Forming Industry Alliances to Tackle Emissions

Across the consumer goods sector, scope 3 emissions are estimated to account for around 90% of total emissions. Recognizing that scope 3 presents the greatest challenge, but also the biggest opportunity for collaboration, McCormick entered an alliance with other industry leaders to mobilize collective climate action across a shared supply base through the S-LoCT program.

“The thought process was 'How do we accelerate on this journey?'” explained Adrienne Gifford, Director, Sustainable Sourcing.

The McCormick team recognized that suppliers must make investments to develop and implement a decarbonization strategy. “Not all suppliers, especially small and medium-sized enterprises (SMEs), have that at hand.” said Adrienne. McCormick is therefore assessing options to support our suppliers, including enabling training and guidance towards climate change mitigation.

When the program began in 2021, two training courses were available to suppliers, carbon foot printing and target setting. The first cohort consisted of around 75 suppliers to the three founding members, PepsiCo, Mars and McCormick. Since then, the consortium has grown to over 20 partner companies, with hundreds of suppliers receiving training and support.

The curriculum expanded based on feedback as well as the brand sponsor companies, including McCormick, talking collectively about their climate journeys. “Over the first two years of the program we have continuously improved and expanded upon the curriculum.” Adrienne explained.

The courses now included are: 1) Scope 1 & 2 foot printing, 2) Scope 3 foot printing, 3) SBTi target setting, 4) Abatement, 5) Disclosure. In the most recent cohort, a course is also offered on renewable energy as it is a critical enabler for our suppliers to lower scope 1 & 2 emissions at their facilities.

Two cohorts are run each year, and courses are offered in multiple languages. The suppliers have ongoing support from Guidehouse, the implementation partner, and complete assignments in developing their footprint, validating targets and developing abatement strategies. One of our suppliers recently shared with Adrienne that because of the program they were enroute to SBTi validation and had begun implementing climate-smart agricultural practices which were in line with our Grown for Good framework.