WASHINGTON — Post Holdings, Inc. and McDonald’s Corp. have joined the Supplier Leadership on Climate Transition (Supplier LOCT), a collaborative program that was founded in 2021 to increase science-based greenhouse gas (GHG) reduction targets across supply chains and to advance supplier action by 2025. The program is organized by Guidehouse, a consulting firm for commercial and public sector companies.
According to Guidehouse, Supplier LOCT helps suppliers better understand the foundation of greenhouse gas (GHG) reductions in their businesses, which include core knowledge for calculating GHG footprints and setting their own science-based targets. The program also gives suppliers the knowledge and resources necessary to create their own climate plans and to collect more accurate scope 3 GHG data from suppliers to better address related issues.
Partners in Supplier LOCT sponsor their suppliers’ participation in six season-specific instructional seminars on creating a GHG footprint, Guidehouse noted. These seminars include setting a science-based target, adopting GHG abatement measures, and disclosing progress and renewable energy options. Guidehouse also provides subject matter experts that offer supplier participants with direct mentoring and actionable steps on how to build internal capacity.
“The Supplier LOCT program gives our organization the ability to provide meaningful support to our strategic suppliers and significantly accelerate their climate journey,” said Nick Martin, senior director of ESG at Post Holdings. “Leveraging the collective experience of partner companies, we can provide effective tools, guidance, and technical support to suppliers tailored to the current stage of their journey.”
Bob Stewart, senior vice president and North America chief supply chain officer at McDonald’s, said the restaurant chain was proud to be supporting its suppliers in climate action efforts.
“We have the privilege and responsibility to drive progress on issues that matter in the communities we serve, and protecting our planet for generations to come is the most globally urgent and locally impactful issue we could address,” Mr. Stewart said. “Partnership through our supply chains and across the industry is essential so that we may all effectively do our parts to limit global warming to 1.5°C.”
To avoid causing climate change-related catastrophes, the Intergovernmental Panel on Climate Change warned that global warming must not surpass 1.5°C back in 2018. Therefore, GHG emissions must be cut in half by 2030 and drop to net-zero by 2050. The Science Based Targets Initiative (SBTI) has said organizations with these targets are already cutting emissions at scale.
Moreover, one of the first major climate milestones that a company can achieve is either formally setting or committing to an approved science-based target, Guidhouse said. A recent survey from the program showed that 87% of 119 commitments set by Supplier LOCT participants were submitted for approval after participating in the program.
Other Supplier LOCT partners include Ocean Spray Cranberries, Inc., DS Smith PLC, MHI, Atlantic Packaging, The Coca-Cola Co., General Mills, Inc., Keurig Dr Pepper Inc., Mars, Inc., McCormick & Co., Mondelez International, Nestle SA, PepsiCo, Inc., Restaurant Brands International and Yum! Brands.