This decade will see the rise of carbon-neutral supply chains which will impact businesses everywhere – even those far removed from serving tech firms in Silicon Valley. As more Fortune 500 join this trend carbon-neutral requirements will be pushed deep down the supply chain to the point that companies many layers deep in the supply chain will need to be carbon-neutral.
We’ll see the rise of auditing & certification for carbon-neutral suppliers. It won’t be much different than ISO quality standards for manufacturers with one HUGE exception. ISO standards only impacted the manufacturing and operations part of a business – the ISO registered plant only cared about ISO for raw material/part suppliers. The break room supplier, the janitorial supplier, the payroll processor, the holiday party caterer, the IT providers, their accounting firm, etc. etc. weren’t impacted. As organizations seek to become carbon-neutral they will require their suppliers to be certified as carbon-neutral, which will be a challenge for many established businesses and create opportunity for disruption.
Lastly, Federal Govt suppliers, don’t be surprised to see set-asides/preferences for carbon-neutral suppliers emerge by the middle of the decade.