New Report Prepares Supply Chain Managers for Cap-and-Trade Programs

Material Handling Management (8/19) – The GHG emissions emitted by S&P 500 companies in chemicals, food and beverage, healthcare, industrial goods and services, personal and household goods, automobiles and parts and retail were examined in a study by NSF International. The report, “Carbon Emissions—Measuring the Risks,” helps prepare U.S. companies for the planned cap-and-trade program, an approach used to control pollution by providing economic incentives to companies achieving reductions in pollutant emissions. Under cap-and-trade, companies will have to pay for GHG emissions. The cost of carbon may reach as high as 18% percent of earnings for some firms.

Fox says the risks can be turned into a competitive advantage. “For example, the average industrial service firm needs to prepare for the fact that more than 70% of its carbon emissions are embedded in its supply chain, representing a significant financial risk.”