Mobilizing Suppliers on Climate Change Action

Guidehouse joined forces with Mars, PepsiCo, and McCormick to form the Supplier Leadership Climate Transition collaborative

Challenge

The consumer packaged goods sector has been a leader in stepping up to curb climate change over the last decade, but when the Science Based Targets initiative began asking for supply chain greenhouse gas (GHG) targets, companies realized they needed to form new bonds with suppliers and departments like supply chain procurement to better understand the impact that global supply chains have on the health of the planet.

Solution

In 2019, Guidehouse convened major brands—including Mars, Incorporated, PepsiCo, and McCormick—for a roundtable where sustainability managers discussed how they could take action beyond their typical operational footprint activities.

After the roundtable, Guidehouse developed a consortium with Mars, McCormick, and PepsiCo to mentor and train suppliers in emissions reduction strategies.

The Supplier Leadership on Climate Transition (Supplier LoCT) mobilizes collective climate action by providing suppliers with resources, tools, and knowledge to support their own climate journeys.

Supplier LoCT has three primary components:

  • An educational seminar series
  • Supplier maturity scoring, with four levels of recognition
  • A monthly check-in to drive dialogue for brands

Impact

Over 210 Mars, PepsiCo, and McCormick suppliers are participating in Supplier LoCT. With expertise based on Guidehouse’s 30+ years of sustainability consulting, the brands are influencing suppliers to take inventory of emissions, set science-based targets, and curb emissions at scale. In turn, supplier progress is accelerating the ability of the brands to deliver against their individual science-based targets to reduce GHG emissions in their full value chains.

 

It’s never been more vital for global businesses, suppliers, and key actors to come together in this time of crisis, and protect the health of our planet and global communities for generations to come. By forming this collaborative and actively engaging our suppliers on sustainability, we believe we can drive a meaningful, truly global impact.

Barry Parkin, chief procurement & sustainability officer at Mars, Incorporated

People, planet, and communities have been at the heart of our Purpose Led Performance for many years, supported and championed at the highest levels within McCormick. This collaborative LoCT partnership further demonstrates our commitment to sustainability and doing right for our planet. We are looking forward to engaging our suppliers on this journey to mitigate the climate change impact, and benefit the world around us.

Michael Okoroafor, VP Global Sustainability and Packaging at McCormick and Company

Pre-competitive collaborations like this are a critical component to industry progress toward science-based targets. Every company’s supply chain practices are important in the drive to reduce overall GHG emissions.

Marjorie DePuy, senior director, Supply Chain & Sustainability at FMI, the Food Industry Association

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