Earth Day is right around the corner, serving as a timely reminder of the importance of sustainability and circularity in supply chains. While ASCM advocates for a year-round commitment to these essential goals, this moment is a valuable opportunity for industry professionals to reevaluate their company’s environmental impact and strategize for long-term positive outcomes.
According to a KPMG survey of 100 CEOs, 55% anticipate significant returns from their sustainability investments within three-to-five years. Better yet, 19% expect similar results in less than three years. Plus, corporate leaders continue to cite green practices as a key priority. Areas of focus include sustainability in operations, products, and governance models and transparency protocols.
As an example, athleticwear company Lululemon recently released a limited-edition Packable Anorak jacket. It's the first product to be made with enzymatically recycled polyester and captured carbons. The enzymes turn complex plastics back into their original chemical building blocks, enabling reuse through virgin-grade plastics. Lululemon’s sustainable material goals also include using at least 75% recycled polyester, 100% of products manufactured from preferred materials, and end-to-end solutions to advance a circular ecosystem by 2030.
For its part, Amazon announced that AI has helped the company eliminate more than 2 million tons of excess packaging since 2015. The AI tool “uses text-based data on every item to make a prediction on the most viable — yet simultaneously efficient — type of packaging” based on photos taken in a computer-vision tunnel at fulfilment centers. The AI is refined based on customer feedback, prior shipments deemed successful, and keywords about each item; so, it’s not just the size of the box or mailer, but also the amount of cushioning needed. Previously, this work was completed solely by people, but the process was impractical at the scale required for the e-commerce giant; AI enables humans to guide the package-selection process much more efficiently.
And in an industry that has long grappled with environmental problems, Formula 1 is making significant strides toward sustainability. F1 race car engines burn massive amounts of fossil fuels, so the company was keen to lower emissions. Now, its first impact report states that F1 is on target to meet its sustainability goals, and “the latest carbon footprint calculations show a 13% reduction in the sport’s carbon footprint compared to 2018.” Last year, F1 began the trial use of 55% sustainable fuel in all F2 and F3 cars and took another step toward the use of 100% sustainable fuel in F1 cars by 2026. Plus, in 2023, more than 75% of race promoters used renewable energy sources to power their events.
Speeding our way to sustainable supply chains
ASCM is thrilled to announce that one of our keynote speakers for ASCM CONNECT 2024: North America is Guenther Steiner, Former Principal of the Haas F1 Team. With a career that’s included roles from technical manager to managing director, Steiner brings a wealth of experience in both high-performance racing and entrepreneurship. You don’t want to miss him — or our other thought-provoking speakers.
Until then, check out ASCM’s exclusive class, Building a Sustainable Supply Chain, to better understand important sustainability concepts. Assess your supply chain with ASCM’s Enterprise Standards for Sustainability, which empower organizations to operationalize sustainability and be more competitive. The standards are free, open-access and aligned with globally adopted standards, including the Global Reporting Initiative and Sustainable Development Goals. And finally, reach out to our corporate team to learn how we can support your organization in achieving critical circularity objectives.
