Tackling Scope 3 Emissions: How Companies Are Adapting Their Supply Chains

Logistics need to change both up and downstream if companies are to make progress on emissions reductions

To adapt to supply-chain disruptions during the pandemic and through ongoing geopolitical conflicts, as in the Red Sea, companies have implemented longer shipping routes, opted for air freight, and often cobbled solutions together without indexing heavily on the environmental impacts of those choices. They won't be able to in the future. Regulatory shifts like the European Union's Carbon Border Adjustment Mechanism (CBAM) and California's At-Berth Rule are reshaping traditional operations for logistics firms. Consumer preferences are also shifting towards environmentally conscious companies.