Decarbonization of supply chains: start asking “how will we profit from it?”
An interesting article by Toby Newman (CEO of Secaro) on ESG Today describes how, over the past five years, companies' motivations to decarbonize supply chains have fundamentally changed — and why that actually isn’t a problem. Newman argues that the market has experienced three main waves of motivation to decarbonize:
2020–2021: Values and customer pressure. By the end of 2021, 727 companies had committed to setting net-zero targets through the SBTi.
2023–2024: A boom in decarbonization actions hand in hand with a wave of new legislation (CSRD, CBAM, CSDDD). Companies responded to the new obligations.
2025–2026: A hard business case. Regulation was simplified, scope narrowed, implementation postponed.
Decision‑making also shifted from sustainability managers to the CFO.
According to Newman, decarbonization and cost savings go hand in hand. 90% of emission‑reduction actions in supply chains on the Secaro platform between 2020 and 2025 focused on optimisation and increasing energy efficiency.
According to IRENA, 91% of new renewable energy projects are cheaper than fossil alternatives.
Newman recommends working with data at the level of factories and products, not just corporate averages. Start with the largest suppliers — they can account for up to 80% of the chain’s emissions. And most importantly: stop asking “how much will it cost us?” and start asking “how will we profit from it?”
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