Net-Zero Challenge: The supply chain opportunity

The report highlights that eight key supply chains account for over 50% of global emissions and suggests that companies can achieve net-zero supply chains with limited cost increases. It identifies challenges in data collection and supplier engagement, and provides a nine-step guide for companies to reduce end-to-end emissions.

• Companies in most customer-facing sectors can achieve a much larger climate impact by focusing on end-to-end supply chain emissions rather than just their direct Scope 1 and 2 operations.
• More than 50% of global greenhouse gas emissions are generated by eight specific supply chains: food, construction, fashion, fast-moving consumer goods, electronics, automotive, professional services, and freight.
• Achieving net-zero supply chains is financially viable, with approximately 40% of emissions abatable via affordable levers costing less than €10 per tonne of CO2 equivalent. Even total elimination of supply-chain emissions would likely increase end-consumer costs by only 1–4% in the medium term.
• Decarbonization is hindered by difficulties in obtaining necessary data, setting clear standards for suppliers, and managing fragmented supplier landscapes, particularly when emissions are deep in the chain or require industry-wide collective action.
• The report identifies nine key actions for companies to reduce supply-chain emissions: building an emissions baseline, setting holistic targets, revisiting product design, reconsidering sourcing strategy, setting procurement standards, co-funding abatement with suppliers, aligning sector targets with peers, driving demand for green solutions, and developing internal governance to align incentives with emission targets.

APA

World Economic Forum (2021). Net-Zero Challenge: The supply chain opportunity. https://www.weforum.org/publications/net-zero-challenge-the-supply-chain-opportunity/

Chicago

World Economic Forum. Net-Zero Challenge: The supply chain opportunity. 2021. https://www.weforum.org/publications/net-zero-challenge-the-supply-chain-opportunity/.

Wikipedia

{{cite report |author=World Economic Forum |title=Net-Zero Challenge: The supply chain opportunity |date=21 January 2021 |url=https://www.weforum.org/publications/net-zero-challenge-the-supply-chain-opportunity/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2021netzero, author = {{World Economic Forum}}, title = {{Net-Zero Challenge: The supply chain opportunity}}, institution = {World Economic Forum}, year = {2021}, month = jan, url = {https://www.weforum.org/publications/net-zero-challenge-the-supply-chain-opportunity/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }