Morten Johansen, the COO of DP World Americas, emphasizes the increasing importance of environmental sustainability in the logistics industry, highlighting it as a key strategy for corporate responsibility and gaining a competitive edge in the market. The U.S. Securities and Exchange Commission’s climate disclosure rules, implemented on March 6, 2024, require publicly listed companies to report their Scope 1 and 2 emissions, but Scope 3 emissions, which cover indirect emissions from a company’s supply chain and product use, were not included. This gap underscores the need for companies to voluntarily address their complete environmental impact.
Johansen believes that while many companies prioritize cost reduction and reliability in global trade, a unified approach to managing supply chains that focuses on reducing emissions is essential. To achieve this, he advocates for improving carbon accounting practices, collecting high-quality data, enhancing supplier engagement, and elevating sustainability in procurement. By developing solid methodologies for measuring and reporting emissions, utilizing global databases for accurate data collection, and exploring technologies to automate data aggregation, companies can effectively track and mitigate emissions in their supply chains.
He also emphasizes the importance of engaging suppliers in sustainability goals to foster collaborative relationships and lead to mutual innovations. Integrating sustainability into procurement practices can influence the entire supply chain towards adopting more sustainable practices, optimizing resource use, reducing energy consumption, and minimizing waste. By keeping an open dialogue with procurement teams, companies can explore topics like sustainable fuel adoption and partner engagement strategies to align procurement with sustainability efforts.
Johansen encourages companies to find a collaborative path forward in achieving a sustainable supply chain, highlighting the importance of industry-wide partnerships and initiatives that promote transparency and collective responsibility. He believes that sustainable supply chain management is not just a necessity but also an opportunity for businesses to thrive in a competitive global marketplace. By embedding sustainability deep within their operations, companies can mitigate their environmental impact, enhance operational efficiency, foster innovation, and build trust with stakeholders, contributing to a healthier planet and resilient business practices.
