By Udbhav Rai
The big question is how do we meet sustainability goals? Well, we need to urgently reduce our carbon footprint by utilising resources in a way that benefits the Earth along with our future generations in the long run.
Need for carbon removal
Carbon footprint is the measure of the total greenhouse gas emissions, or, the amount of carbon dioxide (CO2) released into the atmosphere. Greenhouse gases keep our planet warm, protect us from the sun’s radiation and regulate the internal heat on the planet! But, its substantial increase also signifies a risk.
Carbon removal involves removing CO2 from the atmosphere and storing it in a way that stops it from being emitted back into the atmosphere. This approach can help mitigate climate change and its various effects.
Sources of carbon emissions: Transportation at the front
The top five global sources of emissions, as per the Centre for Climate and Energy Solutions, are: Electricity and heat (31%); Transportation (15%); Manufacturing (12%); Agriculture (11%); Forestry (6%).
The burning of fossil fuels (coal, natural gas, and oil) is considered to be the primary source, contributing to almost 90% of carbon emissions. The combustion of fossil fuels turns energy into heat and electricity, which power vehicles for daily transportation (with petrol or diesel), household appliances, and industrial machinery, leading to a heavy carbon footprint.
Supply chain: Among the biggest carbon footprint contributors
Almost one-fifth of the entire world’s carbon emissions come from the supply chains of giant multinational companies. Consider this: As per a 2020 report, in 2016, the world’s biggest retailer – the US Walmart – generated more emissions abroad than the whole of Germany’s foreign-owned retail sector. In the same year, global emissions by Coca-Cola matched those of the entire foreign food-and-drink industry in China. In total, the multinational giants accounted for a whopping 18.7% of global emissions.
Another study suggests that supply chain emissions are, on average, 5.5x greater than a company’s own, direct emissions. The global supply chains in eight key industries– food, construction, fashion, fast-moving consumer goods, electronics, automotive, professional services, and freight – account for more than 50% of the total global emissions. The downstream use of fossil fuels in transport, energy, and industry is the dominant driver of global CO2 emissions. Another huge contributor to supply chain emissions is packaging.
Supply chain impacts account for more than 80% of greenhouse gas emissions and more than 90% of the impact on air, land, water, biodiversity, and geological resources, according to a McKinsey report. And, because supply chains consume resources at a large scale, they are responsible for a disproportionately large share of the world’s carbon emissions. Notably, 1 gigaton (1 billion metric tonne) of emissions can potentially be saved if suppliers increase their renewable purchasing by 20%.
Combating supply chain problems to downside carbon footprint
The opportunities to reduce carbon emitted by supply chains are multi-fold – from more efficient transport and packaging, to carbon tariffs and labelling.
Making operations and infrastructure sustainable – powering office infrastructure with renewable energy, using recycled stationery, and replacing petrol and diesel vehicles with electric ones, among others – is a great way to reduce carbon footprint.
That said, there would be an even bigger impact by reducing carbon from supply chains. Companies need to consider all stages of their supply chain and employ creative approaches to sustainability. They can locally source materials and consider redesigning their products, services, and packaging to be more efficient.
Can EVs help reduce the carbon footprint?
Transportation accounts for almost 15% of the global greenhouse gas emissions. Within this, the major contributor is road transportation and shipping, with personal travel responsible for the remaining 5%.
With the dire need to reduce CO2 in transportation, the world came up with an answer – electric vehicles (EVs). But how can EVs contribute to a sustainable future?
Conventional vehicles use internal combustion engines (ICEs) that generally run on fossil fuels, such as gas or diesel. EVs use electric motors powered by rechargeable lithium-ion batteries, which are excellent at retaining energy and have greater longevity than other variants, like those used to power smartphones and laptops. Most lithium-ion batteries have a guaranteed life span of 8-10 years. Not only are EVs environmentally friendly, but also have low running costs.
EVs worldwide help reduce environmental pollution and avoid dependence on fossil fuels, such as gasoline and diesel. Other factors that contribute to improving the performance of EVs include battery, motor, and energy storage technologies, along with advanced control algorithms.
Multi-fold benefits of driving EVs
EVs produce zero emissions, and so, do not contribute to air pollution. Furthermore, as compared with gasoline engines, electric motors in EVs have fewer moving parts, thus requiring less maintenance. Powered with electricity, a clean energy source, they do not produce harmful greenhouse gasses that gasoline-powered vehicles do.
Today, EVs are twice as efficient as conventional cars. On average, an EV produces half of a conventional vehicle’s carbon emissions over its lifetime, completely outperforming from a sustainability standpoint.
What’s more, EV manufacturers use eco-friendly materials to build lighter, more efficient vehicles. These all-natural or recycled materials minimise the environmental impact both, during and after the EV production process.
Coming to the economy, when you drive an ICE vehicle, most of the money spent on fuel is utilised by the country it is imported from. On the other hand, if you own an EV, the electricity used to charge your EV battery is generated in India itself, with around 50% now being renewable. Charging stations can run on renewable energy to reduce emissions and electricity dependency on fossil fuels.
EVs are the backbone of India’s economic growth. India is now the largest manufacturer of electric two-wheeler start-ups. What’s more, the Government of India has also announced incentives for EVs to promote sustainable energy production and usage.
At FleetX, our mission is to build a data platform to help the fleet make smart decisions in a cost-effective and secure way. And, this is only a baby step towards a sustainable future!
The author is Udbhav Rai, Co-founder, FleetX
Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproducing this content without permission is prohibited.
