Pillar 2

Focusing on solutions and actions for organisations

  • It is easier to work on non-manufactured items or single raw material products first rather than on sophisticated, transformed items.
  • Start implementing changes for a few well-selected pilot items. Integrate lessons learned and move on, an incremental process will help achieve early successes and keep staff motivated.

Switch to low-carbon alternatives

Organisations can identify viable low-carbon alternatives to current purchases, focusing on key items responsible for a significant proportion of their carbon footprint, and integrate environmental and climate criteria into procurement policies.

  • Start by acting on items responsible for a large portion of emissions or items with a very high emission factor.
  • Items with the highest carbon and environmental impact need to be identified, using emissions data or, if unavailable, expenditure data. Acting on these items should be a priority. The cumulated emissions linked to selected top items should ideally represent 70% to 80% of procurement emissions.
  • Start acting on items for which solutions are readily available. For example, buy food that does not contain palm oil, or contains palm oil certified by RSPO; diversify rice sourcing and replace rice with cereals with a lower carbon impact; or switch to ICRC’s eco-designed tarpaulin (with a 20% lower carbon footprint).57,58,59
  • Use low-carbon or low-waste alternatives for key items based on their full lifecycle analysis. For example, substitute high-emitting food items such as meat and rice, with alternatives with a lower carbon footprint.
  • Choose products from low-carbon production methods or regenerative agriculture. For example, items produced with renewable energy or from regenerative agricultural production methods have shown a GHG reduction potential of between 6% and 48%, depending on the item.60
  • Factor in environmental risks in product composition. Avoid ingredients with high risks of being responsible for deforestation. Source certified ingredients (e.g. palm oil and sugar) or avoid high-risk ingredients (e.g. beef, soy).
  • Incorporate recycled or low-carbon materials into relief items (e.g. ensure that tarpaulins are made of at least 15% recycled polyethylene).
  • Reduce unnecessary packaging, switch to reusable packaging and use alternative packaging materials (e.g. recycled, plastic free) for most important items. Use alternatives to single-use plastic items61 (e.g. 5 out of 11 items procured by Palladium on behalf of FCDO are now received without primary and secondary plastic packaging. These items include dignity kits, solar lamps, and kitchen sets).62
  • Use certification and labels where applicable (e.g. RSPO for palm oil, Bonsucro63 for sugar, etc.), keeping in mind that not all certifications already integrate climate criteria.

To implement the above-mentioned actions, organisation need to adapt their ways of working. They may for instance define who needs to be involved internally in integrating climate and environmental considerations. When possible, they may also include environmental considerations in annual objectives and performance reviews and update job descriptions to include the environmental and carbon dimension.

The UK’s National Health Service (NHS) has been at the forefront of climate action in the health sector for over a decade. The NHS has committed to reaching net zero by 2040 for the emissions they control directly (e.g. scopes 1 and 2), and, by 2045 for the emissions they influence (e.g. scope 3).

In September 2021, the NHS England Board approved a roadmap65 to ensure their suppliers are actively taking steps to reducing their climate impact and are on a pathway towards net zero. The roadmap includes requiring carbon reduction plans from suppliers as from April 2023 for each new contract for goods and services and/or works anticipated to be above GBP 5 million per year. From April 2024, the NHS will progressively extend the carbon reduction plan (CRP)66 requirement to cover all new procurements, and from April 2027, all suppliers will be required to publicly report targets, emissions, and reduction plans.

From 2030, suppliers will only be able to qualify for NHS contracts if they can demonstrate their efforts through published progress reports and continued carbon emissions reporting.

UNILEVER letter to 300 suppliers70,71
UNILEVER published a letter sent to 300 suppliers outlining their Climate Programme and climate action goals, sending a clear message about what they expect from their business partners. They also invited some partners to take part in a pilot programme that aims to make their supply chain more resilient. In 2024, Unilever announced more ambitious goals for reducing scope 3 emissions for 2030, ranging from 30% to 42%, depending on the items.

WWF questionnaire for suppliers72
As part of a global effort to upgrade their procurement policy, WWF has produced a helpful questionnaire for clients to assess suppliers’ climate policies and practices. The objective is to increase transparency about their GHG footprint reduction measures, approach and methodology

Target setting and validation: Over the past 20 years, groundbreaking initiatives have been created aimed at buyers and suppliers from a variety of sectors. One of the most emblematic is the Science Based Targets Initiative (SBTi).73 Science-based targets provide companies with a clearly defined path to reduce emissions in line with the Paris Agreement goals. Companies can become members of SBTi, thereby committing themselves to adopting science-based targets, and going through STBi’s target validation process. A dedicated SME target setting option is available within SBTi.

Transparency: The Carbon Disclosure Project (CDP)74 is a not-for-profit charity that runs a global disclosure system for investors, companies, cities, states and regions. With the aim of promoting transparency regarding environmental and climate impact of organisations and businesses, CDP gathers data on environmental risks, target setting, etc. and scores them based on Climate, Forest, and Water Security criteria. CDP has become a global standard providing crucial information for clients’ decision-making.

Influence: We Mean Business Coalition (WMBC)75 is a global non-profit coalition working with private business to act on climate change. WMBC works with a variety of sectors, including finance, energy, transport and industry, to support efforts to halve GHG emissions by 2030. WMBC also houses the SME Climate Hub.

CDP, SBTi and WMBC create a unique ecosystem and reinforce each other. Businesses who sign the SBTi commitment letter are immediately recognised as “Committed” on the SBTi website, as well as the CDP, and WMBC websites.

SME Climate Hub: one-stop-shop for Small and Medium-sized Enterprises (SMEs) to commit to globally recognised science-based targets, access free tools to measure emissions, take climate action and report on progress. Initiative created by WMBC, Exponential Roadmap Initiative (ERI), and the Race to Zero Campaign.

Privilege low-carbon suppliers and contribute to shaping the market

Humanitarian organisations can influence supply chains individually and collectively by sending ‘advanced market signals’ towards increasing demand in less emissive products, with a focus on “hot spots” or top suppliers.

  • Request transparency and public reporting on GHG emissions and progress made towards reduction targets. Request information about the carbon footprint of products to make informed choices.
  • Make it mandatory for suppliers to put in place a reduction strategy aligned with science. Use external mechanisms for verification (e.g. SBTI). New requirements can be implemented gradually up until a defined deadline, as was done by the NHS in their supplier engagement strategy.64
  • Define environmental criteria for selecting suppliers (publication of their carbon footprint report, use of decarbonised and/or renewable energy, decarbonisation plan), giving priority to those that are already actively working on reducing their climate impacts.
  • Monitor compliance; set a timeline and actions for non-compliant suppliers; define a clear process for tracking climate progress of top suppliers annually.
  • Participate in collective efforts, for instance, by sharing supplier assessment data among humanitarian agencies to rapidly increase the amount of data available.
  • An open dialogue with suppliers on climate can help buyers understand better where suppliers currently stand on climate action, build trust and identify needs and opportunities for collaboration.67
  • Inform suppliers of your carbon strategy and invite them to work on the decarbonisation of their operations. Set clear targets for senior management and procurement for all suppliers to halve carbon emissions by 2030.68 Engage in regular dialogue with suppliers to monitor climate performance and progress.
  • Provide incentives for suppliers to measure their emissions and put concrete emissions reduction plans in place. For example, offer longer-term contracts, better payment terms and prices for climate & environmental actions.
  • Consider joint improvement projects with key suppliers for key items. For instance, organisations involved in food security and agriculture activities could design projects that foster collaboration between local farmers and suppliers.
  • Engage with suppliers to identify low-carbon, sustainable and innovative solutions that use outcome-based specifications. Focus on desired outcomes of the item or service instead of defining exact specifications in advance.69
Image Description

Figure 11: Reaching net zero: incentives for supply chain decarbonisation. World Business Council for Sustainable Development (WBCSD) 2021

There are various kinds of incentives to encourage suppliers to reduce emissions, including capacity building, leveraging procurement, enforcing performance and rewarding progress. Humanitarian organisations can establish their own unique combination of actions, based on the profile of their supply chain, while monitoring rapidly changing market patterns.

Buy only what is needed ‘sobriety’

Buying less, reducing overconsumption, and increasing the efficiency of supply chain processes, is often referred to as ‘sufficiency’. It boils down to a few simple questions: can we buy more efficiently, and therefore less, while securing the interests of affected populations? Can waste be avoided? Can we change our way of working to reduce the need for purchases? Can planning and logistics be improved to order only the quantities needed and reduce waste?

Going through these questions systematically will help organisations to reduce buying unnecessary quantities.

Using a sobriety lens, organisations should:

  • Rethink the organisational set-up, ways of working, programme design and standard operating procedures to reduce the need for certain services or items. For example, energy consumption can be reduced through insulation measures or by using LED lighting.
  • Promote sufficiency practices in operational policies, and technical protocols. For example, medical organisations who are partners of Climate Action Accelerator are tackling the issue of over-use of examination gloves in medical facilities.
  • Improve demand planning, stock management and forecasting. This is essential to avoid potential surplus items and waste. Some progress has been made, but there is still room for improvement in terms of anticipating programme needs, stock keeping, planning processes, limiting overstock situations leading to losses (expired products) or sleeping stocks. Review kit composition regularly and limit their use to appropriate situations.
  • Increase the lifespan of equipment: computers and medical equipment need to be maintained and repaired more. Equipment needs to be repairable, spare parts need to be available and repair capabilities need to be available on the ground (through a service provider or in-house). United Nations High Commissioner for Refugees (UNHCR) has set a target of 50% of solar lanterns repaired or recycled in 12 operations by 2025.76

  • The choice of air freight should be an exception (sudden-onset crises, special items and security reasons).
  • Planes are faster BUT customs procedures take an extremely long time. Sea transportation takes longer, but when customs procedures are carried out at departure, they are usually much quicker than if done in the destination country.
  • Processing and validation timelines for orders have lengthened in the humanitarian sector (up to 6 to 9 months). Optimising and shortening the lead time for orders will help compensate for longer transportation times of sea freight.

Shift from air freight to sea, road and rail freight

Emissions associated with freight represent 12% of sector-wide emissions according to Climate Action Accelerator initial estimate. Amongst the Accelerator’s partners, freight can range between 4% and 11% of organisations’ GHG emissions, and up to 30% (2019 baseline). It therefore represents an interesting lever for emissions reduction.

Viewed from a carbon footprint reduction perspective, air freight should be strictly limited to sudden-onset emergencies, security requirements, and specific, validated items. Better procurement planning and networks will allow organisations to substantially reduce air freight and switch to sea, road and rail freight. Longer funding contracts would allow organisations to incentivise greener suppliers by offering longer contracts.

 

Reduce freight and mileage

  • Limit air freight to mandatory products (cold chain, narcotics, products with a short shelf-life), specific contexts and sudden-onset emergencies (excluding emergencies from poor forecasting).
  • Increase direct deliveries from suppliers to hubs/missions.
  • When relevant, share shipments and containers going to the same destination with partners. Different approaches are being tested, from sending more regular containers (even if they are not full) to avoid shortages and urgent backorders all the way to optimising shipments and containers (cf. ECHO logistics, HULO77).

Switch to sea, road, and rail freight

  • Consider and improve the entire supply lead time to favour sea freight in planning and delivery.
  • Consider organising regular container shipments by sea (even if not full) to prevent last minute air shipments.
  • Improve order tracking and communication of supply lead times.
  • Reduce stockouts leading to urgent air shipments through better forecasting, demand, supply and transport planning, inventory management, and product segmentation.
  • Review back orders from field offices for confirmation or cancellation.
  • Develop logistics platforms and warehouses as close as possible to operating sites and optimise the entire supply chain.
  • Include environmental criteria in the selection process for transport service providers, authorise price increases based on greener options.
  • Prioritise direct flights without transiting.
  • Give preference to fuel-efficient aircraft.
  • Give preference to more efficient airlines.

Examples of initiatives in which humanitarian actors work together to reduce supply chain emissions:

  • Climate Action Accelerator’s community of procurement: Climate Action Accelerator brings together its partners’ procurement practitioners to share guidance and examples of good practice and to provide a platform for discussion and learning.
  • WREC project: created in 2021, the Waste Management Measuring, Reverse Logistics, Environmentally Sustainable Procurement and Transport, and Circular Economy (WREC) project aims to reduce the adverse environmental consequences of humanitarian logistics through awareness, practical guidance, and real-time environmental expertise. In December 2023 they issued a call to action: ‘A supply chain framework for the future: reducing the carbon footprint of humanitarian aid’.78
  • Joint Initiative for Sustainable Humanitarian Assistance Packaging Waste Management (or simply the ‘Joint Initiative’): whilst the JI has discontinued its focus on packaging waste, the resources developed remain available on their website.79
  • Sustainable Supply Chain Alliance (SSCA) is a project led by the International Committee of the Red Cross (ICRC). It aims to embed the three pillars of sustainability (environmental, social and economic) in the supply chain activities of the International Red Cross and Red Crescent Movement.80

Create new endnote 80:
https://blogs.icrc.org/logistics/wp-content/uploads/sites/117/2024/02/Sustainable_Supply_Chain_Community-July-2021.pdf

Pillar 1
Pillar 3

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