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Value Chain Approaches
to a Low-Carbon Economy:
Business and Policy Partnerships
This paper is prepared in support of a workshop at the World Business Summit on
Climate Change (Summit) on leveraging value chains to reduce climate impacts and
build a low-carbon economy.
It is widely acknowledged that making significant progress on mitigating the impact of
climate change depends on reducing the impacts of supply chains. A recent McKinsey
study shows that 40 to 60 percent of companies’ total carbon footprints reside upstream
1
in their supply chains, suggesting the scale of the opportunity. Fundamental changes in
consumer behavior, supply chain structure and management, and business models are
2
needed for long-term success. The scope of this challenge is reinforced by a current
knowledge gap: most suppliers do not track or report carbon emissions data; buyers do
3
not control suppliers’ emissions or have access to accompanying data, and there is
disagreement on how to measure and apportion responsibility for supply chain
emissions.
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