McDonald’s Corporation and Post Holdings, Inc. are the latest joiners on the Supplier Leadership on Climate Transition (Supplier LOCT), a 2021 program to accelerate progress toward science-based greenhouse gas reduction targets across supply chains.
Designed by consulting firm Guidehouse, the program is targeted at supporting the suppliers of partner companies in their climate goals and efforts. Crucially, it aims to train suppliers on how to set and reach these targets.
“Accelerating climate action requires stronger collaboration,” said Guidehouse partner and sustainability lead Jan Vrins. “Supplier LOCT is a one-of-a-kind program that offers the world’s leading brands a chance to come together in partnership and drive rapid supply chain decarbonization as we transition to a clean and more sustainable ecosystem. We are all in this together, and must take collective action to protect our planet for future generations.”
McDonald’s senior vice president and North American chief supply chain officer, Bob Stewart expressed the company’s pride in supporting their suppliers in their climate action efforts.
“We have the privilege and responsibility to drive progress on issues that matter in the communities we serve, and protecting our planet for generations to come is the most globally urgent and locally impactful issue we could address,” he said.
Nick Martin, senior director of ESG at Post Holdings commended the program for giving the organization “the ability to provide meaningful support” to suppliers and “significantly accelerate their climate journey”.
“Leveraging the collective experience of partner companies, we can provide effective tools, guidance, and technical support to suppliers tailored to the current stage of their journey,” he said.
Supporting suppliers in their climate goals
Supplier LOCT partners sponsor their suppliers’ participation in a seasonal series of six instructional seminars on producing a greenhouse gas footprint. This includes guidance on how to set a science-based target, take on greenhouse gas abatement measures, and disclose progress and renewable energy options.
Subject matter experts from Guidehouse will further offer direct mentoring and actionable steps on building internal capacity.
Committing to an approved science-based target is one of the first major climate milestones — one that often succeeds in placing companies on the climate progress map. 87% of 119 commitments set by Supplier LOCT participants were submitted for approval after participating in the program.
This follows news from the Intergovernmental Panel on Climate Change, warning that global warming cannot exceed 1.5 degrees Celsius. Greenhouse gas emissions must be halved by 2030 and drop to net zero by 2050 to ensure this.
“Partnership through our supply chains and across the industry is essential so that we may all effectively do our parts to limit global warming to 1.5 C,” said Stewart.
Other partners on the Supplier LOCT program include The Coca-Cola Company, Ocean Spray, Mars, Mondelēz International, Nestlé and more.
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