Navigating the path to net-zero emissions in your supply chain

Rising concern among consumers and new legislation have propelled food producers to increase their sustainability efforts, in line with global targets to reach net-zero carbon emissions by 2050.

At NewCold, we create sustainable value chains with energy-efficient, world-class systems that maximize productivity for food companies across the globe. We are experts in highly automated warehouses and advanced logistics that cut costs, loading times, and carbon emissions.

NewCold is committed to responsible business activities that support the United Nation’s 17 Sustainable Development Goals. As leaders in sustainable warehouse operations, we aim to reach net zero by 2040. Below are the top five recommendations we give our customers striving to add greater resilience, efficiency, and sustainability to their supply chains:

• Rethink your supply chain
• Invest in technology outside the warehouse
• Consider warehouse building design
• Prioritize Scope 3 emissions and reporting
• Plan for prolonged progress

Rethink your supply chain

For the organizations we work with, reducing carbon emissions is often an extension of the supply chain. When customers come to us, their operations are often spread over multiple locations—often up to 20 different warehouses. To streamline operations and advance progress toward their sustainability goals, the key is simplifying the supply chain with a move to one centralized facility. By consolidating to one automated high-bay warehouse, our customers can realize increased efficiency and reduced energy consumption compared to having their products stored at multiple traditional cold storage facilities.

Invest in technology outside the warehouse

Warehouses are only a part of building the supply chain. By investing in technology outside the warehouse, it’s possible to minimize carbon emissions. Tools such as automated gates, license plate recognition, and inventory QR code scanning provide improved insights into your receiving and shipping operations. With this information, it’s easier to identify where there are opportunities to increase sustainability activity. While these technology tools have a cost, organizations often find that the investment is returned in increased efficiency and reduced consumption of resources.

Consider warehouse building design

Focusing on supply chain sustainability is essential for organizations working to reach net zero. According to Accenture, supply chains generate approximately 60% of all carbon emissions globally, with warehouses making up a portion of that total. At NewCold, we’ve found that by focusing on the building design of a warehouse it is possible to reduce energy consumption by 40-50% compared to conventional warehouses. Just by existing they have a reduced carbon footprint, are far more energy efficient, and are less demanding than a traditional cold storage warehouse.

Prioritize Scope 3 emissions and reporting

The EPA defines Scope 3 emissions as the result of company operations that indirectly affect its value chain; including business travel, employee commuting, waste disposal, and transportation and distribution. Most often when organizations consider Scope 3 emissions concerning their supply chain, measurement is typically centered around transportation—but Scope 3 includes the warehouse as well. We’ve seen growing importance placed on Scope 3 reporting, with 34% of supply chain CEOs stating that they are reducing total Scope 3 emissions. We expect it to become a larger trend in the industry with other companies following suit soon.

Focusing on Scope 3 reporting can have multiple benefits. Sharing reporting helps to increase transparency and trust between consumers and producers, as well as discover hidden opportunities for impactful improvement across your supply chain. Reducing emissions across your supply chain not only helps you move toward your goal of net zero but also helps increase sustainability across your entire organization.

Plan for prolonged progress

It is important to bear in mind that the journey to net zero is a marathon—not a sprint. Multiple hurdles must be overcome on a broader level, such as the search for renewable energy alternatives, that are out of the scope of supply chain professionals. And most importantly, no one action or initiative will take an organization to net zero overnight. The achievement will be the result of a collective effort over multiple years and decades.

About NewCold

As a pioneer in advanced food logistics solutions, NewCold has partnered with major global food producers to optimize their supply chain with our automated solutions.

We develop and operate state-of-the-art temperature-controlled facilities in 17 locations on three continents, alongside a growing transport network. Our world-class proprietary software systems, energy efficiency, and productivity stand above conventional solutions. This vertical integration allows us to be agile in responding to customer demands. With extensive in-house expertise in executing the entire project lifecycle, we are redefining the design, development, and operation of automated temperature-controlled warehouses.

For press inquiries contact Marvin David Meintjies: [email protected]