Analyst Insight: Companies looking to achieve both sustainability and operational resilience should consider integrating into their operations carbon footprint assessments, the choice of more sustainable materials, and energy-efficient solutions. These strategies not only reduce emissions but also enhance compliance, cost efficiency, and long-term competitiveness in a carbon-conscious market. 

Without precise data on carbon emissions, companies struggle to implement targeted emissions reduction strategies. Using methodologies such as lifecycle assessment (LCA), businesses can evaluate the environmental impact of materials, processes, and logistics from raw material extraction to end-of-life disposal. Key benefits of carbon footprint assessments include the ability to identify emission hotspots, in order to make strategic interventions.

Another benefit is being able to set science-based targets. With accurate emissions data, companies can establish realistic and impactful reduction targets.

Further, companies can enhance transparency and reporting. Investors, regulators, and customers increasingly demand robust ESG disclosures, making carbon footprint assessment a key element of corporate responsibility.

Revolutionizing Material Sourcing

The steel industry is one of the largest industrial sources of CO₂ emissions, but new production methods are transforming the steel industry by significantly reducing carbon emissions. 

Hydrogen-based steelmaking can cut CO₂ emissions by up to 90% by using hydrogen instead of coal as a reducing agent, producing only water as a byproduct. Companies like Stegra (formerly H2 Green Steel) are pioneering this technology, with their Swedish plant expected to reduce emissions by nearly 90% compared to traditional methods.

The HIsarna process eliminates the need for coking and sintering, streamlining production and achieving at least a 20% reduction in CO₂ emissions. When integrated with sustainable biomass and steel scrap, emission reductions could exceed 50%.

For supply chain operations, integrating substitute materials such as green steel into procurement strategies means:

Lowering Scope 3 emissions. Since steel is a fundamental material in industries such as logistics, automotive, and construction, sourcing low-carbon steel drastically reduces indirect emissions.

Future-proofing against regulations. With carbon pricing and stricter environmental laws on the horizon, early adoption of green steel ensures compliance and long-term cost savings.

Enhancing corporate sustainability credentials. Consumers and investors increasingly favor companies that prioritize sustainable sourcing, making green steel a strategic advantage.

Energy-Efficient Solutions

Operational efficiency in the warehouse is a cornerstone of supply chain sustainability. Retrofitting existing systems, by upgrading conveyors, sortation equipment, and storage systems with energy-efficient technologies, smart sensors, and AI-driven optimization tools can dramatically reduce energy waste.

Diversifying energy sources, by moving away from fossil fuel-based power to electrification and renewable energy solutions minimizes reliance on carbon-intensive sources.

Implementing smart logistics technologies, such as automated intralogistics solutions, predictive analytics and resource-conscious energy modes enhance operational efficiency..

Companies that prioritize energy-efficient solutions not only reduce their carbon footprint but also position themselves as industry leaders in smart, sustainable supply chain management.

Decarbonizing supply chains requires bold action and strategic investments. By gaining transparency through carbon footprint assessments, adopting carbon-reduced materials such as green steel, and implementing energy-efficient solutions, companies can significantly cut emissions while improving resilience and operational efficiency.