SUSTAINABILITY
Decarbonising
Asia ’ s Supply Chains
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embarked on an ambitious journey toward net zero by leveraging the latest digital solutions , including McKinsey ’ s Catalyst Zero Product .
The result is a cost-optimised decarbonisation roadmap showing , for example , alternative suppliers for certain materials like iron , steel , and aluminium ,
“Sustainable sourcing may be more expensive today but it doesn ’ t have to be ”
PETER SPILLER PARTNER MCKINSEY helping Danfoss create low-carbon versions of existing products still at low cost .
This supports its goal of reducing direct and indirect emissions from purchased energy by 46.2 %, reducing emissions across the value chain by 15 %, and becoming carbon neutral across its operations by 2030 . ( The full impact story can be found here ).
What is Danfoss doing that others are not ? Successful companies optimise procurement spend from a dual mission objective , addressing cost and carbon at the same time and same the priority level .
Developing a joint baseline , they implement optimisation initiatives covering both dimensions and track them in a systematic way . Trade-off decisions are based on meaningful carbon pricing logic or strategic considerations , and can lead to competitive advantage through securing scarce materials early on , for example .
112 May 2023