Harness AI to Solve the Carbon Challenge

Association for Supply Chain Management Blog · 9 months ago · 83 views

As global carbon emissions from manufacturing and energy production are projected to surge to an alarming 38.1 billion tons this year — a full percentage point higher than the world emitted in 2024 — supply chain leaders must accelerate the pursuit of powerful solutions. The time for incremental moves is over, with AI now positioned as the transformative technology for addressing this sustainability imperative.   The New York Times reports this week that the burning of oil, gas and coal are the biggest contributors to human-caused climate change, with the largest portion of a company's carbon footprint being Scope 3 emissions — those generated upstream and downstream in the network. Unfortunately, because they’re indirect, they’re notoriously difficult to capture and analyze.   “Measuring and managing these emissions means engaging with hundreds of supply chain partners, each with different data formats and methods of carbon footprint accounting,” explains Fast Company. That’s where AI comes in, collecting and merging data from numerous disparate sources. Importantly, the data can also clarify whether a particular activity is worth the environmental tradeoff, making carbon efficiency a critical factor in business strategy.   Another key element of the technology-sustainability relationship is the network-based software platform, providing end-to-end visibility and enabling companies to choose their partners and products based on data. “This approach enables smarter decisions on everything from raw material sourcing to supplier and distribution partner selection, reducing value-chain energy and waste,” Fast Company notes.  This strategic integration of technology is not merely theoretical; many supply chain organizations are recognized as global champions of circular supply chain excellence, actively using these very concepts to drive measurable, real-world results. For instance, ASCM corporate member and former ASCM Award of Excellence winner HP has incorporated more than 4 billion pounds of reused, recycled and renewable materials in its products and packaging since 2019. And it has reached 43% circularity for both products and packaging, per Supply Chain Digital.   As another example, Schneider Electric taps machine learning and AI-driven maintenance to improve productivity and reduce resource consumption. Its motto, “use better, use longer, use again,” further underscores its goal of achieving 50% circularity by the end of this year.   And Swedish furniture giant IKEA sustains a buyback program, purchasing used furniture from customers and reselling it at a discount. By 2030, the company aims to achieve an average circular fulfilment score of 90%, with at least half of its products scoring 100%.  Tools at your fingertips  Don't guess where your supply chain stands on sustainability. To ensure your organization is truly meeting the circular moment, access the following ASCM resources today.   First, check out these recent articles from the ASCM Insights Blog:  3 Principles of Circularity to Define Supply Chains  Sustainable Supply Chains Via the Circular Economy  Structure Your Manufacturing Operations for Sustainability and Savings  The Future of Transportation and Logistics Is Circular  Then, begin your Supply Chain Sustainability Maturity Assessment — a free tool that enables the evaluation of a network’s performance across economic, environmental and ethical dimensions. With that knowledge in hand, you can next enroll in our course on Building a Sustainable Supply Chain for clear, proven steps to apply sustainability concepts at your organization.   Finally, look to the ASCM Enterprise Standards for Sustainability to confirm supplier selection and quality, identify gaps for continuous improvement, and validate or update your supply chain strategy. These resources will empower you to build operational excellence, drive tangible results and compete effectively while helping achieve a more sustainable future for all.