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He published a case study on how Thermo Fisher engages with both customers and suppliers on renewable electricity adoption. Fascinating and a great topic for the show. So I invited him on to discuss all things renewable electricity. Matt has a background as an environmental engineer. He has worked with sustainability and renewable electricity across the US and China, and he's now sustainability program director at Thermo Fisher.

He's both passionate and incredibly knowledgeable about renewable electricity. So this was a fantastic discussion and we really got to nerd out. We talk about how to adopt renewable electricity programs in the supply chain, both power purchasing agreements and suppliers installing on-site generators. We'll touch on the state of the renewable electricity sector, what's going on with SBTI and the greenhouse gases protocol when it comes to recognizing renewable electricity.

We'll talk about something called the DUCT Curve, and we'll even comment on geopolitics and China versus the US, which is particularly interesting, as it was only a few weeks ago when we recorded this that China announced their first ever climate targets and the US abandoned the Paris Agreement.

This is a really good one.

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Takeaways

• Sustainable procurement is increasingly relevant in academia.
• Regulatory changes are impacting discussions in sustainable procurement.
• Monitoring compliance in supply chains is a key research area.
• Supplier relationships are crucial for ensuring compliance.
• Power dynamics affect how companies enforce sustainability standards.
• Collaborative practices can enhance sustainability efforts.
• Visibility of research in the business world remains a challenge. Supply risk varies based on the number of alternative suppliers.
• Procurement's influence on sourcing decisions can be limited by other departments.
• A significant portion of emissions is linked to procurement activities.
• Best practices include systematic monitoring and supplier training.
• Collaboration with suppliers is essential for developing eco-solutions.
• Cascading strategies can help manage sub-tier suppliers effectively.
• AI and data analysis are crucial for sustainability compliance.
• Starting small and collaborating with others is key to sustainable procurement.

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Takeaways

• US elections will significantly impact sustainability discussions.
• EU regulations are influencing US companies' sustainability strategies.
• Traceability in supply chains is complex and multifaceted.
• Consumer demand is driving companies to adopt sustainable practices.
• Operational efficiency can lead to cost savings and sustainability.
• Regulations are a catalyst for changing business models.
• Collaboration with NGOs is essential for effective traceability.
• The regulatory landscape in the US is becoming more stringent. Lobbying significantly influences regulations in America.
• DEI initiatives are facing backlash in the current political climate.
• Addressing poverty in supply chains requires innovative business models.
• Empowering local communities can lead to sustainable practices.
• Financing is key to transitioning to regenerative agriculture.
• Corporations must balance impact with financial returns.
• Consumer demand can drive corporate sustainability efforts.
• Regulations can be seen as opportunities for better business practices.

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Takeaways

• Decarbonization is a key focus in sustainable procurement.
• Emission factors serve as multipliers for calculating carbon footprints.
• Comparability in emission data is critical for effective procurement decisions.
• Local energy infrastructure significantly impacts emissions calculations.
• Engaging suppliers is essential for obtaining accurate emission data.
• Automation in carbon accounting is necessary to reduce manual data collection.
• Understanding hotspots in the supply chain is crucial for effective decarbonization efforts.

Host: Thomas Buch Andersson

Guest: Philipp von Bieberstein

Producer: Cristina Souto

Music: Kiholm

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Takeaways

• The medical supply chain faces challenges in terms of inefficiencies caused by middlemen and unnecessary shipments, leading to increased costs and carbon emissions.
• Waste is a significant issue in the medical industry, with a large amount of expired medical supplies being thrown away.
• Grapevine is a company that aims to optimize the medical supply chain by connecting medical practices directly with suppliers and reducing unnecessary shipments.
• Better inventory management and passive monitoring can help reduce waste and improve sustainability in the medical supply chain.
• Making sustainability an easy and obvious choice is crucial for driving change in the industry.

Host: Thomas Buch Andersson

Guest: Luká Yancopoulos

Producer: Cristina Souto

Music: Kiholm

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Takeaways

• The sustainability landscape has changed significantly in recent years, driven by factors such as geopolitical shifts, changing consumer demographics, and regulations.
• Companies are increasingly recognizing the business sense of sustainability and the importance of transparency in their supply chains.
• Designing more sustainable products involves considering material changes, sourcing strategies, and product lifecycle considerations. Material choices, manufacturing processes, and supply chains are the three primary drivers of sustainability in product design and supply chains.
• Designing products for their specific context of use and end-of-life considerations is crucial.
• Companies should focus on defining their materiality and specific sustainability goals to drive meaningful change.

Host: Thomas Buch Andersson

Guest: Neil D'Souza

Producer: Cristina Souto

Music: Kiholm

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Free resources from the EU to get up-to-speed with LCA, as mentioned by Fabian in the episode:

• https://eplca.jrc.ec.europa.eu/uploads/ILCD-Handbook-General-guide-for-LCA-DETAILED-GUIDANCE-12March2010-ISBN-fin-v1.0-EN.pdf
• https://publications.jrc.ec.europa.eu/repository/handle/JRC58190
• https://eplca.jrc.ec.europa.eu/permalink/PEF_method.pdf

Takeaways

• Life cycle assessment (LCA) is a methodology to evaluate the environmental impact of a product, process, system, or service.
• LCA covers activities such as energy consumption, materials, and waste generation throughout the life cycle.
• LCA and Scope 1, 2, and 3 emissions calculations have similarities and differences, but they can provide complementary information for decision-making.
• Environmental product declarations (EPDs) can enhance comparability by following specific product category rules and providing standardized information.
• Buyers should read EPDs carefully to understand the assumptions and limitations of the data and make informed decisions.
• Implementing LCA and EPDs in supply chains requires effort and time, but it is necessary for transitioning to a sustainable society.
• The construction, food, energy, automotive, and chemical sectors are among the industries where LCA and EPDs are more prevalent.
• LCA data can be used to support product redesign and procurement optimization strategies.
• The allocation of environmental impacts in LCA can be based on production volumes, economics, or energy content.
• LCA should not be seen as a standalone tool but as part of a holistic approach to sustainability.

Host: Thomas Buch Andersson

Guest: Fabian Diaz

Producer: Cristina Souto

Music: Kiholm

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They emphasize the importance of leadership buy-in and education in driving sustainable procurement strategies. They also discuss the need for procurement teams to collaborate with suppliers and foster innovation in order to achieve sustainability goals. Tim encourages organizations to start somewhere and communicate the value of sustainable procurement internally.

Takeaways

• The sustainability landscape in procurement is evolving, with some categories being more advanced than others.
• Strong leadership is crucial in driving sustainability initiatives in procurement.
• Educating businesses about sustainability and providing clear metrics is important for progress.
• Procurement plays a key role in achieving sustainability goals in businesses.
• Collaboration with suppliers and fostering innovation are key to achieving sustainability goals.
• Sustainable procurement extends beyond emissions reduction to include topics such as Diversity & Inclusion and Compliance.
• Organizations should communicate the value of sustainable procurement internally.
• There is potential for incentivizing supplier performance on sustainability.

Host: Thomas Buch Andersson

Guest: Tim Grunow

Producer: Cristina Souto

Music: Kiholm

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In this conversation, Luke highlights the importance of understanding scope 3 emissions and the risk of focusing solely on carbon emissions. Other environmental and social topics, such as nature, biodiversity, and supply diversity, are also important considerations. Luke notes that different industries and regions have varying priorities in sustainable procurement. He emphasizes the need for global regulations and collaboration with suppliers to reduce emissions. The conversation concludes with a discussion on the changing focus of sustainable procurement and the impact of regulations.

Takeaways

• Sustainable procurement involves understanding and addressing the negative environmental and social impacts of the supply chain.
• Drivers for sustainable procurement include marketing and branding, employee pressure, investor pressure, and cost savings.
• Sustainable procurement can elevate the role of procurement within organizations and contribute to the achievement of environmental and social goals.
• Regulations are becoming stronger, leading to an increased focus on sustainable procurement. Understanding scope 3 emissions is crucial.
• Sustainable procurement should not focus solely on carbon emissions but also consider other environmental and social topics.
• Different industries and regions have varying priorities in sustainable procurement.
• Collaboration with suppliers is essential for reducing emissions and driving sustainability.
• Embedding sustainability throughout the procurement process is key to successful sustainable procurement.

Host: Thomas Buch Andersson

Guest: Luke Abbott

Producer: Cristina Souto

Music: Kiholm

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The conversation explores various aspects of sustainability and consumer behavior. It highlights the importance of creating awareness and educating consumers about sustainability issues. The role of governments in defining standards and regulations is discussed, as well as the challenges of consumer decision-making and the complexity of sustainability definitions. The conversation also touches on the concepts of circularity and upcycling in product design, the limitations of blockchain for traceability, and the potential and realities of AI in sustainability. The importance of authenticity and finding the right focus in redesigning products for sustainability is emphasized.

Takeaways

• Creating awareness and educating consumers is crucial for promoting sustainability.
• Consumer preferences and sustainability concerns vary across different countries.
• Governments play a key role in defining standards and regulations for sustainability.
• Consumer education and expectations are increasing, leading to higher demands for sustainable products.
• Misinformation and oversimplification can hinder progress in sustainability efforts.
• Circularity and upcycling are important concepts in product design for sustainability.
• Consumer resistance to change and the importance of perception and education should be considered.
• Blockchain has limitations in traceability for sustainability, and AI has potential but must be utilized properly.
• Authenticity and focusing on one important aspect of sustainability are key in redesigning products.

Host: Thomas Buch Andersson

Guest: Yann Chilvers

Producer: Cristina Souto

Music: Kiholm

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The conversation explores the flaws in the current economic system and the need for change. It discusses the value of products and the concept of scarcity. The importance of creating new narratives for business is emphasized, along with the role of AI and technology in sustainability. The conversation also highlights the need to build a fabric of community and connection. It suggests finding leverage points for change and shares an example of environmental sustainability in humanitarian response. The importance of balancing sustainability and cost is discussed, as well as the power of conversation and dialogue in finding solutions.

Takeaways

• The current economic system has flaws that need to be addressed.
• The value of products and the concept of scarcity play a role in sustainability.
• Creating new narratives for business is essential for a sustainable future.
• AI and technology can be used to promote sustainability and accountability.
• Building a fabric of community and connection is crucial for sustainable practices.
• Finding leverage points for change can lead to impactful sustainability initiatives.
• Balancing sustainability and cost is possible and beneficial.
• Conversation and dialogue are key in finding solutions to sustainability challenges.

Host: Thomas Buch Andersson

Guest: Melanie Rideout

Producer: Cristina Souto

Music: Kiholm

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Takeaways

• The oil and gas industry often neglects climate change and pollution issues, leading to environmental damage.
• Climate change has significant impacts in Africa, including flooding, droughts, and lack of access to energy.
• Climate equity and investment in infrastructure are crucial for addressing climate change in Africa.
• Circularity is crucial in addressing overconsumption and reducing waste streams that end up in developing countries.
• Companies need to mitigate social risks in the supply chain and avoid exacerbating poverty issues.
• Investing in local refineries and manufacturing facilities can create jobs and reduce costs in resource-rich countries.
• Trust in supplier practices requires understanding the culture and values of the organization.

Host: Thomas Buch Andersson

Guest: Kenny Kaluiji

Producer: Cristina Souto

Music: Kiholm

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Feel free to find Thomas on LinkedIn to connect over supply chain sustainability.

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Takeaways

• Decarbonization and waste reduction are crucial in the logistics industry to drive sustainability.
• Measuring and understanding carbon emissions is essential for making informed decisions and driving change.
• Electric trucks are a viable option for short-distance transportation, while hydrogen may be more suitable for long-distance transportation.
• Intermodal transportation, such as using boats and trains, can help reduce carbon emissions and optimize logistics.
• The social side of ESG in trucking includes addressing mental health, safety, and the well-being of truck drivers. The logistics industry faces challenges in attracting new drivers, and efforts should be made to make the job more appealing and accessible.
• The freight industry carries risks, including the transportation of illegal goods, and companies should be vigilant in inspecting their trucks and shipments.
• There is progress being made in sustainability within the logistics industry, with a growing understanding of carbon footprint and a shift in decision-making towards environmental considerations.
• Transformation and positive change are happening in the industry, and it is important to measure progress and celebrate the small steps taken.

Host: Thomas Buch Andersson

Guest: Geoffroy Henry

Producer: Cristina Souto

Music: Kiholm

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Feel free to find Thomas on LinkedIn to connect over supply chain sustainability.

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Takeaways

• Supply chain sustainability is a critical aspect of corporate sustainability, especially in industries like metals and mining.
• Prioritization is key when tackling supply chain sustainability, considering regional differences and materiality analysis.
• Industry collaborations can be challenging but can also drive meaningful change if dedicated resources are invested and clear goals are set.
• Startups like Sirius are leveraging AI and data infrastructure to simplify and streamline sustainability efforts in supply chains.
• Getting started with supply chain sustainability requires understanding priorities, embracing the process, and taking action.

Host: Thomas Buch Andersson

Guest: Anastasia Kuskova

Producer: Cristina Souto

Music: Kiholm

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Feel free to find Thomas on LinkedIn to connect over supply chain sustainability.

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Within the overall climate and sustainability movement, the supply chain is very much the next frontier that needs to be conquered. In an era of greenwashing and now also greenhushing, we need to get way better at sharing our learnings with each other. And honestly, we need to make it more interesting. It's heavy to read about the impending doom and gloom of climate change and social issues like slavery and child labor. So our hope with Next Frontier is to package it in a more interesting and entertaining format.

Personally, I'm a climate entrepreneur. I've built two companies now that focus on sustainable supply chain, one focused on logistics and the other one on procurement. So I've been having interesting discussions in this field for a while, both with technologists trying to tackle the problem with technology, but also with working with practitioners who are experiencing real-life issues every single day.

Next Frontier brings you the perspectives of both the practitioners who are on their own journey and the entrepreneurs and advisors who have been working in detail with these problems across companies. We'll try to focus on very tangible and real-world examples and hopefully get away from all of the buzzwords and high-level talk.

Join the conversation, give us feedback, suggest people we should speak to and areas we should cover, and engage with me directly on LinkedIn or by email.

I hope you'll enjoy listening to Next Frontier as much as I enjoy producing the episodes. See you in the next episode!

Host: Thomas Buch Andersson

Producer: Cristina Souto

Music: Kiholm

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