by Lionesses of Africa Operations Dept
Last weekend we gave you some homework for the holiday period - to check up on and if necessary re-find your ‘WHY’. To give it a dust down, a service, to bring it back into the centre of your business, to never forget that it is the Soul upon which your business is built.
This weekend, more homework we’re afraid - to look ahead at what is going to become more and more important in 2023 as decisions made in the world’s largest economies and boardrooms start to move upstream along their supply chain towards our inspirational membership, namely Scope 3 Emissions. Yes, we know - hardly sexy stuff to inspire holiday reading, but stick with us, it could change your whole year ahead.
So firstly, what are Scope 1,2 & 3 Emissions?
‘Luckily’ the UK Government this week gave us an own goal or as Alok Sharma, the UK Government Minister (at the time) and President of COP26 said “…a backward step for UK climate action…damage [to] the UK’s hard-won international reputation”, from which to helpfully study the various Scopes.
Least we forget, China and India almost derailed the entire COP26 agreement by insisting on the wording ‘phase down’ Coal, rather than ‘phase out’ Coal, but perhaps following the motto that ‘if you can’t beat them, join them’, the UK this week announced that they were financing a brand new Coal mine in Cumbria, a county in North-West UK, to create jobs and support local steel making industry. Not ones to judge, but jobs and supporting local industry has long been the plea from developing countries to continue Coal use. Just saying…
So with the old adage ‘Don’t do what we do, but do what we say…’ ringing in our ears, we shall use Coal Mining as an example of the various ‘Scopes’.
Scope 1 covers emissions from sources that an organisation owns or controls directly - so in Mining this would be drilling, blasting, loading and hauling (which in itself is a large emitter - if you have ever seen the huge mining trucks you will know why).
Scope 2 are emissions that a company causes indirectly when the energy it purchases and uses, is produced. So in our Cumbrian mine that would be electricity used in those mile long conveyor belts, and then in the processing of the Coal.
By far the largest though are the Scope 3 emissions, those that are not produced by the company itself, and not the result of activities from assets owned or controlled by them, but by their supply chain up and downstream. For example the huge amounts of Coal used to created the high temperatures required to make Steel…As the EU itself shows “…the conventional Blast Furnace…[is] highly CO2-intensive…[with] a carbon footprint of 1.6-2.0 tonnes of CO2 per tonne of crude steel produced.” (here).
With the EU pushing companies into action over what must be done to curb not only Scopes 1&2, but also Scope 3 (look out for their Corporate Sustainability Due Diligence Directive due in 2023, that will ensure major EU Companies manage their sustainability across their supply chains), and because major companies have recognised the change in consumers’ beliefs and are starting to lead the charge, this is now a serious problem for all manufacturers and producers, not least because Downstream (e.g. steel) but especially Upstream (e.g. the tyres they purchase for their massive trucks) are all in for greater scrutiny. Scope 3 is one of their biggest headaches currently. We, as Lionesses must not only be aware, but start to prepare. Indeed with global supply chains being so interconnected it actually offers huge opportunities if we get this right.
How to ‘get it right’?
Packaging, security of supply and labelling is a start.
Let’s get one thing straight from the beginning, although plastic is a massive polluter plastic is incredibly useful, that is why we are now living in the ‘Plastic Age’ (previous being Stone, Bronze, Iron etc). Plastic Pallet, Shrink and Bubble wrap protect our goods in transit, indeed we were talking to one Lioness recently whose goods travel all the way to the States in bulk in perfect condition on pallets, but once unpacked and sold individually, the glass shatters as yet another delivery driver throws the package into the back of his van. Not only infuriating, but costly for any business, let alone an SME wanting to break into the ‘big league’. Luckily, we knew a guru in the packaging world who gave her a few solutions, but the fact is there are no easy options. So if we can’t do without plastic packaging, what’s the next best thing?
Use less seems to be the way many large western companies are going, with thinner and thinner pallet and shrink wrap hitting the market. Modern technology means that you can now go to 9 or 8 µm from a whopping 23, yet still have enough strength. By going thinner you obviously use less, so it’s good for the environment, this is also less weight - so airfreight will be less, whilst using less fuel - how’s that for a win-win! (Hint: check your warehouse staff are not ‘helpfully’ wrapping double “because this cannot be strong enough!” - defeats the object a tad!).
Security and sustainability of supply? Will your western customer have sleepless nights worrying about having their name splashed all over the press showing something nasty in their supply chain? We know not, but let’s show them what our supply chain looks like, if only to help with their sleep patterns.
If you are sourcing from Cotton farms in Kenya, Uganda or Tanzania, manufacturing locally and then exporting to take full advantage of the African Growth and Opportunities Act (Agoa), then why not shout about it! 84% of China’s exports of Cotton come from the Xinjiang region of China where they use Uyghur forced labour, and with 20% of the world’s Cotton coming from China, it’s almost guaranteed that we all have some clothes manufactured in these labour camps (see here) - this is what we mean about the lack of sleep for many Purchasing Managers. Knowledge is so valuable, help them by shouting about your efforts.
This kind of knowledge transfer will become more and more important as western companies look hard at their upstream supply chain. Imagine what they will be looking at and adapt your information collection and flow.
Shout Out that you are proudly Kenyan, Nigerian, Ugandan - whatever it is, be proud.
Shout Out that you take huge pride in the sustainability and traceability of your own supply chain, that you have investigated this and know exactly from where your Cotton, Cashew Nuts, Gold, raw materials come.
Shout Out when you reduce your packaging - calculate the weight saved (easy to do: wrap one in old, one in new, removed, screw up into a ball, weigh each…).
Shout Out that you use Solar energy, not the coal powered stuff the national electricity provider pumps out (calculate the CO2 saved).
Shout Out that you are a Lioness, more western companies want to support women owned and run businesses.
Shout Out that you are a fair employer, fair wages, health, pension, all the benefits that you provide, they all count.
Shout Out if you provide childcare in some form, such as a kindergarten, or pre school breakfast club.
Shout Out that you have ISO and other certifications.
All of these and more can be on your website, your social media posts and even on your invoices (certainly room for your ISO Certification there) and in a file to be sent to your large customers.
Stand out from the crowd
So much of this can also be on your humble label with extra communicated with a simple QR Code, Bar Code and if you are really wanting to show your supply chain credentials, start looking at RFID labelling. This technology is nothing new, but it is now becoming far cheaper.
Talk to your customers if you export to the EU or USA, ask them what information they want - can you provide this? Work with them and you will notice the results. Supply across the globe is now so interconnected that major companies will want to work with those suppliers who show this leadership. Some, indeed many, will have produced (as Unilever has) a Responsible Partner Policy (see here). Even if you don’t supply Unilever, we would encourage you to read this policy and see where you can strengthen your own position. What the global companies such as Unilever do today, others do tomorrow, so better to plan and position yourself today.
Even if your dreams are more modest, as Melanie said this week (here): “We can all make a difference to the environment through our businesses, and importantly, we can also support the growing number of customers who want to make positive green buying choices. So whether you are part of the circular economy where you choose to eliminate waste and ensure resources are reused and recycled as part of your business model. Or you are growing a hyperlocal business that is environmentally-conscious and sources all its raw materials and ingredients from the local area, you can make an impact. Not only that, but you can tap into new growing markets of consumers who are looking to buy from businesses with a green ethos. So, let’s all be part of the positive change the world needs and grow more environmentally friendly businesses.”
…and then, don’t be shy -
Shout about it!
Stay safe.