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Carbon Benchmarking: The Key to Finding the Right Supplier for CPG Companies

Carbon Benchmarking: The Key to Finding the Right Supplier for CPG Companies

Consumers are becoming increasingly aware of and concerned about the environmental impact that companies have on our planet. With climate change and sustainability becoming more top of mind, individuals are actively seeking ways to reduce their own environmental footprint and are holding companies accountable for their contribution to the issue at hand.   

A Quick Look at Consumer Preferences 

In today’s world, consumers are no longer just passive buyers. They are actively researching and making purchasing decisions based on a company’s environmental practices. Carbon emissions, in particular, have become a key factor in this decision-making process. As a result, companies are now under pressure more than ever to do something about the carbon emissions they’re responsible for.   

 Some findings from Deloitte's Sustainable Consumer 2023 study include:   

  • One in ten consumers will make a purchase decision based on carbon footprint data availability.  
  • Consumer interest in sustainable and ethical values is highest for the more frequently purchased and essential categories.   
  • One in three consumers stopped purchasing certain brands or products because of ethical or sustainability-related concerns. This was a higher percentage compared with last year.  

However, new research from Bain & Company reveals that more than 60% of businesses are failing to meet their current sustainability goals. Additionally, 24% of companies are not making progress towards their Scope 1 and 2 decarbonization targets, while 35% are lagging behind in their pursuit of their Scope 3 goals. This alarming data highlights the urgent need for companies to take responsibility for their environmental impact and implement effective initiatives to reduce their carbon footprint.  

Progress Will Require Adoption of Technology Advancements 

With consumers increasingly taking an active role in supporting environmentally conscious companies, there is a growing trend among consumer packaged goods (CPG) companies inquiring about the carbon emissions of not just themselves, but their suppliers as well. 

When faced with the challenge of addressing carbon emissions, consumer packaged goods (CPG) companies are presented with several options.

  1. They could request their current supplier's carbon emissions report, but that would limit their ability to explore other suppliers and opportunities.
  2. They could conduct their own research on suppliers, but this would consume valuable time and resources that could be better utilized elsewhere.
  3. Or they could leverage an independent platform that allows them to analyze the carbon emissions of packaging suppliers worldwide.

By investing in a business intelligence platform, CPG companies can effectively assess the carbon emissions of a wide range of packaging suppliers. This intelligent approach ensures that these companies are fully committed to their carbon reduction goals by enabling them to evaluate suppliers based on their carbon efficiency. In doing so, they can confidently meet the expectations of environmentally-conscious consumers and maintain their reputation as leaders in sustainability.

Reliable and accurate carbon benchmarking data enables CPG companies to proactively anticipate and respond to emerging regulations and sustainability trends. By adapting their strategies and implementing necessary adjustments, these companies can effectively maintain their competitiveness in the market and ensure compliance with evolving requirements.

It is crucial to tackle sustainability concerns in this expanding sector, as an increase in production directly correlates to a higher demand for energy. This starts by ensuring you're making well-informed decisions when it comes to sourcing sustainable materials and using packaging produced by low-carbon-emitting companies. 

Accessing Powerful Data to Make the Right Decisions  

ResourceWise is your source for obtaining the essential data needed to select the right supplier for your business. With our comprehensive data platform, FisherSolve, which includes information on every pulp and paper mill worldwide, you can effortlessly analyze the carbon emissions of packaging providers on a global scale or within your local area.  

Our comprehensive platform includes the groundbreaking Carbon Benchmarking Module, which offers a unique and in-depth analysis of emissions from every mill and company. With FisherSolve, you have the power to not only compare mills and companies but also explore the intricate breakdown of emissions from each operation. 

What sets us apart from other benchmarking platforms is our ability to provide insights into Scope 1, Scope 2, AND Scope 3 emissions, giving you a comprehensive understanding of the full environmental impact of your chosen supplier. It's no wonder that some of the world's largest buyers rely on our platform to make informed decisions. 

FisherSolve Carbon Benchmarking Module 

FisherSolve's carbon benchmarking module.

The image below serves as another example of how CPG companies can efficiently evaluate the carbon emissions and production costs of different suppliers all at once. By utilizing this snapshot, they can make an informed decision by selecting the supplier with the lowest CO2 emissions and the highest cost-efficiency.

FisherSolve Carbon and Cost of Production Benchmark

FisherSolve's benchmark capabilities.

Being part of the Sustainable Packaging Coalition has given us valuable insight into the growing demand and urgency for CPG companies to enhance their carbon footprint throughout the entire supply chain. While selecting the appropriate packaging source is an important initial step, it is just the beginning of the journey toward sustainability. 

Embracing sustainability and implementing eco-friendly practices is crucial for both the environment and the success and reputation of businesses. By utilizing carbon benchmarking and other business intelligence modules, companies can make informed decisions that meet consumer expectations, stay competitive, and contribute to a greener future.  

Interested in learning more? Explore our solutions. 

Learn more about FisherSolve Solutions