Extreme weather events in the U.S. in 2024, such as destructive hurricanes Helene and Milton, cost a whopping $182.7 billion in damages, according to the National Oceanic and Atmospheric Administration’s (NOAA) National Centers for Environmental Information.
The increase and intensity of some of these extreme events could be due to human-caused climate change, NOAA said, pointing to a national climate assessment that the U.S. government produced in November 2023.
Given that extreme weather events and rising sea levels are only likely to continue, governments around the world are taking steps to combat climate change by mandating industries to lower greenhouse gas emissions and setting targets for what those emissions levels should be.
These requirements touch upon the supply chain as well — for instance, the European maritime sector must now participate in the European Union’s emissions trading system, which calls upon the sector to slash GHG emissions by 55% by 2030 and become climate neutral by 2050.
Companies should expect and anticipate the need to lower their supply chain emissions, not only to comply with government mandates but also because it’s good for the environment. As businesses enter 2025, they should brace for — and meet head-on — the climate change-related challenges in their supply chains, including stricter regulations and the growing need to address Scope 3 emissions, which are the emissions that occur within the supply chain. But companies should also embrace the opportunities that lie ahead, including utilizing private-sector innovations to reduce GHG emissions.
Supply Chain Emissions: Three Trends to Watch in 2025
Even though we’re well into January, it’s never too late to turn a new leaf in 2025 and adopt practices that align with regulators’ decarbonization efforts and stakeholders’ calls to adopt sustainability initiatives. Here are some of the trends Greenabl expects will continue to gain traction in 2025.
Shippers Face an Increasingly Uncertain Regulatory Landscape
Companies are facing an increasingly complex web of domestic and global regulations governing GHG emissions reductions. The number of regulations is growing, and each set of regulations requires a thorough and knowledgeable response. Not only are there emerging standards for Scope 3 emissions reporting, but there are also carbon tax frameworks and circular economy mandates that companies must be aware of as they are forming sustainability initiatives to help them meet regulatory compliance.
The pressure to meet these regulations has created and will continue to impact supply chains. These mandates will shape corporate sustainability strategies while also encouraging realistic planning for emissions reductions. To stay on top of all this complexity, it’s important for companies to align business operations with evolving requirements. Companies should also consider being early adopters of the technological solutions aimed at helping companies reduce their supply chain emissions.
The Private Sector Continues to Create Innovative Supply Chain Emissions Reduction Solutions
As regulatory bodies around the world implement GHG emissions reduction schemes, the private sector has been steadily developing solutions to help businesses meet those emissions reduction targets. Private-sector investments in green technology, sustainable materials, and renewable energy initiatives reflect corporations’ understanding of their roles in spearheading a robust response toward decarbonization, especially as government efforts can only go so far.
Furthermore, private-sector investments in technological innovations spur competition by offering multiple viable solutions in the marketplace. This ultimately creates value for stakeholders because they can pursue emissions mitigation strategies that may be tailor-suited for their unique operational needs. As companies prepare to meet decarbonization mandates, they should also be willing to adopt some of these new technological innovations, as well as form partnerships that enable them to reduce supply chain emissions and achieve sustainability targets.
Effective Scope 3 Emissions Mitigation Remains a Significant Challenge
Scope 3 emissions can be challenging to address because there is a lack of data visibility and control over the indirect emissions that occur in upstream and downstream supply chain facilities. Compounding that challenge is the growing demand from stakeholders for transparency in emissions reporting. Not only do regulators want to know where the Scope 3 emissions are occurring and what steps are being taken to mitigate them, but others, such as investors and customers, also want confirmation that a company is doing what it can to reduce GHG emissions.
To tackle this problem, companies should consider employing digital tools that track and report emissions. These tools provide businesses with more visibility into the volume of Scope 3 emissions occurring within the supply chain. Companies should also consider building stronger partnerships with suppliers to mitigate emissions collectively. Both these steps can make Scope 3 emissions reductions more feasible.
Greenabl: Your Ally for Effective Supply Chain Decarbonization in 2025
Staying informed on ever-shifting GHG reduction mandates, deploying new mitigation technologies, and engaging with others to develop mutual best practices — all these goals point to the need for collaboration with industry partners where companies can work together to achieve maximum results.
Our mission at Greenabl is to do just that. We’re here to help businesses successfully achieve supply chain emission reductions by working with them to deploy technologies and strategies that best suit their companies’ operations and needs, as well as providing a platform where companies can share their best practices in carrying out their sustainability initiatives.
A New Year Means a Renewed Focus on Sustainability
Sustainability and decarbonization are reshaping global supply chains, presenting challenges and opportunities in 2025. An evolving regulatory landscape demands proactive adaptation to standards like Scope 3 reporting and carbon tax frameworks. However, the private sector continues to drive innovation through investments in green technologies and renewable energy.
Tackling Scope 3 emissions requires digital tools and strong supplier partnerships to ensure transparency and reductions. Greenabl empowers businesses with actionable insights, emissions tracking, and collaborative strategies to stay ahead. We offer a best-in-class, standards-supported framework to measure GHG emissions, as well as access to real-time data analytics to help guide companies toward pursuing smart mitigation strategies.
Contact us today to learn how we can help you.
