is part of a broader initiative designed to deliver sustainable, environmentally sound results to A.T. Kearney’s global client base.
To reduce our carbon footprint related to travel, we developed advanced tools to calculate carbon emissions for all travel criteria including airline, hotel, rental car, rail, public transportation and taxi use and measured the carbon impact of travel by employee, office location and client project. A.T. Kearney’s efforts to measure and track business-travel emissions have been recognized as pioneering and best practice by numerous travel industry groups.
As the results of the CDP Supply Chain Report 2011 show, much progress has been made by global businesses to address carbon emission reductions, but much remains to be accomplished to achieve the reduction goals necessary to reverse global climate change.
Daniel Mahler Vice President at A.T. Kearney
Stephen Easton Vice President at A.T. Kearney
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