ESG Impact, Risk & opportunities public analysis

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Company ID

Trafic
Rue de Capilône 6, 6220 Heppignies, Belgique
https://trafic.com
Trafic is a retail company with over 80 stores. They offer a variety of products and services, including home delivery and free pickup in stores. They also have a customer service department to answer questions and resolve issues. Trafic offers a loyalty program called Club Malin, and they have a presence on social media platforms such as Facebook, Instagram, and LinkedIn. They also provide access for suppliers and have a section on their website for job postings. Trafic is committed to sustainability and offers solar charging stations. They also have a section on their website dedicated to product recalls and a way for customers to report issues.
Services 9
Retail sales
Home delivery
Free pickup in stores
Customer service
Loyalty program (Club Malin)
Photo printing
Supplier access
Product recalls
Solar charging stations
Partners 0
Team 0
Socials
Public sources 110
Edit sources - Pro
Url	Search topic	Reliability Score
https://trafic.com/fr_BE/	Source website	1
https://trafic.com/fr_BE/signalement		1.0
https://trafic.com/fr_BE/rappel-produit		1.0
https://trafic.com/nl_BE/contact-et-formulaire		1.0
https://trafic.com/fr_BE/contact-et-formulaire		1.0
https://trafic.com/nl_BE/avenir-durable/bornes-recharge-solaires?utm_content=ContentBlock5		1.0
https://trafic.com/nl_BE/qui-sommes-nous?utm_content=ContentBlock1		1.0
https://trafic.com/nl_BE/rappel-produit		1.0
https://trafic.com/nl_BE/winkels?_escaped_fragment_=%3Futm_content%3DContentBlock2		1.0
https://trafic.com/nl_BE/folders?utm_content=ContentBlock6		1.0
https://trafic.com/nl_BE/		1.0
https://trafic.com/nl_BE/modes-livraison		1.0
https://trafic.com/nl_BE/jobs		1.0
https://trafic.com/nl_BE/conditions-generales		1.0
https://trafic.com/nl_BE/club-malin		1.0
https://trafic.com/nl_BE/acces-fournisseur		1.0
https://www.persefoni.com/blog/upstream-vs-downstream		0.7
https://trafic.com/nl_BE/customer/account/login/referer/aHR0cHM6Ly90cmFmaWMuY29tL25sX0JFL2N1c3RvbWVyL2FjY291bnQvbG9nb3V0Lw~~/		1.0
https://trafic.com/nl_BE/customer/account/login/referer/aHR0cHM6Ly90cmFmaWMuY29tL25sX0JFL2N1c3RvbWVyL2FjY291bnQvaW5kZXgv/		1.0
https://trafic.com/nl_BE/customer/account/login/referer/aHR0cHM6Ly90cmFmaWMuY29tL25sX0JFL3NhbGVzL29yZGVyL2hpc3Rvcnkv/		1.0
https://www.sciencedirect.com/science/article/pii/S109095162100033X		0.7
https://www.mightybytes.com/blog/scope-3-emissions-in-your-digital-supply-chain/		0.7
https://nmfta.org/trucking-and-supply-chain-conferences/		0.7
https://www.ascm.org/learning-development/certifications-credentials/cscp/		0.7
https://www.cassinfo.com/freight-audit-payment/cass-transportation-indexes/cass-freight-index		0.7
https://www.4flow.com/supply-chain-managed-services/4pl-services		0.7
https://www.cevalogistics.com/en		0.7
https://www.hklaw.com/en/insights/publications/2024/11/key-legal-considerations-after-supply-chain-disruptions		0.7
https://ctl.mit.edu/		0.7
https://fulfillmentiq.com/the-ultimate-guide-to-logistics-supply-chain-acronyms-your-a-z-reference-library/		0.7
https://www.mckinsey.com/capabilities/operations/our-insights/risk-resilience-and-rebalancing-in-global-value-chains		0.7
https://www.sciencedirect.com/science/article/pii/S0966692323000443		0.7
https://www.amazon.jobs/content/job-categories/supply-chain-transportation-management		0.7
https://www.netsuite.com/portal/resource/articles/inventory-management/inbound-outbound-logistics.shtml		0.7
https://www.fedex.com/en-us/about/company-structure.html		0.7
https://transportation.du.edu/		0.7
https://careertech.org/career-clusters/supply-chain-transportation/		0.7
https://www.inboundlogistics.com/articles/what-is-inbound-logistics/		0.7
https://www.chegg.com/homework-help/questions-and-answers/lynn-manager-transportation-company-goes-product-delivery-schedule-assigns-territories-exe-q129900512		0.7
https://online.hbs.edu/blog/post/what-is-value-chain-analysis		0.7
https://www2.deloitte.com/us/en/insights/focus/transportation/future-of-transport-industry.html		0.7
https://www.ruan.com/		0.7
https://www.ncat.edu/cobe/transportation-institute/		0.7
https://mitsloan.mit.edu/ideas-made-to-matter/5-supply-chain-technologies-deliver-competitive-advantage		0.7
https://plana.earth/academy/what-are-scope-1-2-3-emissions		0.7
https://www.nationalacademies.org/trb/transportation-research-board		0.7
https://www.usfca.edu/management-programs/articles/introduction-to-sustainable-supply-chains/		0.7
https://www.prologis.com/blog/role-transportation-supply-chain-management		0.7
https://hagertyconsulting.com/supply-chain-resilience-transportation-considerations/		0.7
https://www.hubgroup.com/		0.7
https://tti.tamu.edu/supplychain/		0.7
https://www.oracle.com/scm/logistics/transportation-management/		0.7
https://www.unt.edu/academics/programs/logistics-and-supply-chain-management-degree.html		0.7
https://www.ilscompany.com/7-successful-strategies-to-improve-your-supply-chain/		0.7
https://www.coca-colahellenic.com/en/about-us/what-we-do/supply-chain		0.7
https://www.alamo.edu/pac/academics/search-programs/professional-and-technical/logistics/		0.7
https://normative.io/insight/upstream-downstream-emissions/		0.7
https://www.sanctions.io/blog/how-to-perform-a-sanctions-check-a-comprehensive-guide		0.6
https://learn.microsoft.com/en-us/dynamics365/supply-chain/transportation/transportation-management-overview		0.7
https://catalog.ncsu.edu/undergraduate/management/business/business-administration-bs-operations-supply-chain-management/		0.7
https://www.lexisnexis.com/en-au/products/regulatory-compliance		0.7
https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/how-generative-ai-can-help-banks-manage-risk-and-compliance		0.7
https://guidehouse.com/services/compliance		0.7
https://www.360factors.com/blog/managing-risk-both-known-and-unknown/		0.6
https://www.thomsonreuters.com/en-us/posts/investigation-fraud-and-risk/esg-regulations-compliance/		0.8
https://legal.thomsonreuters.com/en/risk-fraud-investigations/risk-compliance-management		0.8
https://www.spglobal.com/market-intelligence/en/solutions/risk-regulatory-compliance		0.7
https://www.protiviti.com/us-en/regulatory-compliance		0.7
https://hyperproof.io/resource/cybersecurity-risk-management-process/		0.6
https://kpmg.com/us/en/articles/2024/managing-risk-regulatory-changes.html		0.7
https://www.kiteworks.com/regulatory-compliance/email-compliance/		0.6
https://www.purdue.edu/newsroom/2023/Q1/talking-concrete-could-help-prevent-traffic-jams-and-cut-carbon-emissions		0.7
https://www.jupiterintel.com/		0.6
https://www.sciencedirect.com/science/article/abs/pii/S0360544224027427		0.7
https://www.erm.com/about/news/erm-to-acquire-climate-risk-and-energy-transition-consultancy-energetics/		0.6
https://www.unilever.com/sustainability/climate/		0.6
https://www.moodys.com/		0.6
https://www.dovercorporation.com/sustainability/environmental/climate-change-risks-and-opportunities		0.6
https://www.elcompanies.com/en/our-impact/sustainability/climate-and-environment		0.6
https://usa.streetsblog.org/2017/07/06/urban-myth-busting-congestion-idling-and-carbon-emissions		0.6
https://sasb.ifrs.org/standards/materiality-finder/		0.8
https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2023.1177927/full		0.7
https://www.whitecase.com/insight-alert/sec-adopts-climate-change-disclosure-rules-court-imposes-temporary-stay		0.8
https://www.bbc.com/future/article/20200305-why-your-internet-habits-are-not-as-clean-as-you-think		0.9
https://pmc.ncbi.nlm.nih.gov/articles/PMC4953604/		0.8
https://sustainability.lilly.com/environmental/climate		0.6
https://www.cdp.net/en		0.8
https://cdp.net/en/insights/cdp-2023-disclosure-data-factsheet		0.8
https://about.chubb.com/citizenship/environment.html		0.6
https://plana.earth/academy/what-are-scope-1-2-3-emissions		0.7
https://sustainability.equinix.com/governance/climate-risk-management/		0.6
https://ccpi.org/		0.8
https://www.mckinsey.com/capabilities/sustainability/our-insights/climate-risk-and-decarbonization-what-every-mining-ceo-needs-to-know		0.7
https://www.icf.com/insights/climate/energy-companies-manage-climate-risk		0.6
https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/our-planet/climate-action.html		0.6
https://sustainability.att.com/priority-topics/efficiency-emissions		0.6
https://datacenters.google/operating-sustainably		0.6
https://nca2023.globalchange.gov/		0.9
https://www.conocophillips.com/sustainability/sustainability-news/story/conocophillips-adopts-paris-aligned-climate-risk-framework-to-meet-net-zero-operational-emissions-ambition-by-2050/		0.6
https://e360.yale.edu/features/artificial-intelligence-climate-energy-emissions		0.9
https://www.weforum.org/stories/2024/02/ai-combat-climate-change/		0.7
https://normative.io/insight/esrs-e1/		0.7
https://corporate.walmart.com/purpose/esgreport/environmental/climate-change		0.6
https://www.subaru.co.jp/en/csr/environment/climaticvariation.html		0.6
https://city.milwaukee.gov/eco/Climate-Action/Climate-Change-in-Milwaukee		0.8
https://www.berryglobal.com/en/sustainability/sustainability-strategy/key-issues/climate-change		0.6
https://www.gov.ca.gov/2022/11/16/california-releases-worlds-first-plan-to-achieve-net-zero-carbon-pollution/		0.9
https://esg.tsmc.com/en/resources/ClimateChangeManagementFramework.html		0.6
https://www.msci.com/our-solutions/esg-investing/esg-ratings-climate-search-tool		0.7
https://www.trafficplan.com/life-at-traffic-plan/diversity-inclusion/		1.0
https://www2.deloitte.com/us/en/pages/regulatory/solutions/regulatory-compliance-services.html		0.7
Private sources
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Raw data
{
    "company_id_card": {
        "contact_emails": [],
        "description": "Trafic is a retail company with over 80 stores. They offer a variety of products and services, including home delivery and free pickup in stores. They also have a customer service department to answer questions and resolve issues. Trafic offers a loyalty program called Club Malin, and they have a presence on social media platforms such as Facebook, Instagram, and LinkedIn. They also provide access for suppliers and have a section on their website for job postings. Trafic is committed to sustainability and offers solar charging stations. They also have a section on their website dedicated to product recalls and a way for customers to report issues.",
        "linkedin": "https://www.linkedin.com/company/trafic/",
        "location": "Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique",
        "logo_url": "https://trafic.com/static/frontend/TraficFun/trafic/fr_BE/Magento_Enterprise/favicon.ico",
        "name": "Trafic",
        "partners": [],
        "services": [
            "Retail sales",
            "Home delivery",
            "Free pickup in stores",
            "Customer service",
            "Loyalty program (Club Malin)",
            "Photo printing",
            "Supplier access",
            "Product recalls",
            "Solar charging stations"
        ],
        "team": [],
        "twitter": null,
        "website": "https://trafic.com/fr_BE/"
    },
    "iros": [],
    "iros_per_materiality": {
        "negative_impacts": [],
        "opportunities": [],
        "positive_impacts": [],
        "risks": []
    },
    "iros_per_matters": {},
    "materiality_matters": [
        "Climate Change",
        "Pollution",
        "Water and marine resources",
        "Biodiversity and ecosystems",
        "Circular Economy",
        "Own workforce",
        "Workers in the value chain",
        "Affected communities",
        "Consumers and end-users",
        "Business conduct"
    ],
    "public_sources": [
        {
            "content": {
                "metadata": {
                    "ext_id": "e4567e9e-60b0-4afa-9ff4-e4ebfa884c6d",
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                    "resource_location": "web",
                    "resource_type": "webpage",
                    "source": "https://trafic.com/fr_BE/signalement"
                },
                "page_content": "The store will not work correctly when cookies are disabled.\n\n**Javascript est d\u00e9sactiv\u00e9 dans votre navigateur.** Pour une meilleure\nexp\u00e9rience sur notre site, assurez-vous d\u2019activer JavaScript dans votre\nnavigateur.\n\n_NOTRE[ **SERVICE CLIENT** ](https://support-clients.trafic.com) _\n\n_**[ NOTRE FOLDER ](https://trafic.com/fr_BE/folders?utm_content=Avantage2) **\nDE LA SEMAINE _\n\n_**[ LIVRAISON \u00c0 DOMICILE ](https://support-\nclients.trafic.com/hc/fr/articles/7316116790685-Quels-sont-les-frais-de-\nlivraison-?utm_content=Avantage3) ** _ OU EN MAGASIN\n\n_**[ RETRAIT GRATUIT ](https://support-\nclients.trafic.com/hc/fr/articles/7316116790685-Quels-sont-les-frais-de-\nlivraison-?utm_content=Avantage4) ** DANS **[ PLUS DE 80 MAGASINS\n](https://trafic.com/fr_BE/magasins?utm_content=Avantage5) ** _\n\n\ud83d\udea8 En raison de la gr\u00e8ve chez notre partenaire de livraison bpost, la livraison\nde vos colis \u00e0 domicile pourrait prendre du retard.\n\nMenu\n\n  * [ Accueil ](https://trafic.com/fr_BE/ \"Aller \u00e0 la page d\u2019accueil\")\n  * **Signalement**\n\nAnnuler  Continuer vos achats\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNEWSLETTER\n\nInscrivez-vous pour recevoir nos infos\n\nVous pouvez vous d\u00e9sinscrire \u00e0 tout moment en vous rendant sur votre compte.\nVoyez notre politique de respect de la vie priv\u00e9e pour plus d'informations.\n\n[ ](https://trafic.com/fr_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Suivez nous sur Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Suivez nous sur Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Suivez nous sur Linkedin\")\n\nAcc\u00e8s rapide\n\n  * [ Nos magasins ](https://trafic.com/fr_BE/magasins/ \"Nos magasins\")\n  * [ Folders ](https://www.trafic.com/fr_BE/folders \"Folders\")\n  * [ Club Malin ](https://trafic.com/fr_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/fr_BE/jobs \"Jobs\")\n  * [ Impression photos ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Impression Photos\")\n  * [ Acc\u00e8s fournisseur ](https://trafic.com/fr_BE/acces-fournisseur \"Acc\u00e8s fournisseur\")\n\nTrafic\n\n  * [ Qui sommes-nous ? ](https://trafic.com/fr_BE/qui-sommes-nous \"Qui sommes-nous ?\")\n  * [ TakeCare ](https://trafic.com/fr_BE/takecare \"TakeCare\")\n  * [ Recupel ](https://trafic.com/fr_BE/recupel)\n  * [ Conditions g\u00e9n\u00e9rales ](https://trafic.com/fr_BE/conditions-generales \"CGV\")\n  * [ Vie priv\u00e9e et cookies ](https://trafic.com/fr_BE/vieprivee \"Vie priv\u00e9e\")\n  * [ Modes de livraison ](https://trafic.com/fr_BE/modes-livraison \"Modes de livraison\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/fr \"Garantie\")\n  * [ Presse ](https://trafic.com/fr_BE/articles-presse \"Presse\")\n\nService clients\n\n  * [ Contact ](https://trafic.com/fr_BE/contact-et-formulaire \"FAQ et contact\")\n  * [ Service apr\u00e8s-vente et FAQ ](https://support-clients.trafic.com \"Service apr\u00e8s-vente\")\n  * [ Service photo ](https://photoservice.fujicolor.eu/20645485/help/contact \"Service photo\")\n  * [ Cartes cadeaux ](https://trafic.com/fr_BE/carte-cadeau \"Cartes cadeaux\")\n  * [ Rappel Produit ](https://trafic.com/fr_BE/rappel-produit \"Rappel produit\")\n  * [ Signalement ](https://trafic.com/fr_BE/signalement \"Signalement\")\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nPayez vite et en toute s\u00e9curit\u00e9 avec  avec Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/fr_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
                "url": "https://trafic.com/fr_BE/signalement"
            },
            "reason": "INTERNAL_LINK",
            "reliability_score": 1.0,
            "search_query": "overview",
            "summary": "",
            "url": "https://trafic.com/fr_BE/signalement"
        },
        {
            "content": {
                "metadata": {
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                    "origin": "public",
                    "resource_location": "web",
                    "resource_type": "webpage",
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**Javascript est d\u00e9sactiv\u00e9 dans votre navigateur.** Pour une meilleure\nexp\u00e9rience sur notre site, assurez-vous d\u2019activer JavaScript dans votre\nnavigateur.\n\n_NOTRE[ **SERVICE CLIENT** ](https://support-clients.trafic.com) _\n\n_**[ NOTRE FOLDER ](https://trafic.com/fr_BE/folders?utm_content=Avantage2) **\nDE LA SEMAINE _\n\n_**[ LIVRAISON \u00c0 DOMICILE ](https://support-\nclients.trafic.com/hc/fr/articles/7316116790685-Quels-sont-les-frais-de-\nlivraison-?utm_content=Avantage3) ** _ OU EN MAGASIN\n\n_**[ RETRAIT GRATUIT ](https://support-\nclients.trafic.com/hc/fr/articles/7316116790685-Quels-sont-les-frais-de-\nlivraison-?utm_content=Avantage4) ** DANS **[ PLUS DE 80 MAGASINS\n](https://trafic.com/fr_BE/magasins?utm_content=Avantage5) ** _\n\n\ud83d\udea8 En raison de la gr\u00e8ve chez notre partenaire de livraison bpost, la livraison\nde vos colis \u00e0 domicile pourrait prendre du retard.\n\nMenu\n\n  * [ Accueil ](https://trafic.com/fr_BE/ \"Aller \u00e0 la page d\u2019accueil\")\n  * **Rappel produit**\n\nAnnuler  Continuer vos achats\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNEWSLETTER\n\nInscrivez-vous pour recevoir nos infos\n\nVous pouvez vous d\u00e9sinscrire \u00e0 tout moment en vous rendant sur votre compte.\nVoyez notre politique de respect de la vie priv\u00e9e pour plus d'informations.\n\n[ ](https://trafic.com/fr_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Suivez nous sur Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Suivez nous sur Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Suivez nous sur Linkedin\")\n\nAcc\u00e8s rapide\n\n  * [ Nos magasins ](https://trafic.com/fr_BE/magasins/ \"Nos magasins\")\n  * [ Folders ](https://www.trafic.com/fr_BE/folders \"Folders\")\n  * [ Club Malin ](https://trafic.com/fr_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/fr_BE/jobs \"Jobs\")\n  * [ Impression photos ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Impression Photos\")\n  * [ Acc\u00e8s fournisseur ](https://trafic.com/fr_BE/acces-fournisseur \"Acc\u00e8s fournisseur\")\n\nTrafic\n\n  * [ Qui sommes-nous ? ](https://trafic.com/fr_BE/qui-sommes-nous \"Qui sommes-nous ?\")\n  * [ TakeCare ](https://trafic.com/fr_BE/takecare \"TakeCare\")\n  * [ Recupel ](https://trafic.com/fr_BE/recupel)\n  * [ Conditions g\u00e9n\u00e9rales ](https://trafic.com/fr_BE/conditions-generales \"CGV\")\n  * [ Vie priv\u00e9e et cookies ](https://trafic.com/fr_BE/vieprivee \"Vie priv\u00e9e\")\n  * [ Modes de livraison ](https://trafic.com/fr_BE/modes-livraison \"Modes de livraison\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/fr \"Garantie\")\n  * [ Presse ](https://trafic.com/fr_BE/articles-presse \"Presse\")\n\nService clients\n\n  * [ Contact ](https://trafic.com/fr_BE/contact-et-formulaire \"FAQ et contact\")\n  * [ Service apr\u00e8s-vente et FAQ ](https://support-clients.trafic.com \"Service apr\u00e8s-vente\")\n  * [ Service photo ](https://photoservice.fujicolor.eu/20645485/help/contact \"Service photo\")\n  * [ Cartes cadeaux ](https://trafic.com/fr_BE/carte-cadeau \"Cartes cadeaux\")\n  * [ Rappel Produit ](https://trafic.com/fr_BE/rappel-produit \"Rappel produit\")\n  * [ Signalement ](https://trafic.com/fr_BE/signalement \"Signalement\")\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nPayez vite et en toute s\u00e9curit\u00e9 avec  avec Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/fr_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\nMenu\n\n  * [ Home ](https://trafic.com/nl_BE/ \"Ga naar homepagina\")\n  * **Contact**\n\nAnnuleer  Ga verder met winkelen\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNewsletter\n\nSchrijf je in om ons nieuws te ontvangen\n\nU kunt zich op elk moment afmelden door naar uw account te gaan. Zie ons\nprivacybeleid voor meer informatie.\n\n[ ](https://trafic.com/nl_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Follow us on Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Follow us on Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Follow us on Linkedin\")\n\nSnelle toegang\n\n  * [ Onze Shops ](/nl_BE/magasins/ \"Onze Shops\")\n  * [ Folders ](https://www.trafic.com/nl_BE/folders \"Folders\")\n  * [ Club Malin ](/nl_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/nl_BE/jobs \"Jobs\")\n  * [ Foto afdrukken ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Foto afdrukken\")\n  * [ Leverancierstoegang ](/nl_BE/acc%C3%A8s-fournisseur \"Leverancierstoegang\")\n\nTrafic\n\n  * [ Wie zijn wij ? ](/nl_BE/qui-sommes-nous \"Wie zijn we ?\")\n  * [ TakeCare ](/nl_BE/takecare \"TakeCare\")\n  * [ Voorwaarden ](/nl_BE/conditions-generales \"Voorwaarden\")\n  * [ Prive leven en cookies ](/nl_BE/vie-privee \"Prive leven\")\n  * [ Leveringmethoden ](https://trafic.com/nl_BE/modes-livraison \"leveringmethoden\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/nl-be \"Garantie\")\n\nklantenservice\n\n  * [ Veelgestelde vragen en contact ](https://support-clients.trafic.com/hc/nl-be \"Veelgestelde vragen en contact\")\n  * [ Dienst na Verkoop ](https://support-clients.trafic.com/hc/nl-be \"Dienst na Verkoop\")\n  * [ Fotografie afdeling ](https://photoservice.fujicolor.eu/20645485/help/contact \"Fotografie afdeling\")\n  * [ Cadeaukaart ](https://trafic.com/nl_BE/carte-cadeau \"Cadeaukaart\")\n  * [ Waarschuwing ](https://trafic.com/nl_BE/waarschuwing)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**Javascript est d\u00e9sactiv\u00e9 dans votre navigateur.** Pour une meilleure\nexp\u00e9rience sur notre site, assurez-vous d\u2019activer JavaScript dans votre\nnavigateur.\n\n_NOTRE[ **SERVICE CLIENT** ](https://support-clients.trafic.com) _\n\n_**[ NOTRE FOLDER ](https://trafic.com/fr_BE/folders?utm_content=Avantage2) **\nDE LA SEMAINE _\n\n_**[ LIVRAISON \u00c0 DOMICILE ](https://support-\nclients.trafic.com/hc/fr/articles/7316116790685-Quels-sont-les-frais-de-\nlivraison-?utm_content=Avantage3) ** _ OU EN MAGASIN\n\n_**[ RETRAIT GRATUIT ](https://support-\nclients.trafic.com/hc/fr/articles/7316116790685-Quels-sont-les-frais-de-\nlivraison-?utm_content=Avantage4) ** DANS **[ PLUS DE 80 MAGASINS\n](https://trafic.com/fr_BE/magasins?utm_content=Avantage5) ** _\n\n\ud83d\udea8 En raison de la gr\u00e8ve chez notre partenaire de livraison bpost, la livraison\nde vos colis \u00e0 domicile pourrait prendre du retard.\n\nMenu\n\n  * [ Accueil ](https://trafic.com/fr_BE/ \"Aller \u00e0 la page d\u2019accueil\")\n  * **Contact**\n\nAnnuler  Continuer vos achats\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNEWSLETTER\n\nInscrivez-vous pour recevoir nos infos\n\nVous pouvez vous d\u00e9sinscrire \u00e0 tout moment en vous rendant sur votre compte.\nVoyez notre politique de respect de la vie priv\u00e9e pour plus d'informations.\n\n[ ](https://trafic.com/fr_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Suivez nous sur Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Suivez nous sur Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Suivez nous sur Linkedin\")\n\nAcc\u00e8s rapide\n\n  * [ Nos magasins ](https://trafic.com/fr_BE/magasins/ \"Nos magasins\")\n  * [ Folders ](https://www.trafic.com/fr_BE/folders \"Folders\")\n  * [ Club Malin ](https://trafic.com/fr_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/fr_BE/jobs \"Jobs\")\n  * [ Impression photos ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Impression Photos\")\n  * [ Acc\u00e8s fournisseur ](https://trafic.com/fr_BE/acces-fournisseur \"Acc\u00e8s fournisseur\")\n\nTrafic\n\n  * [ Qui sommes-nous ? ](https://trafic.com/fr_BE/qui-sommes-nous \"Qui sommes-nous ?\")\n  * [ TakeCare ](https://trafic.com/fr_BE/takecare \"TakeCare\")\n  * [ Recupel ](https://trafic.com/fr_BE/recupel)\n  * [ Conditions g\u00e9n\u00e9rales ](https://trafic.com/fr_BE/conditions-generales \"CGV\")\n  * [ Vie priv\u00e9e et cookies ](https://trafic.com/fr_BE/vieprivee \"Vie priv\u00e9e\")\n  * [ Modes de livraison ](https://trafic.com/fr_BE/modes-livraison \"Modes de livraison\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/fr \"Garantie\")\n  * [ Presse ](https://trafic.com/fr_BE/articles-presse \"Presse\")\n\nService clients\n\n  * [ Contact ](https://trafic.com/fr_BE/contact-et-formulaire \"FAQ et contact\")\n  * [ Service apr\u00e8s-vente et FAQ ](https://support-clients.trafic.com \"Service apr\u00e8s-vente\")\n  * [ Service photo ](https://photoservice.fujicolor.eu/20645485/help/contact \"Service photo\")\n  * [ Cartes cadeaux ](https://trafic.com/fr_BE/carte-cadeau \"Cartes cadeaux\")\n  * [ Rappel Produit ](https://trafic.com/fr_BE/rappel-produit \"Rappel produit\")\n  * [ Signalement ](https://trafic.com/fr_BE/signalement \"Signalement\")\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nPayez vite et en toute s\u00e9curit\u00e9 avec  avec Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/fr_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\nMenu\n\n  * [ Home ](https://trafic.com/nl_BE/ \"Ga naar homepagina\")\n  * **Oplaadstations op zonne-energie**\n\nAnnuleer  Ga verder met winkelen\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNewsletter\n\nSchrijf je in om ons nieuws te ontvangen\n\nU kunt zich op elk moment afmelden door naar uw account te gaan. Zie ons\nprivacybeleid voor meer informatie.\n\n[ ](https://trafic.com/nl_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Follow us on Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Follow us on Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Follow us on Linkedin\")\n\nSnelle toegang\n\n  * [ Onze Shops ](/nl_BE/magasins/ \"Onze Shops\")\n  * [ Folders ](https://www.trafic.com/nl_BE/folders \"Folders\")\n  * [ Club Malin ](/nl_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/nl_BE/jobs \"Jobs\")\n  * [ Foto afdrukken ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Foto afdrukken\")\n  * [ Leverancierstoegang ](/nl_BE/acc%C3%A8s-fournisseur \"Leverancierstoegang\")\n\nTrafic\n\n  * [ Wie zijn wij ? ](/nl_BE/qui-sommes-nous \"Wie zijn we ?\")\n  * [ TakeCare ](/nl_BE/takecare \"TakeCare\")\n  * [ Voorwaarden ](/nl_BE/conditions-generales \"Voorwaarden\")\n  * [ Prive leven en cookies ](/nl_BE/vie-privee \"Prive leven\")\n  * [ Leveringmethoden ](https://trafic.com/nl_BE/modes-livraison \"leveringmethoden\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/nl-be \"Garantie\")\n\nklantenservice\n\n  * [ Veelgestelde vragen en contact ](https://support-clients.trafic.com/hc/nl-be \"Veelgestelde vragen en contact\")\n  * [ Dienst na Verkoop ](https://support-clients.trafic.com/hc/nl-be \"Dienst na Verkoop\")\n  * [ Fotografie afdeling ](https://photoservice.fujicolor.eu/20645485/help/contact \"Fotografie afdeling\")\n  * [ Cadeaukaart ](https://trafic.com/nl_BE/carte-cadeau \"Cadeaukaart\")\n  * [ Waarschuwing ](https://trafic.com/nl_BE/waarschuwing)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\nMenu\n\n  * [ Home ](https://trafic.com/nl_BE/ \"Ga naar homepagina\")\n  * **Wie zijn wij ?**\n\nAnnuleer  Ga verder met winkelen\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNewsletter\n\nSchrijf je in om ons nieuws te ontvangen\n\nU kunt zich op elk moment afmelden door naar uw account te gaan. Zie ons\nprivacybeleid voor meer informatie.\n\n[ ](https://trafic.com/nl_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Follow us on Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Follow us on Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Follow us on Linkedin\")\n\nSnelle toegang\n\n  * [ Onze Shops ](/nl_BE/magasins/ \"Onze Shops\")\n  * [ Folders ](https://www.trafic.com/nl_BE/folders \"Folders\")\n  * [ Club Malin ](/nl_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/nl_BE/jobs \"Jobs\")\n  * [ Foto afdrukken ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Foto afdrukken\")\n  * [ Leverancierstoegang ](/nl_BE/acc%C3%A8s-fournisseur \"Leverancierstoegang\")\n\nTrafic\n\n  * [ Wie zijn wij ? ](/nl_BE/qui-sommes-nous \"Wie zijn we ?\")\n  * [ TakeCare ](/nl_BE/takecare \"TakeCare\")\n  * [ Voorwaarden ](/nl_BE/conditions-generales \"Voorwaarden\")\n  * [ Prive leven en cookies ](/nl_BE/vie-privee \"Prive leven\")\n  * [ Leveringmethoden ](https://trafic.com/nl_BE/modes-livraison \"leveringmethoden\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/nl-be \"Garantie\")\n\nklantenservice\n\n  * [ Veelgestelde vragen en contact ](https://support-clients.trafic.com/hc/nl-be \"Veelgestelde vragen en contact\")\n  * [ Dienst na Verkoop ](https://support-clients.trafic.com/hc/nl-be \"Dienst na Verkoop\")\n  * [ Fotografie afdeling ](https://photoservice.fujicolor.eu/20645485/help/contact \"Fotografie afdeling\")\n  * [ Cadeaukaart ](https://trafic.com/nl_BE/carte-cadeau \"Cadeaukaart\")\n  * [ Waarschuwing ](https://trafic.com/nl_BE/waarschuwing)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\nMenu\n\n  * [ Home ](https://trafic.com/nl_BE/ \"Ga naar homepagina\")\n  * **Rappel produit**\n\nAnnuleer  Ga verder met winkelen\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNewsletter\n\nSchrijf je in om ons nieuws te ontvangen\n\nU kunt zich op elk moment afmelden door naar uw account te gaan. Zie ons\nprivacybeleid voor meer informatie.\n\n[ ](https://trafic.com/nl_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Follow us on Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Follow us on Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Follow us on Linkedin\")\n\nSnelle toegang\n\n  * [ Onze Shops ](/nl_BE/magasins/ \"Onze Shops\")\n  * [ Folders ](https://www.trafic.com/nl_BE/folders \"Folders\")\n  * [ Club Malin ](/nl_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/nl_BE/jobs \"Jobs\")\n  * [ Foto afdrukken ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Foto afdrukken\")\n  * [ Leverancierstoegang ](/nl_BE/acc%C3%A8s-fournisseur \"Leverancierstoegang\")\n\nTrafic\n\n  * [ Wie zijn wij ? ](/nl_BE/qui-sommes-nous \"Wie zijn we ?\")\n  * [ TakeCare ](/nl_BE/takecare \"TakeCare\")\n  * [ Voorwaarden ](/nl_BE/conditions-generales \"Voorwaarden\")\n  * [ Prive leven en cookies ](/nl_BE/vie-privee \"Prive leven\")\n  * [ Leveringmethoden ](https://trafic.com/nl_BE/modes-livraison \"leveringmethoden\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/nl-be \"Garantie\")\n\nklantenservice\n\n  * [ Veelgestelde vragen en contact ](https://support-clients.trafic.com/hc/nl-be \"Veelgestelde vragen en contact\")\n  * [ Dienst na Verkoop ](https://support-clients.trafic.com/hc/nl-be \"Dienst na Verkoop\")\n  * [ Fotografie afdeling ](https://photoservice.fujicolor.eu/20645485/help/contact \"Fotografie afdeling\")\n  * [ Cadeaukaart ](https://trafic.com/nl_BE/carte-cadeau \"Cadeaukaart\")\n  * [ Waarschuwing ](https://trafic.com/nl_BE/waarschuwing)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\nMenu\n\n  * [ Home ](/ \"Home\")\n  * **Onze shops**\n\n#  Magazines\n\nAnnuleer  Ga verder met winkelen\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNewsletter\n\nSchrijf je in om ons nieuws te ontvangen\n\nU kunt zich op elk moment afmelden door naar uw account te gaan. Zie ons\nprivacybeleid voor meer informatie.\n\n[ ](https://trafic.com/nl_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Follow us on Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Follow us on Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Follow us on Linkedin\")\n\nSnelle toegang\n\n  * [ Onze Shops ](/nl_BE/magasins/ \"Onze Shops\")\n  * [ Folders ](https://www.trafic.com/nl_BE/folders \"Folders\")\n  * [ Club Malin ](/nl_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/nl_BE/jobs \"Jobs\")\n  * [ Foto afdrukken ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Foto afdrukken\")\n  * [ Leverancierstoegang ](/nl_BE/acc%C3%A8s-fournisseur \"Leverancierstoegang\")\n\nTrafic\n\n  * [ Wie zijn wij ? ](/nl_BE/qui-sommes-nous \"Wie zijn we ?\")\n  * [ TakeCare ](/nl_BE/takecare \"TakeCare\")\n  * [ Voorwaarden ](/nl_BE/conditions-generales \"Voorwaarden\")\n  * [ Prive leven en cookies ](/nl_BE/vie-privee \"Prive leven\")\n  * [ Leveringmethoden ](https://trafic.com/nl_BE/modes-livraison \"leveringmethoden\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/nl-be \"Garantie\")\n\nklantenservice\n\n  * [ Veelgestelde vragen en contact ](https://support-clients.trafic.com/hc/nl-be \"Veelgestelde vragen en contact\")\n  * [ Dienst na Verkoop ](https://support-clients.trafic.com/hc/nl-be \"Dienst na Verkoop\")\n  * [ Fotografie afdeling ](https://photoservice.fujicolor.eu/20645485/help/contact \"Fotografie afdeling\")\n  * [ Cadeaukaart ](https://trafic.com/nl_BE/carte-cadeau \"Cadeaukaart\")\n  * [ Waarschuwing ](https://trafic.com/nl_BE/waarschuwing)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\nMenu\n\n  * [ Home ](https://trafic.com/nl_BE/ \"Ga naar homepagina\")\n  * **Folder**\n\n#  Folder\n\nGeen folder deze week, tot volgende week :)\n\nFolder - Aanbiedingen van 23/04/2025 tot 28/04/2025  \n\nFolder - Aanbiedingen van 28/02/2024 tot 04/03/2024  \n\n#  ** FOLDER ONGELOOFLIJKE STUNTPRIJZEN :  **\n\naanbiedingen van 03/01/2023 tot 31/12/2023\n\n#  ** ALLEEN VERKRIJKBAAR IN DE WINKEL :  **\n\n#  **ONTDEK [ HIER ](https://trafic.com/nl_BE/promotions) ELKE WEEK MEER\nEXCLUSIEVE WEB-PROMOTIES **\n\n** VOOR MEER PLEZIER :  **\n\n[ Onze winkels ](https://trafic.com/nl_BE/winkels)\n\n[ ](https://trafic.com/nl_BE/winkels \" - Onze winkels\")\n\n[ Onze winkels ](https://trafic.com/nl_BE/winkels)\n\n[ Club Malin ](https://trafic.com/nl_BE/club-malin)\n\n[ ](https://trafic.com/nl_BE/club-malin \" - Club Malin\")\n\n[ Club Malin ](https://trafic.com/nl_BE/club-malin)\n\n**Filter de resultaten**\n\n**Filter de resultaten**\n\nVorm\n\nMerk\n\nMateriaal\n\nColors\n\nAnnuleer  Ga verder met winkelen\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNewsletter\n\nSchrijf je in om ons nieuws te ontvangen\n\nU kunt zich op elk moment afmelden door naar uw account te gaan. Zie ons\nprivacybeleid voor meer informatie.\n\n[ ](https://trafic.com/nl_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Follow us on Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Follow us on Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Follow us on Linkedin\")\n\nSnelle toegang\n\n  * [ Onze Shops ](/nl_BE/magasins/ \"Onze Shops\")\n  * [ Folders ](https://www.trafic.com/nl_BE/folders \"Folders\")\n  * [ Club Malin ](/nl_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/nl_BE/jobs \"Jobs\")\n  * [ Foto afdrukken ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Foto afdrukken\")\n  * [ Leverancierstoegang ](/nl_BE/acc%C3%A8s-fournisseur \"Leverancierstoegang\")\n\nTrafic\n\n  * [ Wie zijn wij ? ](/nl_BE/qui-sommes-nous \"Wie zijn we ?\")\n  * [ TakeCare ](/nl_BE/takecare \"TakeCare\")\n  * [ Voorwaarden ](/nl_BE/conditions-generales \"Voorwaarden\")\n  * [ Prive leven en cookies ](/nl_BE/vie-privee \"Prive leven\")\n  * [ Leveringmethoden ](https://trafic.com/nl_BE/modes-livraison \"leveringmethoden\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/nl-be \"Garantie\")\n\nklantenservice\n\n  * [ Veelgestelde vragen en contact ](https://support-clients.trafic.com/hc/nl-be \"Veelgestelde vragen en contact\")\n  * [ Dienst na Verkoop ](https://support-clients.trafic.com/hc/nl-be \"Dienst na Verkoop\")\n  * [ Fotografie afdeling ](https://photoservice.fujicolor.eu/20645485/help/contact \"Fotografie afdeling\")\n  * [ Cadeaukaart ](https://trafic.com/nl_BE/carte-cadeau \"Cadeaukaart\")\n  * [ Waarschuwing ](https://trafic.com/nl_BE/waarschuwing)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\nMenu\n\nAnnuleer  Ga verder met winkelen\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNewsletter\n\nSchrijf je in om ons nieuws te ontvangen\n\nU kunt zich op elk moment afmelden door naar uw account te gaan. Zie ons\nprivacybeleid voor meer informatie.\n\n[ ](https://trafic.com/nl_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Follow us on Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Follow us on Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Follow us on Linkedin\")\n\nSnelle toegang\n\n  * [ Onze Shops ](/nl_BE/magasins/ \"Onze Shops\")\n  * [ Folders ](https://www.trafic.com/nl_BE/folders \"Folders\")\n  * [ Club Malin ](/nl_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/nl_BE/jobs \"Jobs\")\n  * [ Foto afdrukken ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Foto afdrukken\")\n  * [ Leverancierstoegang ](/nl_BE/acc%C3%A8s-fournisseur \"Leverancierstoegang\")\n\nTrafic\n\n  * [ Wie zijn wij ? ](/nl_BE/qui-sommes-nous \"Wie zijn we ?\")\n  * [ TakeCare ](/nl_BE/takecare \"TakeCare\")\n  * [ Voorwaarden ](/nl_BE/conditions-generales \"Voorwaarden\")\n  * [ Prive leven en cookies ](/nl_BE/vie-privee \"Prive leven\")\n  * [ Leveringmethoden ](https://trafic.com/nl_BE/modes-livraison \"leveringmethoden\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/nl-be \"Garantie\")\n\nklantenservice\n\n  * [ Veelgestelde vragen en contact ](https://support-clients.trafic.com/hc/nl-be \"Veelgestelde vragen en contact\")\n  * [ Dienst na Verkoop ](https://support-clients.trafic.com/hc/nl-be \"Dienst na Verkoop\")\n  * [ Fotografie afdeling ](https://photoservice.fujicolor.eu/20645485/help/contact \"Fotografie afdeling\")\n  * [ Cadeaukaart ](https://trafic.com/nl_BE/carte-cadeau \"Cadeaukaart\")\n  * [ Waarschuwing ](https://trafic.com/nl_BE/waarschuwing)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
                "url": "https://trafic.com/nl_BE/"
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\nMenu\n\n  * [ Home ](https://trafic.com/nl_BE/ \"Ga naar homepagina\")\n  * **Leveringmethoden**\n\nAnnuleer  Ga verder met winkelen\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNewsletter\n\nSchrijf je in om ons nieuws te ontvangen\n\nU kunt zich op elk moment afmelden door naar uw account te gaan. Zie ons\nprivacybeleid voor meer informatie.\n\n[ ](https://trafic.com/nl_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Follow us on Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Follow us on Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Follow us on Linkedin\")\n\nSnelle toegang\n\n  * [ Onze Shops ](/nl_BE/magasins/ \"Onze Shops\")\n  * [ Folders ](https://www.trafic.com/nl_BE/folders \"Folders\")\n  * [ Club Malin ](/nl_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/nl_BE/jobs \"Jobs\")\n  * [ Foto afdrukken ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Foto afdrukken\")\n  * [ Leverancierstoegang ](/nl_BE/acc%C3%A8s-fournisseur \"Leverancierstoegang\")\n\nTrafic\n\n  * [ Wie zijn wij ? ](/nl_BE/qui-sommes-nous \"Wie zijn we ?\")\n  * [ TakeCare ](/nl_BE/takecare \"TakeCare\")\n  * [ Voorwaarden ](/nl_BE/conditions-generales \"Voorwaarden\")\n  * [ Prive leven en cookies ](/nl_BE/vie-privee \"Prive leven\")\n  * [ Leveringmethoden ](https://trafic.com/nl_BE/modes-livraison \"leveringmethoden\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/nl-be \"Garantie\")\n\nklantenservice\n\n  * [ Veelgestelde vragen en contact ](https://support-clients.trafic.com/hc/nl-be \"Veelgestelde vragen en contact\")\n  * [ Dienst na Verkoop ](https://support-clients.trafic.com/hc/nl-be \"Dienst na Verkoop\")\n  * [ Fotografie afdeling ](https://photoservice.fujicolor.eu/20645485/help/contact \"Fotografie afdeling\")\n  * [ Cadeaukaart ](https://trafic.com/nl_BE/carte-cadeau \"Cadeaukaart\")\n  * [ Waarschuwing ](https://trafic.com/nl_BE/waarschuwing)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
                "url": "https://trafic.com/nl_BE/modes-livraison"
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\nMenu\n\n  * [ Home ](https://trafic.com/nl_BE/ \"Ga naar homepagina\")\n  * **Jobs**\n\nAnnuleer  Ga verder met winkelen\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNewsletter\n\nSchrijf je in om ons nieuws te ontvangen\n\nU kunt zich op elk moment afmelden door naar uw account te gaan. Zie ons\nprivacybeleid voor meer informatie.\n\n[ ](https://trafic.com/nl_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Follow us on Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Follow us on Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Follow us on Linkedin\")\n\nSnelle toegang\n\n  * [ Onze Shops ](/nl_BE/magasins/ \"Onze Shops\")\n  * [ Folders ](https://www.trafic.com/nl_BE/folders \"Folders\")\n  * [ Club Malin ](/nl_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/nl_BE/jobs \"Jobs\")\n  * [ Foto afdrukken ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Foto afdrukken\")\n  * [ Leverancierstoegang ](/nl_BE/acc%C3%A8s-fournisseur \"Leverancierstoegang\")\n\nTrafic\n\n  * [ Wie zijn wij ? ](/nl_BE/qui-sommes-nous \"Wie zijn we ?\")\n  * [ TakeCare ](/nl_BE/takecare \"TakeCare\")\n  * [ Voorwaarden ](/nl_BE/conditions-generales \"Voorwaarden\")\n  * [ Prive leven en cookies ](/nl_BE/vie-privee \"Prive leven\")\n  * [ Leveringmethoden ](https://trafic.com/nl_BE/modes-livraison \"leveringmethoden\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/nl-be \"Garantie\")\n\nklantenservice\n\n  * [ Veelgestelde vragen en contact ](https://support-clients.trafic.com/hc/nl-be \"Veelgestelde vragen en contact\")\n  * [ Dienst na Verkoop ](https://support-clients.trafic.com/hc/nl-be \"Dienst na Verkoop\")\n  * [ Fotografie afdeling ](https://photoservice.fujicolor.eu/20645485/help/contact \"Fotografie afdeling\")\n  * [ Cadeaukaart ](https://trafic.com/nl_BE/carte-cadeau \"Cadeaukaart\")\n  * [ Waarschuwing ](https://trafic.com/nl_BE/waarschuwing)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
                "url": "https://trafic.com/nl_BE/jobs"
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\nMenu\n\n  * [ Home ](https://trafic.com/nl_BE/ \"Ga naar homepagina\")\n  * **Algemene Verkoopvoorwaarden**\n\nAnnuleer  Ga verder met winkelen\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNewsletter\n\nSchrijf je in om ons nieuws te ontvangen\n\nU kunt zich op elk moment afmelden door naar uw account te gaan. Zie ons\nprivacybeleid voor meer informatie.\n\n[ ](https://trafic.com/nl_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Follow us on Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Follow us on Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Follow us on Linkedin\")\n\nSnelle toegang\n\n  * [ Onze Shops ](/nl_BE/magasins/ \"Onze Shops\")\n  * [ Folders ](https://www.trafic.com/nl_BE/folders \"Folders\")\n  * [ Club Malin ](/nl_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/nl_BE/jobs \"Jobs\")\n  * [ Foto afdrukken ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Foto afdrukken\")\n  * [ Leverancierstoegang ](/nl_BE/acc%C3%A8s-fournisseur \"Leverancierstoegang\")\n\nTrafic\n\n  * [ Wie zijn wij ? ](/nl_BE/qui-sommes-nous \"Wie zijn we ?\")\n  * [ TakeCare ](/nl_BE/takecare \"TakeCare\")\n  * [ Voorwaarden ](/nl_BE/conditions-generales \"Voorwaarden\")\n  * [ Prive leven en cookies ](/nl_BE/vie-privee \"Prive leven\")\n  * [ Leveringmethoden ](https://trafic.com/nl_BE/modes-livraison \"leveringmethoden\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/nl-be \"Garantie\")\n\nklantenservice\n\n  * [ Veelgestelde vragen en contact ](https://support-clients.trafic.com/hc/nl-be \"Veelgestelde vragen en contact\")\n  * [ Dienst na Verkoop ](https://support-clients.trafic.com/hc/nl-be \"Dienst na Verkoop\")\n  * [ Fotografie afdeling ](https://photoservice.fujicolor.eu/20645485/help/contact \"Fotografie afdeling\")\n  * [ Cadeaukaart ](https://trafic.com/nl_BE/carte-cadeau \"Cadeaukaart\")\n  * [ Waarschuwing ](https://trafic.com/nl_BE/waarschuwing)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
                "url": "https://trafic.com/nl_BE/conditions-generales"
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                    "source": "https://trafic.com/nl_BE/club-malin"
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\nMenu\n\n  * [ Home ](https://trafic.com/nl_BE/ \"Ga naar homepagina\")\n  * **Trafic - Club Malin**\n\nAnnuleer  Ga verder met winkelen\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNewsletter\n\nSchrijf je in om ons nieuws te ontvangen\n\nU kunt zich op elk moment afmelden door naar uw account te gaan. Zie ons\nprivacybeleid voor meer informatie.\n\n[ ](https://trafic.com/nl_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Follow us on Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Follow us on Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Follow us on Linkedin\")\n\nSnelle toegang\n\n  * [ Onze Shops ](/nl_BE/magasins/ \"Onze Shops\")\n  * [ Folders ](https://www.trafic.com/nl_BE/folders \"Folders\")\n  * [ Club Malin ](/nl_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/nl_BE/jobs \"Jobs\")\n  * [ Foto afdrukken ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Foto afdrukken\")\n  * [ Leverancierstoegang ](/nl_BE/acc%C3%A8s-fournisseur \"Leverancierstoegang\")\n\nTrafic\n\n  * [ Wie zijn wij ? ](/nl_BE/qui-sommes-nous \"Wie zijn we ?\")\n  * [ TakeCare ](/nl_BE/takecare \"TakeCare\")\n  * [ Voorwaarden ](/nl_BE/conditions-generales \"Voorwaarden\")\n  * [ Prive leven en cookies ](/nl_BE/vie-privee \"Prive leven\")\n  * [ Leveringmethoden ](https://trafic.com/nl_BE/modes-livraison \"leveringmethoden\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/nl-be \"Garantie\")\n\nklantenservice\n\n  * [ Veelgestelde vragen en contact ](https://support-clients.trafic.com/hc/nl-be \"Veelgestelde vragen en contact\")\n  * [ Dienst na Verkoop ](https://support-clients.trafic.com/hc/nl-be \"Dienst na Verkoop\")\n  * [ Fotografie afdeling ](https://photoservice.fujicolor.eu/20645485/help/contact \"Fotografie afdeling\")\n  * [ Cadeaukaart ](https://trafic.com/nl_BE/carte-cadeau \"Cadeaukaart\")\n  * [ Waarschuwing ](https://trafic.com/nl_BE/waarschuwing)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
                "url": "https://trafic.com/nl_BE/club-malin"
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                    "source": "https://trafic.com/nl_BE/acces-fournisseur"
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                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\nMenu\n\n  * [ Home ](https://trafic.com/nl_BE/ \"Ga naar homepagina\")\n  * **Leverancierstoegang**\n\nAnnuleer  Ga verder met winkelen\n\nPr\u00e9f\u00e9rez-vous faire vos achats sur notre site  country_destination_language_fr\n?\n\nNous remarquons que vous surfez depuis  country_destination_name_fr  sur notre\nsite belge. Surfer sur le site dans votre propre pays pr\u00e9sente un certain\nnombre d'avantages tels que des frais d'exp\u00e9dition corrects, etc.\n\n[ Oui, dirigez-moi vers le site **country_destination_language_fr**\n](javascript:void\\(\\);) [ Non, restez sur le site belge\n](javascript:void\\(\\);)\n\nDoe je liever je aankopen op onze  country_destination_language_nl  site?\n\nWe merkten dat je surft vanuit  country_destination_name_nl  op onze Belgische\nsite. De site van je eigen land gebruiken heeft een aantal voordelen zoals\ncorrecte verzendingskosten en dergelijke.\n\n[ Ja, breng me naar de **country_destination_language_nl** site\n](javascript:void\\(\\);) [ Nee, blijf op de Belgische site\n](javascript:void\\(\\);)\n\nNewsletter\n\nSchrijf je in om ons nieuws te ontvangen\n\nU kunt zich op elk moment afmelden door naar uw account te gaan. Zie ons\nprivacybeleid voor meer informatie.\n\n[ ](https://trafic.com/nl_BE/)\n\n[ ](https://www.trafic.com/)\n\nSND (BE) BE0866.592.258  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSOGESMA S.A. BE 0866 517 727  \n(Rue de Capil\u00f4ne 6, 6220 Heppignies, Belgique)\n\nSUIVEZ-NOUS\n\n  * [ ](https://www.facebook.com/MagasinsTrafic?fref=ts \"Follow us on Facebook\")\n  * [ ](https://www.instagram.com/magasins.trafic/ \"Follow us on Instagram\")\n  * [ ](https://www.linkedin.com/company/trafic/ \"Follow us on Linkedin\")\n\nSnelle toegang\n\n  * [ Onze Shops ](/nl_BE/magasins/ \"Onze Shops\")\n  * [ Folders ](https://www.trafic.com/nl_BE/folders \"Folders\")\n  * [ Club Malin ](/nl_BE/club-malin \"Club Malin\")\n  * [ Jobs ](https://trafic.com/nl_BE/jobs \"Jobs\")\n  * [ Foto afdrukken ](https://photoservice.fujicolor.eu/20645485/fr?reload \"Foto afdrukken\")\n  * [ Leverancierstoegang ](/nl_BE/acc%C3%A8s-fournisseur \"Leverancierstoegang\")\n\nTrafic\n\n  * [ Wie zijn wij ? ](/nl_BE/qui-sommes-nous \"Wie zijn we ?\")\n  * [ TakeCare ](/nl_BE/takecare \"TakeCare\")\n  * [ Voorwaarden ](/nl_BE/conditions-generales \"Voorwaarden\")\n  * [ Prive leven en cookies ](/nl_BE/vie-privee \"Prive leven\")\n  * [ Leveringmethoden ](https://trafic.com/nl_BE/modes-livraison \"leveringmethoden\")\n  * [ Garantie ](https://support-clients.trafic.com/hc/nl-be \"Garantie\")\n\nklantenservice\n\n  * [ Veelgestelde vragen en contact ](https://support-clients.trafic.com/hc/nl-be \"Veelgestelde vragen en contact\")\n  * [ Dienst na Verkoop ](https://support-clients.trafic.com/hc/nl-be \"Dienst na Verkoop\")\n  * [ Fotografie afdeling ](https://photoservice.fujicolor.eu/20645485/help/contact \"Fotografie afdeling\")\n  * [ Cadeaukaart ](https://trafic.com/nl_BE/carte-cadeau \"Cadeaukaart\")\n  * [ Waarschuwing ](https://trafic.com/nl_BE/waarschuwing)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\n[ ](https://trustmark.becom.digital/fr/Trafic_4032416)\n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
                "url": "https://trafic.com/nl_BE/acces-fournisseur"
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                "metadata": {
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                    "source": "https://www.persefoni.com/blog/upstream-vs-downstream"
                },
                "page_content": "[ ](/)\n\n[ \u00ef\u008b\u00b6  Sign in  ](https://platform.persefoni.com/api/auth/login) [ Request\ndemo  ](/schedule-demo)\n\n[ Sign up free  ](/sign-up)\n\n\u00ef\u0083\u0089\n\nLooking for our Logo?\n\nDownload our official logo from our Brand Assets page to represent and promote\nour brand with confidence.\n\n[ Logos & Brand Assets  ](/company/logos-and-brand-assets)\n\n\u00ef\u0080\u008d\n\n[ \u00ef\u0081  All Posts  ](/insights/blog)\n\n/\n\n[ Insights  ](/category/insights)\n\nPublished:\u00c2\n\nJanuary 3, 2025\n\nUpdated:\u00c2\n\nFebruary 11, 2025\n\n\u00c2 \u00c2 \u00c2\u00b7\u00c2 \u00c2\n\n[Read Time]\n\n#  Upstream vs Downstream: Breaking Down Scope 3\n\nBy\u00c2\n\nNo items found.\n\nShare:\n\n  * \u00ef\u0083\u00a1 \n  * \u00ee\u0098\u009b \n  * \u00ef\u008e\u009e \n  * \u00ef\u0088\u00b2 \n\nArticle Overview\n\nThe [ Greenhouse Gas (GHG) Protocol ](https://www.persefoni.com/blog/ghg-\nprotocol) categorizes scope 3 (value chain) emissions into two main groups:\nupstream and downstream emissions.\n\n[ Scope 3 emissions ](https://www.persefoni.com/blog/scope-3-emissions) are\ndivided into 15 categories to help companies understand, manage, and report on\nthe scope 3 activities relevant to their operations. The upstream and\ndownstream emissions designation is based on the distinction between the\nfinancial transactions of an organization. Upstream emissions everything in\nyour value chain to produce your product, while downstream everything in your\nvalue chain to consume your product.\n\nFor many companies, value chain emissions represent the majority of their\ntotal emissions. Therefore, understanding which categories are relevant to a\ncompany's operations is essential for accurate carbon footprint calculations\nand emission reductions. Scope 3 emissions are generally considered the most\ndifficult to manage, as it often involves an extensive process of collecting\ndata and engaging with suppliers and customers across the value chain.\n\n##  What are Upstream Emissions?\n\nUpstream emissions are the indirect emissions related to a reporting\ncompany\u00e2\u0080\u0099s [ suppliers ](https://www.persefoni.com/blog/supplier-engagement-\nguide) , from the purchased materials that flow into the company to the\nproducts and services the company utilizes. Below is a description of each of\nthe eight upstream emission categories, as defined by the GHG Protocol:\n\n  * **Purchased goods and services** : This category includes all upstream emissions from the production of all purchased or acquired products and services. \n  * **Capital goods** : This category includes all emissions from the production of purchased or acquired capital goods. \n  * **Fuel and energy-related activities:** This category includes emissions from fuel and energy-related purchased or consumed products or services that aren\u00e2\u0080\u0099t covered in [ scope 1 ](https://www.persefoni.com/blog/scope-1-emissions) and [ scope 2 ](https://www.persefoni.com/blog/scope-2-emissions) . \n  * **Upstream transportation and distribution:** This category includes emissions generated from third-party transportation and distribution services and emissions generated to transport and distribute purchased products. \n  * **Waste generated in operations:** This category includes emissions from the treatment and disposal of the waste generated by the reporting company\u00e2\u0080\u0099s operations. This could be solid waste and/or wastewater. \n  * **Business travel:** This category includes emissions generated from employee transportation for business-related activities in third-party-owned or operated vehicles. \n  * **Employee commuting:** This category includes emissions from employee commutes between their workplace and home. \n  * **Upstream leased assets:** This category includes emissions from the operation of assets the reporting organization leases. This can include a leased car used for business travel or leased heavy machinery used for a company's construction project \n\n##  What are Downstream Emissions?\n\nDownstream emissions are the emissions related to customers, from selling\ngoods and services to their distribution, use, and end-of-life stages. Below\nis a description of each of the seven downstream emissions categories as\ndefined by the GHG Protocol:\n\n  * **Downstream transportation and distribution:** This category includes emissions generated from transporting and distributing sold products in vehicles that aren\u00e2\u0080\u0099t owned or controlled by the reporting organization. \n  * **Processing of sold products:** This category includes emissions created when third parties process sold intermediate products following the sale. Intermediate products are goods used with another product before end use. ****\n  * **Use of sold products:** This category includes emissions created from the use of sold services and goods\u00e2\u0080\u0094encompassing the scope 1 and 2 of end users of a sold product. \n  * **End-of-life treatment of sold products:** This category includes emissions from waste treatment and disposal of sold products at the end of their life cycle. \n  * **Downstream leased assets:** This category includes emissions generated from the operation of owned assets leased to other entities that aren\u00e2\u0080\u0099t included in scopes 1 or 2. \n  * **Franchises:** This category includes emissions from franchise operations. This applies to franchisors and includes scope 1 and 2 emissions from franchisees. \n  * **Investments:** This category includes investment emissions, also known as financed emissions associated with investments. This category is mainly for financial institutions but is relevant to all other organizations that provide financial services. \n\n##  Upstream or Downstream?\n\nSometimes it is difficult to determine if an emission source is upstream or\ndownstream. Transportation and distribution are a good case in point as they\nare considered part of both the upstream and downstream value chain. To\ndecipher which of the two an emissions activity belongs under, consider one\nsimple question: a) Did my company or employees pay for the good or service,\nOr did my customers or consumers pay for the good or service?\n\n##  Upstream and Downstream Examples\n\nRelevant categories for the upstream and downstream emission activities vary\nbetween sectors, and even from company to company, depending on its\noperations. Understanding each of these categories and creating [ operational\nboundaries ](https://www.persefoni.com/blog/what-are-organizational-and-\noperational-boundaries) is the first step to calculating them. Below are\ndescriptions of the upstream and downstream activities of the financial and\nthe manufacturing sectors, respectively: **\u00c2**\n\n**Financial Institutions:**\n\n  * **_Upstream Activities:_ ** Financial institutions will likely have emissions related to Categories 6 and 7 as their employees often travel internationally and commute into their offices. They will likely have emissions related to Category 8 as well, as they may lease their offices and branches. However, emissions from other categories will likely not be significant enough to calculate and report. \n  * **_Downstream Activities:_ ** Category 15: Investments, also known as financed emissions, are the emissions associated with a financial institution's investments, loans, and other financial services. [ For financial institutions that report their financed emissions to the CDP, these emissions are 700x larger than their scope 1 (direct) emissions, ](https://www.cdp.net/en/articles/media/finance-sectors-funded-emissions-over-700-times-greater-than-its-own) making up the vast majority of their carbon footprint. \n\n**Manufacturing:**\n\n  * **_Upstream Activities:_ ** Upstream emissions from manufacturing will come primarily from Categories 1, 2, and 4 as the transport and extraction of the raw materials and the purchase of complex engineering infrastructure needed to manufacture products is very emissions-intensive. \n  * **_Downstream Activities:_ ** Downstream emissions for the manufacturing sector will come mainly from Categories 9, 10, 11, and 12 as the use, distribution, and end-of-life of manufactured products are very emissions-intensive. \n\n##  Calculating Upstream and Downstream Emissions\n\nUpstream and downstream emissions are often cited as the most difficult to\nmeasure due to the wide-spanning and complex nature of the necessary data\ncollection and calculations. However, to meet ambitious net zero emissions\ncommitments and comply with regulations in certain jurisdictions,\norganizations must measure all of their [ scope 1, 2, and 3 emissions\n](https://www.persefoni.com/blog/scope-1-2-3-emissions) . \u00c2\n\nCompanies can start by using simple spend-based data to simplify this process.\nSpend-based data gives organizations a good estimate of the emissions coming\nfrom each category and what categories are most emissions-intensive. Based on\nthis information, companies can select which categories should be prioritized\nfor more robust data collection and decarbonization strategies.\n\nAs organizations develop better methods of data collection and calculation,\nthey can move from the collection calculation of spend-based data to activity-\nbased data. Activity-based data include the capture of increasingly precise\ndistance- and fuel-based data to make more accurate assessments of their\nfootprint for each category.\n\n##  How to Reduce Upstream and Downstream Emissions\n\nUpstream and downstream value chain emissions are considered the most\ndifficult to reduce because they involve adapting products and processes,\nengaging with suppliers, and even instigating consumer behavior change.\nHowever, companies can start with some low-hanging fruit, such as encouraging\nworkers to commute via public transportation or bicycle, reducing business\ntravel, or avoiding air travel altogether.\n\nThe levers for reducing emissions across the value chain differ for downstream\nand upstream emissions. To minimize downstream emissions, an organization can\nchange its investment strategy, adopt sustainable product innovations, or\nengage with customers. To reduce upstream emissions, companies can change\ntheir procurement policies and choices; innovate their products, services, and\nbusiness models; and engage with suppliers. [ The Science-Based Target\ninitiative (SBTi) released guidance\n](https://sciencebasedtargets.org/resources/files/SBT_Value_Chain_Report-1.pdf)\non the most appropriate ways to reduce upstream emissions for each category,\nas seen below:\n\n  1. **Purchased goods and services** \\- Supplier engagement, procurement policy and choices, product and service design, business model innovation \n  2. **Capital goods** \\- Supplier engagement, procurement policy, and choices, product and service design \n  3. **Fuel and energy-related activities** \\- Procurement policy and choices, product and service design, operational policies \n  4. **Upstream transportation and distribution** \\- Supplier engagement, procurement policy, and choices, product and service design \n  5. **Waste generated in operations** \\- Product and service design, business model innovation, operational policies \n  6. **Business travel** \\- Procurement policy and choices, operational policies \n  7. **Employee commuting** \\- Operational policies \n  8. **Upstream leased assets** \\- Procurement policy and choice \n\n###  **Measure Scope 3 with Confidence**\n\nTo help companies measure their upstream and downstream emissions,\nPersefoni\u00e2\u0080\u0099s **Climate Management and Accounting Platform (CMAP)** enables\nbusinesses to track emissions across every category in their value chain with\na fully auditable carbon accounting experience\u00e2\u0080\u0094making regulatory compliance\nand Scope 3 disclosures easier than ever.\n\nWith **Persefoni Pro** , companies can start measuring Scope 3 emissions for\nfree, gaining instant access to tools that help map value chain emissions and\nmake data-driven climate decisions. Plus, Persefoni enables businesses to\ninvite suppliers onto the platform to contribute their emissions data,\nimproving accuracy and transparency.\n\nReady to take control of your Scope 3 emissions? Get started with [ Persefoni\nPro ](https://www.persefoni.com/sign-up) or [ reach out for a demo\n](https://www.persefoni.com/schedule-demo) .\n\nShare:\n\n  * \u00ef\u0083\u00a1 \n  * \u00ee\u0098\u009b \n  * \u00ef\u008e\u009e \n  * \u00ef\u0088\u00b2 \n\n####  Get the latest updates straight to your inbox\n\nSign up for our newsletter and stay ahead of the curve.\n\nStay Ahead with Climate Insights\n\n##  Join our community to receive the latest updates on carbon accounting,\nclimate management, and sustainability trends. Get expert insights, product\nnews, and best practices delivered straight to your inbox.\n\n##  Related Articles\n\n[ All Posts  ](/insights/blog)\n\n[ ](/blog/avoiding-carbon-accounting-pitfalls)\n\n[ Insights  ](/category/insights)\n\n\u00c2\u00b7\n\nTuesday\n\n,\u00c2\n\nApril\n\n\u00c2\n\n22\n\n### [ Avoiding Common Pitfalls in Carbon Accounting: Lessons Learned\n](/blog/avoiding-carbon-accounting-pitfalls)\n\nThis article Discusses common pitfalls you may encounter as you begin the\ncarbon accounting process \u00e2\u0080\u0094 and the steps you can take to overcome them.\n\n[ ](/blog/streamlining-data-collection)\n\n[ Insights  ](/category/insights)\n\n\u00c2\u00b7\n\nThursday\n\n,\u00c2\n\nApril\n\n\u00c2\n\n17\n\n### [ Streamlining Data Collection for Carbon Accounting: Overcoming Common\nChallenges  ](/blog/streamlining-data-collection)\n\nThis article breaks down some of the most common data collection challenges\nand provide tips to help you overcome them.\n\n[ ](/blog/ace-your-ecovadis-assessment)\n\n[ Insights  ](/category/insights)\n\n\u00c2\u00b7\n\nWednesday\n\n,\u00c2\n\nApril\n\n\u00c2\n\n09\n\n### [ Ace Your EcoVadis Assessment: Key Steps for a Successful Submission\n](/blog/ace-your-ecovadis-assessment)\n\nDiscover what to expect when reporting to EcoVadis and steps you can take to\nace your assessment.\u00c2\n\n[ ](/)\n\nSubscribe to our newsletter.\n\nStay ahead of the curve. 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All rights reserved.\n\n[ Legal ](/legal) [ Security ](https://www.persefoni.com/documents/security) [\nPrivacy ](https://www.persefoni.com/documents/persefoni-privacy-policy) [\nCommercial Disclosure ](https://www.persefoni.com/documents/japan-commercial-\ndisclosure) [ Status ](https://status.persefoni.com/)\n\n[ Do not sell or share my personal information\n](https://www.persefoni.com/documents/persefoni-privacy-\npolicy#:~:text=the%20denial.%E2%80%8D-,Right%20to%20Opt%2DOut%20of%20Sales%20and%20Sharing.,-To%20exercise%20your)\n\n\u00ef\u0082\u00ac\n\nLanguage\n\n[ \u00ef\u008e\u009e  Persefoni Facebook  ](https://www.facebook.com/PersefoniAI)\n\n[ \u00ef\u0083\u00a1  Persefoni LinkedIn  ](https://www.linkedin.com/company/persefoni/)\n\n[ \u00ee\u0098\u009b  Persefoni Twitter  ](https://twitter.com/Persefoni)\n\n[ \u00ef \u00a7  Persefoni YouTube\n](https://www.youtube.com/channel/UCd3yGB2Y9P-Qx1KThAVbD0Q)\n\nExample Heading 2  Example Heading 2  Example Heading 3  Example Heading 4\n\n",
                "url": "https://www.persefoni.com/blog/upstream-vs-downstream"
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            "summary": "This page provides general information about upstream and downstream activities in a value chain.",
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                },
                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\n[ ](https://trafic.com/nl_BE/)\n\n#  Customer Login\n\n**Welkom terug! Of hier voor het eerst?**\n\nAnnuleer  Ga verder met winkelen\n\nOnze 4 beloftes:\n\n  * Laat je verwennen \n  * met een indrukwekkende selectie, exclusieve aanbiedingen en collecties \n\n  * Vertrouwen \n  * naar geteste en gevalideerde kwaliteit \n\n  * Genieten \n  * gegarandeerd de beste prijzen op de markt \n\n  * Leven \n  * een warme en prettige ervaring \n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
                "url": "https://trafic.com/nl_BE/customer/account/login/referer/aHR0cHM6Ly90cmFmaWMuY29tL25sX0JFL2N1c3RvbWVyL2FjY291bnQvbG9nb3V0Lw~~/"
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                    "source": "https://trafic.com/nl_BE/customer/account/login/referer/aHR0cHM6Ly90cmFmaWMuY29tL25sX0JFL2N1c3RvbWVyL2FjY291bnQvaW5kZXgv/"
                },
                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\n[ ](https://trafic.com/nl_BE/)\n\n#  Customer Login\n\n**Welkom terug! Of hier voor het eerst?**\n\nAnnuleer  Ga verder met winkelen\n\nOnze 4 beloftes:\n\n  * Laat je verwennen \n  * met een indrukwekkende selectie, exclusieve aanbiedingen en collecties \n\n  * Vertrouwen \n  * naar geteste en gevalideerde kwaliteit \n\n  * Genieten \n  * gegarandeerd de beste prijzen op de markt \n\n  * Leven \n  * een warme en prettige ervaring \n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
                "url": "https://trafic.com/nl_BE/customer/account/login/referer/aHR0cHM6Ly90cmFmaWMuY29tL25sX0JFL2N1c3RvbWVyL2FjY291bnQvaW5kZXgv/"
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                    "source": "https://trafic.com/nl_BE/customer/account/login/referer/aHR0cHM6Ly90cmFmaWMuY29tL25sX0JFL3NhbGVzL29yZGVyL2hpc3Rvcnkv/"
                },
                "page_content": "The store will not work correctly when cookies are disabled.\n\n**JavaScript lijkt te zijn uitgeschakeld in uw browser.** Voor de beste\ngebruikerservaring, zorg ervoor dat javascript ingeschakeld is voor uw\nbrowser.\n\n_ONZE[ **KLANTENSERVICE** ](https://support-clients.trafic.com/hc/nl-be) _\n\n_**[ ONZE FOLDER ](/nl_BE/folders) ** VAN DE WEEK _\n\n_**** [ **LEVERING AAN HUIS** ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage3)\nOF IN THE WINKEL _\n\n_**[ GRATIS OPHALEN ](https://support-clients.trafic.com/hc/nl-\nbe/articles/7316116790685-Wat-zijn-de-\nverzendkosten?_gl=1%2A1rv8smv%2A_gcl_aw%2AR0NMLjE3MTkzODgxMTAuQ2p3S0NBanczdWVpQmhCbUVpd0E0QmhzcEcyQkRvUTdOcEFDT3RYRW5aR2JLNWM4aDg4QmRmUlF4cmdpMkFPSVQtdzFjeUxCVG9kNkpob0N1TzhRQXZEX0J3RQ..%2A_gcl_au%2AOTIwMDgwNjg5LjE3MTkzMjEzMzI.%2A_ga%2AMTExMzgxNTE4Ni4xNjgzNjM2OTI4%2A_ga_2ZF1P36PSW%2AMTcxOTM4NzM5MS4xNy4xLjE3MTkzODgyOTcuNTIuMC4w&utm_content=Avantage4)\n** BIJ **[ MEER DAN 80 WINKELS ](/nl_BE/magasins) ** _\n\n[ ](https://trafic.com/nl_BE/)\n\n#  Customer Login\n\n**Welkom terug! Of hier voor het eerst?**\n\nAnnuleer  Ga verder met winkelen\n\nOnze 4 beloftes:\n\n  * Laat je verwennen \n  * met een indrukwekkende selectie, exclusieve aanbiedingen en collecties \n\n  * Vertrouwen \n  * naar geteste en gevalideerde kwaliteit \n\n  * Genieten \n  * gegarandeerd de beste prijzen op de markt \n\n  * Leven \n  * een warme en prettige ervaring \n\nBetaal veilig en snel met  via Mollie\n\nTrafic \u00a9\n\n| [ Terms of Sales Trafic.com ](https://trafic.com/nl_BE/conditions-generales)\n\n[ E-commerce ](https://www.studioemma.com \"Een e-commerce project door Studio\nEmma\")\n\n",
                "url": "https://trafic.com/nl_BE/customer/account/login/referer/aHR0cHM6Ly90cmFmaWMuY29tL25sX0JFL3NhbGVzL29yZGVyL2hpc3Rvcnkv/"
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            "url": "https://trafic.com/nl_BE/customer/account/login/referer/aHR0cHM6Ly90cmFmaWMuY29tL25sX0JFL3NhbGVzL29yZGVyL2hpc3Rvcnkv/"
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                    "origin": "public",
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                    "resource_type": "webpage",
                    "source": "https://www.sciencedirect.com/science/article/pii/S109095162100033X"
                },
                "page_content": "Skip to main content\n\n#  Are you a robot?\n\nPlease confirm you are a human by completing the captcha challenge below.\n\nEnable JavaScript and cookies to continue\n\n  * **Reference number:** 9355f424be9503f1 \n  * **IP Address:** 34.96.35.73 \n  *   * \n\n[ ](https://www.elsevier.com/)\n\n  * [ About ScienceDirect  ](https://www.elsevier.com/solutions/sciencedirect)\n  * [ Remote access  ](/user/institution/login?targetURL=%2F)\n  * [ Shopping cart  ](https://science-direct-checkout.staging.ecommerce.elsevier.com/?)\n  * [ Advertise  ](https://www.elsmediakits.com)\n  * [ Contact and support  ](https://service.elsevier.com/app/contact/supporthub/sciencedirect/)\n  * [ Terms and conditions  ](https://www.elsevier.com/legal/elsevier-website-terms-and-conditions)\n  * [ Privacy policy  ](https://www.elsevier.com/legal/privacy-policy)\n\nCookies are used by this site.\n\nAll content on this site: Copyright \u00a9 2024 Elsevier B.V., its licensors, and\ncontributors. All rights are reserved, including those for text and data\nmining, AI training, and similar technologies. For all open access content,\nthe relevant licensing terms apply.\n\n[ ](https://www.relx.com/)\n\n",
                "url": "https://www.sciencedirect.com/science/article/pii/S109095162100033X"
            },
            "reason": "This is a scientific article that discusses supply chain resilience, which is relevant to the value chain concept. However, it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' activities value chain",
            "summary": "This is a scientific article that discusses supply chain resilience.",
            "url": "https://www.sciencedirect.com/science/article/pii/S109095162100033X"
        },
        {
            "content": {
                "metadata": {
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                    "resource_type": "webpage",
                    "source": "https://www.mightybytes.com/blog/scope-3-emissions-in-your-digital-supply-chain/"
                },
                "page_content": "#  Blog\n\n#  Scope 3 Emissions in Your Digital Supply Chain\n\nPosted by [ Tim Frick ](https://www.mightybytes.com/blog/author/timfrick/\n\"Posts by Tim Frick\") in [ Business Strategy\n](https://www.mightybytes.com/blog/category/business-strategy/) , [\nSustainability ](https://www.mightybytes.com/blog/category/business-\nstrategy/sustainability-business-strategy/) tagged with [ Corporate Digital\nResponsibility ](https://www.mightybytes.com/blog/tag/corporate-digital-\nresponsibility/) , [ Sustainable Web Design\n](https://www.mightybytes.com/blog/tag/sustainablewebdesign/)  \nLast Modified: 12.05.2023\n\nIn this post, we cover the role Scope 3 emissions in your digital supply chain\nplay in creating meaningful climate impact. We also share five ways to address\nthem.\n\nPrioritizing Scope 3 emissions\u2014those that come from supply chains and use of\nthird party products and services\u2014is challenging for most organizations. These\nemissions are typically out of an organization\u2019s direct control, making them\nthe hardest to track and reduce.\n\nHowever, Scope 3 emissions also make up the majority of an organization\u2019s\ntotal emissions footprint\u2014more than 90% by some estimates. Also, recent\ndevelopments indicate that taking action on Scope 3 emissions could transition\nfrom optional to mandatory for many businesses in the near future. Is your\norganization ready?\n\nTo better understand the challenge ahead, let\u2019s explore why tracking and\nreducing Scope 3 emissions is so complicated, yet also so important. For the\npurpose of this post, we\u2019ll focus on Scope 3 emissions in marketing and ad\ntech. However, the situation is similar across industries.\n\n[ chiefmartec ](https://chiefmartec.com/) creates an annual list of over\n11,000 technology tools available to marketers.\n\n##  Your Digital Supply Chain\n\nAn organization\u2019s supply chain includes the vendors, partners, and suppliers\nwithin its [ business ecosystem\n](https://www.mightybytes.com/blog/stakeholder-mapping/) . These partners are\ncritical to the organization\u2019s ability to successfully conduct business.\n\nSimilarly, digital is ubiquitous in most organizations. Your [ _digital_\nsupply chain ](https://www.mightybytes.com/blog/how-to-improve-your-digital-\nsupply-chain/) consists of the third-party digital products and services you\nuse to run and manage campaigns, profiles, online programs, and so on.\nMarketing technology alone includes more than 10,000 tools and platforms (see\npic above), most of which are offered as software-as-a-service (SaaS)\nsolutions.\n\nHowever, lists like the one above don\u2019t typically include a company\u2019s\nenvironmental claims or commitments to renewable energy. Also, many of these\ncompanies don\u2019t feature [ public-facing climate strategies\n](https://www.mightybytes.com/blog/net-zero-digital-business/) or [\nenvironmental claims ](https://www.mightybytes.com/blog/were-declaring-a-\nclimate-emergency/) on their websites either.\n\nOrganizations looking to partner with values-aligned vendors to reduce Scope 3\nemissions in their digital supply chains will need to dig deeper. Purpose-\ndriven marketers and business leaders have their work cut out for them in this\nregard.\n\nThe Greenhouse Gas Protocol breaks an organization\u2019s emissions into three\ncategories or \u2018scopes\u2019. Image: GHG Protocol\n\n##  Understanding Emissions Scopes\n\n> Every five weeks brings us one percent closer to the Paris Agreement\u2019s 2030\n> target of reducing global emissions by 45 percent, so the time for decisive\n> action really is upon us.\n>\n> \u2014 James Butcher, [ _Most Businesses Don\u2019t Understand Scope 3 Emissions \u2014\n> Here\u2019s Why_ ](https://sustainablebrands.com/read/supply-chain/why-most-\n> businesses-don-t-understand-scope-3/)\n\nThe [ Greenhouse Gas (GHG) Protocol ](https://ghgprotocol.org/) is the world\u2019s\nmost widely used greenhouse gas accounting standard. It breaks emissions into\nthree types or \u2018scopes\u2019:\n\n  1. **Scope 1:** direct emissions associated with emissions sources that are owned or otherwise controlled by an organization \n  2. **Scope 2:** indirect emissions associated with electricity used by an organization \n  3. **Scope 3:** upstream and downstream emissions associated with an organization\u2019s value chain \n\nUnder the GHG protocol, organizations must identify the boundaries of their\nemissions impact and come up with a reduction and mitigation plan.\n\nFor [ digital emissions ](https://www.mightybytes.com/blog/where-do-digital-\nemissions-come-from/) , Scopes 1 and 2 are relatively straightforward. To\nlearn more about how these impact digital businesses, check out our post [\n_What is \u2018Net Zero\u2019 for a Digital Business?_\n](https://www.mightybytes.com/blog/net-zero-digital-business/)\n\nScope 3 is more complicated. It is also most relevant to addressing your [\ndigital carbon footprint ](https://www.mightybytes.com/blog/whos-responsible-\nfor-your-digital-carbon-footprint/) . Here\u2019s how.\n\n##  Scope 3 Emissions\n\n> The Scope 3 Standard is the only internationally accepted method for\n> companies to account for these types of value chain emissions. It represents\n> emissions from 15 categories of Scope 3 activities, both upstream and\n> downstream of their operations. The Scope 3 framework also supports\n> strategies to partner with suppliers and customers to address climate\n> impacts throughout the value chain.\n>\n> \u2014 Greenhouse Gas Protocol, [ _Corporate Value Chain (Scope 3) Accounting and\n> Reporting Standard_ ](https://ghgprotocol.org/standards/scope-3-standard)\n\nIn addition to [ organizational and product boundaries\n](https://www.mightybytes.com/blog/whos-responsible-for-your-digital-carbon-\nfootprint/#definingboundaries) , Scope 3 emissions are also broken down into\ntwo focus areas\u2014upstream and downstream activities. There are a total of\nfifteen categories that fall under a comprehensive Scope 3 emissions\ninventory.\n\n###  Upstream vs. Downstream Emissions\n\nScope 3 includes activities related to purchased goods and services, including\ntheir use and disposal. Herein lies our best chance to understand and reduce\nemissions associated with digital products and services.\n\n####  Upstream Activities\n\nUpstream emissions occur during the creation, production, and manufacturing of\nproducts or services that an organization purchases.\n\n  1. **Purchased goods and services:** extraction, production, and transportation of goods and services purchased or acquired by the company \n  2. **Capital goods:** extraction, production, and transportation of capital goods purchased or acquired by the company \n  3. **Fuel and energy-related activities:** extraction, production, and transportation of fuels and energy purchased or acquired by the company which are not already accounted for in scope 1 or scope 2 \n  4. **Upstream transportation and distribution:** transportation and distribution of products purchased by the company, as well as other transportation and distribution services like inbound logistics, outbound logistics, and transpiration between company facilities \n  5. **Waste generated in operations:** disposal and treatment of waste generated in the company\u2019s operations, in facilities not owned or controlled by the company \n  6. **Business travel:** transportation of employees for business-related activities in vehicles not owned or operated by the company \n  7. **Employee commuting:** transportation of employees between their homes and their worksites in vehicles not owned or operated by the company \n  8. **Leased assets:** operation of assets leased by the company and not included in Scope 1 and Scope 2 \n\n####  Downstream Activities\n\nDownstream activities include emissions generated from the use or disposal of\nan organization\u2019s products or services.\n\n  9. **Transportation and distribution:** transportation and distribution of products sold by the company between the company\u2019s operations and the end consumer \n  10. **Processing of sold products:** processing of intermediate products sold by downstream companies \n  11. **Use of sold products:** end use of goods and services sold by the company \n  12. **End-of-life treatment of sold products:** waste disposal and treatment of products sold by the company, at the end of the products\u2019 lives \n  13. **Leased assets:** operation of assets owned by the company and leased to other entities \n  14. **Franchises:** operation of franchises in the reporting year, not included in scope 1 and scope2 \n  15. **Investments:** operation of investments, including equity and debt investments and project finance \n\n###  Examples of Scope 3 Emissions in Your Digital Supply Chain\n\n> When it comes to information and data, we have been sold the lie that it\u2019s\n> all in the Cloud, that it\u2019s ethereal and immaterial. Digital is physical.\n> Storing the current amount of data we have requires about 70 million\n> servers. Each server caused between one and two tons of CO2 to manufacture,\n> before we even consider the massive quantities of energy to run them, and\n> the even more massive quantities of water to cool them.\n>\n> \u2014 Gerry McGovern, [ _99% of Data Has Been Produced in the Last Ten Years_\n> ](https://www.linkedin.com/pulse/99-data-has-been-produced-last-ten-years-\n> gerry-mcgovern/)\n\nFor organizations looking to reduce their digital carbon footprint and create\nan impactful climate strategy that includes digital products and services, two\nof the 15 categories above are most relevant to Scope 3 emissions:\n\n  1. **Purchased Goods and Services** (Upstream Activities Category 1) \n  2. **Use of Products Sold** (Downstream Activities Category 11) \n\nWith that being said, good [ data disposal strategies\n](https://www.mightybytes.com/blog/what-is-your-data-disposal-strategy/) are\nalso part of an overall more [ sustainable data strategy\n](https://www.mightybytes.com/blog/design-a-sustainable-data-strategy/) .\nCategory 12 above\u2014end of life treatment of sold products\u2014could be relevant as\nwell, even more so if [ hardware and e-waste\n](https://www.mightybytes.com/blog/environmental-digital-responsibility/) are\ninvolved.\n\nIn other words, if you hired an agency or used a service like Wix or\nSquarespace to build your website (upstream), then offer ecommerce or\nsubscription services (downstream) via that website, emissions associated with\nthese activities are your responsibility.\n\nHowever, tracking, measuring, and reducing these emissions over time can\nquickly get tricky.\n\n###  The Elephant in the Scope 3 Emissions Room\n\nThe reality is that emissions from third-party digital products and services\nare very difficult to track. Plus, for many organizations, other emissions\nsources\u2014like those from transportation or travel, for instance\u2014might\nrightfully take higher priority. However, for digital businesses\u2014such as tech\nstartups, advertising or marketing agencies, online advocacy firms, and so\non\u2014Scope 3 emissions are critical to taking meaningful climate action.\n\nTo that end, here\u2019s why getting useful emissions or energy data for digital\nproducts and services isn\u2019t easy:\n\n  * **Optional reporting:** Most providers aren\u2019t currently required to provide this information. Scope 3 emissions reporting is currently considered optional, though this [ will shift to mandatory ](https://www.eco-business.com/news/issb-votes-to-make-scope-3-emissions-reporting-mandatory/) in the near future. \n  * **Unclear guidance:** Governing bodies haven\u2019t yet made explicit recommendations about how best to address digital emissions beyond hardware providers. \n  * **Industry inaction:** Marketing and ad tech have been slow to address emissions-related issues in their industry\u2014unsurprising since this is at odds with current growth-based business models. \n  * **Unclear methodologies:** Broad consensus does not exist on the best way to track and measure digital emissions. \n  * **Lack of understanding:** Finally, many people don\u2019t know [ how to get started ](https://www.mightybytes.com/blog/digital-sustainability-how-to-get-started-today/) with digital sustainability efforts, or they don\u2019t care, which leads to inaction, especially if they are in leadership roles. \n\nLet\u2019s explore this landscape in a bit more detail.\n\n###  Third-Party Digital Marketing Technology\n\n> Nearly all websites use at least one third party, and nearly half of all\n> requests are third-party requests.\n>\n> \u2014 HTTP Archive, Web Almanac 2022, [ _Third Parties_\n> ](https://almanac.httparchive.org/en/2022/third-parties)\n\nMarketing technology services or third-party scripts often operate in the\nbackground, managing website or campaign functions and tracking goal\nperformance for important metrics. Because of this, it\u2019s easy to forget that\neach of these tools play a role in your organization\u2019s Scope 3 emissions.\n\n####  Digital Marketing Platforms\n\nHere are just a few examples of common digital marketing tools that can impact\nyour Scope 3 emissions:\n\n  * **Advertising management platforms:** Google Ads, Outbrain, Bing Ads, AdRoll, and others used to manage pay-per-click (PPC) advertising campaigns; also includes common social media advertising: Facebook, LinkedIn, Twitter, etc. \n  * **Social media management tools:** Hootsuite, SproutSocial, Buffer, and others used to manage content and interactions on social media \n  * **Email marketing platforms:** Mailchimp, Constant Contact, GetResponse, and others used to manage email campaigns \n  * **Marketing automation:** platforms like InfusionSoft, Hubspot, Drip, or others used to automate common marketing tasks \n  * **Measurement and reporting:** Google Analytics, Semrush, Kissmetrics, and others used to measure and report on digital marketing performance \n\n####  Third Party Website Scripts\n\nSimilarly, nearly all websites make use of third-party scripts, widgets, or\nplugins to expand functionality and provide intelligence data. In fact, the\naverage website homepage utilizes between 40 and 60 third-party domain calls\njust to load a single page.\n\nCommon sources for these emissions categories include:\n\n  * **Media assets:** fonts, images, audio, video, and other third-party assets used to effectively display content \n  * **Content:** affiliate-tracking tools used by publishers \n  * **CMS:** hosted content management systems like WordPress, Wix, Squarespace, etc. \n  * **CDNs:** content delivery networks used to host common shared libraries \n  * **Marketing:** tools used for promotional pop-ups, newsletter subscriptions, chat features, and so on \n  * **Social:** widgets used to display social features such as sharing, like counts, etc. \n  * **Consent:** scripts used to manage user consent for [ privacy purposes ](https://www.mightybytes.com/blog/data-privacy-checklist-free-download/)\n\nThese tools cut costs for clients and help designers and developers save time\non common digital product development tasks. However, this convenience comes\nat a performance and emissions cost.\n\nWhile it is each individual vendor\u2019s responsibility to mitigate emissions\nassociated with the creation and management of these products and services, it\nis [ your organization\u2019s responsibility\n](https://www.mightybytes.com/blog/whos-responsible-for-your-digital-carbon-\nfootprint/) to address those associated with your purchase and use of them.\n\nHowever, for the reasons mentioned above, meaningful usage data from these\nthird-party providers is hard to come by. So, what can you do?\n\nSetting meaningful reduction targets for Scope 3 emissions requires us to\nuntangle often complex digital supply chains. Image: GHG Protocol\n\n##  Setting Scope 3 Emissions Reduction Targets for Digital Supply Chains\n\nTo set clear emissions reduction targets, you need to understand your\nbaseline. Here are two approaches you can take:\n\n  1. **Short term:** Use existing tools to get a rough estimate of your digital emissions footprint. \n  2. **Long term:** Run a full [ digital life cycle assessment ](https://www.mightybytes.com/blog/digital-life-cycle-assessment/) to better understand your entire tech ecosystem\u2019s footprint. \n\nYou also need to find productive partners who can help you address what you\nlearn in assessing your baseline. Let\u2019s look at each of these in more detail.\n\n###  Short Term: Automated Tools for Calculating Emissions\n\nUsing tools like the [ Sustainable Web Design\n](https://sustainablewebdesign.org/) model for [ calculating digital emissions\n](https://sustainablewebdesign.org/calculating-digital-emissions/) , it is\npossible to broadly estimate emissions based on a variety of [ known internet\nsystem segments ](https://www.mightybytes.com/blog/where-do-digital-emissions-\ncome-from/) .\n\nHowever, automated tools like [ Website Carbon\n](https://www.websitecarbon.com/) , [ CO2.js\n](https://www.thegreenwebfoundation.org/co2-js/) , [ EcoPing\n](https://ecoping.earth/) , or our own [ Ecograder ](https://ecograder.com/)\ncan only provide insights based on the data available to them. Until third-\nparty providers can make energy usage available in publicly available data\nsets or via open APIs, we have to rely on some assumptions. This can undermine\nthe accuracy these tools provide in their estimates.\n\nIn the absence of meaningful climate or energy data directly from providers,\nyou can also use a tool like Fershad Irani\u2019s [ _Are My Third Parties Green_\n](https://aremythirdpartiesgreen.com/) to help fill in gaps. It cross-\nreferences a page\u2019s server calls with a known list of third-party providers\nlike those listed above and provides information for:\n\n  * Green hosting \n  * Effective caching \n  * Estimated emissions \n\nTools like these can help you set a baseline to improve upon. They offer a\ngreat way to get started quickly.\n\n###  Long Term: Digital Life Cycle Assessment (LCA)\n\nA more ambitious but also potentially more effective approach to understanding\nthe environmental impact of digital products and services is to run a digital\nLife Cycle Assessment. An LCA addresses potential environmental impacts of a\nproduct or service.\n\nThe LCA process typically includes four stages:\n\n  1. **Goal/scope definition:** defining system boundaries and describing the purpose and decision-making process of the assessment \n  2. **Life cycle inventory:** collecting data on relevant inputs and outputs of the system being studied \n  3. **Life cycle impact assessment:** evaluating the importance of inventory environmental impact indicators \n  4. **Insights and interpretation:** analyzing results to provide recommendations that drive decision-making (per the defined scope) \n\nIn addition to emissions data, a full LCA might also include other\nenvironmental criteria, such as water use, air or soil pollution, resource\ndepletion, biodiversity, and toxicity to humans or ecosystems. For digital\nproducts and services, this typically includes devices, networks, and data\ncenters. However, it can also include the upstream and downstream activities\ndescribed earlier in this post.\n\nDepending on the system boundaries and goals defined, a digital LCA can help\nyou better understand which third-party providers you might engage to\nmeaningfully address Scope 3 emissions.\n\n###  The Power of Productive Partnerships\n\n> Every single agency sponsor of Ad Net Zero works with fossil fuel clients \u2013\n> the companies responsible for 75% of carbon pollution. You cannot \u2018get your\n> own house in order\u2019 while working with the people wrecking the house.\n>\n> \u2014 Clean Creatives, [ _Ad Net Zero_\n> ](https://www.instagram.com/p/CoXSmwsOqNF/) on Instagram\n\nIf we\u2019ve learned one thing in our many years as a [ Certified B Corp\n](https://www.mightybytes.com/b-corporation/) , it\u2019s that who you choose to do\nbusiness with matters. When it comes to Scope 3 emissions, the importance of\nstrategic partnerships cannot be overstated.\n\nIn fact, strong partnerships are the only way we will successfully address\nScope 3 emissions on a scale large enough to make a real difference. With\nsources for these emissions being out of your organization\u2019s direct control,\nit\u2019s more important than ever to [ collaborate on creative solutions\n](https://www.mightybytes.com/blog/7-tips-for-better-creative-collaboration/)\ndriven by collective impact around a shared vision.\n\n##  Five Ways to Address Your Scope 3 Emissions\n\nConsider the five steps below to make a difference in your organization\u2019s\nScope 3 emissions.\n\n  1. **Set a baseline:** Understand where you\u2019re at now to make this a priority within your organization. \n  2. **Build capacity:** Measure and reduce all three emissions scopes over time. Track your progress. Enlist coworkers and suppliers in these efforts. \n  3. **Partnerships:** Create relationships with third-party providers to devise mutually beneficial climate strategies. \n  4. **Diversify supply chains:** If partnering doesn\u2019t work, pressure third-party providers to consider switching and [ look for vendors more aligned with your values ](https://www.mightybytes.com/blog/reliable-green-web-hosting/) . \n  5. **Advocacy:** Support public policies that make Scope 3 emissions reporting and reduction mandatory for all organizations. \n\nWhile the steps above won\u2019t happen overnight, they do provide a clear roadmap\nfor your organization\u2014and the partners in its digital supply chain\u2014to build\ncapacity and effectively address emissions reduction targets over time.\n\n##  Taking Action in Your Digital Supply Chain\n\n> Scope 3 emissions are the most difficult to grapple with but that\u2019s where\n> the action has to happen \u2013 that\u2019s also where marketing and advertising plays\n> a powerful role. Not only in helping to drive solution-focused\n> values/mindsets, but also in driving the success of critical brand\n> initiatives that rely on customers to engage with new infrastructures (such\n> as circular economy calls to action/process).\n>\n> \u2014 Laura Costello, Little Black Book, [ _What Does the IPCC Report Mean for\n> Brands and Agencies?_ ](https://www.lbbonline.com/news/what-does-the-ipcc-\n> report-mean-for-brands-and-agencies)\n\nIf you\u2019re struggling to understand Scope 3 emissions, you\u2019re not alone. It\u2019s a\ncomplicated topic in an emerging field of knowledge. Organizations of every\nshape and size, in every industry and sector, will struggle with how best to\nreduce their Scope 3 climate impact. This is especially true when it comes to\nemissions outside our direct control, such as those in our supply chains\n(digital or otherwise).\n\nHowever, by sharing knowledge and collaborating on solutions, we can build\ncollective capacity to address these challenges. To that end, we\u2019re always\nwilling to answer questions and learn from others. Please feel free to [ reach\nout ](https://www.mightybytes.com/contact-us/) . We would love to chat.\n\n###  Digital Carbon Ratings, now in Ecograder.\n\nUnderstand how your website stacks up against industry carbon averages with\nthis new feature.\n\n[ Try Ecograder ](https://ecograder.com/)\n\n**[ Tim Frick ](https://www.mightybytes.com/teammember/tim-frick/) ** founded\nMightybytes in 1998 to help mission-driven organizations solve problems,\namplify their impact, and meet business and marketing goals. He is a seasoned\nspeaker, facilitator, and the author of four books, including [ _Designing for\nSustainability: A Guide to Building Greener Digital Products and Services_\n](https://www.mightybytes.com/blog/designing-for-sustainability-book/) from\nO'Reilly Media. [ Connect with Tim on LinkedIn\n](https://www.linkedin.com/in/timfrick/) .\n\n[ ](https://www.mightybytes.com/b-corporation/)\n\n[ ](https://www.mightybytes.com/blog/mightybytes-is-an-lgbt-certified-\nbusiness-enterprise/)\n\n[ ](https://cleancreatives.org/creatives)\n\n****\n\n1725 West Balmoral Ave.  \nChicago, IL 60640  \n773.561.7529\n\n\u00a9 2025 Mightybytes\n\n****\n\n[ Proud to be a Certified B Corp ](/b-corporation/)  \n[ Committed to Sustainability ](/sustainability/)  \n[ Creating Social Impact ](https://www.mightybytes.com/positive-social-\nimpact/)  \n[ Our Code of Ethics ](https://www.mightybytes.com/code-of-ethics/)  \n[ Our Privacy Policy ](/privacy-policy-2/)\n\n****\n\n[ Contact Us ](/contact-us)  \n[ Press ](/press/)  \n[ Careers ](/careers/)\n\n****\n\n[ Ecograder \u00ae ](http://ecograder.com/)  \n[ Sustainable Web Design ](http://sustainablewebdesign.org/)\n\n  * [ LinkedIn ](https://www.linkedin.com/company/mightybytes-inc._2)\n\n",
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                    "source": "https://nmfta.org/trucking-and-supply-chain-conferences/"
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                "page_content": "Preparing for the NMFC changes set for July 19, 2025? Access resources, learn\nmore at www.nmfcchanges.com  \nNEW for Shippers, 3PLS\u2014NMFC Item Lookup Tool: www.getclassification.com\n\nSkip to content\n\n#  The Best Trucking & Supply Chain Conferences in 2025\n\nThe trucking industry continues to be incredibly competitive and complex, with\nsuccess in the field hinging on industry leaders' abilities to improve supply\nchain efficiency and overcome challenges. Logistics experts dedicate time and\neffort to improving inbound and outbound supply chains.\n\nSupply chain and trucking conferences exist mainly to provide a healthy\ninternational supply chain for a thriving world economy and a more prosperous\nglobal community. The transportation industry organizes hundreds of annual\ntrucking conferences and expos catered to all interests.\n\n2025 is the perfect time to seek networking opportunities, monitor industry\ntrends, check new equipment and attend educational sessions on managing truck\nfleets better.\n\n##  Why You Should Attend Industry Conferences\n\nAttending interactive exhibits in the trucking and logistics field is the\nideal opportunity for fleet managers to meet trucking industry leaders and\ngain insight into their world. This segment explores reasons to attend the\nnext trucking annual conference.\n\n  * Education and training: The annual events' educational sessions help fleet managers enhance their skills, learn about cutting-edge tools, improve their supply chain management knowledge and optimize their operations. \n  * Exposure to new technologies: Trucking conferences feature an excellent opportunity to explore cybersecurity features, software, hardware and equipment to streamline fleet operations, reduce cost and improve efficiency. \n  * Network opportunities: Trucking managers come together from different logistics and supply chain sectors, allowing for exclusive networking opportunities and strengthening professional relationships and opportunities. \n  * Regulatory updates: The trucking and transportation industry is heavily regulated. These annual conferences provide fleet managers with regulatory updates and compliance best practices that might impact businesses. \n\n##  Who Should Attend?\n\nVarious businesses and professionals in the trucking and shipping industry can\nbenefit from attending trucking conferences. They include:\n\n  * Trucking companies \n  * Manufacturers and shippers \n  * Consultants and advisers \n  * Freight brokers and agents \n  * Supply chain managers \n  * Government and regulatory bodies \n  * Logistics software providers \n  * Academics and researchers \n\nAttending trucking conferences provides valuable insight for education\nsessions, business growth and networking, making them beneficial for many\nbusinesses and professionals in the industry.\n\n##  The Best U.S. Conferences to Attend in 2025\n\nNumerous trucking conferences occur across various industries in the United\nStates annually. 2025 marks some of the best annual events, with a diverse\nselection across different fields to consider attending.\n\n###  RILA LINK | February 16-19 | Orlando, FL \n\n[ The Retail Supply Chain Conference\n](https://www.rila.org/conferences/retail-supply-chain-conference) takes place\nFebruary 16-19 in Orlando, FL, making it a great chance to learn more from\nknowledgeable retail supply chain executives. Multiple rates are available for\nmembers and non-members, including early bird individual rates, standard\nindividual rates, on-site individual rates and prices for teams of seven or\nmore.\n\n###  NMFTA Spring Membership Meeting | March 2-4 | Clearwater Beach, FL \n\nClearwater Beach, FL is home to the [ 2025 NMFTA Spring Membership Meeting\n](https://nmfta.org/nmfta-event/nmfta-2025-spring-meeting/) from March 2-4.\nEnjoy meals, meetings, activities, and more over 3 days. It takes place at the\nSheraton Sand Key Resort, so there's no shortage of ways to stay busy, even\nduring the off hours.\n\n###  TPM25 | March 2-5 | Long Beach, CA \n\n[ TPM25 ](https://events.joc.com/tpm) is a global ocean container supply chain\nconference happening from March 2-5 in Long Beach, CA. Incredible speakers\ninclude James Caradonna, the Executive Vice President of Spedag\nAmericas.;Katie Farmer, the President and CEO of BNSF Railway; and Lars\nJenson, the CEO and Partner of Vespucci Maritime.\n\n###  Food Shippers of America | March 2-5 | Palm Desert, CA \n\nThe [ 2025 Food Shippers of America Conference\n](https://www.foodshippers.org/agenda) will occur at the J.W. Marriott Desert\nSprings in Palm Desert, CA, from March 2-5. Special room rates are available\nfor attendees staying on site at a first come, first serve basis.\n\n###  ATA Technology and Maintenance Council - TMC Annual Meeting & Transportation Technology Exhibition | March 10-13 | Nashville, TN \n\nThe [ TMC Annual Meeting & Transportation Technology Exhibition\n](https://tmcannual.trucking.org/) takes place in Nashville, TN from March\n10-13 at the Music City Center. There are many exhibits, forums, study\nsessions, networking events, and more to attend, making it a fantastic\nopportunity to obtain a wealth of knowledge and meet others in the industry.\n\n###  TCA Annual Convention | March 15-18 | Phoenix, AZ \n\n[ The TCA Annual Convention ](https://www.tcaconvention.com/) will take place\nMarch 15-18 in Phoenix, AZ. Over a thousand attendees will fill the Phoenix\nConvention Center, where there are plenty of additional activities to do\nbefore and after the event.\n\n###  TLC 51st Annual Conference | March 16-19, 2025 | Houston, TX \n\nThe Transportation and Logistics Council will host its [ 51st annual\nconference ](https://tlcouncil.org/2025-annual-conference-program/) where\npanelists will focus on the practical considerations \u2013 what shippers, carriers\nand brokers need to know and to adapt to the 2025 NMFC changes\n\n###  [ **Transportation & Logistics Council (T&LC) Annual Conference | March 19 | Houston, Texas ** ](https://tlcouncil.org/2025-annual-conference-program/)\n\nKeith Peterson, director of operations for NMFTA, will address T&LC attendees\nduring the _Update \u2013 The New NMFC and LTL Pricing_ panel discussion set for\n8:30 am CT.\n\n###  MODEX | March 17-20 | Chicago, IL \n\n[ MODEX 2025 ](https://www.modexshow.com/) takes place at the McCormick Place\nCovention Center in Chicago, IL. This conference features 50,000 qualified\nbuyers to help supply chain industry professionals find the most effective and\nefficient solutions to critical challenges.\n\n###\n\n###  PromAT | March 17 - 20 | Chicago, IL \n\nAt [ PROMAT 2025 ](https://www.promatshow.com/) , 1,200 of the world\u2019s leading\nmanufacturing and supply chain solution providers under one roof, ProMat 2025\nputs you face\u2011to-face with the people, technologies and game-changing ideas\nthat are shaping this industry\u2019s future.\n\n###\n\n###  Mid America Truck Show | March 27-29 | Louisville, KY \n\nTens of thousands of attendees are expected to fill the more than 1 million\nsquare feet of the Kentucky Expo Center in Louisville for the [ Mid-America\nTrucking Show ](https://truckingshow.com/) from March 27-29. There are more\nthan 870 exhibitors and dozens of events, making it the ideal chance to learn\nabout all the latest trends in the industry.\n\n###\n\n###  TIA Capital Ideas Conference | April 9-12 | San Antonio, TX \n\nThe [ 2025 TIA Capital Ideas Conference\n](https://web.cvent.com/event/a116b827-1c33-4aee-b613-d74bae9471bb/websitePage:fe4fb1cb-f5ba-4897-a32c-606d09490169)\noccurs at the five-star JW Marriott San Antonio Hill Country Resort & Spa in\nSan Antonio, TX, from April 9-12. Registration for this third-party logistics\nevent is already open. In addition to obtaining plenty of information, there\nwill be pool and a golf club.\n\n###\n\n###  National Tank Truck Carriers (NTTC) | April 22-24 | Tampa, FL \n\nIndividuals involved in the tank truck industry will want to attend the [ 2025\nNational Tank Truck Carriers\n](https://www.tanktruck.org/Public/Public/Events/Annual-\nConference/NTTC%20Annual%20Conference.aspx) conference in Tampa, FL from April\n22-24. It takes place at the JW Marriott Tampa Water Street.\n\n###\n\n###  NMFTA W&R Meeting | April 23-24 | Las Vegas, NV \n\nThe spring [ National Motor Freight Traffic Association, Inc., Weighing and\nResearch Advisory Council Meeting ](https://nmfta.org/nmfta-event/invitation-\nonly-spring-2025-weighing-and-research-advisory-council-meeting/) takes place\non April 23 and 24 in Las Vegas, NV, but it\u2019s by invitation only. It happens\nat the Horseshoe Las Vegas, but to receive the group rate, attendees need to\nbook by March 24.\n\n###\n\n###  ATA Safety Management Council & TSC Safety, Security, & Human Resources National Conference | April 23-25 | Louisville, KY \n\nThe [ ATA Safety, Security & Human Resources National Conference & Exhibition\n](https://sshr.trucking.org/) takes place in Louisville, KY, from April 23-25\nat the Louisville Marriott Downtown. Hundreds of attendees will be there to\nlearn more about, as the name suggests, the security, safety and human\nresource aspects of the industry.\n\n###\n\n###  [ **Transportation Revenue Management Council |** April 29 | New Orleans, LA ](https://www.nacmsw.com/trmg-conferences/)\n\nNMFTA\u2019s Peterson will present during the _Navigating the 2025 NMFC Revisions:\nWhat You Need to Know_ session set for the morning of April 29, 2025.\n\n###  ATA Mid-Year Management Session | May 3-7 | Scottsdale, AZ \n\nThe [ American Trucking Association Mid-Year Management Session\n](https://www.trucking.org/ata-event-schedule) takes place at the JW Marriott\nScottsdale Camelback Inn in Scottsdale, AZ from May 3-7. Many activities are\navailable on-site, with numerous additional options nearby to do during the\noff time.\n\n###  Gartner Supply Chain Symposium | May 5-7 | Orlando, FL \n\nMay 5-7 is the [ Gartner Supply Chain Symposium/Xpo\u2122 2025 conference\n](https://www.gartner.com/en/conferences/na/supply-chain-us) in Orlando, FL.\nTopics range from fulfillment and manufacturing to planning and strategy. The\npublic sector price is $4,625; the early bird price, valid until March 8, is\n$4,950; and the standard price is $5,600.\n\n###\n\n###  National Private Truck Council (NPTC) | May 11-13 | Orlando, FL \n\nHead down to Orlando, FL, from May 11-13 for the [ NPTC 2025 conference and\nexhibition ](https://www.nptc.org/events/annual-education-management-\nconference-and-exhibition/) . You\u2019ll be able to interact with more than 1,300\nother attendees during exhibits, networking events, and more throughout the 3\ndays. Early bird registration is before March 12.\n\n###\n\n###  Home Delivery World | May 21-22 | Nashville, TN \n\nIndividuals who want to learn more about supply chains and retail logistics\nshould attend [ Home Delivery World\n](https://www.terrapinn.com/conference/home-delivery-world/index.stm) at the\nMusic City Convention Center in Nashville on May 21 and 22. More than 250\nspeakers and thousands of attendees will make their way to the event. NMFTA\nstaff will be speaking during the event on NMFC changes as well as\ncybersecurity.\n\n###\n\n###  ISM World | June 1-3 | Orlando Florida \n\nHead over to the Rosen Shingle Creek Hotel & Conference Center in Orlando, FL\nfrom June 1-3 to attend [ ISM World 2025\n](https://www.ismworld.org/events/conferences-and-events/annual-conference/) .\nAll-Access Pass includes the in-person events and the on-demand library.\nDiscounted group hotel rates may be accessible depending on availability.\n\n###\n\n###  NMFTA Summer Membership Meeting | June 1-3 | Kansas City, MO \n\nHead back to Kansas City, MO, from June 1-3 if you want to attend the [ NMFTA\nSummer Membership Meeting ](https://nmfta.org/nmfta-event/nmfta-2025-summer-\nmeeting/) that focuses on the LTL motor carrier industry. It occurs at the\nWestin Kansas City at Crown Center.\n\n###  [ **WERC** 2025 Annual Conference | June 10 | New Orleans, LA ](https://na.eventscloud.com/website/76218/)\n\nNMFTA\u2019s Keith Peterson will facilitate a peer-to-peer group discussion, _LTL\nFreight Classification and Packaging: Discover NMFC Changes Coming in 2025_ ,\nduring the conference, at 8:30 am ET on June 10.\n\n###  FreightWaves Future of Supply Chain | TBD | Atlanta, GA \n\nThe [ FreightWaves Future of Supply Chain\n](https://live.freightwaves.com/future-of-supply-chain-2024) event happens in\nAtlanta, GA, dates TBD. This conference features freight technology at the\nforefront of the industry, bringing together supply chain experts and\nprofessionals for networking and insightful demos and discussions.\n\n###\n\n###  SMC3 Connections | June 23-25 | Salt Lake City, UT \n\n[ SMC\u00b3 Connections ](https://connections.smc3.com/) takes place in 2025 Salt\nLake City, UT, from June 23-25. Hear from expert speakers in the industry and\nnetwork with other supply chain professionals.\n\n###\n\n###  ATA Litigation Center's Trucking Legal Forum | July 27-30 | Denver, CO \n\nThe [ ATA Litigation Center\u2019s Trucking Legal Forum\n](https://ataforum.trucking.org/) is a must-do event for fleet operators and\nsupply chain business owners. This conference offers valuable insight into the\nlegal and compliance concerns surrounding the trucking industry. Network with\nauthoritative experts and even claim continuing education credits.\n\n###  [ **2025 Jarrett Supply Chain Summit |** August 6-7 | North Canton, Ohio ](https://www.gojarrett.com/jarrett-2025-supply-chain-summit)\n\nNMFTA\u2019s classification team will provide insights into the evolving landscape\nof freight classification, discussing best practices for accurate\nclassification, regulatory compliance, and the impact of digitalization on the\nclassification process.\n\n###\n\n###  ATA NTDC & NSVDC | August 20-23 | Minneapolis, MN \n\nMake it a point to attend the [ 2025 ATA National Truck Driving Championships\n(NTDC) and National Step Van Driving Championships (NSVDC)\n](https://www.trucking.org/ata-event-schedule) from August 20-23. It takes\nplace at the Minneapolis Convention Center, conveniently located about 15\nminutes from the Minneapolis Airport.\n\n###\n\n###  Parcel Forum | September 8-10 | Chicago, IL \n\nIndividuals involved in Business-to-Business and Direct-to-Customer processes\nwill want to head over to Renaissance Schaumburg Convention Center for the [\n2025 Parcel Forum ](https://www.parcelforum.com/) . The event, which focuses\non the small package supply chain, takes place from September 8-10.\n\n###\n\n###  FTR Transportation  Conference | September 8-11, 2025 | Indianapolis, IN \n\nTruck Freight Day on September 9th is primarily the outlook for the truck\nfreight market with perspectives from FTR, market participants (i.e.,\ncarriers, shippers, and brokers), and other observers/analysts.\u200b\u200b [\nhttps://www.ftr  conference  .com\n](https://url.usb.m.mimecastprotect.com/s/ayplCLAVXMIqA8yuBf3SypCCE?domain=ftrconference.com\n\"https://url.usb.m.mimecastprotect.com/s/ayplCLAVXMIqA8yuBf3SypCCE?domain=ftrconference.com\")\n\n###\n\n###  ATA TMC Fall Meeting & TMCSuperTech | September 14-18 | Raleigh, NC \n\nThe annual fall meeting for [ ATA Technology & Maintenance Council\n](https://tmc.trucking.org/) offers a week-long opportunity for education and\ninsight. During the week, TMC also hosts skill-based competitions as part of\nits TMCSuperTech event. Participants in these competitions must be TMC\nTechnician Members.\n\n###\n\n###  Trimble Insight | TBD | Las Vegas, NV \n\nYou can return to Las Vegas once again to attend the [ Trimble Insight\n](https://transportation.trimble.com/insight-2023) event, dates TBD. This\nconference brings together 1500+ attendees and features thought-provoking\neducational sessions, presentations, and interactive demos and breakout\nsessions.\n\n###\n\n###  IANA Intermodal Expo | September 15-17 | Long Beach, CA \n\nThe [ IANA Intermodal Expo ](https://www.intermodal.org/intermodalexpo) occurs\nfrom September 15-17. Attendees can learn more about industry topics ranging\nfrom sustainability to staffing. There will be many experts with whom you can\ninteract and numerous attendees to meet.\n\n###\n\n###  JOC Inland Distribution | TBD | Chicago, IL \n\nThe [ Inland Distribution event ](https://events.joc.com/inland/index.html) is\na prominent conference organized by the Journal of Commerce (JOC), a leading\nsource of news and analysis for the global trade and logistics industries.\nThis event focuses on various aspects of inland transportation and logistics,\nbringing together industry professionals to discuss trends, challenges, and\nopportunities in the sector.\n\n###\n\n###  McLeod User Conference | September 21-23 | Denver, CO \n\nThe [ McLeod Software User Conference\n](https://web.cvent.com/event/b286c973-f651-45c0-af16-c95211fd745c/summary) is\na private event for McLeod customers and existing vendor partners. The event\nwill take place September 21-23 in Denver, CO. For more information, contact [\nevents@mcleodsoftware.com ](mailto:events@mcleodsoftware.com) .\n\n###\n\n###  NMFTA Fall Meeting | September 28-30 | Washington, DC \n\nHead to Washington, DC, September 28-30 for the [ NMFTA 2025 Fall Meeting\n](https://nmfta.org/nmfta-event/nmfta-2025-fall-meeting/) pertaining to the\nLTL motor carrier industry. This year\u2019s autumn meeting takes place at the\nMadison Hotel. Register by August 29 for group room rates.\n\n###\n\n###  NMFTA W&R Meeting | October 8-10 | Scottsdale, AZ \n\nThe [ 2025 Fall National Motor Freight Traffic Association, Inc. Weighing and\nResearch Advisory Council Meeting ](https://nmfta.org/nmfta-event/invitation-\nonly-fall-2025-weighing-and-research-advisory-council-meeting/) occurs October\n8-10 in Scottsdale, AZ. It\u2019s an invitation-only event at the Hilton Scottsdale\nResort & Villas.\n\n###\n\n###  Industrial Control Systems (ICS) Cyber Security Conference | TBD | Atlanta, GA \n\nThe [ Industrial Control Systems Conference\n](https://www.icscybersecurityconference.com/) offers a host of educational\ncontent related to operations, control systems, and cybersecurity in the\ntrucking industry. Specialized trainings and workshops are offered throughout\nthe event. This conference is the longest-running event focused on industrial\ncybersecurity.\n\n###\n\n###  ATA Management Conference & Exhibition | October 25-28 | San Diego, CA \n\nPack your bags to go to the San Diego Convention Center, if you want to attend\nthe [ ATA Management Conference & Exhibition ](https://www.trucking.org/ata-\nevent-schedule) from October 25-28. It\u2019s steps away from the Gaslamp District,\nalong the waterfront, a must-visit while you\u2019re in the area.\n\n###\n\n###  Freightwaves F3 | November 4-6 | Chattanooga, TN \n\nThe [ Freightwaves F3: Future of Freight Festival\n](https://live.freightwaves.com/) is a fall event you don\u2019t want to miss. It\ntakes place in Chattanooga, TN, from November 4-6. There are many local\nrestaurants and activities nearby to enjoy when you\u2019re not building\nconnections with peers and partaking in the event.\n\n###\n\n###  Women in Trucking | November 9-12 | Dallas, TX \n\nThe [ Women in Trucking Association Accelerate! Conference & Expo\n](https://www.womenintrucking.org/accelerate-conference) occurs in Dallas, TX,\nfrom November 9-12. The four-star Hilton Anatole is the site of the event,\nwhich is near numerous restaurants and activities and approximately 15 minutes\nfrom the Dallas/Fort Worth International Airport.\n\n[ Join NMFTA  ](https://nmfta.org/join)\n\n[ ](https://nmfta.org/)\n\n[ 1001 N Fairfax Street Suite 600  \nAlexandria, Virginia 22314-1798  ](https://goo.gl/maps/WHWwL5muiKybGJm38)\n\n[ (866) 411-6632 ](tel:866-411-6632)\n\n[ Join NMFTA  ](https://nmfta.org/join)\n\n[ __ ](https://www.facebook.com/NMFTA \"Facebook\") [\n](https://twitter.com/nmfta \"X \\(Twitter\\)\") [ __\n](https://www.linkedin.com/company/national-motor-freight-traffic-association-\ninc./ \"LinkedIn\") [ __ ](https://instagram.com/nmftanews) [ __\n](https://www.youtube.com/@nmftassoc \"Youtube\")\n\n\u00a9 Copyright 2025, National Motor Freight Traffic Association, Inc. All Rights\nReserved.\n\n[ A BRILLIANT DESIGN ](https://brilliantly.net)\n\n[ ](https://nmfta.org/)\n\n[ Join NMFTA ](https://nmfta.org/join)\n\n",
                "url": "https://nmfta.org/trucking-and-supply-chain-conferences/"
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                    "source": "https://www.ascm.org/learning-development/certifications-credentials/cscp/"
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                "url": "https://www.ascm.org/learning-development/certifications-credentials/cscp/"
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Our monthly data and the Cass Transportation Index\nReport provide valuable insight into freight trends as they relate to other\neconomic and supply chain indicators and the overall economy.\n\nData within the Index includes all domestic freight modes and is derived from\n36 million invoices and $36 billion in spend processed by Cass annually on\nbehalf of its client base of hundreds of large shippers. These companies\nrepresent a broad sampling of industries including consumer packaged goods,\nfood, automotive, chemical, medical/pharma, OEM, retail and heavy equipment.\nAnnual freight volume per organization ranges from $40 million to over $2\nbillion. The diversity of shippers and aggregate volume provide a\nstatistically valid representation of North American shipping activity.\n\nRead our [ monthly report, ](/freight-audit-payment/cass-transportation-\nindexes/march-2025) typically released on the 13th of the month, for analysis\nand commentary on the Cass Freight Index, the [ Cass Truckload Linehaul Index\n](/freight-audit-payment/cass-transportation-indexes/truckload-linehaul-index)\n\u00ae, and the current state of the freight market.\n\n****\n\nA simple calculation of the Cass Freight Index data (expenditures divided by\nshipments) produces another data set, Cass Inferred Freight Rates\u2122, that\nexplains the overall movement in cost per shipment.  The data set is\ndiversified among all modes, with truckload (TL) representing more than half\nof the dollars, followed by less-than-truckload (LTL), rail, parcel, and so\non.\n\n[ Download the data ](/hubfs/Cass%20Indexes%20Historical%20Data.xlsx) or [\nread the full analysis ](/freight-audit-payment/cass-transportation-\nindexes/march-2025) .\n\n###  Receive **Index updates** straight to your inbox\n\nSubscribe\n\n  * [ Download Historical Data Points (xls) ](https://www.cassinfo.com/hubfs/Cass%20Indexes%20Historical%20Data.xlsx)\n  * [ Truckload Index ](/freight-audit-payment/cass-transportation-indexes/truckload-linehaul-index)   \n  \n\n###  Receive  **Index updates** straight to your inbox\n\nSubscribe\n\n###  Subscribe to Cass Index Updates\n\n##  About The Cass Freight Indexes\n\nThe Cass shipments index is a measure of the number of intra-continental\nfreight shipments across North America, for everything from raw materials to\nfinished goods. All domestic modes are included, with truckload moves\naccounting for more than 50% of shipments and LTL about 25%.\n\nThe expenditures index measures the total dollars spent on freight\ntransportation and includes both contract and spot market rates.\n\nWith more than 10,000 subscribers, our data is relied on by everyone from\nshippers to economists and is referenced everywhere from industry media to\nnational news outlets. Typically released within two weeks of month-end, the\nindexes are one of the timeliest sources of freight market data available.\n\n###  Useful Links\n\n  * [ Download Historical Data Points (xls) ](/hubfs/Cass%20Indexes%20Historical%20Data.xlsx)\n\n##  How the Index Works\n\nThe Cass Freight Index uses January 1990 as its base month. The index is\nupdated with monthly freight expenditures and shipment volumes from the entire\nCass client base. Data represents the month in which transactions (invoices)\nare processed by Cass, not necessarily the month when the corresponding\nshipments took place. The January 1990 base point is 1.00. The Index point for\neach subsequent month represents that month\u2019s volume in relation to the\nJanuary 1990 baseline.\n\nEach month\u2019s values are adjusted to a 21-day work month and to compensate for\nnew and lost business. These measures ensure a sound basis for ongoing monthly\ncomparison.\n\n###  Ask Us a Question\n\n[ cassindex@cassinfo.com ](mailto:cassindex@cassinfo.com)\n\n[ 314-506-5500 ](tel:314-506-5932)\n\n##  Looking for Something?\n\n[ Contact Sales ](/contact-us) [ Resources ](/resources)\n\n[ ](https://www.cassinfo.com/)\n\n  * [ Login ](javascript:;)\n    * [ CassPort ](https://my.cassport.com/CISFBSYS/Login/login.asp)\n    * [ Ratemaker ](https://my.cassport.com/RateMakerSLApp/)\n    * [ ExpenseSmart Facility ](https://www.expensesmart.com/)\n    * [ Freight Claims ](https://ezclaims.cassport.com/MyEZClaimNET/LoginCass.html)\n\n**[ Freight Audit & Payment ](/freight-audit-payment) **\n\n**[ Telecom Expense Management ](https://www.cassinfo.com/telecom-expense-\nmanagement) **\n\n**[ Utility Bill Management ](/utility-bill-management) **\n\n**[ Waste Invoice Management Solutions ](/waste-expense-management) **\n\n**[ CassPay ](/casspay) **\n\n[ **Government P ayables  ** ](https://www.cassinfo.com/government-payables)\n\n**[ About Us ](/about-us) **\n\n  * [ News ](/news)\n  * [ History ](/history)\n\n**[ Resources ](/resources) **\n\n**[ Careers ](/careers) **\n\n**[ Investors ](https://cassinfo.gcs-web.com/) **\n\n[ **Contact Us** ](/contact-us)\n\n[ ](https://www.linkedin.com/company/cass-information-systems/) [\n](https://www.facebook.com/cassinfo/)\n\n\u00a9 Copyright 2023 Cass Information Systems, Inc.\n\n[ Terms of Use ](/corporate/terms-of-use-policy) | [ Privacy Policy ](/corporate/privacy-policy) | [ Copyrights ](/corporate/copyrights-trademarks) | [ Accessibility ](/corporate/accessibility)\n\n",
                "url": "https://www.cassinfo.com/freight-audit-payment/cass-transportation-indexes/cass-freight-index"
            },
            "reason": "This page provides freight index information, which is relevant to understanding transportation costs in a value chain. However, it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page provides freight index information.",
            "url": "https://www.cassinfo.com/freight-audit-payment/cass-transportation-indexes/cass-freight-index"
        },
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                    "source": "https://www.4flow.com/supply-chain-managed-services/4pl-services"
                },
                "page_content": "#  4PL services\n\nContact us\n\nOptimize and transform your supply chain with a neutral 4PL service provider\n\n  * **See impactful change**\n\nIncreased flexibility and lower costs across your transportation network\n\n  * **Increase efficiency**\n\nSmooth and efficient end-to-end transportation processes\n\n  * **Create lasting value**\n\nImproved maturity and ongoing cost savings through a long-term partnership\n\n##  End-to-end transportation management services\n\nAs a fourth-party logistics (4PL) provider, 4flow helps you continuously\noptimize your transportation network and manage logistics effectively and\nefficiently, resulting in sustainable performance improvements and cost\nreductions.\n\nManaged solutions in transportation planning, execution and controlling are\ntailored to your needs. Targeted support provides you with tangible benefits\nbased on your priorities.\n\n##\n\n##  Measurable impact across your transportation processes\n\nChoose your Industry\n\nPlanning\n\n  * Planning \n  * Execution \n  * Controlling \n\nStrategic transportation planning\n\nNetwork design experts support you to identify levers and optimize your\ntransportation network.\n\nStrategic transportation planning\n\n4flow supports you to plan your transportation and logistics network based on\nyour unique requirements. We also help you adjust them to reflect new and\nvarying demands.\n\n4flow draws on over 20 years of experience to develop customized solutions for\nvarious network types across multiple industries.\n\nTactical planning\n\n4flow helps you create transportation strategies tailored to your\nrequirements.\n\nTactical planning\n\nThe dynamic nature of markets and demand adds complexity to tactical planning,\noften leading to inefficiencies and higher operational costs.\n\nAcross all modes, 4flow\u2019s experts help you create transportation strategies\ntailored to your demand, cost targets, and lead time requirements. Our\nefficient solutions ensure cost-effective, timely, and reliable material\nflows.\n\nOperational planning\n\nEnsure smooth operations with proactive solutions and real-time decisions.\n\nOperational planning\n\nOperational transportation planning ensures your logistics processes run\nsmoothly on a day-to-day basis. This requires precise coordination and real-\ntime decision-making.\n\n4flow proactively addresses supply chain challenges, offering real-time\nsolutions to mitigate supplier issues and transportation delays. This approach\nkeeps your operations efficient, responsive, and aligned with your strategic\ngoals.\n\nStrategic transportation planning\n\n4flow supports you to plan your transportation and logistics network based on\nyour unique requirements. We also help you adjust them to reflect new and\nvarying demands.\n\n4flow draws on over 20 years of experience to develop customized solutions for\nvarious network types across multiple industries.\n\nTactical planning\n\nThe dynamic nature of markets and demand adds complexity to tactical planning,\noften leading to inefficiencies and higher operational costs.\n\nAcross all modes, 4flow\u2019s experts help you create transportation strategies\ntailored to your demand, cost targets, and lead time requirements. Our\nefficient solutions ensure cost-effective, timely, and reliable material\nflows.\n\nOperational planning\n\nOperational transportation planning ensures your logistics processes run\nsmoothly on a day-to-day basis. This requires precise coordination and real-\ntime decision-making.\n\n4flow proactively addresses supply chain challenges, offering real-time\nsolutions to mitigate supplier issues and transportation delays. This approach\nkeeps your operations efficient, responsive, and aligned with your strategic\ngoals.\n\nTransport order management\n\nMaximize efficiency in daily transportation with data-driven precision.\n\nTransport order management\n\nTransport order management involves ordering and dispatch of shipments to\nensure efficient daily transportation. Managing high order volumes in dynamic\nmarkets demands robust systems and precise coordination.\n\n4flow\u2019s 4PL services enable you to increase your efficiency with comprehensive\nchecks of transport orders and other transportation data. The results include\nhigh standards of service, cost savings and improved customer satisfaction.\n\nReal-time track & trace\n\nGain visibility into shipment status and mitigate disruptions along the way.\n\nReal-time track & trace\n\nMade possible by a growing amount of data and increasing process automation,\nshipment tracking is becoming essential across industries.\n\nTrack & trace systems follow shipments along their routes, improve\ntransparency and enable risk mitigation. 4flow's real-time track & trace\nservice provides precise monitoring, enabling proactive disruption management\nand fast decision-making.\n\nException management\n\nStreamline exception management with a single automated platform.\n\nException management\n\nWhen transportation exceptions occur, common challenges like low transparency,\nmanual errors, duplicated tasks, and manual processes are amplified. The\nincreased workload might even affect your ability to meet customer demand.\n\n4flow\u2019s exception management system tackles these issues by quickly\nidentifying, communicating, and documenting transportation exceptions and\ntheir possible solutions \u2013 so you can maintain a high service level.\n\nTransport order management\n\nTransport order management involves ordering and dispatch of shipments to\nensure efficient daily transportation. Managing high order volumes in dynamic\nmarkets demands robust systems and precise coordination.\n\n4flow\u2019s 4PL services enable you to increase your efficiency with comprehensive\nchecks of transport orders and other transportation data. The results include\nhigh standards of service, cost savings and improved customer satisfaction.\n\nReal-time track & trace\n\nMade possible by a growing amount of data and increasing process automation,\nshipment tracking is becoming essential across industries.\n\nTrack & trace systems follow shipments along their routes, improve\ntransparency and enable risk mitigation. 4flow's real-time track & trace\nservice provides precise monitoring, enabling proactive disruption management\nand fast decision-making.\n\nException management\n\nWhen transportation exceptions occur, common challenges like low transparency,\nmanual errors, duplicated tasks, and manual processes are amplified. The\nincreased workload might even affect your ability to meet customer demand.\n\n4flow\u2019s exception management system tackles these issues by quickly\nidentifying, communicating, and documenting transportation exceptions and\ntheir possible solutions \u2013 so you can maintain a high service level.\n\nFreight cost management\n\nAutomated, standardized freight billing for smoother processing and cost\nsavings.\n\nFreight cost management\n\nEffective freight cost management is essential for planning your supply chain\nspending. It forms the basis for forecasting logistics expenses, managing\nbudgets, and avoiding unexpected costs.\n\n4flow\u2019s freight cost management services enable you to negotiate better rates,\noptimize routes, reduce expenses, and improve delivery reliability for your\ncustomers.\n\nReporting and business intelligence\n\nDrive strategic improvements with advanced analysis and real-time\nvisualization.\n\nReporting and business intelligence\n\nReporting and business intelligence in transportation enable in-depth analysis\nof KPIs like on-time delivery rates, fuel efficiency, shipment costs and\ngreenhouse gas emissions.\n\nAdvanced analytics and real-time visualization help identify bottlenecks,\nforecast demand, and drive strategic improvements in your transportation\nnetwork.\n\n4flow\u2019s customized reports and dashboards integrate diverse data, optimizing\ntransportation management with detailed and efficient analysis\n\nFor even greater supply chain visibility and control, 4flow supports you to\nestablish an [ end-to-end command center ](/supply-chain-managed-\nservices/orchestration-services) . This solution integrates operational\nprocesses to proactively manage disruptions and optimize resources across your\nnetwork.\n\nPerformance management\n\nContinuously improve your transportation operations with structured\nperformance management.\n\nPerformance management\n\nPerformance management increases supply chain efficiency, reduces costs, and\nimproves service quality by identifying bottlenecks and enabling data-driven\ndecisions.\n\n4flow ensures transparency, measures carrier performance, and reports\ndeviations to drive continuous improvement.\n\nFreight cost management\n\nEffective freight cost management is essential for planning your supply chain\nspending. It forms the basis for forecasting logistics expenses, managing\nbudgets, and avoiding unexpected costs.\n\n4flow\u2019s freight cost management services enable you to negotiate better rates,\noptimize routes, reduce expenses, and improve delivery reliability for your\ncustomers.\n\nReporting and business intelligence\n\nReporting and business intelligence in transportation enable in-depth analysis\nof KPIs like on-time delivery rates, fuel efficiency, shipment costs and\ngreenhouse gas emissions.\n\nAdvanced analytics and real-time visualization help identify bottlenecks,\nforecast demand, and drive strategic improvements in your transportation\nnetwork.\n\n4flow\u2019s customized reports and dashboards integrate diverse data, optimizing\ntransportation management with detailed and efficient analysis\n\nFor even greater supply chain visibility and control, 4flow supports you to\nestablish an [ end-to-end command center ](/supply-chain-managed-\nservices/orchestration-services) . This solution integrates operational\nprocesses to proactively manage disruptions and optimize resources across your\nnetwork.\n\nPerformance management\n\nPerformance management increases supply chain efficiency, reduces costs, and\nimproves service quality by identifying bottlenecks and enabling data-driven\ndecisions.\n\n4flow ensures transparency, measures carrier performance, and reports\ndeviations to drive continuous improvement.\n\n##  Unlock cost savings and agility\n\nThe potential for cost savings in transportation is substantial. For many\ncompanies, transportation costs make up more than half of all supply chain\ncosts.\n\nWith continuous logistics and transport management, your business remains\nagile. Your network can adapt to changing conditions while staying fully\noptimized. The key to true agility lies in breaking down silos and adopting a\ncross-functional approach, which can unlock even greater cost-effectiveness\nand operational flexibility.\n\n##  Fully customized transportation management solutions\n\nOn behalf of our customers, 4flow acts as a neutral, non-asset-based partner.\nWe collaborate with businesses worldwide to understand their needs and develop\ntailored control tower solutions \u2013 whether for transportation network planning\nor daily management of shipments.\n\n##  Interested in more?\n\nDiscover your transportation management archetype in our study and unlock\ntailored strategies for your supply chain.\n\n[ Download for free  ](https://explore.4flow.com/unlocking-archetypes-in-\ntransportation-management)\n\n##  The most value for your transportation network\n\n  * ####  Fast implementation and ROI \n\nGo-live within 6 months and ROI in just one year\n\n  * ####  Long-term cost reduction \n\nContinuous transportation services ensure ongoing cost savings and improved\nmaturity\n\n  * ####  Neutral 4PL partner \n\nNeutral data handling and negotiation expertise ensure the best rates in an\noptimized network\n\n  * ####  Over 20 years of experience \n\nIndustry-leading supply chain optimization and transformation expertise\n\n  * ####  Flexibility for your business \n\nSolutions adapted to your industry and unique requirements\n\n  * ####  Integrated IT solutions \n\nFor seamless collaboration across all supply chain segments and data-driven\ndecision-making\n\n##  Testimonials\n\n\u201cWorking with 4flow on the control tower is not only using a system, it is not\nonly optimizing transports. It\u2019s really about partnering \u2013 in terms of\noptimization, in terms of the project and in terms of problem solving \u2013 it\u2019s\nreally a close collaboration between 4flow and Mars.\u201d\n\nYoann Pothain\n\nEuropean Transport Control Tower Operations Manager at Mars Europe\n\n\u201cWe\u2019re looking to implement game-changing ideas, not just a little bit of\noptimization here and there. We want changes that will stick and prepare us\nfor the future. We\u2019re finding ways to bring the transport logistics future to\nResideo \u2013 and 4flow is helping us do it.\u201d\n\nPierre-Henry Marbot\n\nEMEA Logistics Director at Resideo\n\n\u201c4flow\u2019s concept of integrated transportation management is perfectly suited\nto BOS. It enables us to gradually increase our supply chain maturity and to\nmake it more future-oriented.\u201d\n\nHeiko Kr\u00e4mer\n\nSenior Director Supply Chain International at BOS\n\n##  Real-world transportation management solutions\n\nDiscover how leading global businesses collaborate with 4flow to improve\nefficiency, boost agility and reduce costs across transportation processes\n\n  * Resideo \n  * Magna \n\nGame-changing supply chain optimization\n\nResideo\n\nResideo is a leading global manufacturer and developer of technology-driven\nproducts and components providing solutions to over 150 million homes\nglobally.\n\n**The challenge**\n\nResideo was implementing a new TMS for its end-to-end transportation network\nin Europe and approached 4flow to support its freight auditing and\noptimization activities.\n\n[ Read more  ](/success-stories/resideo)\n\n**Solution**\n\n  * Close collaboration to develop data frameworks and customized automation tools \n  * Improvement of the internal shuttle network between production sites and warehouses \n  * Active optimization for cost savings, improved service levels and reduced emissions \n\nThe results\n\n  * 12 \n\nSupply chain optimizations\n\n  * $1.2 mio \n\nCost savings annually\n\n  * 133 tons \n\nAnnual CO\u2082e reduction\n\nDigital transformation of the inbound supply chain\n\nMagna\n\nMagna is a leading brand-independent automotive engineering and parts\nmanufacturing business.\n\n**The challenge**\n\nMagna sought to increase agility and optimize inbound processes by digitally\nintegrating suppliers and LSPs into logistics processes.\n\n[ Read more  ](/success-stories/magna)\n\n**Solution**\n\n  * Implementation of the  [ 4flow iTMS  ](/4flow-itms) , an integrated end-to-end transportation management solution \n  * Increase agility to respond to unexpected changes in manufacturing demand \n  * Rollout in waves, with more and more suppliers and carriers integrated into the 4flow iTMS in each step \n\nThe results\n\n  * Immediate cost savings \n\n  * Increased agility \n\n  * Fewer shipments needed \n\n  * Lower carbon emissions \n\nGame-changing supply chain optimization\n\nResideo\n\nResideo is a leading global manufacturer and developer of technology-driven\nproducts and components providing solutions to over 150 million homes\nglobally.\n\n**The challenge**\n\nResideo was implementing a new TMS for its end-to-end transportation network\nin Europe and approached 4flow to support its freight auditing and\noptimization activities.\n\n[ Read more  ](/success-stories/resideo)\n\n**Solution**\n\n  * Close collaboration to develop data frameworks and customized automation tools \n  * Improvement of the internal shuttle network between production sites and warehouses \n  * Active optimization for cost savings, improved service levels and reduced emissions \n\nThe results\n\n  * 12 \n\nSupply chain optimizations\n\n  * $1.2 mio \n\nCost savings annually\n\n  * 133 tons \n\nAnnual CO\u2082e reduction\n\nDigital transformation of the inbound supply chain\n\nMagna\n\nMagna is a leading brand-independent automotive engineering and parts\nmanufacturing business.\n\n**The challenge**\n\nMagna sought to increase agility and optimize inbound processes by digitally\nintegrating suppliers and LSPs into logistics processes.\n\n[ Read more  ](/success-stories/magna)\n\n**Solution**\n\n  * Implementation of the  [ 4flow iTMS  ](/4flow-itms) , an integrated end-to-end transportation management solution \n  * Increase agility to respond to unexpected changes in manufacturing demand \n  * Rollout in waves, with more and more suppliers and carriers integrated into the 4flow iTMS in each step \n\nThe results\n\n  * Immediate cost savings \n\n  * Increased agility \n\n  * Fewer shipments needed \n\n  * Lower carbon emissions \n\n##  Ready to move forward?\n\nWe need your consent to show the HubSpot form.\n\nGet more info  Consent\n\n[ ](/)\n\n  * [ Imprint ](/imprint)\n  * [ Data privacy ](/data-privacy)\n  * [ Contact ](/contact)\n  * [ Careers ](https://careers.4flow.com/?utm_source=homepage&utm_medium=banner&utm_campaign=jobshop)\n\n\u00a9 2025 4flow SE\n\n[ Newsletter ](/news-resources/newsletter)\n\n  * [ ](https://www.linkedin.com/company/4flow-ag)\n  * [ ](/wechat)\n  * [ ](https://www.instagram.com/4flow_life/)\n  * [ ](https://www.facebook.com/4flowglobalcareers/)\n  * [ ](https://www.kununu.com/de/4flow)\n  * [ ](https://www.glassdoor.de/%C3%9Cberblick/Arbeit-bei-4flow-EI_IE948354.11,16.htm)\n  * [ ](https://www.youtube.com/c/4flow_global)\n\n",
                "url": "https://www.4flow.com/supply-chain-managed-services/4pl-services"
            },
            "reason": "This page describes 4PL services, which is relevant to understanding supply chain management. However, it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
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            "summary": "This page describes 4PL services.",
            "url": "https://www.4flow.com/supply-chain-managed-services/4pl-services"
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                    "source": "https://www.cevalogistics.com/en"
                },
                "page_content": "[ Fran\u00e7ais  ](/fr) [ Espa\u00f1ol  ](/es) [ Portugu\u00eas  ](/pt-br) [ \u4e2d\u6587  ](/zh-hans)\n\nSearch\n\n#  WE IMAGINE BETTER WAYS TO SERVE A WORLD IN MOTION\n\n[ Learn more  ](https://our-purpose.cmacgm-group.com/en)\n\nAbout CEVA Logistics\n\n[ Learn more  ](/en/who-we-are/about-ceva-logistics)\n\nEngineering Winning Solutions\n\nLearn more\n\n**[ Ex-GEFCO ](/en/ceva-trak/?search-engine=gefco-track) ** **[ Ex-Bollor\u00e9\nLogistics ](https://link.cevalogistics.com/) **\n\nI AM. . .\n\n**AN INDIVIDUAL**  \nWe only handle shipments for companies  [ **A COMPANY**  \nGet quotes or ask for information  ](/en/request-a-\nquote?step=product_interest)\n\nGet started with myCEVA\n\nLog in or sign up on myCEVA to enjoy the full features. Quote, Book and Ship\nall over the world from myCEVA, and manage your cargo from end to end via a\nsingle platform.\n\n[ Start now ](https://my.cevalogistics.com/)\n\n##  Our solutions\n\nCEVA Logistics offers a broad range of end-to-end, customized logistics\nsolutions worldwide\n\n### [ Air freight  ](/en/what-we-do/air-freight \"More about\")\n\n### [ Ocean freight  ](/en/what-we-do/ocean-freight \"More about\")\n\n### [ Ground & Rail Freight  ](/en/what-we-do/ground-rail-freight \"More\nabout\")\n\n### [ Contract logistics  ](/en/what-we-do/contract-logistics \"More about\")\n\n### [ Project Logistics Solutions  ](/en/what-we-do/project-logistics \"More\nabout\")\n\n### [ Finished Vehicle Logistics solutions  ](/en/what-we-do/finished-vehicle-\nlogistics \"More about\")\n\n### [ Customs  ](/en/what-we-do/customs \"More about\")\n\n### [ Fiscal Representation  ](/en/what-we-do/fiscal-representation \"More\nabout\")\n\n\u2190\n\n\u2192\n\n##  Special highlights\n\nDiscover CEVA Logistics!\n\n[ myCEVA - Your Digital Freight Platform  ](/en/myceva)\n\n[ Promoting gender diversity at CEVA  ](/en/promoting-gender-diversity-at-\nceva)\n\n##  CEVA Logistics Newsroom\n\nPress release\n\n4/8/2025\n\n[ The CMA CGM Group unveils its corporate purpose ](/en/news-and-\nmedia/newsroom/press-release/cma-cgm-group-unveils-corporate-purpose \"The CMA\nCGM Group unveils its corporate purpose \")\n\nWe imagine better ways to serve a world in motion*\n\n[ Learn more  ](/en/news-and-media/newsroom/press-release/cma-cgm-group-\nunveils-corporate-purpose \"Learn more\")\n\nInterview\n\n3/19/2025\n\n[ Building the Future of Supply Chain ](/en/news-and-media/building-the-\nfuture-of-supply-chain \"Building the Future of Supply Chain\")\n\nMeet Huw Jenkins, the Managing Director of Contract Logistics\n\n[ Learn more  ](/en/news-and-media/building-the-future-of-supply-chain \"Learn\nmore\")\n\nTop global logistics company progresses in corporate social responsibility\ncommitments\n\nArticle\n\n4/2/2025\n\n[ CEVA Logistics 2024 CSR Summary Report ](/en/news-and-media/Newsroom/ceva-\nlogistics-2024-csr-summary-report \"CEVA Logistics 2024 CSR Summary Report\")\n\nTop global logistics company progresses in corporate social responsibility\ncommitments\n\n[ Learn more  ](/en/news-and-media/Newsroom/ceva-logistics-2024-csr-summary-\nreport \"Learn more\")\n\nPress release\n\n3/28/2025\n\n[ CEVA Logistics Expands Global Air Freight Capacity with WUX (China) to ORD\n(U.S.) Air Charter ](/en/news-and-media/Newsroom/press-release/ceva-logistics-\nexpands-global-air-freight-capacity-with-wux-to-ord-air-charter \"CEVA\nLogistics Expands Global Air Freight Capacity with WUX \\(China\\) to ORD\n\\(U.S.\\) Air Charter\")\n\nCEVA reinforces commitment to Trans-Pacific trade lane for high tech,\nindustrial sectors\n\n[ Learn more  ](/en/news-and-media/Newsroom/press-release/ceva-logistics-\nexpands-global-air-freight-capacity-with-wux-to-ord-air-charter \"Learn more\")\n\n[ See all news ](/en/news-and-media)\n\n##  Join Us\n\nAt CEVA Logistics, we are not just a leading global supply chain solutions\nprovider; we are a community of innovators, collaborators, and problem-\nsolvers. With a presence in over 170 countries and a workforce of more than\n110,000 dedicated employees, we understand that our people are the key to our\nsuccess. Join us on a journey where you can take bold steps in your career and\nembrace the opportunities for growth and development that await you. Dare to\ngrow with CEVA Logistics and help shape the future of global logistics through\nimagination, excellence, and commitment.\n\nAs a Team Leader, I have the opportunity to create a good team and achieve\ngreat results. The good atmosphere at our location ensures that the\ndepartments are not \u201cislands.\u201d That makes us all one team and creates a\npleasant working atmosphere.\n\nPaul Witberg\n\nTeam Lead Operations\n\nFind a job\n\nAt CEVA Logistics, we offer diverse job opportunities that match your skills\nand aspirations. Join a team that values your talents and supports your\njourney toward success!\n\n[ Explore Opportunities  ](https://www.cevalogistics.com/en/careers/job-search\n\"Explore Opportunities\")\n\nDiscover Life @ CEVA\n\nAt CEVA Logistics, we offer diverse job opportunities that match your skills\nand aspirations. Join a team that values your talents and supports your\njourney toward success!\n\n[ Discover Life @ CEVA  ](https://www.cevalogistics.com/en/careers/life-at-\nceva-logistics \"Discover Life @ CEVA\")\n\nFollow us\n\n#CEVALOGISTICS\n\n  * [ ](https://www.linkedin.com/company/ceva-logistics \"Linkedin\")\n  * [ ](https://www.instagram.com/ceva.logistics \"Instagram\")\n  * [ ](https://twitter.com/cevalogistics \"Twitter\")\n  * [ ](https://www.facebook.com/cevalogistics \"Facebook\")\n  * [ ](https://www.youtube.com/user/CEVALogistics \"YouTube\")\n  * [ ](https://tiktok.com/@ceva.logistics \"TikTok\")\n\n  * [ Privacy policy ](/en/privacy-policy \"Privacy policy\")\n  * [ Terms & Conditions ](/en/terms-and-conditions \"Terms & Conditions\")\n  * [ Responsible disclosure ](https://vdp.cma-cgm.com/ \"Responsible disclosure\")\n  * [ Human Rights Statements ](https://www.cevalogistics.com/en/who-we-are/commitments/corporate-governance-information#hrs \"Human Rights Statements\")\n  * [ FAQ ](/en/faq \"FAQ\")\n  * [ Sitemap ](/en/sitemap \"Sitemap\")\n  * [ Glossary ](/en/glossary \"Glossary\")\n  * [ Accessibility: Non compliant ](/en/accessibility-statement \"Accessibility: Non compliant\")\n\n\u00a9 CEVA Logistics 2025\n\n",
                "url": "https://www.cevalogistics.com/en"
            },
            "reason": "This page is the website for CEVA Logistics, a major player in the logistics industry. It is relevant to understanding the logistics landscape, but it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page is the website for CEVA Logistics.",
            "url": "https://www.cevalogistics.com/en"
        },
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                    "source": "https://www.hklaw.com/en/insights/publications/2024/11/key-legal-considerations-after-supply-chain-disruptions"
                },
                "page_content": "Skip to content\n\nNovember 7, 2024\n\n#  Key Legal Considerations After Supply Chain Disruptions\n\nLaw360\n\n[ Sean T. Pribyl ](/en/professionals/p/pribyl-sean-t) |  [ Carrol P. Hand ](/en/professionals/h/hand-carrol-p) |  [ Allison N. Skopec ](/en/professionals/s/skopec-allison)\n\n[ ](https://pdf.hklaw.com/pdfrenderer.svc/v1/abcpdf11/GetRenderedPdfByUrl/Key\nLegal Considerations After Supply Chain\nDisruptions.pdf/?url=https%3a%2f%2fwww.hklaw.com%2fen%2finsights%2fpublications%2f2024%2f11%2fkey-\nlegal-considerations-after-supply-chain-disruptions%3fpdf%3d1) [\n](mailto:?subject=Check%20out%20this%20article%20from%20Holland%20%26%20Knight&body=https%3a%2f%2fwww.hklaw.com%2fen%2finsights%2fpublications%2f2024%2f11%2fkey-\nlegal-considerations-after-supply-chain-disruptions) [\n](https://www.linkedin.com/sharing/share-\noffsite/?url=https%3a%2f%2fwww.hklaw.com%2fen%2finsights%2fpublications%2f2024%2f11%2fkey-\nlegal-considerations-after-supply-chain-disruptions) [\n](https://twitter.com/intent/tweet?text=Key%20Legal%20Considerations%20After%20Supply%20Chain%20Disruptions%20%7C&url=https%3a%2f%2fwww.hklaw.com%2fen%2finsights%2fpublications%2f2024%2f11%2fkey-\nlegal-considerations-after-supply-chain-disruptions) [\n](https://www.facebook.com/sharer/sharer.php?u=https%3a%2f%2fwww.hklaw.com%2fen%2finsights%2fpublications%2f2024%2f11%2fkey-\nlegal-considerations-after-supply-chain-disruptions)\n\nMaritime attorneys Sean Pribyl, Carrol Hand and Allison Skopec wrote an\narticle for _Law360_ exploring how shipping companies can lawfully respond to\nsupply chain disruptions. The recent strike by the International\nLongshoremen's Association (ILA), damage wrought by Hurricane Helene, droughts\naffecting water levels in the Panama Canal and more are all examples of\ndevelopments that have disrupted the global supply chain and hindered\ninternational shipping activities. The authors caution that in these\ncircumstances, regulatory agencies such as the Federal Maritime Commission\n(FMC) watch closely for unfair shipping practices, making it essential for\ncompanies to review applicable law and policy to ensure they avoid running\nafoul of federal watchdogs. In their article, the attorneys look at potential\ncargo claims related to delays, incorrect deliveries or damages as well as\nlimits on recovery for economic losses related to these claims, along with FMC\noversight, including industry advisories and reporting violations.\n\n**READ:** [ Key Legal Considerations After Supply Chain Disruptions\n](/-/media/files/insights/publications/2024/11/law360_supplychaindisruptions.pdf?rev=8ef80fc1bdea4c0f8925e66a0263d76d&hash=13C5D6BD056311B1670B196B9D25BC2E)\n\n##  Related Practices\n\n[ Maritime ](/en/services/practices/transportation/maritime) [ Maritime and\nLogistics Contracts ](/en/services/practices/transportation/maritime-and-\nlogistics-contracts) [ Maritime Regulatory, Government and Security\n](/en/services/practices/transportation/maritime-regulatory-government-and-\nsecurity) [ Maritime Casualty, Pollution and Salvage\n](/en/services/practices/transportation/maritime-casualty-pollution-and-\nsalvage) [ Maritime Finance ](/en/services/practices/transportation/maritime-\nfinance) [ Supply Chain ](/en/services/practices/transportation/supply-chain)\n[ Litigation and Dispute Resolution ](/en/services/practices/litigation-and-\ndispute-resolution/litigation-and-dispute-resolution)\n\n##  Related Industry\n\n[ Transportation & Infrastructure ](/en/services/industries/transportation-\ninfrastructure)\n\nSubscribe to Updates and Events\n\n[ Click to Sign Up\n](https://communication.hklaw.com/REACTION/Home/RSForm?RSID=Al3dWaRc1s8vl2xBwS7fevojoS37I4dsWLAfTGB0JA0)\n\n##  Related Insights\n\n[ View More ](/en/insights?practice=928eeb93-e6cb-4bb8-92da-833b1721ff68)\n\nThe hallmark of Holland & Knight's success has always been and continues to be\nlegal work of the highest quality, performed by well prepared lawyers who\nrevere their profession and are devoted to their clients.\n\n[ Subscribe to Publications\n](https://communication.hklaw.com/reaction/Home?RSID=Al3dWaRc1s8vl2xBwS7fevojoS37I4dsWLAfTGB0JA0)\n[ Client Payment Information ](/en/firm/client-payment-information) [ Alumni\n](https://www.linkedin.com/groups/1918497/)\n\nAttorney Advertising. Copyright \u00a9 1996\u20132025 Holland & Knight LLP. All rights\nreserved.\n\n[ Legal Information ](/en/firm/legal) [ Privacy ](/en/firm/legal/privacy)\n\n  * [ ](https://www.linkedin.com/company/holland-&-knight-llp/)\n  * [ ](https://twitter.com/Holland_Knight)\n  * [ ](https://www.instagram.com/hollandknightlaw/)\n  * [ ](https://www.facebook.com/HollandKnightLLP/)\n  * [ ](https://www.youtube.com/c/HollandKnightLLP)\n\nEmail Disclaimer\n\nPlease note that email communications to the firm through this website do not\ncreate an attorney-client relationship between you and the firm. Do not send\nany privileged or confidential information to the firm through this website.\nClick \"accept\" below to confirm that you have read and understand this notice.\n\n",
                "url": "https://www.hklaw.com/en/insights/publications/2024/11/key-legal-considerations-after-supply-chain-disruptions"
            },
            "reason": "This page discusses legal considerations after supply chain disruptions, which is relevant to understanding risk management in a value chain. However, it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page discusses legal considerations after supply chain disruptions.",
            "url": "https://www.hklaw.com/en/insights/publications/2024/11/key-legal-considerations-after-supply-chain-disruptions"
        },
        {
            "content": {
                "metadata": {
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                    "origin": "public",
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                    "resource_type": "webpage",
                    "source": "https://ctl.mit.edu/"
                },
                "page_content": "Skip to main content\n\n  * [ ](/education)\n\n##  [ Education  ](/education)\n\nMIT CTL students propel their classroom and laboratory learning straight into\nindustry. They graduate from our programs as thought leaders ready to engage\nin an international, highly competitive marketplace. [ Read More ](education)\n\n  * [ ](/outreach)\n\n##  [ Outreach  ](/outreach)\n\nToday, an efficient supply chain is at the heart of business success. The\norganizations that partner with MIT CTL gain access to world-leading research,\nunrivaled expertise, and a unique forum for exchanging knowledge. [ Read More\n](outreach)\n\n  * [ ](/research)\n\n##  [ Research  ](/research)\n\nAt MIT CTL we believe that by addressing today\u2019s supply chain problems with\ningenuity, passion, and collaborative dynamism, we can deliver solutions that\nhelp organizations and societies to thrive. [ Read More ](node/1332)\n\n  * [ ](/scale)\n\n##  [ SCALE  ](/scale)\n\nThe MIT Global SCALE Network is an international alliance of leading research\nand education centers dedicated to supply chain and logistics excellence\nthrough innovation. [ Read More ](node/6)\n\n#  MIT Center for Transportation & Logistics\n\n##  CTL Spotlight\n\n[ What is the State of Supply Chain Sustainability? ](/news/what-state-supply-\nchain-sustainability)\n\nApril 2\n\nYou are invited to participate in the 2025 State of Supply Chain\nSustainability survey, a study designed by MIT and in partnership with the\nCouncil of Supply Chain Management Professionals (CSCMP).\n\n##  Podcast\n\n[ ](/podcasts/role-online-education-upskilling-workforce)\n\n###  [ The Role of Online Education in Upskilling the Workforce\n](/podcasts/role-online-education-upskilling-workforce)\n\nMarch 4, 2025\n\nIn recent years, online education has come to the forefront as an alternative\nto traditional education programs. Its increasing prominence reflects...\n\n[ ](/podcasts/smarter-warehouses-ai-and-robotics-forefront-logistics-\ninnovation)\n\n###  [ Smarter Warehouses: AI and Robotics at the Forefront of Logistics\nInnovation ](/podcasts/smarter-warehouses-ai-and-robotics-forefront-logistics-\ninnovation)\n\nJanuary 9, 2025\n\nIn this episode we sit down with Dr. Matthias Winkenbach, Director of Research\nat the MIT Center for Transportation & Logistics, Alejandro Gonz\u00e1lez...\n\n[ ](/podcasts/vehicle-routing-age-ai)\n\n###  [ Vehicle Routing in the Age of AI ](/podcasts/vehicle-routing-age-ai)\n\nJuly 16, 2024\n\nMatthias Winkenbach, Director of Research at MIT Center for Transportation &\nLogistics, discusses the enduring challenge of vehicle routing. Despite\ndecades of study, optimal efficiency remains elusive. With AI and machine\nlearning, the new MIT Intelligent Logistics Systems Lab, under his direction,\naims to revolutionize last-mile delivery and urban logistics, addressing the\nrising consumer expectations and complexities that traditional methods can't\nfully solve. Learn more at intelligent.mit.edu.\n\n[ All episodes ](/podcasts)\n\n[ Subscribe ](/bring-mit-supply-chain-innovation-your-inbox)\n\n[ ](http://mit.edu)\n\n##  Contact\n\nMIT E40, Floor 2  \n1 Amherst Street  \nCambridge, MA 02142\n\n##  Connect\n\n[ _ facebook  _ ](https://www.facebook.com/mitctl) [ _ twitter  _\n](https://twitter.com/mitsupplychain) [ _ linked in  _\n](https://www.linkedin.com/company/294045) [ _ youtube  _\n](https://www.youtube.com/channel/UCQXTVdVrvWDdHfd3FUHhBbQ)\n\n",
                "url": "https://ctl.mit.edu/"
            },
            "reason": "This page is the website for the MIT Center for Transportation & Logistics, a reputable research institution. It is relevant to understanding advancements in logistics, but it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page is the website for the MIT Center for Transportation & Logistics.",
            "url": "https://ctl.mit.edu/"
        },
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            "content": {
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                    "source": "https://fulfillmentiq.com/the-ultimate-guide-to-logistics-supply-chain-acronyms-your-a-z-reference-library/"
                },
                "page_content": "[ ](https://www.clickcease.com) Skip to content\n\nFulfillment IQ Team\n\n**\n\nShare\n\n**\n\n  * __\n  * __\n  * __\n\n**\n\nLike what you're reading?  \nSubscribe to our stories.\n\n**\n\nLogistics and supply chain management are complex fields that involve a wide\nrange of activities and operations. To help navigate the terminology and\njargon of this industry, we have compiled the ultimate reference library of\nall logistics acronyms ever.\n\n####  **Here are some explanations of the most common terms you may\nencounter:**\n\nContents\n\n  * # \n  * A \n  * B \n  * C \n  * D \n  * E \n  * F \n  * G \n  * H \n  * I \n  * J \n  * K \n  * L \n  * M \n  * N \n  * O \n  * P \n  * Q \n  * R \n  * S \n  * T \n  * U \n  * V \n  * W \n  * X \n  * Y \n\n##  **#**\n\n####  1PL: First-Party Logistics\n\nA company\u2019s internal logistics operations that manage their own transportation\nand goods. The company uses its own resources and personnel to plan, execute,\nand control the logistics processes.\n\n####  2PL: Second-Party Logistics\n\nInvolves working directly with a logistics provider to handle specific\ntransportation or logistics services. The 2PL provider offers dedicated\nlogistics solutions tailored to the needs of the company. Unlike a 3PL\nprovider, the 2PL provider works directly with the company and is accountable\nonly to the company, not to other clients.\n\n####  3PL: Third Party Logistics\n\nThe outsourcing of supply chain management functions to a third-party provider\nthat specializes in transportation, warehousing, and other logistics services.\n\n####  3R: Reduce, Reuse, Recycle\n\nA framework for managing waste and reducing the environmental impact of supply\nchains.\n\n####  4PL: Fourth Party Logistics\n\nThe outsourcing of logistics activities to a specialized external organization\nthat manages the entire logistics process and acts as a single point of\ncontact for the customer.\n\n####  4R: Right Product, Right Quantity, Right Time, Right Place\n\nA framework for optimizing inventory management.\n\n####  5C: Capacity, Capital, Customers, Cost, Competition\n\nA framework for analyzing business opportunities and risks.\n\n####  5R: Reduce, Reuse, Recycle, Recover, Respect\n\nA framework for managing waste and reducing the environmental impact of supply\nchains.\n\n####  6 Sigma:\n\nA methodology for improving quality by reducing defects in processes.\n\n####  6S: Sort, Set in Order, Shine, Standardize, Sustain, Safety\n\nAn extension of the 5S methodology, with an additional focus on workplace\nsafety.\n\n####  7R: Remove, Reduce, Reuse, Repair, Refurbish, Remanufacture, Recycle\n\nA framework for managing waste and reducing the environmental impact of supply\nchains.\n\n####  8D: Eight Disciplines\n\nA problem-solving methodology used in quality control and management.\n\n####  10+2: Importer Security Filing and Additional Carrier Requirements\n\nA program introduced by US Customs and Border Protection to improve cargo\nsecurity.\n\n####  10+2+2: Importer Security Filing and Additional Carrier Requirements\n(ISF), and Container Status Messages (CSM)\n\nAn extension of the 10+2 program introduced by US Customs and Border\nProtection to improve cargo security.\n\n####  10x: Ten times improvement\n\nA Lean Six Sigma term used to describe a goal of achieving ten times the\nimprovement in a process or product.\n\n####  20/40/45/53: Standard container sizes\n\nThe most commonly used container sizes for shipping goods by sea or land,\nmeasured in feet.\n\n##  **A**\n\n####  A/P or AP: Accounts Payable\n\nThe money a business owes to its suppliers for the goods or services received\non credit.\n\n####  A/R or AR: Accounts Receivable\n\nThe money a business is owed by its customers for the goods or services sold\non credit.\n\n####  ABC: Activity-based Costing\n\nA method of allocating costs to products or services based on the activities\nrequired to produce them.\n\n####  ABI: Automated Broker Interface\n\nA U.S. Customs and Border Protection (CBP) system that allows brokers to\nelectronically submit data required for clearing goods through customs.\n\n####  ABM: Activity-based Management\n\nA management approach that focuses on improving business processes and\nactivities to increase efficiency and reduce costs.\n\n####  ABP: Activity-based Planning\n\nA process of developing a plan to manage resources based on the activities\nrequired to achieve specific goals.\n\n####  ABS: Automated Batch Screening\n\nA CBP system that allows for the automatic screening of shipments against CBP\ndatabases for potential risks.\n\n####  ACAS: Air Cargo Advanced Screening\n\nA CBP program that requires airlines to provide pre-loading information on air\ncargo shipments bound for the United States.\n\n####  ACE: Automated Commercial Environment\n\nA CBP system that streamlines the import and export process by allowing\nbusinesses to electronically submit and receive data from CBP.\n\n####  ACH: Automated Clearinghouse\n\nAn electronic payment system that allows for the transfer of funds between\nfinancial institutions.\n\n####  ACI: Advance Commercial Information\n\nA Canada Border Services Agency (CBSA) program that requires carriers to\nprovide pre-loading information on commercial goods entering Canada.\n\n####  ACROSS: Accelerated Commercial Release Operations Support System\n\nA CBSA system that facilitates the release of commercial goods entering Canada\nby providing an automated risk assessment and expedited clearance process.\n\n####  ACS: Automated Commercial System\n\nA legacy CBP system that has been replaced by ACE.\n\n####  AD: Anti-dumping\n\nThe practice of selling goods in a foreign market at a price lower than the\ndomestic market price.\n\n####  ADD: Anti-dumping Duties\n\nAdditional fees levied on imported goods found to be sold at less than their\nnormal value.\n\n####  ADR: Agreement on Dangerous Goods by Road:\n\nA multilateral treaty that regulates the transportation of hazardous materials\nby road in Europe.\n\n####  AEI: Advance Electronic Information\n\nA CBP program that requires carriers to provide electronic data on cargo\nshipments bound for the United States.\n\n####  AEO: Authorized Economic Operator\n\nA program established by the World Customs Organization that recognizes\nbusinesses that meet certain security and compliance standards.\n\n####  AES: Automated Export System\n\nA CBP system that allows for the electronic filing of export information\nrequired by the U.S. government.\n\n####  AFIP: Administraci\u00f3n Federal de Ingresos P\u00fablicos\n\nThe tax authority of Argentina.\n\n####  AFR: Advance Filing Rules\n\nA Japan Customs program that requires carriers to provide pre-loading\ninformation on cargo shipments bound for Japan.\n\n####  AGV: Automated Guided Vehicle\n\nA self-guided vehicle used in warehouses and factories to transport materials\nand goods.\n\n####  AIDC \u2013 Automatic Identification and Data Capture\n\nThe process of automatically identifying and collecting data using\ntechnologies such as barcodes, RFID, and biometrics.\n\n####  AIES: Automated Information Exchange\n\nA CBSA system that enables the electronic exchange of data between CBSA and\nits external partners.\n\n####  AII: Automated Invoice Interface\n\nA CBP system that allows for the electronic submission of commercial invoices\nfor imported goods.\n\n####  AITT: Association of Industrial Truck Trainers\n\nAn organization that provides training and certification for industrial truck\noperators.\n\n####  ALE: Air-Land Emergency\n\nA transportation method that combines air and ground transportation for the\nfastest and most efficient delivery of goods in emergency situations.\n\n####  ALS: Advanced Logistics Systems\n\nAdvanced computer systems and software used to optimize logistics processes\nand improve efficiency.\n\n####  AMR: Autonomous Mobile Robot\n\nA type of robot that can move and operate without human intervention, often\nused in warehouses and manufacturing facilities.\n\n####  AMS: Automated Manifest System\n\nA CBP system that allows for the electronic submission of cargo manifests for\nvessels entering the United States.\n\n####  AMWF: Army Most Wanted Fugitives\n\nA U.S. Army program that identifies individuals who are wanted for crimes\ncommitted on military installations.\n\n####  ANSI: American National Standards Institute\n\nA non-profit organization that develops and promotes voluntary consensus\nstandards for a wide range of industries.\n\n####  AOBRD: Automatic On-board Recording Device\n\nAn electronic device used in the transportation industry to track a driver\u2019s\nhours of service and other operational data.\n\n####  APEC: Asia Pacific Economic Cooperation\n\nAn intergovernmental forum for 21 Pacific Rim countries that promotes free\ntrade and economic cooperation throughout the Asia-Pacific region.\n\n####  APHIS: Animal & Plant Health Inspection Service\n\nA branch of the United States Department of Agriculture responsible for\nprotecting American agriculture and natural resources from pests and diseases.\n\n####  API: Application Program Interface\n\nA set of protocols and tools for building software applications that specifies\nhow software components should interact.\n\n####  APICS: Association for Operations Management\n\nA professional association that provides education and certification programs\nfor supply chain and operations management professionals.\n\n####  APS: Advanced Planning and Scheduling\n\nA computer-based system that helps manufacturers plan production schedules and\nmanage resources in real-time.\n\n####  AQIS: Australian Quarantine and Inspection Service\n\nThe agency responsible for managing quarantine and biosecurity risks\nassociated with goods imported into Australia.\n\n####  ARL: Accounts Receivable Ledger\n\nA record of all the money owed to a business by its customers for goods or\nservices provided on credit.\n\n####  ARMAB: Agency Revenue Management Advisory Board\n\nA board established by the United States Customs and Border Protection agency\nto oversee the development and implementation of revenue management policies\nand procedures.\n\n####  AS/RS: Automated Storage and Retrieval System\n\nA computer-controlled system that automatically stores and retrieves goods\nfrom a warehouse or storage facility.\n\n####  ASIN: Amazon Standard Identification Number\n\nA unique identifier assigned by Amazon to each product listed on its\nmarketplace, used to identify and track products for inventory and cataloging\npurposes.\n\n####  ASN: Advance Shipment Notice\n\nA notification sent by a supplier to a customer or retailer to alert them of\nan upcoming delivery and provide details about the shipment.\n\n####  ATA: Air Transport Association\n\nAn association of airlines and aviation-related businesses that promotes\nsafety and efficiency in the airline industry.\n\n####  ATA: American Trucking Association\n\nA trade organization representing the interests of the trucking industry in\nthe United States.\n\n####  ATAC: Air Transport of Canada\n\nA trade association representing the interests of the Canadian air transport\nindustry.\n\n####  ATA Carnet: Admission Temporaire/Temporary Admission\n\nAn international customs document used to temporarily import and export goods\nwithout paying duty or taxes.\n\n####  ATD: Advance Trade Data\n\nThe information about a shipment that is transmitted to customs authorities in\nadvance of the shipment\u2019s arrival.\n\n####  ATD: Actual Time of Departure\n\nThe exact time that a shipment departs from a specific location.\n\n####  ATF: Bureau of Alcohol, Tobacco and Firearms\n\nA bureau within the United States Department of Justice that enforces federal\nlaws related to alcohol, tobacco, firearms, and explosives.\n\n####  ATP: Available to Promise\n\nA feature in supply chain management systems that calculates the quantity of a\nproduct that can be promised to a customer on a specific date, based on\ncurrent inventory levels, production schedules, and other factors.\n\n####  ATR: Authorized Economic Operator (AEO) Transit\n\nA customs status that provides certain benefits to companies engaged in\ninternational trade, such as simplified customs procedures and priority\ntreatment.\n\n####  ATS: Automated Targeting System\n\nA system used by United States Customs and Border Protection to assess the\nrisk of cargo and passengers entering the country.\n\n####  AVL: Automated Vehicle Locator\n\nA device used to track the location of vehicles in real-time.\n\n####  AWB: Air Waybill\n\nA document used in the air transport industry that serves as a contract\nbetween the shipper and the carrier for the transportation of goods.\n\n##  **B**\n\n####  B/L or BOL: Bill of Lading\n\nA legal document that serves as a contract of carriage and receipt for the\ngoods being transported by a carrier.\n\n####  B2B: Business-to-Business\n\nRefers to commerce transactions between businesses, such as between a\nmanufacturer and a wholesaler.\n\n####  B2B2C: Business-to-business-to-consumer\n\nInvolves the sale of products or services from one business to another, which\nin turn sells them to end consumers.\n\n####  B2C: Business-to-Consumer\n\nRefers to commerce transactions between a business and individual consumers,\nsuch as online shopping.\n\n####  B2G: Business to Government\n\nRefers to transactions between businesses and government entities, such as\nwhen a company bids on a government contract.\n\n####  B2R: Business to Retailer\n\nThe process of selling products or services from a business to a retailer.\nThis is a common supply chain practice where a manufacturer or distributor\nsells products to a retailer.\n\n####  BAF: Bunker Adjustment Factor.\n\nAn additional charge added to shipping rates to account for fluctuations in\nfuel costs.\n\n####  BCD: Border crossing document\n\nA document required for goods to cross international borders. It includes\ninformation on the type and quantity of goods being transported, as well as\nthe country of origin and destination.\n\n####  BGA: Ball grid array\n\nA type of surface-mount packaging used for integrated circuits. It has solder\nballs on the underside of the package that allow it to be mounted directly\nonto a circuit board.\n\n####  BI: Business Intelligence\n\nThe process of collecting and analyzing data to help businesses make informed\ndecisions.\n\n####  BIS: Bureau of Industry and Security\n\nA division of the U.S. Department of Commerce that focuses on national\nsecurity and foreign policy issues related to the export and import of goods\nand technologies.\n\n####  BOLI: Benefits of Inventory\n\nThe benefits a company gains from maintaining a certain level of inventory,\nincluding improved customer service and reduced lead times.\n\n####  BOM: Bill of Materials\n\nA document that lists all the raw materials, components, and assemblies\nrequired to manufacture a particular product, including quantities and part\nnumbers.\n\n####  BOP: Balance of Payments\n\nA record of all economic transactions made between one country and the rest of\nthe world. It includes trade in goods and services, as well as financial\ntransactions.\n\n####  BPA: Business process automation\n\nThe use of technology to automate routine business processes. This includes\nactivities such as data entry, document management, and customer service.\n\n####  BPM: Business Process Management\n\nThe practice of improving business processes to increase efficiency and\neffectiveness.\n\n####  BPMN: Business Process Model and Notation\n\nA graphical notation used to represent business processes.\n\n####  BPO: Business Process Outsourcing\n\nA company outsources a specific business process, such as accounting or\ncustomer service, to a third-party provider.\n\n####  BPR: Business Process Reengineering\n\nThe radical redesign of business processes to achieve dramatic improvements in\nperformance and efficiency.\n\n####  BSC: Balanced Scorecard\n\nA strategic management tool that helps organizations track and communicate\nprogress toward their goals.\n\n####  BTO: Build to Order\n\nA manufacturing strategy in which products are only produced after an order is\nreceived.\n\n##  **C**\n\n####  C/I or CI: Commercial Invoice\n\nA document used in international trade that provides an itemized list of goods\nin a shipment along with other relevant details such as their value and\ncountry of origin.\n\n####  C/O or COO: Certificate of Origin\n\nA document that certifies the country where the goods being exported were\nmanufactured or produced.\n\n####  CAAC: Civil Aviation Administration of China\n\nThe civil aviation authority of China is responsible for the regulation of\ncivil aviation and airspace in the country.\n\n####  CAATSA: Countering America\u2019s Adversaries Through Sanctions Act\n\nA US federal law that imposes sanctions on individuals, entities, and\ncountries engaged in activities that threaten the national security interests\nof the United States.\n\n####  CADEX: Customs Automated Data Exchange\n\nA Canadian electronic system used to transmit customs-related information and\ndocumentation.\n\n####  CAED: Canadian Automated Export Declaration\n\nAn electronic declaration system used by Canadian exporters to report goods\nbeing exported to other countries.\n\n####  CAF: Currency Adjustment Factor\n\nA surcharge added to the ocean freight cost to adjust for currency\nfluctuations between the port of origin and the port of destination.\n\n####  CAFTA: Central American Free Trade Agreement\n\nA free trade agreement between the United States and several Central American\ncountries, including Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua,\nand the Dominican Republic.\n\n####  CAGR: Compound Annual Growth Rate\n\nA measure of the rate of return on an investment over a specified period of\ntime.\n\n####  CAPA: Corrective and Preventive Action\n\nA process for identifying and addressing quality problems in order to prevent\nthem from recurring.\n\n####  CAPEX: Capital Expenditures\n\nRefers to the expenses incurred by a company for purchasing or upgrading\nphysical assets, such as buildings, equipment, and technology, used in the\nsupply chain.\n\n####  CARM: CBSA Assessment and Revenue Management\n\nA new system being implemented by the Canada Border Services Agency (CBSA) to\nmodernize and improve its assessment and revenue management processes.\n\n####  CBP: U.S. Customs and Border Protection\n\nA federal law enforcement agency responsible for regulating and facilitating\ninternational trade, collecting import duties and taxes, and enforcing US\ntrade laws.\n\n####  CBSA: Canada Border Services Agency\n\nA federal law enforcement agency responsible for administering Canadian\ncustoms, immigration, and border services.\n\n####  CC: Customs Clearance\n\nRefers to the process of getting the necessary customs approvals and\ndocumentation to allow goods to enter or leave a country.\n\n####  CCN: Cargo Control Number\n\nA unique number assigned to each shipment entering Canada that is used to\ntrack the movement of the goods throughout the customs clearance process.\n\n####  CDL: Commercial Driver\u2019s License\n\nA license required by truck drivers to operate commercial vehicles.\n\n####  CEP: Customer Experience Platform\n\nA type of supply chain software that provides end-to-end visibility into\ncustomer interactions and experiences.\n\n####  CETA: Comprehensive Economic and Trade Agreement\n\nA free trade agreement between Canada and the European Union aimed at reducing\ntrade barriers and increasing economic cooperation.\n\n####  CFIA: Canadian Food Inspection Agency\n\nA federal agency responsible for ensuring the safety and quality of food,\nanimal, and plant products in Canada.\n\n####  CFR: Code of Federal Regulations\n\nA collection of regulations and rules promulgated by the executive branch of\nthe US government.\n\n####  CFR or C&F: Cost and Freight\n\nA pricing term used in international trade that includes the cost of goods and\nthe cost of shipping them to the port of destination.\n\n####  CFS: Container Freight Station\n\nA warehouse or facility used for the consolidation and deconsolidation of\nshipping containers.\n\n####  CGCVP: Coast Guard List of Vessels Prohibited\n\nA list maintained by the US Coast Guard of vessels that are prohibited from\nentering US waters due to safety or security concerns.\n\n####  CHB: Customs House Brokerage\n\nA service provided by customs brokers to help importers and exporters comply\nwith customs regulations and facilitate the movement of goods across borders.\n\n####  CIF: Cost, Insurance, and Freight\n\nA pricing term that includes the cost of the goods, marine insurance, and\nfreight charges to transport the goods to the port of destination.\n\n####  CLN: Collaborative Logistics Network\n\nA network of logistics and transportation professionals who work together to\nimprove supply chain efficiency and reduce costs.\n\n####  CLN: Collaborative Logistics Network\n\nA regulation for the safe handling, storage, and transport of chemicals in the\nsupply chain.\n\n####  CMV: Commercial Motor Vehicle\n\nA motor vehicle used for commercial purposes, such as transporting goods or\npassengers.\n\n####  COD: Collect on Delivery or Cash on Delivery\n\nA payment method in which the recipient of a shipment pays for the goods at\nthe time of delivery.\n\n####  COFC: Container on Flat Car\n\nA method of transporting shipping containers using specially designed\nrailcars.\n\n####  COGS: Cost of Goods Sold\n\nThe cost of producing or acquiring the goods that are sold by a company.\n\n####  COO: Country of Origin\n\nThe country where a product was manufactured or produced.\n\n####  CPFR: Collaborative Planning, Forecasting, and Replenishment\n\nA process that involves sharing information between retailers and suppliers to\nimprove supply chain efficiency and reduce inventory costs.\n\n####  CPG: Consumer Packaged Goods\n\nA category of goods that are sold to consumers in packages or containers, such\nas food, beverages, and household products.\n\n####  CPS: Commercial Payment Services\n\nA financial service that facilitates payment between companies in different\ncountries.\n\n####  CPSC: Consumer Product Safety Commission\n\nAn independent agency of the United States government that regulates the\nsafety of consumer products.\n\n####  CMS: Container Management System\n\nA software system used to manage the movement and storage of shipping\ncontainers.\n\n####  CRM: Customer Relationship Management\n\nA strategy for managing a company\u2019s interactions with customers and potential\ncustomers.\n\n####  CSA: Compliance, Safety, Accountability\n\nA safety measurement and performance program used by the Federal Motor Carrier\nSafety Administration to improve large truck and bus safety on the highways.\n\n####  CSA: Customs Self-Assessment\n\nA program that allows for expedited clearance of pre-approved, low-risk\nshipments across the Canada-US border.\n\n####  CSA: Canadian Standards Association\n\nA not-for-profit standards organization in Canada that develops and publishes\nstandards for a variety of industries.\n\n####  CSCL: China Shipping Container Lines\n\nOne of the largest container shipping companies based in China.\n\n####  CSCMP: Council of Supply Chain Management Professionals\n\nA professional organization that provides education, research, and networking\nopportunities for supply chain professionals.\n\n####  CSR: Customer Service Representative\n\nA person who interacts directly with customers of a company to provide\ninformation and assistance with products or services.\n\n####  CTM: Collaborative Transportation Management\n\nA supply chain software that enables collaboration between shippers, carriers,\nand logistics providers to optimize transportation operations.\n\n####  C-TPAT: Customs-Trade Partnership Against Terrorism\n\nA voluntary program led by the U.S. Customs and Border Protection agency that\naims to improve the security of international supply chains.\n\n####  CTP: Constrained Transportation Planning\n\nA supply chain software that helps companies optimize their transportation\nnetworks by taking into account constraints such as capacity and lead time.\n\n####  CTS: Cargo Tracking System\n\nA supply chain software that provides real-time tracking of cargo shipments.\n\n####  CVD: Countervailing Duties\n\nAdditional import duties imposed by a country in order to counteract the\neffects of subsidies provided by another country to its exporters.\n\n####  CWT: Hundredweight\n\nA unit of measurement for weight in the United States equal to 100 pounds.\n\n##  **D**\n\n####  DAP: Delivered at Place\n\nA delivery term where the seller is responsible for delivering the goods to\nthe buyer at a specified place of destination.\n\n####  DC: Distribution Center\n\nA facility used for receiving, storing, and distributing goods to customers or\nretail stores.\n\n####  DDP: Delivered Duty Paid\n\nA delivery term where the seller is responsible for delivering the goods to\nthe buyer at a specified place of destination, and also responsible for all\ncosts associated with bringing the goods to that destination.\n\n####  DDTC: Directorate of Defense Trade Controls\n\nA U.S. government agency responsible for controlling the export and temporary\nimport of defense articles and defense services.\n\n####  DEM: Delivered Ex-Ship\n\nA delivery term where the seller is responsible for delivering the goods to\nthe buyer at a specified port of destination, but is not responsible for\nunloading the goods from the ship.\n\n####  DFATD: Department of Foreign Affairs, Trade and Development\n\nA former Canadian government department responsible for the country\u2019s foreign\nrelations, international trade, and development assistance.\n\n####  DFO: Department of Fisheries and Oceans\n\nA Canadian government department responsible for the management and protection\nof marine resources and habitats.\n\n####  DFRL: Design for Reverse Logistics\n\nA design approach that considers the end-of-life stages of products and aims\nto optimize the recovery, reuse, or disposal of materials and components.\n\n####  DFZ: Duty Free Zone\n\nA designated area where goods can be stored or processed without being subject\nto customs duties or taxes.\n\n####  DG: Dangerous Goods\n\nSubstances or articles that pose a risk to health, safety, property, or the\nenvironment during transport.\n\n####  DHS: U.S. Department of Homeland Security\n\nA U.S. government agency responsible for protecting the country from security\nthreats and ensuring public safety.\n\n####  DIF: Document Image Functionality\n\nA feature of document management systems that enables users to capture, store,\nretrieve, and view digital images of documents.\n\n####  DIFOT: Delivery In Full On Time\n\nA performance metric used in logistics to measure the percentage of orders\nthat are delivered in full and on time.\n\n####  DimWt: Dimensional Weight\n\nA method of calculating the shipping cost based on the size of the package\nrather than its actual weight.\n\n####  DIS: Document Image System\n\nA computer-based system used for storing, managing, and retrieving digital\nimages of documents.\n\n####  DMAIC: Define, Measure, Analyze, Improve, Control\n\nA problem-solving methodology used in Six Sigma to improve business processes.\n\n####  DN: Daily Notice\n\nA document that provides information on the status of shipments and their\nexpected delivery dates.\n\n####  DNL: Do Not Load\n\nA designation used to indicate that a shipment should not be loaded onto a\ntransport vehicle due to safety or regulatory reasons.\n\n####  DOA: U.S. Department of Agriculture\n\nA U.S. government agency responsible for regulating and promoting agriculture,\nforestry, and food production.\n\n####  DOC: U.S. Department of Commerce\n\nA U.S. government agency responsible for promoting economic growth and\ninternational trade.\n\n####  DOD: U.S. Department of Defense\n\nA U.S. government agency responsible for national security and military\noperations.\n\n####  DOE: U.S. Department of Energy\n\nA U.S. government agency responsible for promoting energy security,\nenvironmental quality, and scientific research.\n\n####  DOSCU: Department of State Cuba\n\nA U.S. government agency responsible for overseeing diplomatic relations with\nCuba.\n\n####  DOT: U.S. Department of Transportation\n\nA U.S. government agency responsible for regulating and promoting\ntransportation safety, infrastructure, and services.\n\n####  DP: Demand Planning\n\nA process of forecasting and managing the demand for products or services to\noptimize inventory levels and supply chain performance.\n\n####  DPL: Denied Persons List (formerly Denied Parties List)\n\nA U.S. government list of individuals, organizations, and companies prohibited\nfrom doing business with U.S. companies due to national security or foreign\npolicy concerns.\n\n####  DSL: Dynamic Screening List\n\nA real-time database used to screen and monitor individuals, companies, and\norganizations for compliance with export control regulations.\n\n####  DSD: Direct-to-Store Delivery\n\nA distribution model in which products are shipped directly from the\nmanufacturer or supplier to retail stores, bypassing the traditional\ndistribution center.\n\n####  DTC: Direct to Consumer\n\nA business model where a company sells its products directly to the end\nconsumers without any intermediaries like retailers or wholesalers, usually\nthrough e-commerce or online channels.\n\n####  DUNS: Data Universal Numbering System\n\nA unique nine-digit identifier used to identify businesses, especially in the\ncontext of international trade.\n\n####  DVIR: Driver\u2019s Vehicle Inspection Report\n\nA document completed by drivers to report any defects or issues with their\ncommercial motor vehicles before and after a trip.\n\n##  **E**\n\n####  EAM: Enterprise Asset Management\n\nEnterprise Asset Management refers to the management of an organization\u2019s\nassets, including physical and digital assets, throughout their lifecycle.\n\n####  EAN: European Article Number\n\nA barcode system used globally for identifying products in the supply chain.\n\n####  EAR: Export Administration Regulations\n\nA set of rules and regulations that govern the export and re-export of certain\nitems, including goods, software, and technology, from the United States to\nother countries.\n\n####  EC: European Community\n\nThe group of countries that make up the European Union and some other\ncountries in Europe that have close ties with the EU.\n\n####  ECR: Efficient Consumer Response\n\nA strategy in the retail industry to improve supply chain efficiency and\nreduce costs.\n\n####  ECCN: Export Control Classification Number\n\nA code used by the United States government to identify items that are subject\nto export controls.\n\n####  ECCRD: Electronic Commerce Client Requirements Document\n\nA document that outlines the technical requirements for using the United\nStates government\u2019s electronic systems for trade.\n\n####  ECS: Export Control System\n\nA system used by governments to control the export of certain goods and\ntechnology.\n\n####  eCSD: Electronic Consignment Security Declaration\n\nA document used in the European Union to declare the security status of goods\nbeing transported.\n\n####  EDI: Electronic Data Interchange\n\nThe electronic exchange of business documents between organizations.\n\n####  EDIFACT: Electronic Data Interchange for Administration, Commerce, and\nTransport\n\nA set of international standards for the electronic exchange of business\ndocuments.\n\n####  EEC: European Economic Community\n\nThe predecessor of the European Union, which was established in 1993.\n\n####  EEI: Electronic Export Information\n\nInformation that must be filed with the United States government when goods\nare exported from the United States.\n\n####  EFT: Electronic Funds Transfer\n\nThe electronic transfer of money between banks or other financial\ninstitutions.\n\n####  EFTA: European Free Trade Association\n\nA regional trade organization made up of four European countries: Iceland,\nLiechtenstein, Norway, and Switzerland.\n\n####  EIN: Exporter Identification Number\n\nA unique number assigned to companies that export goods from the United\nStates.\n\n####  ELD: Electronic Logging Device\n\nA device used to record a commercial driver\u2019s hours of service.\n\n####  EMEA: Europe, Middle East, Africa\n\nA geographic region that includes Europe, parts of the Middle East, and\nAfrica.\n\n####  ENS: Entry Summary Declaration\n\nA document used in the European Union to declare the details of goods entering\nthe EU.\n\n####  EOBR: Electronic On-Board Recorder\n\nA device used in commercial vehicles to record a driver\u2019s hours of service.\n\n####  EOQ: Economic Order Quantity\n\nThe optimal quantity of inventory to order at one time that minimizes total\ninventory costs by balancing the costs of ordering and holding inventory.\n\n####  EPA: U.S. Environmental Protection Agency\n\nA government agency responsible for protecting human health and the\nenvironment in the United States.\n\n####  EPCSA: European Port Community Systems Association\n\nAn association that represents the interests of port community systems in\nEurope.\n\n####  EPZ: Export Processing Zone\n\nA designated area within a country that is set up to encourage and facilitate\nexports.\n\n####  ERP: Enterprise Resource Planning\n\nSoftware systems used by organizations to manage and integrate their core\nbusiness processes.\n\n####  ETA: Estimated Time of Arrival\n\nThe expected time of arrival of a shipment or vehicle at a particular\nlocation.\n\n####  ETD: Estimated Time of Departure\n\nThe expected time a shipment will depart from its origin.\n\n####  EU: European Union\n\nA political and economic union of 27 member states located primarily in\nEurope.\n\n####  EUC: End User Certificate\n\nA document used in international trade to certify the final destination of\ngoods and ensure compliance with export regulations.\n\n####  EUMWF: Europe\u2019s Most Wanted Fugitives\n\nA list of the most wanted criminals in Europe.\n\n####  EUS: European Union Sanctions\n\nMeasures imposed by the European Union to restrict trade or economic activity\nwith certain countries or entities.\n\n####  EWR: Early Warning Report\n\nA report filed with the National Highway Traffic Safety Administration (NHTSA)\nby manufacturers of motor vehicles or equipment when they discover a safety-\nrelated defect or noncompliance.\n\n####  EXS: Exit Summary\n\nA document used in the European Union to declare the details of goods leaving\nthe EU.\n\n####  EXW: Ex Works\n\nAn Incoterm indicating that the seller is only responsible for making the\ngoods available at their premises, and the buyer is responsible for all\ntransportation costs and risks.\n\n##  **F**\n\n####  FAA: Federal Aviation Administration\n\nA U.S. government agency responsible for regulating and overseeing all aspects\nof civil aviation in the United States.\n\n####  FAST: Fast and Secure Trade\n\nA voluntary program between the United States and Canada that allows for\nexpedited processing of low-risk shipments crossing the border.\n\n####  FBA: Fulfillment by Amazon\n\nA service provided by Amazon that allows sellers to store their products in\nAmazon\u2019s fulfillment centers. Amazon takes care of picking, packing, and\nshipping the products to customers, as well as handling returns and customer\nservice inquiries.\n\n####  FBL: Freight Forwarder Bill of Lading\n\nA document issued by a freight forwarder that serves as evidence of a contract\nof carriage and receipt of cargo.\n\n####  FBM: Fulfillment by Merchant\n\nA fulfillment method in which the seller handles all aspects of the\nfulfillment process, including storing inventory, packing and shipping orders,\nand handling returns and customer service inquiries.\n\n####  FCA: Free Carrier\n\nA shipping term that specifies the point at which the responsibility for the\ngoods transfers from the seller to the buyer.\n\n####  FCC: Federal Communications Commission\n\nA U.S. government agency responsible for regulating communications by radio,\ntelevision, wire, satellite, and cable.\n\n####  FCL: Full-Container Load\n\nA shipping term used when a shipper has enough cargo to fill a full container,\nas opposed to LCL (Less-Than-Container Load).\n\n####  FCPA: Foreign Corrupt Practices Act\n\nA U.S. law that prohibits U.S. companies and individuals from bribing foreign\nofficials to obtain or retain business.\n\n####  FDA: U.S. Food & Drug Administration\n\nA U.S. government agency responsible for ensuring the safety and efficacy of\nfood, drugs, and medical devices.\n\n####  FDAWL: Food and Drug Administration Warning Letter\n\nA letter issued by the FDA to a company that is in violation of FDA\nregulations or guidelines.\n\n####  FedEx: Federal Express\n\nA multinational courier delivery services company headquartered in the United\nStates.\n\n####  FEFO: First Expired, First Out\n\nA method of inventory management that prioritizes selling or using products\nwith the earliest expiration dates first to minimize waste and spoilage.\n\n####  FEI: FDA Establishment Identifier\n\nA unique identifier assigned by the FDA to a facility that manufactures,\nprocesses, packs, or holds food for consumption in the United States.\n\n####  FEU: Forty-foot Equivalent Unit\n\nFEU: Forty-foot Equivalent Unit: FEU is a unit of measurement used in\ncontainer shipping that refers to a standard 40-foot shipping container.\n\n####  FF: Freight Forwarder\n\nAn FF is a company that arranges for the transportation of goods on behalf of\nshippers.\n\n####  FIATA: International Federation of Freight Forwarders Associations\n\nA non-governmental organization that represents the freight forwarding\nindustry worldwide.\n\n####  FIFO: First In, First Out\n\nA method of inventory management that assumes the first items placed in\ninventory are the first sold or used.\n\n####  FIRMS: Facilities Information and Resources Management System\n\nAn information system used by ocean carriers and terminal operators to\nexchange information on container movements.\n\n####  FLT: Fork Lift Truck\n\nAn industrial vehicle equipped with forks or blades used for lifting,\ncarrying, and moving materials over short distances in warehouses,\nmanufacturing plants, and other settings.\n\n####  FMC: Federal Maritime Commission\n\nA U.S. government agency responsible for regulating ocean-borne transportation\nin the foreign commerce of the United States.\n\n####  FMCSA: Federal Motor Carrier Safety Administration\n\nA U.S. government agency responsible for regulating commercial motor vehicles\nin the United States.\n\n####  FMEA: Failure Modes and Effects Analysis\n\nA method used to identify and mitigate potential failures in a system or\nprocess.\n\n####  FMS: Foreign Military Sales\n\nA program run by the United States government that enables foreign governments\nto purchase defense equipment and services from U.S. companies.\n\n####  FOB: Free on Board\n\nA shipping term that indicates when the risk of loss or damage to goods passes\nfrom the seller to the buyer.\n\n####  FPA: Free of Particular Average\n\nA marine insurance term that indicates that the insurance policy covers\npartial losses only if they are caused by a named peril.\n\n####  FROB: Freight Remain On Board\n\nA term used to describe cargo that remains on board a vessel while it is in\ntransit through a country without being unloaded.\n\n####  FSIS: Food Safety Inspection Service\n\nA U.S. government agency responsible for ensuring that meat, poultry, and egg\nproducts are safe, wholesome, and correctly labeled.\n\n####  FSR: Freight Status Request\n\nA request for information on the status of a shipment, typically made by a\nshipper or consignee to a carrier.\n\n####  FSSAI: The Food Safety and Standards Authority of India\n\nA regulatory body responsible for ensuring the safety and quality of food\nproducts in India. FSSAI sets standards for food safety and hygiene, regulates\nfood imports and exports, and monitors food safety across the country to\nprotect public health.\n\n####  FSVP: Foreign Supplier Verification Programs\n\nA U.S. government program that requires importers to verify that the food they\nimport meets U.S. safety standards.\n\n####  FTA: Free Trade Agreement\n\nA treaty between two or more countries that eliminates or reduces trade\nbarriers, such as tariffs and quotas, on goods and services traded between\nthem.\n\n####  FTA: Freight Transport Association\n\nA UK-based organization that represents the transport industry and provides\nvarious services, including training and legal advice.\n\n####  FTC: Federal Trade Commission\n\nAn independent agency of the US government responsible for promoting consumer\nprotection and eliminating and preventing anticompetitive business practices\nin the market.\n\n####  FTL: Full Truckload\n\nA shipping option where an entire truck is dedicated to a single shipment,\ntypically for larger quantities of goods.\n\n####  FTT: Freight Transport Tax\n\nA tax that is imposed on the transport of goods by road, rail, air, or water.\n\n####  FTZ: Free Trade Zone and Foreign Trade Zone\n\nA designated geographic area within a country where goods can be imported,\nstored, handled, and re-exported without being subject to customs duties and\nother taxes. FTZs are intended to encourage international trade and\ninvestment.\n\n####  FV: Floating Vessel\n\nA type of vessel that is used for transporting goods on water.\n\n####  FVR: Freight Volume Rebate\n\nA rebate that is offered by carriers to shippers who transport large volumes\nof goods.\n\n####  FWS: Fish and Wildlife Service\n\nA U.S. government agency that is responsible for managing and conserving fish,\nwildlife, and plant species.\n\n####  FZ: Free Zone\n\nAn area in which goods can be stored, handled, or manufactured without being\nsubject to customs duties or other taxes.\n\n##  **G**\n\n####  GAAP: Generally Accepted Accounting Principles\n\nA set of standards and rules that publicly-traded companies in the United\nStates must follow when preparing financial statements. The purpose of GAAP is\nto ensure consistency, comparability, and accuracy in financial reporting.\n\n####  GAGI: Government Agency Goods Item\n\nA specific classification of goods and materials that are owned by government\nagencies, including the military. These items may be subject to specific\nregulations and requirements related to their purchase, use, and disposal.\n\n####  GATT: General Agreement on Tariffs and Trade\n\nA multilateral treaty signed in 1947 that sought to reduce barriers to\ninternational trade and promote free trade. GATT was succeeded by the World\nTrade Organization (WTO) in 1995.\n\n####  GB/L: Government Bill of Lading\n\nA document used by the U.S. government to contract for the transportation of\ngoods and materials. The GB/L serves as a receipt, contract, and shipping\ndocument.\n\n####  GDP: Gross Domestic Product\n\nA measure of the total value of goods and services produced within a country\u2019s\nborders in a given period of time. GDP is often used as a key indicator of a\ncountry\u2019s economic performance.\n\n####  GDS: Global Distribution System\n\nA computerized reservation system used by travel agencies and airlines to book\ntravel and manage reservations.\n\n####  GFE: Government Furnished Equipment\n\nGFE: Government Furnished Equipment: GFE refers to equipment and property\nprovided by the government to contractors for use in performing a contract.\n\n####  GIS: Geographic Information System\n\nA system that captures, stores, analyzes, and manages data with geographic\nlocations. GIS is used in a variety of fields, including urban planning,\nnatural resource management, and environmental science.\n\n####  GMP: Good Manufacturing Practice\n\nA set of guidelines and regulations that govern the manufacturing and\nprocessing of products, including food, drugs, and medical devices.\n\n####  GoC: Government of Canada\n\nThe federal government of Canada, which is responsible for governing the\ncountry and providing services to its citizens.\n\n####  GPS: Global Positioning System\n\nA satellite-based navigation system that provides location and time\ninformation anywhere on or near the Earth. GPS is used in a variety of\napplications, including aviation, transportation, and surveying.\n\n####  GPO: Group Purchasing Organization\n\nAn entity that combines the purchasing power of multiple businesses to\nnegotiate better prices and terms with suppliers.\n\n####  GPL: General Public License\n\nA type of software license that allows users to freely use, modify, and\ndistribute the software.\n\n####  GRI: General Rules for Interpretation\n\nA set of guidelines used to classify goods in international trade. The GRI is\npart of the Harmonized System (HS) and provides rules for determining the\ncorrect classification of goods.\n\n####  GRN: Goods Received Note\n\nA document used to confirm receipt of goods and the quantity and quality of\nthe goods received.\n\n####  GSC: Global Supply Chain\n\nThe interconnected network of businesses, suppliers, and customers involved in\nthe production and distribution of goods and services on a global scale.\n\n####  GSP: Generalized System of Preferences\n\nA trade program that allows developing countries to export goods to developed\ncountries at reduced or zero tariffs.\n\n####  GST: Goods and Services Tax\n\nA tax on the supply of most goods and services in Canada. The GST is a value-\nadded tax, meaning that it is applied to the value added at each stage of\nproduction and distribution.\n\n####  GTIM: Global Tariffs and International Mapping\n\nA database that provides information on tariffs and trade agreements for\ncountries around the world. The database is used by companies and governments\nto help navigate the complex landscape of international trade.\n\n####  GTM: Global Trade Management\n\nThe processes and systems used by companies to manage their global trade\noperations. This includes activities such as compliance with import/export\nregulations, managing logistics and transportation, and minimizing risk.\n\n##  **H**\n\n####  HACCP: Hazard Analysis Critical Control Point\n\nA systematic approach to identifying, evaluating, and controlling hazards in\nthe food production process. HACCP is used to prevent foodborne illness and\nensure food safety.\n\n####  HAWB: House Air Waybill\n\nA document used in air transportation that serves as a contract between the\nshipper and the airline. The HAWB includes information on the shipment, such\nas the origin, destination, and weight.\n\n####  HazMat: Hazardous Materials\n\nSubstances that pose a risk to health, safety, or the environment. HazMat may\ninclude chemicals, gases, explosives, and other materials that require special\nhandling and transportation.\n\n####  HBL: House Bill of Lading\n\nA document issued by a non-vessel operating common carrier (NVOCC) or freight\nforwarder indicating that they have received goods for shipment and detailing\nthe terms of transportation.\n\n####  HHT: Handheld Terminal\n\nIt is a portable device used for data collection and processing in logistics.\nIt can be used for barcode scanning, inventory management, and tracking\nshipments.\n\n####  HMI: Human-Machine Interface\n\nA user interface that allows humans to interact with machines and equipment,\nsuch as warehouse management systems or automated material handling equipment.\n\n####  HMRC: Her Majesty\u2019s Revenue and Customs\n\nA non-ministerial department of the UK government responsible for collecting\ntaxes, enforcing customs laws, and administering other regulatory regimes such\nas the national minimum wage.\n\n####  HOS: Hours of Service\n\nThe regulations that limit the amount of time a commercial driver can be on\nduty and driving a commercial motor vehicle. The purpose of HOS regulations is\nto reduce the risk of accidents caused by driver fatigue.\n\n####  HPT /HoPT: High Performance Teams or High-Performance Organizations\n\nThe management concepts used in supply chain and logistics. HPT emphasizes the\nimportance of teamwork, communication, and continuous improvement to achieve\nhighly effective and efficient teams. HoPT focuses on creating a culture of\nhigh performance throughout the entire organization, striving for excellence\nand success in the supply chain and logistics industry.\n\n####  HS: Harmonized System/Harmonized Schedule\n\nA standardized system of names and numbers used to classify traded products\nfor customs purposes. The Harmonized System is used by most countries in the\nworld for international trade.\n\n####  HSC: Harmonized System Code\n\nA standardized system of names and numbers used to classify traded products\nfor customs and statistical purposes.\n\n####  HSE: Health, Safety, and Environment\n\nA set of standards and regulations designed to protect workers and the\nenvironment in the workplace.\n\n####  HST: Harmonized Sales Tax\n\nA value-added tax that is applied to most goods and services in Canada. The\nHST combines the federal Goods and Services Tax (GST) with provincial sales\ntaxes.\n\n####  HTH: Hand to Hold\n\nA shipping service that requires the carrier to physically hand-deliver the\nshipment to the consignee, often with an extra charge.\n\n####  HTS: Harmonized Tariff Schedule\n\nA standardized system of names and numbers used to classify imported and\nexported products for customs purposes. The HTS is used by the United States\nfor international trade.\n\n####  HU: Handling Unit\n\nHU: Handling Unit: It refers to a package or container used to store or\ntransport goods in a supply chain. A Handling Unit can be a pallet, a box, or\nany other form of packaging.\n\n####  HUB: Distribution Hub\n\nA centralized location used for the storage, consolidation, and distribution\nof goods.\n\n####  HVM: High-Value Materials\n\nRefers to materials that have a high market value, such as precious metals or\ngemstones, and require special handling and security measures.\n\n####  HVS: High-value Shipment\n\nA shipment that contains items of high value, such as expensive jewelry or\nelectronics. High-value shipments often require additional security measures\nand may be subject to additional fees or insurance requirements.\n\n##  **I**\n\n####  IATA: International Air Transport Association\n\nA trade association of the world\u2019s airlines, representing around 290 airlines\nand over 80% of air traffic.\n\n####  IBP: Integrated Business Planning\n\nA collaborative process that brings together cross-functional teams (such as\nsales, marketing, finance, and supply chain) to align strategic goals,\nidentify risks and opportunities, and develop integrated plans that support\nthe company\u2019s overall objectives.\n\n####  IC: Inventory Control\n\nThe process of managing and optimizing inventory levels, typically through the\nuse of software tools that track inventory movement, demand forecasts, and\nsupply chain data.\n\n####  ICAO: International Civil Aviation Organization\n\nA specialized agency of the United Nations that manages the administration and\ngovernance of international air transportation.\n\n####  ICC: Interstate Commerce Commission\n\nIt was a regulatory agency in the United States that oversaw the\ntransportation of goods and people between states, including railroads and\ntrucks.\n\n####  ICS: Import Control System\n\nIt is a system used by the European Union (EU) to monitor and control the\nimport of goods into the EU.\n\n####  I&D: Import and Export Documentation\n\nThe paperwork required for international trade, including customs\ndeclarations, bills of lading, packing lists, and other documents that\naccompany shipments across borders.\n\n####  IEC: International Electrotechnical Commission\n\nAn organization that sets international standards for electrical and\nelectronic devices and systems.\n\n####  IFTA: International Fuel Tax Agreement\n\nIt is an agreement between the United States and Canada that simplifies fuel\nreporting and tax collection for interstate motor carriers operating in\nmultiple jurisdictions.\n\n####  IFTA: Israel Free Trade Agreement\n\nIt is a free trade agreement between the United States and Israel that\neliminates tariffs on a wide range of products.\n\n####  IID: Integrated Import Declaration\n\nIt is an electronic system used by the Canada Border Services Agency (CBSA) to\nmanage the importation of goods into Canada.\n\n####  ILS: Inventory Locator Service\n\nA global database that provides access to parts and equipment for the\naviation, marine, and defense industries.\n\n####  IMDG: International Maritime Dangerous Goods\n\nIt is a set of regulations for the safe transportation of dangerous goods by\nsea, created by the International Maritime Organization (IMO).\n\n####  IMO: International Maritime Organization\n\nIt is a specialized agency of the United Nations that regulates shipping and\nmaritime activities worldwide.\n\n####  INT: Intermodal\n\nThe use of multiple modes of transportation, such as trains, trucks, and\nships, to transport goods from one location to another.\n\n####  Incoterms: International Commercial Terms\n\nThey are standardized terms used in international trade to define the\nobligations and responsibilities of buyers and sellers.\n\n####  IoT: Internet of Things\n\nA network of interconnected devices that communicate and exchange data,\nenabling improved supply chain visibility and efficiency.\n\n####  iPaaS: Integration Platform as a Service\n\nIt is a cloud-based software platform that helps businesses integrate\ndifferent applications and services with each other, allowing them to work\ntogether seamlessly.\n\n####  IPS: Integrated Planning and Scheduling\n\nA software solution that combines planning, scheduling, and execution\nfunctions in a single system, providing real-time visibility and control over\nproduction and logistics operations.\n\n####  IPR: Intellectual Property Rights\n\nLegal rights that protect a company\u2019s proprietary technology, designs, or\nother intellectual property from unauthorized use or infringement by\ncompetitors or third parties.\n\n####  IPR: In-Process Receiving\n\nA logistics term used to describe the process of receiving goods while they\nare still in production or processing, allowing for faster turnaround times\nand reduced inventory costs.\n\n####  ISBN: International Standard Book Number\n\nIt is a unique numeric identifier used to identify books and other\npublications, which helps ensure they are easily discoverable and accessible\nto readers around the world.\n\n####  ISE: Intelligent Supply Chain Execution\n\nA system that integrates data from across the supply chain to optimize\noperations and reduce costs.\n\n####  ISF: Importer Security Filing\n\nIt is a requirement of the U.S. Customs and Border Protection (CBP) that\nimporters submit certain information about their cargo before it is loaded on\na vessel headed to the United States.\n\n####  ISO: International Standards Organization\n\nIt is a non-governmental organization that develops and publishes\ninternational standards for products, services, and systems.\n\n####  ISM Code: International Safety Management Code\n\nA set of regulations for the safe operation of ships and pollution prevention.\n\n####  ITA: International Trade Administration\n\nAn agency of the U.S. Department of Commerce that promotes U.S. exports,\nenforces trade laws, and strengthens the competitiveness of U.S. industries.\n\n####  ITC: International Trade Commission\n\nAn independent federal agency in the United States that investigates and\nprovides recommendations to the President and Congress on the effects of\nimports on U.S. industries.\n\n####  ITMR: International Trade Management Revision\n\nA set of standardized procedures and documentation used in international\ntrade.\n\n####  ITN: Internal Transaction Number\n\nIt is a unique number assigned by the U.S. Census Bureau to identify\nelectronic export information filings.\n\n####  IVD: In-Vehicle Delivery\n\nA last-mile delivery solution that enables packages to be delivered directly\nto the trunk of a customer\u2019s car, using digital key technology and secure\nauthentication protocols.\n\n####  IVR: Interactive Voice Response\n\nIt is a technology that allows callers to interact with a computerized system\nusing voice commands or touch-tone key presses.\n\n####  IVRS: Interactive Voice Response System\n\nIt is a system that uses IVR technology to interact with callers and provide\nautomated responses.\n\n####  IWM: Inventory Warehouse Management\n\nA software system used to manage inventory levels, location, movement, and\nother aspects of warehouse operations, helping to optimize storage capacity,\nreduce waste, and improve order accuracy.\n\n##  **J**\n\n####  JCPOA: Joint Comprehensive Plan of Action\n\nAn agreement between Iran and six world powers (the United States, United\nKingdom, France, Germany, Russia, and China) aimed at limiting Iran\u2019s nuclear\nprogram.\n\n####  JDA: JDA Software\n\nA software company that provides supply chain management solutions, including\ninventory optimization, transportation management, and demand planning.\n\n####  JIT: Just in Time\n\nA manufacturing philosophy and strategy that emphasizes the production of\ngoods and delivery of materials just in time for their use in the\nmanufacturing process.\n\n####  JIT II: Just-In-Time Inventory\n\nA strategy where suppliers hold inventory on behalf of their customers, so\nthat the customers can receive goods just in time for production, without\nhaving to maintain large inventory levels themselves.\n\n####  JITD: Just-In-Time Delivery\n\nA strategy where suppliers deliver goods directly to the production line as\nthey are needed, eliminating the need for customers to hold inventory.\n\n####  JITP: Joint Industry Project\n\nA collaborative effort between multiple companies aimed at developing new\ntechnologies or processes to improve supply chain efficiency.\n\n####  JITM: Just-In-Time Manufacturing\n\nA production strategy that emphasizes the synchronization of materials, labor,\nand equipment to produce goods only when they are needed.\n\n####  JOC: Journal of Commerce:\n\nA trade publication that covers the shipping, logistics, and transportation\nindustries.\n\n##  **K**\n\n####  KANBAN\n\nA lean manufacturing method for just-in-time production. In logistics, KANBAN\nis often used to manage inventory levels and control the flow of materials.\n\n####  KC: Known Consignor\n\nIt is a status given to a shipper or consignor who has been approved by an\naviation security authority and is allowed to secure their own air cargo\nwithout additional screening.\n\n####  KIT: Keep in Touch\n\nA communication protocol used in logistics and supply chain management to keep\nall parties involved in a shipment updated on its progress. KIT messages may\ninclude status updates, delivery notifications, and any other relevant\ninformation related to the shipment.\n\n####  KLT: Knocked-Down, Loose Loaded, and Tare\n\nA shipping method where products are disassembled and packed loosely in\ncontainers, allowing for more efficient use of space\n\n####  KPI: Key Performance Indicator\n\nA measurable value used to evaluate the success or effectiveness of an\norganization, project, or individual.\n\n####  KPIR: Key Process Input Requirement\n\nThe specific requirements that must be met in order for a process to be\nsuccessful. In logistics, KPIRs might include requirements such as regulatory\ncompliance, safety standards, and environmental regulations.\n\n####  KPIU: Key Process Input Uncertainty\n\nThe degree of uncertainty associated with a specific input factor. In\nlogistics, KPIUs might include uncertainties such as the availability of raw\nmaterials or the reliability of transportation providers.\n\n####  KPIV: Key Process Input Variables\n\nThese are the specific factors that influence the outcome of a process. In\nlogistics, KPIVs might include factors such as weather, traffic, and carrier\nperformance.\n\n####  KPIW: Key Process Input Warning\n\nThis is a warning signal that indicates when a process is at risk of failing\ndue to a specific input factor. In logistics, KPIWs might include warnings\nsuch as severe weather or unexpected delays.\n\n####  KRL: Key Resource Leader\n\nA person or team responsible for managing key resources within the supply\nchain, such as human resources, technology, and equipment. The KRL helps to\nensure that these resources are optimized to support the overall goals of the\nsupply chain.\n\n####  KTS: Key Transportation Services\n\nA provider of logistics and transportation services that specializes in key\nindustries such as automotive, consumer goods, and retail. KTS provides end-\nto-end supply chain solutions, including transportation management,\nwarehousing, and distribution.\n\n##  **L**\n\n####  L/C or LOC: Letter of Credit\n\nA financial document used in international trade that guarantees payment to\nthe seller from the buyer\u2019s bank. The bank issues the letter of credit after\nassessing the buyer\u2019s creditworthiness, and the seller can be assured of\nreceiving payment once the terms of the agreement are met.\n\n####  LCA : Life Cycle Assessment\n\nA tool used to evaluate the environmental impact of a product or service\nthroughout its entire life cycle, from raw material extraction to disposal.\n\n####  LCL: Less-than-Container Load\n\nA shipping option for goods that don\u2019t require a full container. Multiple LCL\nshipments can be consolidated into a single container for more efficient\nshipping.\n\n####  LDP: Logistics Development Program\n\nA training program for employees interested in pursuing a career in logistics\nmanagement.\n\n####  LDP: Logistics Development Plan\n\nA strategic plan that outlines the goals and objectives for improving\nlogistics and supply chain operations in an organization. It may include\ninitiatives such as process improvements, technology adoption, and talent\ndevelopment.\n\n####  LESA: Logistics Emergency Supply Aid\n\nA humanitarian initiative aimed at improving the logistics response to\nemergencies and disasters by pre-positioning critical supplies and equipment\nin strategic locations.\n\n####  LIDAR: Light Detection and Ranging\n\nA technology that uses lasers to map the environment and create 3D images. It\nis commonly used in logistics for autonomous vehicles, warehouse management,\nand inventory tracking.\n\n####  LIFO: Last In, First Out\n\nLast In, First Out is a method of inventory management that assumes the last\nitems placed in inventory are the first sold or used.\n\n####  LLP: Lead Logistics Provider\n\nA third-party logistics provider (3PL) that takes primary responsibility for\nmanaging a company\u2019s entire logistics operation.\n\n####  LMS: Logistics Management System\n\nA software tool used to manage and optimize logistics operations, including\ntransportation, warehousing, and inventory management.\n\n####  LOS: Logistics Optimization System\n\nA software tool used to optimize and streamline logistics operations,\nincluding inventory management, transportation planning, and warehouse\nmanagement.\n\n####  LOS: Logistics Outsourcing\n\nWhen a company hires a third-party logistics (3PL) provider to manage some or\nall of their supply chain operations, including transportation, warehousing,\nand distribution.\n\n####  LPCO: Licenses, Permits, Certificates and Others\n\nRefers to the various documentation requirements for importing and exporting\ngoods, including licenses, permits, certificates of origin, and other\nnecessary paperwork.\n\n####  LRT: Light Rail Transit\n\nA form of public transportation that uses light rail vehicles (LRVs) to\ntransport passengers on tracks within urban or suburban areas.\n\n####  LSP: Logistics Service Provider\n\nA company that provides a range of logistics services to customers, such as\ntransportation, warehousing, and freight forwarding.\n\n####  LTL: Less-than-Truckload\n\nA shipping option for goods that don\u2019t require a full truckload. Multiple LTL\nshipments can be consolidated for more efficient shipping.\n\n####  LTL: Last Mile Logistics\n\nThe final stage of delivery in which goods are transported from a distribution\ncenter or warehouse to their final destination. This is often the most complex\nand expensive part of the supply chain, as it requires navigating through\ncongested urban areas and coordinating with multiple stakeholders.\n\n####  LTL-OD: Less-than-Truckload Over-Dimension\n\nA type of less-than-truckload (LTL) shipment that exceeds standard size and\nweight limits.\n\n####  LVC: Logistics Visibility and Control\n\nThe ability to track and monitor shipments throughout the supply chain,\nproviding real-time visibility and control over the movement of goods.\n\n####  LVS: Low-value Shipment\n\nRefers to shipments that are below a certain value threshold and may be\nsubject to simplified customs procedures or exemptions.\n\n##  **M**\n\n####  Manifest\n\nA document that provides a detailed list of all the goods or products being\nshipped, including their quantities, descriptions, and other important\ninformation. The manifest is used to track shipments and ensure that all items\nare accounted for during transportation.\n\n####  MASP: Multi-Annual Strategic Plan (Europe)\n\nA plan developed by the European Union to guide its actions over a period of\nseveral years.\n\n####  MAWB: Master Air Waybill\n\nA document issued by an airline that serves as a contract of carriage between\nthe shipper and the carrier.\n\n####  MES: Manufacturing Execution System\n\nA software system that manages and controls the production process on the\nfactory floor. It can track real-time data on production activities, such as\ninventory levels, machine performance, and quality control.\n\n####  MFCFR: Monetary and Financial Code France\n\nA set of regulations governing monetary and financial transactions in France.\n\n####  MHE: Material Handling Equipment\n\nRefers to the machines and vehicles used to move goods within a warehouse or\ndistribution center, such as forklifts, pallet jacks, and conveyors.\n\n####  MID: Manufacturer Identification Code\n\nA unique identifier assigned to a manufacturer by the US Customs and Border\nProtection agency.\n\n####  MOQ: Minimum Order Quantity\n\nThe minimum amount of a product that a supplier is willing to sell to a\ncustomer in a single order. MOQs are often used to set pricing and to ensure\nthat production runs are economically viable.\n\n####  MOT: Modes of Transportation\n\nRefers to the different methods of transportation available for shipping\ngoods, such as air, sea, rail, and truck.\n\n####  MOU: Memorandum of Understanding\n\nA non-binding agreement between two or more parties outlining their intentions\nto work together towards a common goal.\n\n####  MPF: Merchandise Processing Fee\n\nA fee charged by US Customs and Border Protection for processing imports into\nthe country.\n\n####  MRM: Mobile Resource Management\n\nThe use of technology to track and manage mobile resources such as vehicles\nand personnel.\n\n####  MRN: Movement Reference Number (EU)\n\nA unique identifier assigned to goods being transported within the European\nUnion.\n\n####  MRP: Material Requirements Planning\n\nA computerized system used to manage and plan the production of goods based on\ntheir materials requirements.\n\n####  MRP II: Manufacturing Resource Planning\n\nAn integrated information system that helps manufacturers manage their\nresources and operations, including materials, labor, equipment, and\nschedules. MRP II is designed to improve efficiency and reduce costs in the\nmanufacturing process.\n\n####  MYCFT: Malaysia Countering Financing of Terrorism\n\nA set of regulations and policies aimed at preventing the financing of\nterrorist activities in Malaysia.\n\n##  **N**\n\n####  NACCS: Nippon Automated Cargo and Port Consolidated System\n\nA system used in Japan to manage and monitor the movement of cargo and other\ngoods through ports and across the country.\n\n####  NADR: New Advanced Distribution Requirement\n\nA logistics strategy that involves using advanced technology, such as\nautomation and robotics, to improve the efficiency and accuracy of\ndistribution operations.\n\n####  NAFTA: North American Free Trade Agreement\n\nAn agreement between Canada, the United States, and Mexico that eliminates\nmost tariffs on goods traded between the three countries.\n\n####  NAICS: North American Industry Classification System\n\nA system used by businesses and governments to classify and measure economic\nactivity in North America.\n\n####  NCTS: New Computerized Transit System\n\nA system used by the European Union to monitor the movement of goods between\nmember states and facilitate the collection of import and export taxes.\n\n####  NDA: Non-Disclosure Agreement\n\nA legal contract between two or more parties that outlines confidential\nmaterial or information that the parties wish to share with one another for\ncertain purposes.\n\n####  NDT: Non-Destructive Testing\n\nA type of testing used to evaluate the condition and quality of materials and\ncomponents without causing damage or altering their properties.\n\n####  NHTSA: National Highway Traffic Safety Administration\n\nAn agency of the U.S. federal government that is responsible for enforcing\nsafety standards for motor vehicles and their parts.\n\n####  NIFO: Next In, First Out\n\nA method of inventory management that assumes the next items placed in\ninventory are the first sold or used.\n\n####  NITL: National Industrial Transportation League\n\nA trade association representing shippers and transportation providers in the\nUnited States.\n\n####  NLR: No Load Received\n\nA term used in the shipping industry to indicate that a shipment was not\nloaded onto a vessel as planned.\n\n####  NMFC: National Motor Freight Classification\n\nA standard system used by carriers and shippers in the U.S. to classify\ncommodities for shipping and pricing purposes.\n\n####  NMFS: National Marine Fisheries Service\n\nAn agency of the U.S. federal government that is responsible for managing and\nconserving the nation\u2019s fisheries and protected marine species.\n\n####  NMT: Normal Maintenance Time\n\nThe amount of time required to perform routine maintenance on equipment or\nmachinery.\n\n####  NNTL: Netherlands National Terrorism List\n\nA list maintained by the Dutch government of individuals and organizations\nthat are suspected of being involved in terrorist activities.\n\n####  NORBL: Norwegian Black List\n\nA list of individuals and organizations that are subject to sanctions by the\nNorwegian government.\n\n####  NPT: Non-Productive Time\n\nRefers to the time in which an employee is not directly engaged in productive\nactivities, such as waiting for a shipment to arrive or resolving a problem\nwith a supplier.\n\n####  NRA: Negotiated Rate Arrangement\n\nAn agreement between a carrier and a shipper in which the carrier provides a\ndiscounted rate in exchange for a commitment from the shipper to use the\ncarrier for a certain amount of freight.\n\n####  NRP: Narcotics Rewards Program\n\nA program run by the U.S. Department of State that offers rewards for\ninformation leading to the arrest and conviction of individuals involved in\ndrug trafficking.\n\n####  NSA: NVOCC Service Arrangement\n\nAn agreement between a Non-Vessel Operating Common Carrier (NVOCC) and a\ncarrier that outlines the terms of the services that will be provided by the\nNVOCC.\n\n####  NSC: National Safety Council\n\nA non-profit organization dedicated to promoting safety and preventing\ninjuries and deaths in workplaces, on roads, and in communities.\n\n####  NSN: National Stock Number\n\nA unique identifier assigned to each item that is procured, stocked, and\nissued through the federal supply system.\n\n####  NTE: Not to Exceed\n\nA term used in logistics contracts to set a maximum limit on the price of a\nproduct or service.\n\n####  NVD: National Vehicle Distribution\n\nA system for tracking and managing the distribution of vehicles from\nmanufacturing plants to dealerships or customers.\n\n####  NVO: Non-Vessel Operating\n\nA type of freight forwarder that does not own or operate its own vessels but\ninstead arranges for transportation services on behalf of shippers.\n\n####  NVOCC: Non-Vessel Operating Common Carrier\n\nA type of freight forwarder that does not own or operate its own vessels, but\ninstead contracts with carriers to move cargo.\n\n####  NWR: Not Written Report\n\nA type of communication used in logistics and supply chain management that\ninvolves verbal agreements and understandings instead of written\ndocumentation.\n\n####  NWSA: Northwest Seaport Alliance\n\nA marine cargo operating partnership between the ports of Seattle and Tacoma\nin Washington State that manages the fourth-largest container gateway in North\nAmerica.\n\n##  **O**\n\n####  OAC: Ocean Air Cargo\n\nA type of shipping that combines both air and sea transportation.\n\n####  OBL: Ocean Bill of Lading\n\nA document used in ocean freight shipping that serves as a receipt of cargo,\nas well as a contract of carriage between the shipper and the carrier.\n\n####  OCR: Optical Character Recognition\n\nA technology that enables the computer to recognize printed or written text\ncharacters and convert them into digital form that can be manipulated by a\ncomputer.\n\n####  OEE: Overall Equipment Effectiveness\n\nA measure of manufacturing productivity that takes into account machine\navailability, performance, and quality.\n\n####  OEM: Original Equipment Manufacturer\n\nA company that manufactures parts or products that are used in another\ncompany\u2019s product under that company\u2019s brand name.\n\n####  OFAC: Office of Foreign Assets Control\n\nAn agency of the U.S. Department of the Treasury that administers and enforces\neconomic and trade sanctions against targeted foreign countries,\norganizations, and individuals.\n\n####  OGA: Other Government Agency\n\nA government agency other than Customs and Border Protection (CBP) that has\nregulatory authority over certain imported merchandise and requires specific\ndocumentation and clearance before the merchandise can be released from CBP\ncustody.\n\n####  OGL: Open General License\n\nA type of export license that allows the export of certain items without the\nneed for a specific license.\n\n####  OMC: Office of Marine Conservation\n\nAn agency within the U.S. Department of State that is responsible for\nnegotiating and implementing international agreements and programs related to\nmarine conservation and fisheries management.\n\n####  OMR: Order Management System\n\nA software application that manages the entire order fulfillment process from\norder entry to shipping.\n\n####  OMS: Order Management System\n\nA software platform used by companies to manage and track orders, inventory,\nand fulfillment across multiple sales channels.\n\n####  ORM: Other Regulated Material\n\nA hazardous material that does not meet the criteria for any specific hazard\nclass but requires special handling and documentation for transportation.\n\n####  OSA: On-Shelf Availability\n\nA measure of product availability on store shelves.\n\n####  OSAKA: Order, Stock, and Availability Knowledge Assessment\n\nA diagnostic tool used to evaluate the effectiveness of supply chain\noperations, particularly in the areas of inventory management and order\nfulfillment.\n\n####  OS&D: Over, Short and Damaged\n\nA term used in transportation and logistics to refer to shipments that are\neither over the expected quantity, short of the expected quantity, or damaged\nin transit.\n\n####  OSM: Order Status Management\n\nA process for tracking and managing order status updates.\n\n####  OSR: Order Selection and Routing\n\nA process used in warehouse management to optimize the picking and packing of\norders for shipment.\n\n####  OTD: On-Time Delivery\n\nThe percentage of orders that are delivered on or before the promised delivery\ndate.\n\n####  OTIF: On-Time-In-Full\n\nA measure of delivery performance that evaluates whether orders are delivered\non time and with the correct quantity and quality.\n\n####  OTR: Order-to-Receipt\n\nThe time it takes from when an order is placed to when the goods are received.\n\n####  OTR: Outbound Transportation Rate\n\nThe cost of shipping goods from the warehouse to the customer.\n\n####  OTR: On-Time Rate\n\nA measure of how often shipments are delivered on or before the promised\ndelivery date, as a percentage of total shipments.\n\n##  **P**\n\n####  P2P: Procure-to-pay\n\nRefers to the process of obtaining and paying for goods and services,\ntypically within a business-to-business context.\n\n####  PACT: Pre-Load Air Cargo Targeting\n\nA US Customs and Border Protection program that utilizes advanced data\nanalytics to identify high-risk air cargo shipments before they arrive in the\nUS, allowing CBP to target their inspections and improve border security.\n\n####  PALLET\n\nThe platform that is used to transport goods, typically made of wood, plastic\nor metal.\n\n####  PAPS: Pre-Arrival Processing System\n\nA system used by the US Customs and Border Protection agency to expedite the\nclearance of commercial shipments into the US from Canada.\n\n####  PARS: Pre-Arrival Review System (Canada)\n\nA Canada Border Services Agency program that enables carriers to submit\nshipment data electronically to CBSA before the arrival of the shipment at the\nborder, allowing for faster processing.\n\n####  PCS: Port Community Systems (EU)\n\nA digital platform that connects different actors within the port ecosystem,\nsuch as customs authorities, terminal operators, and freight forwarders, to\nexchange information and streamline processes.\n\n####  P&D: Pick-up and delivery\n\nRefers to the transportation of goods from one location to another, usually\nwithin a specific geographic area.\n\n####  PDCA: Plan-Do-Check-Act\n\nRefers to a continuous improvement framework that is used to improve processes\nand systems.\n\n####  PDQ: Pretty Darn Quick\n\nRefers to a term used in logistics to describe expedited shipping.\n\n####  PEP: Politically Exposed Persons\n\nIndividuals who hold prominent public positions or have connections to high-\nranking government officials and are therefore considered to be at higher risk\nfor bribery, corruption, or money laundering.\n\n####  PGA: Participating Government Agency\n\nA US government agency that has a role in regulating certain goods or\nservices, such as the Food and Drug Administration (FDA) or the Federal\nCommunications Commission (FCC).\n\n####  PHAC: Public Health Agency of Canada\n\nThe federal agency responsible for promoting and protecting the health of\nCanadians through various programs and services related to disease prevention,\nhealth promotion, and emergency preparedness and response.\n\n####  PLACI: Preloading Advance Cargo Information\n\nA CBSA program that requires carriers to submit electronic cargo and\nconveyance data before arriving in Canada, to facilitate risk assessments and\nborder clearance procedures.\n\n####  PMS: Preventative Maintenance Schedule\n\nRefers to a schedule of routine maintenance activities that are performed on\nequipment to prevent breakdowns and extend its lifespan.\n\n####  PN: Prior Notice\n\nAdvance notification required by the FDA for all imported food shipments\nentering the US, to allow for inspection and ensure compliance with US\nregulations.\n\n####  PO: Purchase Order\n\nA commercial document issued by a buyer to a seller indicating types,\nquantities, and agreed prices for products or services to be purchased.\n\n####  POD: Proof of Delivery\n\nA document or electronic record that serves as evidence of delivery of goods\nor services from a supplier to a customer.\n\n####  POE: Port of Entry\n\nA location, such as a seaport, airport, or land border crossing, where goods\nor people enter a country for customs inspection and clearance.\n\n####  POI: Point of Interest\n\nRefers to a specific location that is of interest to a logistics or supply\nchain operation.\n\n####  POM: Purchase Order Management\n\nThe process of managing purchase orders from creation to delivery, including\nsupplier selection, order placement, monitoring, and payment.\n\n####  POP: Point of Purchase\n\nThe location or moment in a retail environment where a customer makes a\npurchase decision and completes a transaction.\n\n####  POS: Point of Sale\n\nThe location, such as a cash register or checkout counter, where a customer\ncompletes a purchase transaction and pays for goods or services.\n\n####  PPD: Prepaid\n\nPayment terms in which the buyer has already paid for the goods or services\nbefore they are delivered or provided.\n\n####  PRECISE: Preloading consignment information for secure entry\n\nAn EU program that requires advance submission of cargo and conveyance data\nbefore arrival at the EU border, to improve security and facilitate risk\nassessments.\n\n####  PSA: Port of Singapore Authority\n\nRefers to the government agency that is responsible for the management and\nregulation of Singapore\u2019s port operations.\n\n####  PST: Provincial Sales Tax (Canada)\n\nA tax collected by Canadian provinces on the sale or use of goods and\nservices, in addition to the federal goods and services tax (GST).\n\n####  PTI: Produce Traceability Initiative\n\nRefers to a program that is aimed at improving traceability in the fresh\nproduce supply chain.\n\n####  PUDO: Pick-up and Drop-off\n\nRefers to a logistics model that involves the use of local collection and\ndelivery points for goods.\n\n####  PVR: Purchase Volume Rebate\n\nRefers to a rebate that is offered by a supplier to a customer based on the\nvolume of goods that are purchased.\n\n####  PWS: Performance Work Statement\n\nRefers to a document that outlines the performance requirements for a specific\ntask or project.\n\n##  **Q**\n\n####  QA: Quality Assurance\n\nA process of ensuring that products or services meet or exceed customer\nexpectations and comply with relevant quality standards or regulations.\n\n####  QAD: Quick Action Dispatch:\n\nA system used to quickly and efficiently dispatch goods or services to\ncustomers, typically used in emergency or urgent situations.\n\n####  QBR: Quarterly Business Review\n\nA meeting between a supplier and customer to review performance, discuss\nchallenges and opportunities, and plan for the future.\n\n####  QC: Quality Control\n\nA process of verifying that products or services meet or exceed specific\nquality criteria or standards, through testing, inspection, or other methods.\n\n####  QCD: Quality, Cost, Delivery\n\nA set of key performance indicators used to measure the effectiveness of a\nmanufacturing or supply chain process, based on its ability to deliver high-\nquality products on time and at a reasonable cost.\n\n####  QFD: Quality Function Deployment\n\nA process used to translate customer needs into product or service\nrequirements, and to ensure that those requirements are met throughout the\nsupply chain.\n\n####  QM: Quality Management\n\nA comprehensive approach to managing quality throughout an organization,\nincluding planning, control, assurance, and improvement.\n\n####  QMS: Quality Management System\n\nA set of policies, processes, and procedures used to ensure that an\norganization delivers products or services that meet or exceed customer\nrequirements and comply with applicable regulations.\n\n####  QoE: Quality of Experience\n\nA measure of the overall satisfaction of a customer with a product or service,\nbased on factors such as usability, reliability, and customer support.\n\n####  QoS: Quality of Service\n\nThe level of performance and reliability provided by a service provider, such\nas a transportation or logistics company.\n\n####  QPL: Qualified Parts List\n\nA list of approved suppliers and their products that meet specific\nrequirements, typically used in government contracting.\n\n####  QR Code: Quick Response Code\n\nA two-dimensional barcode that can be scanned with a smartphone or other\nmobile device to quickly access information about a product or service.\n\n####  QSP: Quality Service Provider\n\nA provider of logistics and supply chain services that focuses on providing\nhigh-quality services to its customers.\n\n##  **R**\n\n####  RA: Regulated Agent\n\nA person or entity authorized by the relevant authorities to screen cargo,\nmail or passengers before they are loaded on an aircraft.\n\n####  RAC: Regulatory Affairs Committee\n\nA committee responsible for ensuring that companies comply with laws and\nregulations related to their products and services.\n\n####  RAR: Recovery Audit Report\n\nA report that identifies and recovers overpayments made by a company to\nsuppliers or vendors.\n\n####  RAS: Remote Asset Sensing\n\nA technology used to track and monitor assets in real-time from a remote\nlocation, such as through GPS or RFID.\n\n####  RAS: Route Accounting System\n\nThis system helps companies manage their direct store delivery (DSD)\noperations by providing real-time visibility into inventory levels, sales\ntransactions, and delivery schedules.\n\n####  RBM: Risk-Based Monitoring\n\nA monitoring approach that focuses on high-risk areas of a supply chain to\ndetect potential issues and mitigate them.\n\n####  RBM: Reorder Buffer Management\n\nA technique used in inventory management to maintain optimal stock levels by\ncalculating the buffer stock needed to meet customer demand and minimize\nstockouts.\n\n####  RCL: Rolled Consolidation List\n\nA list that identifies shipments that have been consolidated for\ntransportation purposes, typically by a freight forwarder.\n\n####  RCCP: Rough-Cut Capacity Planning\n\nA high-level capacity planning technique that estimates the production\ncapacity required to meet future demand based on a rough-cut analysis of\nresource availability.\n\n####  RCS: Returnable Container System\n\nA system that uses reusable containers or packaging to reduce waste and\nimprove supply chain efficiency.\n\n####  RDC: Regional Distribution Center\n\nA facility used by companies to store and distribute products to customers in\na specific geographic region. RDCs are often used to consolidate shipments\nfrom multiple suppliers and reduce transportation costs.\n\n####  RFI: Request for Information\n\nA formal request to obtain specific information from suppliers or vendors.\n\n####  RFID: Radio Frequency Identification\n\nA technology that uses radio waves to identify and track objects.\n\n####  RFP: Request for Proposal:\n\nA formal document used to solicit proposals from potential suppliers or\nvendors.\n\n####  RFQ: Request for Quotation\n\nA formal document used to request quotes from potential suppliers or vendors.\n\n####  RLF: Remote Location Filing\n\nA process that allows for the electronic filing of entries at locations other\nthan the port of arrival.\n\n####  RMA: Return Merchandise Authorization\n\nAn authorization that allows customers to return products to a supplier or\nvendor for replacement or refund.\n\n####  RMD: Release on Minimum Documentation\n\nA process that allows for the release of goods from customs custody with\nminimal documentation.\n\n####  RNS: Release Notification System\n\nA system used to notify carriers or other parties of the release of goods from\ncustoms custody.\n\n####  RODS: Records of Duty Status\n\nA record of a commercial driver\u2019s hours of service.\n\n####  ROI: Return on Investment\n\nA performance metric used to evaluate the profitability of an investment.\n\n####  ROO: Rules of Origin\n\nRegulations that determine the country of origin for a product and the\nassociated tariff rates.\n\n####  ROP: Reorder Point\n\nA level of inventory that triggers a reorder of products. The ROP is\ncalculated based on the lead time to receive new inventory, the average daily\ndemand, and the safety stock required to prevent stockouts.\n\n####  RO/RO: Roll-On/Roll-Off\n\nA method of cargo transportation in which vehicles or equipment are driven\nonto a ship or other carrier and secured for transport.\n\n####  RTV: Return to Vendor\n\nA process in which defective or unwanted products are returned to the supplier\nor vendor for replacement or refund.\n\n####  RTO: Return to Origin\n\nA process in which products are returned to their original location or\nsupplier due to issues such as defects, overstocking, or incorrect shipments.\n\n####  RTR: Ready to Run\n\nA manufacturing process in which products are assembled and tested before\nbeing shipped to customers, reducing lead times and improving quality control.\n\n####  RTV: Return to Vendor\n\nA process used to return unsold or defective products to the original\nsupplier. RTV can help companies reduce inventory costs and minimize the risk\nof stockouts.\n\n####  RWS: Road Weather System\n\nA system that provides real-time weather information to truck drivers and\nother transportation stakeholders to improve safety and efficiency on the\nroad.\n\n####  RWD: Reverse Warehouse Distribution\n\nA process used to manage returns and refurbish or recycle products. RWD can\nhelp companies reduce waste and improve sustainability by repurposing or\nrecycling products instead of disposing of them.\n\n####  RWM: Reverse Warehouse Management\n\nThe process of managing returns and other reverse logistics activities,\nincluding product repair, refurbishment, and recycling. RWM can help companies\nreduce costs and improve customer satisfaction by efficiently managing the\nreturns process.\n\n##  **S**\n\n####  S&OE: Sales and Operations Execution\n\nA process that focuses on short-term planning and execution of production and\ninventory plans to meet customer demand.\n\n####  S&OP: Sales and Operations Planning\n\nA process that brings together sales, marketing, and operations teams to\ncreate a demand plan and production plan that align with each other.\n\n####  SaaS: Software as a Service\n\nA software delivery model in which software applications are provided over the\ninternet by a third-party provider. Users can access the software through a\nweb browser or an API without the need for local installation.\n\n####  SCA: Supply Chain Analytics\n\nThe process of using data to identify opportunities for improvement in supply\nchain management and logistics.\n\n####  SCAC: Standard Carrier Alpha Code\n\nA unique code assigned by the National Motor Freight Traffic Association\n(NMFTA) to identify transportation companies, such as trucking companies, rail\ncarriers, and ocean carriers.\n\n####  SCADA: Supervisory Control and Data Acquisition\n\nA system used to monitor and control industrial processes and equipment, such\nas in a warehouse or manufacturing plant.\n\n####  SCE: Supply Chain Execution\n\nRefers to the coordination and management of all activities involved in the\ndelivery of a product or service from the supplier to the customer, including\ntransportation, warehousing, inventory management, and order fulfillment.\n\n####  SCEM: Supply Chain Event Management\n\nThe process of monitoring supply chain events in real-time and responding to\nthem in an efficient manner to minimize disruption.\n\n####  SCM: Supply Chain Management\n\nThe coordination and management of all activities involved in the delivery of\na product or service from the supplier to the customer, including procurement,\nproduction, transportation, warehousing, inventory management, and order\nfulfillment.\n\n####  SCMaaS: Supply Chain Management as a Service\n\nA cloud-based service that provides supply chain management solutions to\nbusinesses.\n\n####  SCO: Supply Chain Operations\n\nThe day-to-day activities involved in managing the supply chain, such as\nprocurement, production, and distribution.\n\n####  SCS: Supply Chain Strategy\n\nThe overall plan for how a company will manage its supply chain to achieve its\nbusiness goals.\n\n####  SCV: Supply Chain Visibility\n\nThe ability to see and track inventory, orders, and shipments as they move\nthrough the supply chain.\n\n####  SDS: Safety Data Sheet\n\nA document containing information on the potential hazards and safe handling\nof chemicals used in the supply chain.\n\n####  SEA: Shipper\u2019s Export Declaration\n\nA document required by the US government for all exports above a certain\nvalue, which provides information about the shipment and its contents.\n\n####  SED: Shipper\u2019s Export Declaration\n\nA document required by the U.S. government for all exports valued over $2,500,\nwhich provides information on the commodity being shipped, the exporter, and\nthe consignee.\n\n####  SEM: Strategic Enterprise Management\n\nA set of tools and methodologies used by organizations to align their business\nstrategies with their operational processes, performance metrics, and risk\nmanagement practices.\n\n####  SEP: Supplier Evaluation Program\n\nA system for evaluating the performance of suppliers based on factors such as\nquality, delivery time, and cost.\n\n####  SFP: Seller Fulfilled Prime\n\nIt is a program offered by Amazon to allow sellers to offer products as Prime-\neligible without using Amazon\u2019s fulfillment centers.\n\n####  SIC: Standard Industrial Classification\n\nA system used to classify businesses by the type of economic activity they\nengage in.\n\n####  SIMP: Seafood Import Monitoring Program\n\nA U.S. government program that requires seafood importers to provide\nadditional data and documentation to prevent illegal, unreported, and\nunregulated fishing practices.\n\n####  SKU: Stock Keeping Unit\n\nA unique identifier assigned to a product for inventory management and\ntracking purposes.\n\n####  SLA: Service Level Agreement\n\nA contract between a service provider and a customer that defines the level of\nservice that will be provided, including performance metrics, availability,\nand support.\n\n####  SLI: Shipper\u2019s Letter of Instruction\n\nA document that provides instructions from the shipper to the freight\nforwarder or carrier, including information on the cargo, routing, and special\nhandling requirements.\n\n####  SLP: Sales and Logistics Planning\n\nA process that combines sales forecasting with logistics planning to optimize\nthe supply chain and improve customer satisfaction.\n\n####  SME: Small and Medium Enterprises\n\nBusinesses that have a limited number of employees and/or revenue, typically\ndefined as having fewer than 500 employees.\n\n####  SOA: Statement of Account\n\nA summary of a customer\u2019s account, including all transactions and account\nbalances, provided by a supplier or vendor.\n\n####  SOLAS: Safety of Life at Sea\n\nAn international treaty that sets minimum safety standards for ships,\nincluding requirements for construction, equipment, and operation.\n\n####  SOP: Standard Operating Procedure\n\nA set of step-by-step instructions that outlines how a particular task or\nprocess should be performed, including any required resources, personnel, and\ntimelines.\n\n####  SOW: Statement of Work\n\nA detailed document that outlines the scope, objectives, deliverables, and\ntimelines for a project or contract.\n\n####  SOX: Sarbanes-Oxley Act\n\nA U.S. federal law that establishes standards for public companies and\naccounting firms to improve the accuracy and transparency of financial\nreporting.\n\n####  SPC: Statistical Process Control\n\nA methodology used to monitor and control a process by measuring and analyzing\ndata.\n\n####  SPI: Special Program Indicator\n\nA code used in international trade to indicate that a shipment is subject to\nspecial handling or regulatory requirements.\n\n####  SPL: Sanctioned Party List\n\nA list maintained by governments and international organizations of\nindividuals, organizations, and countries subject to economic or trade\nsanctions.\n\n####  SRM: Supplier Relationship Management\n\nThe process of managing and optimizing the interactions between a company and\nits suppliers to improve performance, reduce costs, and mitigate risks.\n\n####  SRP: Shelf-Ready Packaging\n\nA type of packaging designed to be easily placed on store shelves for retail\ndisplay.\n\n####  SRT: Shipment Release Time:\n\nThe time at which a shipment is released by the carrier for delivery to the\ncustomer.\n\n####  SSA: Supply Chain Security Assessment\n\nAn evaluation of the security risks and vulnerabilities in a supply chain.\n\n####  SSL: Secure Sockets Layer\n\nA protocol used to secure online transactions and data transfers.\n\n####  SSCC: Serial Shipping Container Code\n\nA unique identifier assigned to a shipping container or transport unit for\ntracking and inventory management purposes.\n\n####  SSE: Shanghai Shipping Exchange\n\nA platform for maritime freight rate pricing and information exchange.\n\n####  STB: Single Transaction Bonds\n\nA type of customs bond that allows importers to bring in goods on a\ntransaction-by-transaction basis instead of posting a continuous bond.\n\n####  SWI: Single Window Initiative\n\nA program that aims to simplify and streamline the process of submitting\nimport/export documentation by allowing companies to submit all required\ninformation through a single electronic platform.\n\n##  **T**\n\n####  TAT: Turnaround Time\n\nThe time it takes for a shipment or order to be processed and delivered from\nthe time it was received.\n\n####  TATP: Transit Authority Transfer Point\n\nA designated location where shipments are transferred between different\ntransportation modes, such as from truck to train or from train to ship.\n\n####  T\u2019s & C\u2019s: Terms and Conditions\n\nRefers to the agreement or contract between two or more parties, detailing the\nterms of a transaction or service.\n\n####  TCCU: Technical Commercial Client Unit\n\nA division within a company that provides technical support and services to\ncommercial clients.\n\n####  TDC: Transportation Distribution Center\n\nA facility used for the storage, sorting, and distribution of goods.\n\n####  TDP: Transportation Data Plan\n\nA plan that outlines how data is collected, managed, and used for\ntransportation-related purposes.\n\n####  TEU: Twenty-Foot Equivalent Unit\n\nA standard measure used to describe a shipping container\u2019s cargo carrying\ncapacity. One TEU is equal to a container that is 20 feet long, 8 feet wide,\nand 8 feet, 6 inches high.\n\n####  TFTEA: Trade Facilitation and Trade Enforcement Act\n\nA U.S. law that seeks to modernize and streamline customs procedures, enhance\nenforcement of trade laws, and promote economic growth.\n\n####  TIB: Temporary Importation under Bond\n\nA customs procedure that allows goods to enter a country temporarily, without\npaying duties or taxes, on the condition that they are re-exported by a\nspecified time.\n\n####  TIR: Transit International Routier\n\nA customs transit system used to facilitate the movement of goods across\ninternational borders.\n\n####  TL: Truckload\n\nA shipment that requires the use of an entire trailer or truck, as opposed to\nLTL (less-than-truckload) shipments, which combine multiple smaller shipments\nfrom different customers into one trailer or truck.\n\n####  TLP: Transportation Lane Planning\n\nThe process of planning and optimizing transportation routes to minimize costs\nand improve efficiency.\n\n####  TM: Transportation Management\n\nThe process of planning, coordinating, and executing the movement of goods and\nmaterials from one location to another.\n\n####  TMS: Transportation Management System\n\nA software platform that helps companies manage and optimize their\ntransportation operations, including carrier selection, routing, and tracking.\n\n####  TMSA: Transportation Management System Assessment\n\nA framework for assessing the effectiveness and maturity of a transportation\nmanagement system.\n\n####  TMSI: Transportation Management System Integration\n\nThe process of integrating different transportation management systems into a\nunified platform.\n\n####  TMSR: Transportation Management System Reporting\n\nThe process of generating reports and analyzing data from a transportation\nmanagement system.\n\n####  TOFC: Trailer on Flat Car\n\nA type of intermodal transportation in which truck trailers are transported on\nrail flatcars.\n\n####  TQM: Total Quality Management\n\nA management philosophy focused on continuous improvement of product and\nservice quality by involving every employee in the organization.\n\n####  TRCAN: Transport Canada\n\nThe Canadian government department responsible for transportation policies and\nprograms, including aviation, marine, rail, and road transportation.\n\n####  TL: Turkey\u2019s Most Wanted Terrorist List\n\nTRWA list maintained by the Turkish government of individuals wanted for\nterrorism-related crimes.\n\n####  TSA: Transportation Security Administration\n\nA U.S. government agency responsible for security in all modes of\ntransportation, including airports, seaports, and railroads.\n\n####  TSCA: Toxic Substances Control Act\n\nA U.S. law that regulates the manufacture, importation, and use of chemicals\nand chemical substances.\n\n####  TSO: Transportation Security Officer\n\nAn officer responsible for ensuring the security of transportation systems,\nsuch as airports, seaports, and train stations.\n\n####  TSP: Transportation Service Provider\n\nA company that provides transportation services, such as shipping, trucking,\nor freight forwarding.\n\n####  T-TIP: Transatlantic Trade and Investment Partnership\n\nA proposed free trade agreement between the European Union and the United\nStates, intended to reduce trade barriers and increase economic growth.\n\n####  TTB: Tax and Trade Bureau\n\nA U.S. government agency responsible for regulating and collecting taxes on\nalcohol, tobacco, firearms, and ammunition.\n\n##  **U**\n\n####  UAV: Unmanned Aerial Vehicle\n\nA remote-controlled aircraft used for various applications, including\nsurveillance, search and rescue, and cargo delivery.\n\n####  UCC: Uniform Commercial Code\n\nA set of legal rules governing commercial transactions in the United States.\n\n####  UCC: Union Customs Code\n\nA set of customs rules governing the movement of goods within the European\nUnion.\n\n####  UCC 128: Uniform Code Council 128\n\nA standard barcode used in supply chain management to track and identify\nproducts and shipments.\n\n####  UCR: Unique Consignment Reference\n\nA unique identifier used to track shipments in the United Kingdom.\n\n####  UFC: Uniform Freight Classification\n\nA system of classification used by railroads to determine shipping rates based\non the type of goods being shipped.\n\n####  UKPTG: United Kingdom Proscribed Terrorist Groups\n\nA list of terrorist organizations banned in the United Kingdom.\n\n####  ULCC: Ultra Large Crude Carrier\n\nA type of oil tanker designed to transport large quantities of crude oil.\n\n####  ULD: Unit Load Device\n\nA container or pallet used to carry cargo or baggage on airplanes. ULDs are\nstandardized and interchangeable between aircraft, making them an important\npart of air cargo logistics.\n\n####  ULD Net: Unit Load Device Net\n\nA system used to secure ULDs to cargo aircraft to prevent them from shifting\nduring flight.\n\n####  ULD Tag: Unit Load Device Tag\n\nA label affixed to ULDs to identify their contents and destination, and to\ntrack their movement through the supply chain.\n\n####  ULLS: Unit Level Logistics System\n\nA computerized inventory management system used by the U.S. Army to track\nspare parts and other supplies at the unit level.\n\n####  UMS: Unmanned Maritime System\n\nAn autonomous or remote-controlled vessel used for various tasks, including\nsearch and rescue, surveying, and cargo transportation.\n\n####  UNCTAD: United Nations Conference on Trade and Development\n\nA permanent intergovernmental body established by the United Nations General\nAssembly to promote economic development and international trade.\n\n####  URS: Universal Routing System\n\nA system used in transportation management to optimize routing and scheduling\nfor deliveries.\n\n####  UNSC: United Nations Security Council\n\nA body responsible for maintaining international peace and security.\n\n####  UPC: Universal Product Code\n\nA barcode symbology used for tracking trade items in stores.\n\n####  UPS: United Parcel Service\n\nA package delivery company.\n\n####  USDA: U.S. Department of Agriculture\n\nA federal agency responsible for overseeing agriculture and farming.\n\n####  USPS: United States Post Office\n\nA postal service and package delivery company in the United States.\n\n####  UTP \u2013 Universal Tractor Program\n\nA program used by the U.S. Department of Defense to standardize and modernize\nits fleet of tractors used for material handling.\n\n##  **V**\n\n####  VAN: Value-Added Network\n\nA third-party provider of communication services between businesses.\n\n####  VAS: Value Added Services\n\nAdditional services provided by a logistics provider that go beyond the basic\ntransportation of goods. Examples include labeling, kitting, and assembly.\n\n####  VAS: Vehicle Allocation System\n\nA software system that helps optimize the allocation of vehicles to\ntransportation routes. This can help reduce transportation costs and improve\ndelivery times.\n\n####\n\nVAR: Value-Added Reseller is a company that adds value to a product before\nreselling it.\n\n####  VAT: Value-Added Tax\n\nA consumption tax added to the price of goods and services in many countries.\n\n####  VGM: Verified Gross Mass\n\nThe weight of a shipping container including its contents, verified by the\nshipper.\n\n####  VLT: Value-Added Lead Time\n\nThe amount of time it takes to deliver a product or service, including any\nvalue-added activities such as customization or assembly. VLT is an important\nmetric in supply chain management, as it can impact customer satisfaction and\ninventory levels.\n\n####  VM: Virtual Machine\n\nA software environment that emulates a physical computer.\n\n####  VMI: Vendor Managed Inventory\n\nA supply chain management system where the vendor of a product is responsible\nfor monitoring and replenishing inventory levels for their customer.\n\n####  VOC: Voice of the Customer\n\nThe feedback provided by customers about their experience with a product or\nservice. In supply chain and logistics, VOC can help identify areas for\nimprovement and guide decision-making.\n\n####  VOCC: Vessel Operating Common Carrier\n\nRefers to a shipping company that operates its own vessels. These companies\noffer services to shippers for moving cargo from one port to another.\n\n####  VOP: Voice of the Process\n\nThe feedback provided by employees about the efficiency and effectiveness of a\nprocess. In supply chain and logistics, VOP can help identify bottlenecks and\nareas for improvement.\n\n####  VPN: Virtual Private Network\n\nA technology that enables secure communication between remote networks over\nthe internet.\n\n####  VSC: Vehicle Safety Check\n\nA pre-trip inspection of a vehicle to ensure that it is safe for operation.\nVSC is a critical aspect of transportation safety.\n\n##  **W**\n\n####  W/H: Warehouse\n\nA facility used to store goods, materials, or products.\n\n####  WCO: World Customs Organization\n\nAn intergovernmental organization that promotes international customs\ncooperation.\n\n####  WCO Harmonized System: World Customs Organization Harmonized System\n\nA standardized system for classifying goods for customs purposes, used by over\n200 countries around the world.\n\n####  WCS: Warehouse Control System\n\nA software system that manages and controls the automated equipment and\nmachinery within a warehouse or distribution center, including conveyor\nsystems, sortation systems, and automated storage and retrieval systems. The\nWCS communicates with the WES to optimize and coordinate the movement of goods\nthroughout the warehouse.\n\n####  W&D: Warehousing and Distribution\n\nRefers to the activities involved in storing and moving goods within a supply\nchain.\n\n####  WDN: Warehouse Delivery Note\n\nA document that lists the contents of a shipment that has been received at a\nwarehouse.\n\n####  WERC: Warehousing Education and Research Council\n\nA professional organization that provides education, research, and networking\nopportunities for warehouse and distribution professionals.\n\n####  WES: Warehouse Execution System\n\nA software system that controls and optimizes warehouse operations such as\norder picking, inventory management, and transportation.\n\n####  WIBON: When it\u2019s best on net\n\nA shipping term that indicates the best time for a shipment to be delivered\nbased on the carrier\u2019s schedule and the recipient\u2019s availability.\n\n####  WIP: Work in Progress\n\nRefers to goods that are in the process of being manufactured but are not yet\nfinished products.\n\n####  WIPER: Weekly Inventory Position Evaluation Report\n\nA report used to evaluate inventory levels on a weekly basis.\n\n####  WIPR: Work in Process Report\n\nA document that tracks the status of work orders, materials, and labor in a\nmanufacturing process.\n\n####  WLTP: Worldwide Harmonized Light Vehicles Test Procedure\n\nA standardized testing procedure used to measure vehicle emissions and fuel\nconsumption.\n\n####  WM: Warehouse Management\n\nThe process of optimizing warehouse operations and inventory management.\n\n####  WO: Work Order\n\nA document that specifies the work to be done, materials needed, and other\nimportant information for a particular job or project.\n\n####  WPD: Warehouse Productivity Dashboard\n\nA tool that provides real-time visibility into warehouse performance metrics,\nsuch as throughput, capacity utilization, and inventory accuracy.\n\n####  WPT: Wooden Pallets and Containers\n\nRefers to the wooden pallets and containers used to transport goods and\nproducts.\n\n####  WSC: World Shipping Council\n\nAn organization that represents the global liner shipping industry and\npromotes its interests.\n\n####  WSP: Warehouse Service Provider\n\nA company that provides warehousing and distribution services to other\nbusinesses.\n\n####  WMA: Weighted Moving Average\n\nA forecasting method that assigns weights to past data points to predict\nfuture demand.\n\n####  WMSA: Warehouse Management System Association\n\nA trade organization that promotes the use of warehouse management systems and\nprovides resources for companies to improve their warehouse operations.\n\n####  WMS: Warehouse Management System\n\nA software application that helps manage warehouse operations and inventory.\n\n####  WTA: Warehouse Transfer Authorization\n\nA document authorizing the transfer of inventory from one warehouse location\nto another.\n\n####  WTO: World Trade Organization\n\nAn intergovernmental organization that regulates international trade and\nresolves trade disputes.\n\n####  WTS: Warehouse Transportation System\n\nA system used to manage the transportation of goods to and from a warehouse.\n\n##  **X**\n\n####  XML: eXtensible Markup Language\n\nA markup language used for encoding documents in a format that is both human-\nreadable and machine-readable.\n\n##  **Y**\n\n####  YB: Yard Boss\n\nThe supervisor or manager responsible for overseeing operations in a yard or\nstorage area.\n\n####  YC: Yard Clerk\n\nAn administrative support role responsible for tracking and managing inventory\nmovements within a yard or storage area.\n\n####  YM: Yard Management\n\nThe process of managing the movement of trailers and containers within a yard\nor terminal.\n\n####  YMS: Yard Management System\n\nA software system that manages the movement of trailers and containers in and\nout of a distribution center or warehouse yard.\n\n####  YRD: Yard\n\nA designated area for loading and unloading of trucks, trailers, and\ncontainers.\n\n####  YRDLOC: Yard Location\n\nA code or identifier used to track the location of a specific item within a\nyard or storage area.\n\n####  YTD: Year-to-Date\n\nA metric that shows the performance of a company or organization from the\nbeginning of the year to the present day.\n\n####  YTDG: Year-to-Date Growth\n\nA measure of how much a particular metric, such as sales or revenue, has grown\nsince the beginning of the year.\n\n####  YTD-PTD: Year-to-Date Prior-to-Date\n\nA comparison of current year-to-date data with the same period in the previous\nyear. YTD-PTD can help identify trends and measure progress over time.\n\n####  Yoke\n\nA bar or beam that connects two draft animals for pulling a load. In modern\nlogistics, yokes may refer to load bars or crossbars that secure cargo on\ntrailers.\n\n####  Thank You Contributors!\n\nWe would like to express our sincere gratitude to everyone in the community\nwho participated in our LinkedIn challenge to share their favorite acronyms\nrelated to the supply chain and logistics industry. Your contributions were\ninvaluable and we appreciate your support. This blog is dedicated to all the\nwonderful contributors who made this possible through their collaboration and\nengagement. Thank you! [ (Here\u2019s a link to the original post)\n](https://www.linkedin.com/posts/harshida_tgif-fridayfun-supplychain-\nactivity-7037421355851550721-xXDT?utm_source=share&utm_medium=member_desktop)\n\n####  **Want to keep the ultimate guide to supply chain and logistics acronyms\nhandy?**\n\n[ Download The List ](https://share.hsforms.com/1V2jMZZSORcyKjv-6vyu8PA5dry3)\n\n####  **Are we missing an acronym on the list? Tell us!**\n\n[ Submit Your Acronym\n](https://share.hsforms.com/1CzfaIT7STFOsxHsbPg9FwQ5dry3)\n\nFulfillment IQ Team\n\n[ Harshida Acharya ]()\n\nPartner & CMO\n\n**\n\nShare\n\n**\n\n  * __\n  * __\n  * __\n\n**\n\nLike what you're reading?  \nSubscribe to our stories.\n\n**\n\n###  More Posts\n\n##### [ Artificial Intelligence Finds a Firm Footing in the Supply Chain\n](https://fulfillmentiq.com/ai-in-supply-chain-optimization/)\n\nNinaad Acharya \u2022 5 min read\n\nApril 3, 2025\n\nDiscover how AI is reducing costs, improving logistics, and reshaping\ninventory management across modern supply chains. Real data, real impact.\u2026\n\n[ Read Now ](https://fulfillmentiq.com/ai-in-supply-chain-optimization/)\n\n##### [ Warehouse Real Estate Faces a Turning Point: Build for the Future or\nRisk Obsolescence  ](https://fulfillmentiq.com/warehouse-real-estate-build-\nfutureproof-logistics/)\n\nNinaad Acharya \u2022 6 min read\n\nMarch 21, 2025\n\nIn warehouse and logistics real estate, development timelines are now measured\nin years. 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                "url": "https://fulfillmentiq.com/the-ultimate-guide-to-logistics-supply-chain-acronyms-your-a-z-reference-library/"
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            "reason": "This page provides a guide to logistics and supply chain acronyms, which is relevant to understanding industry terminology. However, it does not explicitly mention Trafic, so the reliability is moderate.",
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            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page provides a guide to logistics and supply chain acronyms.",
            "url": "https://fulfillmentiq.com/the-ultimate-guide-to-logistics-supply-chain-acronyms-your-a-z-reference-library/"
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                    "source": "https://www.mckinsey.com/capabilities/operations/our-insights/risk-resilience-and-rebalancing-in-global-value-chains"
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                "page_content": "Skip to main content\n\n[ MGI Research  ](/mgi/overview)\n\n#\n\nRisk, resilience, and rebalancing in global value chains\n\nAugust 6, 2020  | Report \n\nCompanies need an understanding of their exposure, vulnerabilities, and\npotential losses to inform resilience strategies.\n\nSusan Lund \u00c2  [ James Manyika  ](/our-people/james-manyika) \u00c2  Lola Woetzel \u00c2\n[ Edward Barriball  ](/our-people/edward-barriball) \u00c2  [ Mekala Krishnan\n](/our-people/mekala-krishnan) \u00c2  Knut Alicke \u00c2  [ Michael Birshan  ](/our-\npeople/michael-birshan) \u00c2  Katy George \u00c2  [ Sven Smit  ](/our-people/sven-\nsmit) \u00c2  [ Daniel Swan  ](/our-people/daniel-swan) \u00c2  Kyle Hutzler\n\n###\n\n(112 pages)  (28 pages)\n\n**In recent decades,** value chains have grown in length and complexity as\ncompanies expanded around the world in pursuit of margin improvements. Since\n2000, the value of intermediate goods traded globally has tripled to more than\n$10 trillion annually. Businesses that successfully implemented a lean, global\nmodel of manufacturing achieved improvements in indicators such as inventory\nlevels, on-time-in-full deliveries, and shorter lead times.\n\nHowever, these operating model choices sometimes led to unintended\nconsequences if they were not calibrated to risk exposure. Intricate\nproduction networks were designed for efficiency, cost, and proximity to\nmarkets but not necessarily for transparency or resilience. Now they are\noperating in a world where disruptions are regular occurrences. Averaging\nacross industries, companies can now expect supply chain disruptions lasting a\nmonth or longer to occur every 3.7 years, and the most severe events take a\nmajor financial toll.\n\nThe risk facing any particular industry value chain reflects its level of\nexposure to different types of shocks, plus the underlying vulnerabilities of\na particular company or in the value chain as a whole. New research from the\nMcKinsey Global Institute explores the rebalancing act facing many companies\nin goods-producing value chains as they seek to get a handle on risk\u00e2\u0080\u0094not\nongoing business challenges but more profound shocks such as financial crises,\nterrorism, extreme weather, and, yes, pandemics.\n\nToday technology is challenging old assumptions that resilience can be\npurchased only at the cost of efficiency. The latest advances offer new\nsolutions for running scenarios, monitoring many layers of supplier networks,\naccelerating response times, and even changing the economics of production.\nSome manufacturing companies will no doubt use these tools and devise other\nstrategies to come out on the other side of the pandemic as more agile and\ninnovative organizations.\n\nSection 1\n\n##  With shocks growing more frequent and severe, industry value chains vary\nin their level of exposure\n\nThe COVID pandemic has delivered the biggest and broadest value chain shock in\nrecent memory. But it is only the latest in a series of disruptions. In 2011,\na major earthquake and tsunami in Japan shut down factories that produce\nelectronic components for cars, halting assembly lines worldwide. The disaster\nalso knocked out the world\u00e2\u0080\u0099s top producer of advanced silicon wafers, on\nwhich semiconductor companies rely. Just a few months later, flooding swamped\nfactories in Thailand that produced roughly a quarter of the world\u00e2\u0080\u0099s hard\ndrives, leaving the makers of personal computers scrambling. In 2017,\nHurricane Harvey, a Category 4 storm, smashed into Texas and Louisiana. It\ndisrupted some of the largest US oil refineries and petrochemical plants,\ncreating shortages of key plastics and resins for a range of industries.\n\nThis is more than just a run of bad luck. Changes in the environment and in\nthe global economy are increasing the frequency and magnitude of shocks. Forty\nweather disasters in 2019 caused damages exceeding $1 billion each\u00e2\u0080\u0094and in\nrecent years, the economic toll caused by the most extreme events has been\nescalating.  [ 1  _Eye of the Storm,_ \u00e2\u0080\u009cEarth\u00e2\u0080\u0099s 40 billion-dollar weather\ndisasters of 2019,\u00e2\u0080\u009d _Scientific American_ blog entry by Jeff Masters,\nJanuary 22, 2020; and Matteo Coronese et al., \u00e2\u0080\u009cEvidence for sharp increase\nin the economic damages of extreme natural disasters,\u00e2\u0080\u009d _Proceedings of the\nNational Academy of Sciences,_ October 2019, Volume 116, Number 43.\n](javascript:void\\(0\\);) As a new multipolar world takes shape, we are seeing\nmore trade disputes, higher tariffs, and broader geopolitical uncertainty. The\nshare of global trade conducted with countries ranked in the bottom half of\nthe world for political stability, as assessed by the World Bank, rose from 16\npercent in 2000 to 29 percent in 2018. Just as telling, almost 80 percent of\ntrade involves nations with declining political stability scores.  [ 2  World\nBank, Worldwide Governance Indicators 2018 (political stability and absence of\nviolence/terrorism).  ](javascript:void\\(0\\);) Increased reliance on digital\nsystems increases exposure to a wide variety of cyberattacks; the number of\nnew ransomware variations alone doubled from 2018 to 2019.  [ 3  Anthony\nSpadafora, \u00e2\u0080\u009cRansomware mutations double in 2019,\u00e2\u0080\u009d TechRadar, August 20,\n2019.  ](javascript:void\\(0\\);) Interconnected supply chains and global flows\nof data, finance, and people offer more \u00e2\u0080\u009csurface area\u00e2\u0080\u009d for risk to\npenetrate, and ripple effects can travel across these network structures\nrapidly.\n\nExhibit 1 classifies different types of shocks based on their impact, lead\ntime, and frequency of occurrence. In a few cases, we also show hypothetical\nshocks like a global military conflict or a systemic cyberattack that would\ndwarf the most severe shocks experienced to date. While these may be only\nremote possibilities, these scenarios are in fact studied and planned for by\ngovernments and security experts. The impact of a shock can be influenced by\nhow long it lasts, the ripple effects it has across geographies and\nindustries, and whether a shock hits the supply side alone or also hits\ndemand.\n\nThis analysis reveals four broad categories of shocks. Catastrophes are\nhistorically remarkable events that cause trillions of dollars in losses. Some\nare foreseeable and have relatively long lead times, while others are\nunanticipated. Larger patterns and probabilities can guide general\npreparedness; hurricanes strike in the Gulf of Mexico every year, for example.\nBut the manifestation of a specific event can strike with little to no\nwarning. This includes some calamities that the world has avoided to date,\nsuch as a cyberattack on foundational global systems.\n\nDisruptions are serious and costly events, although on a smaller scale than\ncatastrophes. They, too, can be split into those that telegraph their arrival\nin advance (such as the recent US\u00e2\u0080\u0093China trade disputes and the United\nKingdom\u00e2\u0080\u0099s exit from the European Union) and unanticipated events such as\ndata breaches, product recalls, logistics disruptions, and industrial\naccidents. Disruptions do not cause the same cumulative economic toll as\ncatastrophes.\n\nCompanies tend to focus much of their attention on managing the types of\nshocks they encounter most often, which we classify as \u00e2\u0080\u009cunanticipated\ndisruptions.\u00e2\u0080\u009d Some other shocks such as trade disputes have made headlines\nin recent years and, as a result, companies have started to factor them into\ntheir planning. But other types of shocks that occur less frequently could\ninflict bigger losses and also need to be on companies\u00e2\u0080\u0099 radar. The COVID\npandemic is a reminder that outliers may be rare\u00e2\u0080\u0094but they are real\npossibilities that companies need to consider in their decision making.\n\nAll four types of shocks can disrupt operations and supply chains, often for\nprolonged periods. We surveyed dozens of experts in four industries\n(automotive, pharmaceuticals, aerospace, and computers and electronics) to\nunderstand how often they occur. Respondents report that their industries have\nexperienced material disruptions lasting a month or longer every 3.7 years on\naverage. Shorter disruptions happen even more frequently.\n\nWe analyzed 23 industry value chains to assess their exposure to specific\ntypes of shocks. The resulting index (Exhibit 2) combines multiple factors,\nincluding how much of the industry\u00e2\u0080\u0099s current geographic footprint is found\nin areas prone to each type of event, the factors of production affected by\nthose disruptions and their importance to that value chain, and other measures\nthat increase or reduce susceptibility.\n\nExposure to different types of shocks varies sharply by value chain. Aerospace\nand semiconductors, for example, are susceptible to cyberattacks and trade\ndisputes, because of their high level of digitization, R&D, capital intensity,\nand exposure to digital data flows. However, both value chains have relatively\nlow exposure to the climate-related events we have assessed here (heat stress\nand flooding) because of the footprint of their production.\n\nSpecific types of shocks are more likely to touch certain industries.\nPandemics, for example, have a major impact on labor-intensive value chains.\nIn addition, this is the one type of shock for which we assess the effects on\ndemand as well as supply. As we are seeing in the current crisis, demand has\nplummeted for nonessential goods and travel, hitting companies in apparel,\npetroleum products, and aerospace. By contrast, while production has been\naffected in value chains like agriculture and food and beverage, they have\ncontinued to see strong demand because of the essential nature of their\nproducts.\n\nIn general, heat stress is more likely to strike labor-intensive value chains\n(and some resource-intensive value chains) because of their relatively high\nreliance on manual labor or outdoor work. Perhaps surprisingly, these same\nvalue chains are relatively less susceptible to trade disputes, which are\nincreasingly focused on value chains with a high degree of knowledge intensity\nand high-value industries.\n\nOverall, value chains that are heavily traded relative to their output are\nmore exposed than those with lower trade intensity. Some of these include\nvalue chains that are the most sought after by countries: communication\nequipment, computers and electronics, and semiconductors and components. These\nvalue chains have the further distinction of being high value and relatively\nconcentrated, underscoring potential risks for the global economy. Heavily\ntraded labor-intensive value chains, such as apparel, are highly exposed to\npandemic risk, heat stress (because of their reliance on labor), and [ flood\nrisk ](/capabilities/sustainability/our-insights/can-coastal-cities-turn-the-\ntide-on-rising-flood-risk) . In contrast, the value chains including glass and\ncement, food and beverage, rubber and plastics, and fabricated metals have\nmuch lower exposure to shocks; these are among the least traded and most\nregionally oriented value chains.\n\nAll in all, the five value chains most exposed to our assessed set of six\nshocks collectively represent $4.4 trillion in annual exports, or roughly a\nquarter of global goods trade (led by petroleum products, ranked third\noverall, with $2.4 trillion in exports). The five least exposed value chains\naccount for $2.6 trillion in exports. Of the five most exposed value chains,\napparel accounts for the largest share of employment, with at least 25 million\njobs globally, according to the International Labor Organization.  [ 4\nInternational Labor Organization, \u00e2\u0080\u009cEmployment by sex and economic\nactivity\u00e2\u0080\u0094ILO modelled estimates,\u00e2\u0080\u009d ILOSTAT, accessed June 20, 2020.\n](javascript:void\\(0\\);)\n\nEven value chains with limited exposure to all types of shocks we assessed are\nnot immune to them. Despite recent headlines, we find that pharmaceuticals are\nrelatively less exposed than most other industries. But the industry has been\ndisrupted by a hurricane that struck Puerto Rico, and cyberattacks are a\ngrowing concern. In the future, the industry may be subject to greater trade\ntensions as well as regulatory and policy shifts if governments take action\nwith the intent of [ safeguarding public health ](/industries/healthcare/our-\ninsights/prioritizing-health-a-prescription-for-prosperity) . The food and\nbeverage industry and [ agriculture ](/capabilities/sustainability/our-\ninsights/will-the-worlds-breadbaskets-become-less-reliable) \u00c2 similarly have\nrelatively low exposure overall, as they are globally dispersed. Yet these\nvalue chains are subject to climate-related stresses that are likely to grow\nover time. In addition to disrupting the lives and livelihoods of millions,\nthis could cause the industries to become more dependent on trade or force\nthem to undertake expensive adaptations.\n\nSection 2\n\n##  Shocks exploit vulnerabilities within companies and value chains\n\nShocks inevitably seem to exploit the weak spots within broader value chains\nand specific companies. An organization\u00e2\u0080\u0099s [ supply chain operations\n](/capabilities/operations/our-insights/is-your-supply-chain-risk-blind-or-\nrisk-resilient) \u00c2 can be a source of vulnerability or resilience, depending on\nits effectiveness in monitoring risk, implementing mitigation strategies, and\nestablishing business continuity plans.\n\nSome of these vulnerabilities are inherent to a given industry; the\nperishability of food and agricultural products, for example, means that the\nassociated value chains are highly vulnerable to delivery delays and spoilage.\nIndustries with unpredictable, seasonal, and cyclical demand also face\nparticular challenges. Makers of electronics must adapt to relatively short\nproduct life cycles, and they cannot afford to miss spikes in consumer\nspending during limited holiday windows.\n\nOther vulnerabilities are the consequence of intentional decisions, such as\nhow much inventory a company chooses to carry, the complexity of its product\nportfolio, the number of unique SKUs in its supply chain, and the amount of\ndebt or insurance it carries.  [ 5  SKUs are stock-keeping units, indicating a\ndistinct type of product for sale.  ](javascript:void\\(0\\);) Changing these\ndecisions can reduce\u00e2\u0080\u0094or increase\u00e2\u0080\u0094vulnerability to shocks.\n\nWeaknesses often stem from the structure of supplier networks in a given value\nchain. Complexity itself is not necessarily a weakness to the extent that it\nprovides companies with redundancies and flexibility. But sometimes the\nbalance can tip. Complex networks may become opaque, obscuring vulnerabilities\nand interdependencies. A large multinational company can have hundreds of\ntier-one suppliers from which it directly purchases components. Each of those\ntier-one suppliers in turn can rely on hundreds of tier-two suppliers. The\nentire supplier ecosystem associated with a large company can encompass tens\nof thousands of companies around the world when the deepest tiers are\nincluded.\n\nExhibit 3 applies network analytics to illustrate the complexity of the first-\nand second-tier supply ecosystems for two Fortune 500 companies in the\ncomputer and electronics industry. This is based on publicly available data\nand may therefore not be exhaustive.  [ 6  Data from the Bloomberg Supply\nChain database, based on regulatory filings and other public disclosures. The\ndatabase does not capture all supplier relationships, but the results provide\na relative overview of connectivity and network structure compared to other\ncompanies with similar data availability.  ](javascript:void\\(0\\);) These\nmultitiered, multinational networks span thousands of companies and extend to\ndeeper tiers that are not shown here. This illustration also underscores the\nfact that even within the same industry, companies may make materially\ndifferent decisions about how to structure their supply ecosystems, with\nimplications for risk.\n\nCompanies\u00e2\u0080\u0099 supplier networks vary in ways that can shape their\nvulnerability. Spending concentrated among just a few suppliers may make it\neasier to manage them, but it also heightens vulnerability should anything\nhappen to them. Suppliers frequently supply each other; one form of structural\nvulnerability is a subtier supplier that accounts for relatively little in\nspending but is collectively important to all participants. The number of\ntiers of participating suppliers can hinder visibility and make it difficult\nto spot emergent risks. Suppliers that are dependent on a single customer can\ncause issues when demand shocks cascade through a value chain. The absence of\nsubstitute suppliers is another structural vulnerability.\n\nIn some cases, suppliers may be concentrated in a single geography due to that\ncountry\u00e2\u0080\u0099s specialization and economies of scale. A natural disaster or\nlocalized conflict in that part of the world can cause critical shortages that\nsnarl the entire network. Some industries, such as mobile phones and\ncommunication equipment, have become more concentrated in recent years, while\nothers, including medical devices and aerospace, have become less so (Exhibit\n4). The aerospace value chain, for example, has diversified in part due to\nsecure market access.\n\nEven in value chains that are generally more geographically diversified,\nproduction of certain key products may be disproportionately concentrated.\nMany low-value or basic ingredients in pharmaceuticals are predominantly\nproduced in China and India, for instance. In total, we find 180 products\nacross value chains for which one country accounts for 70 percent or more of\nexports, creating the potential for bottlenecks. The chemicals value chain has\na particularly large number of such highly concentrated products, but examples\nexist in multiple industries. Other products may be produced across diverse\ngeographies but have severe capacity constraints, which can create bottlenecks\nif production is halted. Geographic diversification is not inherently\npositive, particularly if production and sourcing expands into areas that are\nmore exposed to shocks.\n\nSection 3\n\n##  Over the course of a decade, companies can expect disruptions to erase\nhalf a year\u2019s worth of profits or more\n\nWhen companies understand the magnitude of the losses they could face from\nsupply chain disruptions, they can weigh how much to invest in mitigation. We\nbuilt representative income statements and balance sheets for hypothetical\ncompanies in 13 different industries, using actual data from the 25 largest\npublic companies in each. This enables us to see how they fare financially\nwhen under duress.\n\nWe explore two scenarios involving severe and prolonged shocks:\n\n  * Scenario 1. A complete manufacturing shutdown lasting 100 days that affects raw material delivery and key inputs but not distribution channels and logistics. In this scenario, companies can still deliver goods to market. But once their safety stock is depleted, their revenue is hit. \n  * Scenario 2. The same as above, but in this case, distribution channels are also affected, meaning that companies cannot sell their products even if they have inventory available. \n\nOur choice to model a 100-day disruption is based on an extensive review of\nhistorical events. In 2018 alone, the five most disruptive supply chain events\naffected more than 2,000 sites worldwide, and factories took 22 to 29 weeks to\nrecover.  [ 7  Shahzaib Khan and Andrew Perez, _Eventwatch 2018 annual\nreport,_ Resilinc, 2019.  ](javascript:void\\(0\\);)\n\nOur scenarios show that a single prolonged production-only shock would wipe\nout between 30 and 50 percent of one year\u00e2\u0080\u0099s EBITDA for companies in most\nindustries. An event that disrupts distribution channels as well would push\nthe losses sharply higher for some.\n\nIndustries in which companies typically hold larger inventories and have lower\nfixed costs tend to experience relatively smaller financial losses from\nshocks. If a natural disaster hits a supplier but distribution channels remain\nopen, inventory levels become a key buffer. However, the downstream company\nwill still face a cash drain after the fact when it is time to replenish its\ndrawn-down safety stock. When a disruption outlasts the available safety\nstock, lower fixed costs become important to withstanding a decline in EBITDA.\n\nHaving calculated the damage associated with one particularly severe and\nprolonged disruption, we then estimated the bottom-line impact that companies\ncan expect over the course of a decade, based on probabilities. We combined\nthe expected frequency of value chain disruptions of different lengths with\nthe financial impact experienced by companies in different industries. On\naverage, companies can expect losses equal to almost 45 percent of one\nyear\u00e2\u0080\u0099s profits over the course of a decade (Exhibit 5). This is equal to\nseven percentage points of decline on average. We make no assessment of the\nextent to which the cost of these disruptions has already been priced into\nvaluations.\n\nThese are not distant future risks; they are current, ongoing patterns. On top\nof those losses, there is an additional risk of permanently losing market\nshare to competitors that are able to sustain operations or recover faster,\nnot to mention the cost of rebuilding damaged physical assets. However, these\nexpected losses should be weighed in the context of the additional profits\nthat companies are able to achieve with highly efficient and far-reaching\nsupply chains.\n\nSection 4\n\n##\n\nWill global value chains shift across countries?\n\nToday much of the discussion about resilience in advanced economies revolves\naround the idea of increasing domestic production. But the highly\ninterconnected nature of value chains limits the economic case for making\nlarge-scale changes in their physical location. Value chains often span\nthousands of interconnected companies, and their configurations reflect\nspecialization, access to consumer markets around the world, long-standing\nrelationships, and economies of scale.\n\nWe set out to estimate what share of global exports could move to different\ncountries based on the business case and how much might move due to policy\ninterventions. To determine whether industry economics alone support a future\ngeographic shift, we considered a number of factors. One is whether some\nmovement is already under way. Between 2015 and 2018, for instance, the share\nof trade produced by the three leading export countries in apparel dropped. In\ncontrast, the top three countries in semiconductors and mobile communications\nincreased their share of trade markedly.\n\nOther considerations include whether the value chain is highly capital- or\nknowledge-intensive, or tied to geology and natural resources. All of these\nmake relocation less feasible. Highly capital-intensive value chains are\nharder to move for the simple reason that they represent hundreds of billions\nof dollars in fixed investments. These industries have strong economies of\nscale, making them more costly to shift. Value chains with high knowledge\nintensity tend to have specialized ecosystems that have developed in specific\nlocations, with unique suppliers and specialized talent. Deciding to move\nproduction outside of this ecosystem to a novel location is costly. Finally,\nvalue chains with comparatively high levels of extraregional trade have more\nscope to shorten than those that are already regionalized. We also consider\noverall growth, the location of major (and rising) consumer markets, trade\nintensity, and innovation dynamics.\n\nWith respect to noneconomic factors, we consider governments\u00e2\u0080\u0099 desire to\nbolster national security, national competitiveness, and self-sufficiency.\nSome nations are focusing on safeguarding technologies with dual-use (civilian\nand military) implications, which could affect value chains such as\nsemiconductors and communication equipment, particularly as 5G networks are\nbuilt out. In other cases, governments are pursuing industrial policies\nintended to capture leading shares of emerging technologies ranging from\nquantum computing and artificial intelligence to renewable energy and electric\nvehicles. This, too, has the potential to reroute value chains. Finally, self-\nsufficiency has always been a question surrounding energy. Now the COVID\npandemic has driven home the importance of self-sufficiency in food,\npharmaceuticals, and certain medical equipment as well.\n\nWe estimate that 16 to 26 percent of exports, worth $2.9 trillion to $4.6\ntrillion in 2018, could be in play\u00e2\u0080\u0094whether that involves reverting to\ndomestic production, nearshoring, or new rounds of offshoring to new\nlocations. It should be noted that this is not a forecast: it is a rough\nestimate of how much global trade could relocate in the next five years, not\nan assertion that it will actually move.\n\nThe value chains with the largest share of total exports potentially in play\nare pharmaceuticals, apparel, and communication equipment. In dollar terms,\nthe value chains with the largest potential to move production to new\ngeographies are petroleum, apparel, and pharmaceuticals.  [ 8  The potential\nto move petroleum production is of course limited by the presence of geologic\ndeposits. But if the price of oil rises, exploration and extraction now\nconsidered uneconomic in some sites could become viable. New technologies,\ntoo, could make it possible to expand into new locations.\n](javascript:void\\(0\\);) In all of these cases, more than half of their global\nexports could potentially move. With few exceptions, the economic and\nnoneconomic feasibility of geographic shifts do not overlap. Thus, countries\nwould have to be prepared to expend considerable sums to induce shifts from\nwhat are otherwise economically optimal production footprints.\n\nIn general, the economic case to move is most viable for labor-intensive value\nchains such as furniture, textiles, and apparel. These value chains were\nalready experiencing shifts away from their current top producers, where the\ncost of labor has risen. The continuation of this trend could represent a real\nopportunity for some developing economies. By contrast, resource-intensive\nvalue chains, such as mining, agriculture, and energy, are generally\nconstrained by the location of natural resources that provide crucial inputs.\nBut policy considerations may encourage new exploration and development that\ncan shift value chains at the margins.\n\nThe value chains in the global innovations category (semiconductors,\nautomotive, aerospace, machinery, communication, and pharmaceuticals) are\nsubject to the most scrutiny and possible intervention from governments, based\non their high value, cutting-edge technologies as well as their perceived\nimportance for national competitiveness. But the feasibility of moving these\nvalue chains based on the economics alone is low.\n\nProduction networks have begun to regionalize in recent years, and this trend\nmay persist as growth in Asia continues to outpace global growth. But\nmultinationals with production facilities in countries such as China, India,\nand other major emerging economies are typically there to serve local consumer\nmarkets, whether or not they also export from those places. As prosperity\nrises in these countries, they are key sources of global growth that companies\nwill continue to pursue.\n\nSection 5\n\n##  Companies have a range of options for improving resilience\n\nIn a McKinsey survey of supply chain executives conducted in May 2020, an\noverwhelming 93 percent reported that they plan to take steps to make their\nsupply chains more resilient, including building in redundancy across\nsuppliers, nearshoring, reducing the number of unique parts, and regionalizing\ntheir supply chains.\n\n##  Strengthen supply chain risk management and improve end-to-end\ntransparency\n\nGlobal manufacturing has only just begun to adopt a [ range of technologies\n](/capabilities/mckinsey-digital/our-insights/the-next-horizon-for-industrial-\nmanufacturing) \u00c2 such as analytics and artificial intelligence, the Internet\nof Things, advanced robotics, and digital platforms. Companies now have access\nto new solutions for running scenarios, assessing trade-offs, improving\ntransparency, accelerating responses, and even changing the economics of\nproduction.\n\nMost companies are still in the early stages of their efforts to connect the\nentire value chain with a seamless flow of data. Digital can deliver major\nbenefits to efficiency and transparency that are yet to be fully realized.\nConsumer goods giant Procter & Gamble, for example, has a centralized control\ntower system that provides a company-wide view across geographies and\nproducts. It integrates real-time data, from inventory levels to road delays\nand weather forecasts, for its own plants as well as suppliers and\ndistributors. When a problem occurs, the system can run scenarios to identify\nthe most effective solution.  [ 9  Emma Cosgrove, \u00e2\u0080\u009cHow P&G created a\n\u00e2\u0080\u0098ready-for-anything\u00e2\u0080\u0099 supply chain,\u00e2\u0080\u009d _Supply Chain Dive,_ June 3, 2019.\n](javascript:void\\(0\\);)\n\nCreating a comprehensive view of the supply chain through detailed subtier\nmapping is a critical step to identifying hidden relationships that invite\nvulnerability. Today most large firms have only a murky view beyond their\ntier-one and perhaps some large tier-two suppliers. Working with operations\nand production teams to review each product\u00e2\u0080\u0099s bill of materials can reveal\nwhether critical inputs are sourced from high-risk areas and lack ready\nsubstitutes. Companies can also work with their tier-one suppliers to create\ntransparency. But in cases where those [ suppliers lack visibility\n](/capabilities/operations/our-insights/supply-chain-recovery-in-coronavirus-\ntimes-plan-for-now-and-the-future) \u00c2 themselves or consider their own sourcing\nto be proprietary information, risk management teams may have to turn to other\ninformation sources to do detective work. After mapping upstream suppliers,\ndownstream companies need to understand their production footprint, financial\nstability, and business continuity plans.\n\n##  Minimize exposure to shocks\n\nTargeted measures taken before an event occurs can mitigate the impact of a\nshock or speed time to recovery. As more physical assets are digitized, for\nexample, companies will need to step up investment in cybersecurity tools and\nteams.\n\nOne of the most important steps is building more redundancy into supplier\nnetworks. Relying on a single source for critical components or raw materials\ncan be a vulnerability. In fact, even if a company relies on multiple\nsuppliers, they may be concentrated in the same place. Taking the time to\nidentify, prequalify, and onboard backup vendors comes at a cost. But it can\nprovide much-needed capacity if a crisis strikes. Auditing and diversifying\nthe supply chain can have the added benefit of reducing carbon intensity,\nraising environmental and labor standards, and expanding opportunities for\nwomen- and minority-owned businesses.\n\nOne way to achieve supply chain resilience is to design products with common\ncomponents, cutting down on the use of custom parts in different product\nofferings. Auto manufacturers are perhaps the most advanced in this regard,\nhaving implemented modular manufacturing platforms that share components\nacross product lines and production sites.\n\nPhysical assets may need to be hardened to withstand natural disasters. In\nregions that are vulnerable to worsening [ hurricanes and storm surges\n](/capabilities/sustainability/our-insights/climate-risk-and-response-\nphysical-hazards-and-socioeconomic-impacts) , this may involve installing\nbulkheads, elevating critical machinery and utility equipment, adding more\nwaterproof sealing, and reworking drainage and valves. Many factories that are\nnot air-conditioned today will need cooling systems to prepare for rising\ntemperatures and potential heat waves in some parts of the world. Plants\nlocated in earthquake-prone areas may need seismic retrofitting. Companies can\nalso build more redundancies into transportation and logistics.\n\n##  When a shock does hit, companies need the ability to respond quickly\n\nThe shift to just-in-time and lean production systems has helped companies\nimprove efficiency and reduce their need for working capital. But now they may\nneed to strike a different balance between just-in-time and \u00e2\u0080\u009cjust in\ncase.\u00e2\u0080\u009d Having sufficient backup inventory of key parts and safety stock is a\ncritical buffer that can minimize the financial impact of disrupted supplies.\nIt can also position companies to meet sudden spikes in demand.\n\nThe ability to reroute components and flex production dynamically across sites\ncan keep production going in the wake of a shock. This requires robust digital\nsystems as well as the analytics muscle to run scenarios based on different\nresponses. When the COVID pandemic hit, Nike used predictive analytics to\nselectively mark down goods and reduce production early on to minimize impact.\nThe company was also able to reroute products from brick-and-mortar stores to\ne-commerce sales, driven in part by direct-to-consumer online sales through\nits own training app. As a result, Nike sustained a smaller drop in sales than\nsome of its competitors.\n\nWhen disaster strikes, companies have to be laser focused on cash management.\nBut those at the top of a value chain also have a vested interest in\npreserving the supplier networks on which they depend. In the aftermath of the\nglobal financial crisis, some companies accelerated payments or guaranteed\nbank loans to give key vendors a lifeline.\n\nComing on the heels of Brexit and a flare-up in US\u00e2\u0080\u0093China trade tensions, the\nCOVID pandemic has forced businesses to focus on building resilience in their\nsupply chains and operations. Not everything that can go wrong actually does\ngo wrong, but businesses and governments cannot afford to be caught flat-\nfooted when disaster strikes. Preparing for future hypotheticals has a\npresent-day cost. But those investments can pay off over time\u00e2\u0080\u0094not only\nminimizing losses but also improving digital capabilities, boosting\nproductivity, and strengthening entire industry ecosystems. Rather than a\ntrade-off between resilience and efficiency, this rebalancing act might\ndeliver a win-win.\n\n#####\n\n**Susan Lund** is a partner of the McKinsey Global Institute (MGI) in\nMcKinsey\u2019s Washington, DC, office; **[ James Manyika ](/our-people/james-\nmanyika) ** , MGI\u2019s co-chair, is based in San Francisco; **Lola Woetzel** is\nan MGI director in Shanghai; **[ Ed Barriball ](/our-people/edward-barriball)\n** is a Washington, DC\u2013based partner who specializes in manufacturing, supply\nchains, and logistics; **[ Mekala Krishnan ](/our-people/mekala-krishnan) **\nis an MGI senior fellow, based in Boston; **Knut Alicke** is a Stuttgart-based\npartner with expertise in manufacturing and supply chains; **[ Michael Birshan\n](/our-people/michael-birshan) ** is a London-based senior partner who focuses\non strategy and risk; **Katy George** is a senior partner in McKinsey\u2019s New\nJersey office, with expertise in manufacturing, operations strategy, and\noperating model design; **[ Sven Smit ](/our-people/sven-smit) ** , MGI\u2019s co-\nchair, is based in Amsterdam; **[ Dan Swan ](/our-people/daniel-swan) ** leads\nMcKinsey\u2019s global supply chain practice; and **Kyle Hutzler** is a McKinsey\nassociate in Washington, DC.\n\n* * *\n\nThis report was edited by Lisa Renaud, executive editor at the McKinsey Global\nInstitute.\n\n#####  Explore a career with us\n\n[ ](/careers/search-jobs)\n\n#####  Related Articles\n\n[ ](/featured-insights/innovation-and-growth/globalization-in-transition-the-\nfuture-of-trade-and-value-chains)\n\nReport - _MGI Research_\n\n######  [ Globalization in transition: The future of trade and value chains\n](/featured-insights/innovation-and-growth/globalization-in-transition-the-\nfuture-of-trade-and-value-chains)\n\n[ ](/capabilities/sustainability/our-insights/could-climate-become-the-weak-\nlink-in-your-supply-chain)\n\nArticle - _MGI Research_\n\n######  [ Could climate become the weak link in your supply chain?\n](/capabilities/sustainability/our-insights/could-climate-become-the-weak-\nlink-in-your-supply-chain)\n\n",
                "url": "https://www.mckinsey.com/capabilities/operations/our-insights/risk-resilience-and-rebalancing-in-global-value-chains"
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            "summary": "This page discusses risk, resilience, and rebalancing in global value chains.",
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                "page_content": "Skip to main content\n\n#  Are you a robot?\n\nPlease confirm you are a human by completing the captcha challenge below.\n\nEnable JavaScript and cookies to continue\n\n  * **Reference number:** 9355f42dffe1d5b4 \n  * **IP Address:** 34.96.35.73 \n  *   * \n\n[ ](https://www.elsevier.com/)\n\n  * [ About ScienceDirect  ](https://www.elsevier.com/solutions/sciencedirect)\n  * [ Remote access  ](/user/institution/login?targetURL=%2F)\n  * [ Shopping cart  ](https://science-direct-checkout.staging.ecommerce.elsevier.com/?)\n  * [ Advertise  ](https://www.elsmediakits.com)\n  * [ Contact and support  ](https://service.elsevier.com/app/contact/supporthub/sciencedirect/)\n  * [ Terms and conditions  ](https://www.elsevier.com/legal/elsevier-website-terms-and-conditions)\n  * [ Privacy policy  ](https://www.elsevier.com/legal/privacy-policy)\n\nCookies are used by this site.\n\nAll content on this site: Copyright \u00a9 2024 Elsevier B.V., its licensors, and\ncontributors. All rights are reserved, including those for text and data\nmining, AI training, and similar technologies. For all open access content,\nthe relevant licensing terms apply.\n\n[ ](https://www.relx.com/)\n\n",
                "url": "https://www.sciencedirect.com/science/article/pii/S0966692323000443"
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            "summary": "This is a scientific article that discusses supply chain management.",
            "url": "https://www.sciencedirect.com/science/article/pii/S0966692323000443"
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                    "source": "https://www.amazon.jobs/content/job-categories/supply-chain-transportation-management"
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                "page_content": "#  Supply Chain and Transportation Management\n\nAmazon is well-known for its impressive logistics network. Our supply chain\nand transportation teams play a crucial role, taking the lead in getting\nproducts to customers.\n\n##  Connecting the world one delivery at a time\n\nBy joining our supply chain and transportation teams, you\u2019ll get great pay,\nbenefits, and chances to advance in your career. Whether driving trucks,\ntraining your team, or managing operations, you\u2019ll always be on the move. Work\nin a dynamic space with the very latest tech, and be part of a team that\u2019s\ncommitted to excellent customer experiences.\n\nExplore open roles\n\n##  Roles in Supply Chain and Transportation Management\n\n###  Transportation Associate\n\nYou\u2019ll be able to drive trailers and other types of commercial vehicles and\nhelp us deliver items on time to millions of customers. Your tasks will also\ninclude coordinating yard activities and performing audits.\n\n###  Transportation Area Manager\n\nYou\u2019ll lead, support, and mentor a team of associates. You\u2019ll make sure your\nteam members have everything they need to be confident and motivated. You\u2019ll\nmanage safety, quality, and productivity to make sure we meet our customers\u2019\nneeds.\n\n###  Transportation Operations Manager\n\nYou\u2019ll supervise and mentor a team of area managers. You\u2019ll make sure safety,\nquality, and performance standards are met for your region. You\u2019ll be\nresponsible for strategic planning and implementing changes that meet the\nexpectations of our customers.\n\n##  Find jobs in Supply Chain and Transportation Management\n\n###  Equal opportunity\n\nAmazon is an equal opportunity employer and does not discriminate on the basis\nof protected veteran status, disability, or other legally protected status.\n\n* * *\n\n###  Career areas\n\n  * Teams \n  * Locations \n  * Job categories \n  * Hourly jobs \n  * Military hiring \n  * University talent \n\n###  Resources\n\n  * Accommodations \n  * Benefits \n  * Diversity, equity, and inclusion \n  * Interviewing at Amazon \n  * Leadership Principles \n  * Working at Amazon \n  * FAQ \n\n###  Start your Amazon journey\n\nShare your resume and basic info to get personalized job recommendations and\nmore.\n\n[ Create an account ](https://passport.amazon.jobs/createaccount)\n\n###  Amazon sites\n\n  * [ Amazon.com ](https://www.amazon.com/?utm_source=amazon_jobs&utm_medium=footer&utm_campaign=evergreen_homepage)\n  * [ About Amazon ](https://www.aboutamazon.com/?utm_source=amazon_jobs&utm_medium=footer&utm_campaign=evergreen_homepage)\n  * [ Amazon Web Services ](https://aws.amazon.com/careers/?utm_source=amazon_jobs&utm_medium=footer&utm_campaign=evergreen_homepage)\n  * [ Amazon Ads ](https://advertising.amazon.com/careers?utm_source=amazon_jobs&utm_medium=footer&utm_campaign=evergreen_homepage)\n  * [ Amazon Design ](https://www.amazon.design/?utm_source=amazon_jobs&utm_medium=footer&utm_campaign=evergreen_homepage)\n  * [ Amazon Science ](https://www.amazon.science/?utm_source=amazon_jobs&utm_medium=footer&utm_campaign=evergreen_homepage)\n\n###  Social\n\n  * [ LinkedIn ](https://www.linkedin.com/showcase/amazon-careers)\n  * [ Instagram ](https://www.instagram.com/insideamazon)\n  * [ Facebook ](https://www.facebook.com/amazon)\n  * [ YouTube ](https://www.youtube.com/insideamazonvideos)\n  * [ X ](https://x.com/amazonnews)\n\n  * Privacy \n  * [ Conditions of use ](https://www.amazon.com/gp/help/customer/display.html?nodeId=508088)\n  * Cookie preferences \n  * Legal disclosures and notices \n  * Translation disclaimer \n\n\u00a9 1996-2025, Amazon.com, Inc. or its affiliates\n\nserver-rendered production build for **production** in **eu-west-1**\n\n",
                "url": "https://www.amazon.jobs/content/job-categories/supply-chain-transportation-management"
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            "url": "https://www.amazon.jobs/content/job-categories/supply-chain-transportation-management"
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                    "source": "https://www.netsuite.com/portal/resource/articles/inventory-management/inbound-outbound-logistics.shtml"
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                "url": "https://www.netsuite.com/portal/resource/articles/inventory-management/inbound-outbound-logistics.shtml"
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            "summary": "This page discusses inbound and outbound logistics.",
            "url": "https://www.netsuite.com/portal/resource/articles/inventory-management/inbound-outbound-logistics.shtml"
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                    "resource_type": "webpage",
                    "source": "https://www.fedex.com/en-us/about/company-structure.html"
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                "page_content": "|  \n---|---  \n|  We're sorry, we can't process your request right now. It appears you don't\nhave permission to view this webpage.  \nIncident Number: 18.b7231502.1745501411.1835ebe  \n  \n  \n\n* * *\n\n  \n  \nFor assistance with your shipping needs, you can call us anytime at\n1.800.GoFedEx 1.800.463.3339  or visit fedex.com.  \n  \n  \n\n* * *\n\nThank you for choosing FedEx.  \n---|---\n\n",
                "url": "https://www.fedex.com/en-us/about/company-structure.html"
            },
            "reason": "This page describes the company structure of FedEx, a major player in the logistics industry. It is relevant to understanding the logistics landscape, but it does not explicitly mention Trafic, so the reliability is moderate.",
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            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page describes the company structure of FedEx.",
            "url": "https://www.fedex.com/en-us/about/company-structure.html"
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                    "source": "https://transportation.du.edu/"
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                "page_content": "Skip to Content\n\n#\n\nMoving Leaders Forward at the Transportation & Supply Chain Institute at the\nUniversity of Denver\n\nThe Transportation & Supply Chain Institute at the University of Denver (TSCI)\ndevelops the next generation of transportation and supply chain leaders. We\npartner with businesses around the world to help students advance their\nknowledge, careers and organizations. Our programs help develop relevant skill\nsets that are critical for business, provide hands-on experience and connect\nstudents with a global network of transportation and supply chain leaders.\n\nTSCI offers an Executive Master of Science in Transportation Management with a\nConcentration in Supply Chain, a Master of Science in Supply Chain Management,\na Bachelor of Arts in Transportation and Supply Chain, and several certificate\nprograms for those new to the industry looking to gain the network and\nknowledge to help drive their careers forward.\n\n  * [ Executive Master of Science in Transportation and Supply Chain Management ](/masters/tsc-management)\n  * [ Master of Science in Supply Chain Management ](/masters/supply-chain-management)\n  * [ Bachelor of Arts in Transportation and Supply Chain ](/degrees/bachelor-arts-transportation-and-supply-chain)\n  * [ Supply Chain Management Certificate ](/certificate)\n  * [ NATMI Certificates ](/certificates/natmi-certificates)\n  * [ Transportation & Supply Chain Operations Certificate ](/certificates/transportation-supply-chain-operations-certificate)\n  * [ Short Courses ](/short-courses)\n\n  * **Top Ranked**\n\nRanked among the top 100 universities in the nation ( _U.S. News & World\nReport _ ).\n\n  * **Finish Quickly**\n\nFinish your master's degree in just 18 months, or earn a graduate certificate\nin six months.\n\n  * **Industry-Connected**\n\nForm close connections with other leaders in the transportation, logistics,\nand supply chain industries.\n\n###  Board Leadership\n\nWe are proud to have top leaders from these companies, and many more, as part\nof our executive leadership team. Explore our Board of Directors.\n\n[ Read about our Board ](/about/board)\n\n##  Connect With Us\n\n[ Link Tree ](https://linktr.ee/tscinstitute)\n\n###  About TSCI\n\nFor 25 years, the Transportation & Supply Chain Institute has developed the\nnext generation of transportation, logistics and supply chain professionals.\nStudents grow their management skills while building professional connections\nthrough rigorous coursework and collaboration with a global network that\nfeatures some of the brightest minds in the transportation world.\n\n[ Learn about TSCI ](https://transportation.du.edu/about)\n\n[ ](https://www.du.edu/transportation \"Transportation & Supply Chain Institute\nFooter Logo\")\n\n[ du-tsc@du.edu ](mailto:du-tsc@du.edu)\n\n[ 303-871-7449 ](tel:303-871-7449)\n\nTransportation & Supply Chain Institute\n\nUniversity of Denver\n\nUniversity Hall\n\n2197 S. University Blvd. Suite 359\n\n[ ](https://www.linkedin.com/company/18701318 \"Transportation & Supply Chain\nInstitute Footer Logo\")\n\n[ ](https://www.instagram.com/tscinstitute/ \"Transportation & Supply Chain\nInstitute Footer Logo\")\n\n[ ](https://www.facebook.com/transportationandsupplychaininstitute\n\"Transportation & Supply Chain Institute Footer Logo\")\n\n[ ](https://vimeo.com/transportationinstitute \"Transportation & Supply Chain\nInstitute Footer Logo\")\n\nCopyright \u00a92025 | All Rights Reserved | Equal Opportunity Affirmative Action Institution \n\n",
                "url": "https://transportation.du.edu/"
            },
            "reason": "This page is the website for the Transportation Institute at the University of Denver, a reputable research institution. It is relevant to understanding advancements in transportation, but it does not explicitly mention Trafic, so the reliability is moderate.",
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            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page is the website for the Transportation Institute at the University of Denver.",
            "url": "https://transportation.du.edu/"
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                    "source": "https://careertech.org/career-clusters/supply-chain-transportation/"
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                "page_content": "#  Supply Chain & Transportation\n\n[ Home ](https://careertech.org/) \u00bb  [ Career Clusters\n](https://careertech.org/career-clusters/) \u00bb  Supply Chain & Transportation\n\n[ Career Clusters Home ](https://careertech.org/career-clusters/)\n\n[ About the Framework ](https://careertech.org/career-clusters/about-the-\nnational-career-clusters-framework/)\n\n[ Your Place in the Framework ](https://careertech.org/career-clusters/your-\nplace-in-the-framework/)\n\n[ Methodology ](https://careertech.org/career-clusters/methodology/)\n\n[ Resources ](https://careertech.org/career-clusters/resources/)\n\n[ Implementation Support ](https://careertech.org/career-\nclusters/implementation-support/)\n\n##  The Cluster Defined\n\nThe Supply Chain & Transportation Career Cluster encompasses the transfer,\ncoordination, and management of goods from production to consumption, ensuring\nefficient movement across various modes of transportation including air,\nground, and water, as well as maintenance of the respective transport modes.\nThis Cluster integrates logistics and distribution networks to facilitate the\nseamless flow of materials and products, playing a crucial role in global\ncommerce, economic development, and community health.\n\n##  The Sub-Clusters\n\nAir & Space Transportation\n\nCareers related to the design, operation, and management of both air and space\ntransportation, including air cargo and passenger services, as well as space\nexploration and satellite operations. This field incorporates the maintenance\nof electrical equipment such as radios, navigation equipment, and autopilot\nsystems. Careers in this field ensure the safety and efficiency of air\ntransport and advance space travel and research. This Sub-Cluster also\nincludes managing flight operations and air traffic, designing aerospace\nsystems, and conducting space exploration.\n\n#####  Example Programs of Study\n\n  * Aviation Technology \n  * Avionics \n  * \u201cYour Place in Space\u201d Department  of Education Program \n\nGround & Rail Transportation\n\nCareers related to the transportation of goods and passengers by road and\nrail. This field includes the design, operation, and management of automotive,\ntrucking, rail operations, and logistics services, focusing on efficient and\nsafe ground transport. Professionals in the field of rail operations work in a\nvariety of settings from urban transit systems, such as subways and light\nrail, to cross-country freight and high-speed passenger trains, emphasizing\nthe diverse yet specialized skills required to meet a wide range of\ntransportation needs.\n\n#####  Example Programs of Study\n\n  * Commercial Driving \n  * Railroad Operations \n\nMaintenance & Repair\n\nCareers encompassing the repair and maintenance of transportation systems,\nincluding ground vehicles, rail vehicles, aircraft, and nautical vessels. This\nfield also integrates specialized areas such as auto body and engine repair\nand is increasingly influenced by advancements in technology, including the\nmaintenance of electric vehicles and systems for autonomous driving.\nProfessionals in this field ensure that all forms of transportation equipment\noperate safely and efficiently, adapting to new technologies to meet evolving\ndemands.\n\n#####  Example Programs of Study\n\n  * Auto Body Technology \n  * Automotive Maintenance \n  * Diesel Mechanics \n  * Electric Vehicle Maintenance \n\nMarine Transportation\n\nCareers in the design, operation, and management of maritime vessels and\ninfrastructure for the transportation of goods and passengers, and watercraft\nused in sports and leisure activities. Professionals in this field engage in\nmanaging ship navigation; engineering marine systems; overseeing port\noperations; and ensuring the safety and maintenance of recreational vessels\nsuch as yachts, human-powered craft, and water powersport vehicles.\n\n#####  Example Programs of Study\n\n  * Marine Transport \n  * Vessel Operations \n\nPlanning & Logistics\n\nCareers focused on managing and optimizing the supply chain\u2019s flow of goods\nand information. This Sub-Cluster encompasses roles in transportation\nplanning, supply chain coordination, and efficient material sourcing, all\naimed at enhancing efficiency, minimizing waste, ensuring safety, and\nfacilitating timely delivery. This field integrates modern technologies to\nimprove production, drive innovation, and maintain competitiveness in global\ntrade systems. It also includes urban and regional planning for transit,\nfurther supporting effective transportation and logistics.\n\n#####  Example Programs of Study\n\n  * Transportation, Distribution, & Logistics Systems \n\nPurchasing & Warehousing\n\nCareers centered around procurement, warehousing, and facility maintenance.\nProfessionals in procurement negotiate contracts and purchases as well as\nmanage supplier relationships. Warehousing includes careers that oversee\nefficient storage, dispatch, and inventory control of goods. Professionals in\nfacility maintenance manage supply chain facilities, ensuring operational\nefficiency and compliance with safety regulations.\n\n#####  Example Programs of Study\n\n  * Business Administration \n\n  * Supply Chain Management \n\nExample Programs of Study\n\nExamples intended to show potential alignment with currently existing state or\nlocal secondary or postsecondary programs of study and provide inspiration for\nthe expansion and innovation of future programs. Please note that the programs\nof study mentioned in the Framework are purely illustrative, are not\ncomprehensive, and may vary from state to state. States or local institutions\nare encouraged to demonstrate for learners which specific programs are offered\ninstead.\n\n##  Interdisciplinary Potential\n\nWhile the Cross-Cutting Career Clusters are designed to be applicable to all\nother Career Clusters, we recognize that many other Career Clusters are\nclosely connected. Given the increasingly interdisciplinary nature of the\nworld of work, many states or local institutions may design programs that\nbridge across two or more Career Clusters, Cross-Cutting or otherwise.\n\nBased on national labor market data, this Career Cluster is most closely\nconnected to **Advanced Manufacturing; Agriculture; Construction; Energy &\nNatural Resources; Hospitality, Events, & Tourism ** . For more information\nabout the interdisciplinary nature of the Career Clusters, [ view this\nresource ](https://careertech.org/wp-\ncontent/uploads/2024/10/Interdisciplinary_Career_Clusters_Framework_10_2024-1.pdf)\n.\n\n##  TECHNICAL DOCUMENT TITLE\n\nLorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor\nincididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis\nnostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.\nDuis aute irure dolor in reprehenderit in voluptate velit.\n\nDOWNLOAD THE DOCUMENT\n\n##  Related Resources\n\nResource Category 1\n\n  * Resource 1 A \n  * Resource 1 B \n  * Resource 1 C \n  * Resource 1 D \n\nResource Category 2\n\n  * Resource 2 A \n  * Resource 2 B \n  * Resource 2 C \n  * Resource 2 D \n\nResource Category 3\n\n  * Resource 3 A \n  * Resource 3 B \n  * Resource 3 C \n  * Resource 3 D \n\n##  VIDEO TITLE\n\nLorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor\nincididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis\nnostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.\nDuis aute irure dolor in reprehenderit in voluptate velit.\n\n##  Career Clusters\n\nClick each Cluster for Cluster definitions and implementation resources.\n\n  * __ [ Advanced Manufacturing ](https://careertech.org/career-clusters/advanced-manufacturing/)\n  * __ [ Construction ](https://careertech.org/career-clusters/construction/)\n  * __ [ Supply Chain & Transportation ](https://careertech.org/career-clusters/supply-chain-transportation/)\n  * __ [ Arts, Entertainment, & Design ](https://careertech.org/career-clusters/arts-entertainment-design/)\n  * __ [ Hospitality, Events, & Tourism ](https://careertech.org/career-clusters/hospitality-events-tourism/)\n  * __ [ Financial Services ](https://careertech.org/career-clusters/financial-services/)\n\n  * __ [ Education ](https://careertech.org/career-clusters/education/)\n  * __ [ Healthcare & Human Services ](https://careertech.org/career-clusters/healthcare-human-services/)\n  * __ [ Public Service & Safety ](https://careertech.org/career-clusters/public-service-safety/)\n  * __ [ Agriculture ](https://careertech.org/career-clusters/agriculture/)\n  * __ [ Energy & Natural Resources ](https://careertech.org/career-clusters/energy-natural-resources/)\n  * __ [ Digital Technology ](https://careertech.org/career-clusters/digital-technology/)\n  * __ [ Marketing & Sales ](https://careertech.org/career-clusters/marketing-sales/)\n  * __ [ Management & Entrepreneurship ](https://careertech.org/career-clusters/management-entrepreneurship/)\n\n[ ](https://careertech.org)\n\n\u00a9 2023 Advance CTE: State Leaders Connecting Learning to Work. All rights\nreserved.\n\n__\n\n__\n\nClose Modal\n\nClose Modal\n\n",
                "url": "https://careertech.org/career-clusters/supply-chain-transportation/"
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            "summary": "This page describes career clusters in supply chain and transportation.",
            "url": "https://careertech.org/career-clusters/supply-chain-transportation/"
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                    "source": "https://www.inboundlogistics.com/articles/what-is-inbound-logistics/"
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                "page_content": "[ Skip to Content ](javascript:void\\(0\\))\n\nFebruary 2025  |  [ Knowledge Center ](https://www.inboundlogistics.com/articles/category/knowledge-center)\n\n#  Inbound Logistics: Definition, Examples, and Process\n\n**Tags:** [ Logistics\n](https://www.inboundlogistics.com/articles/tags/logistics)\n\n[\n](https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.inboundlogistics.com%2Farticles%2Fwhat-\nis-inbound-\nlogistics%2F&linkname=Inbound%20Logistics%3A%20Definition%2C%20Examples%2C%20and%20Process\n\"Facebook\") [\n](https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.inboundlogistics.com%2Farticles%2Fwhat-\nis-inbound-\nlogistics%2F&linkname=Inbound%20Logistics%3A%20Definition%2C%20Examples%2C%20and%20Process\n\"LinkedIn\") [\n](https://www.addtoany.com/add_to/x?linkurl=https%3A%2F%2Fwww.inboundlogistics.com%2Farticles%2Fwhat-\nis-inbound-\nlogistics%2F&linkname=Inbound%20Logistics%3A%20Definition%2C%20Examples%2C%20and%20Process\n\"X\")\n\n[ ](https://www.inboundlogistics.com/wp-content/uploads/cargo-truck-with-\nfreight-in-background.png)\n\nLogistics is an essential aspect of any business, as it involves planning,\norganizing, and managing the flow of goods, services, and information from the\npoint of origin to the point of consumption. It encompasses the entire process\nof sourcing raw materials, assembling products, and delivering finished goods\nto customers. Logistics can be divided into two main categories: inbound and\noutbound. Outbound and inbound logistics are complementary components of a\nsuccessful logistics function. Inbound logistics pertains to the supply side,\nensuring production lines are adequately stocked, while outbound logistics\nfocuses on the distribution of products to consumers. Balancing both\noperations enhances supply chain effectiveness and meets customer\nexpectations.\n\nInbound logistics refers to the process of receiving and storing raw materials\nand components that are needed for [ production\n](https://inboundlogistics.com/articles/operations-management-vs-production-\nmanagement) . In contrast, outbound logistics refers to the distribution of\nfinished products to customers.\n\nThis article focuses on the process of inbound logistics and provides\nexamples. It also explores the various activities involved in inbound\nlogistics, and the challenges businesses face in managing this aspect of their\noperations. Finally, the article discusses how to optimize inbound logistics\nand the importance of this process in the overall success of a business.\n\n##  What Is Inbound Logistics?\n\n_[ Listen to a podcast ](https://www.inboundlogistics.com/podcast/#189)\ndiscussion of this content, voiced by IL AI Audio. _\n\nInbound logistics refers to the process of receiving and storing raw materials\nand components that are needed for production. It involves managing the flow\nof goods from suppliers to the company\u2019s warehouses or production facilities.\nThis includes activities such as sourcing, purchasing, transportation, and\nstorage.\n\nThe inbound logistics process begins when a company identifies the raw\nmaterials or components it needs for production. This may involve working with\nsuppliers to negotiate prices, delivery schedules, and other purchase\nagreement terms. Additionally, reverse logistics involves handling goods\nreturned from consumers back to sellers or manufacturers, which impacts\ninbound logistics operations as these items flow back into inventory or are\nprocessed for disposal.\n\nOnce the materials have been sourced, the company must arrange transportation\nfrom the supplier to the company\u2019s warehouses or production facilities. This\nmay involve coordinating with freight carriers, [ customs\n](https://inboundlogistics.com/articles/customs-clearance) brokers, and other\nlogistics providers to ensure that the materials are delivered on time and in\ngood condition.\n\nThe inbound logistics process is crucial in ensuring that a company has the\nmaterials to operate efficiently and meet customer demand. By effectively\nmanaging the flow of goods from suppliers to the company\u2019s facilities,\nbusinesses can reduce costs, improve supply chain visibility, and increase\ntheir competitiveness in the market.\n\n##  Inbound Logistics Activities\n\nInbound logistics involves various activities designed to efficiently receive\nand store raw materials and components needed for production. Some of the key\nactivities involved in inbound logistics include:\n\n  1. **Sourcing** : Identifying and selecting suppliers that can provide the materials or components needed for production at a competitive price and with reliable delivery. \n  2. **Purchasing** : Negotiating purchase agreements with suppliers, including pricing, delivery schedules, and payment terms. \n  3. **Transportation** : Coordinating the movement of goods from suppliers to the company\u2019s warehouses or production facilities. This may involve working with freight carriers, customs brokers, and other [ logistics providers ](https://inboundlogistics.com/top-100-3pls) to ensure timely and cost-effective delivery. \n  4. **Storage** : Organizing and storing materials in a way that allows for efficient retrieval and use in the production process. This may involve using store equipment such as pallet racks or shelving and implementing inventory management systems to track the movement of materials. Implementing a warehouse management system (WMS) can streamline storage operations, improve inventory accuracy, and enhance overall efficiency. \n  5. [ Inventory management ](https://inboundlogistics.com/articles/inventory-management) : Tracking the movement of materials and ensuring that sufficient quantities are available to meet production needs. This may involve implementing inventory control systems, setting reorder points, and monitoring inventory levels to prevent shortages or excesses. \n  6. **Quality control** : Ensuring that materials meet the required quality and safety standards before being used in the production process. This may involve inspecting materials upon receipt and testing to verify their compliance with industry standards. \n\nThese activities are critical to the smooth operation of inbound logistics and\nthe efficient flow of goods into a company\u2019s production process. By [\neffectively managing these activities\n](https://inboundlogistics.com/articles/10-best-supply-chain-companies-\nof-2021) , businesses can reduce costs, improve supply chain visibility, and\nincrease competitiveness in the market.\n\n##  Inbound Logistics Challenges\n\nIt can take a lot of work to manage Inbound logistics. Some of the common\nchallenges businesses face in managing inbound logistics include the\nfollowing:\n\n  1. **Shipping inefficiency** : Delays or disruptions in the transportation of goods can lead to increased costs and reduced efficiency in the production process. Traffic congestion, bad weather, or problems with the transportation provider can cause these delays. \n  2. **Information vacuum** : Lack of visibility into the movement of goods can make it challenging to track progress and identify potential problems. This can be caused by a need for more communication between the company, its suppliers, or logistics providers or problems with tracking systems. \n  3. **Supply and demand balance** : Maintaining the right balance between the supply of materials and the demand for finished products can be challenging. This can be especially difficult when demand is fluctuating or when there are unexpected changes in the supply chain. \n  4. **Capacity constraints** : Insufficient storage or production capacity can limit a company\u2019s ability to manage inbound logistics efficiently. This can lead to delays in the production process and may require the company to invest in additional facilities or equipment. \n  5. **Quality issues** : Poor quality materials or components can lead to defects in the finished product, which can have a negative impact on customer satisfaction and the company\u2019s reputation. Ensuring the quality of materials is a crucial challenge in inbound logistics. \n  6. **Outbound logistics overlap** : The intertwining of inbound and outbound logistics during storage and order fulfillment can create challenges in managing inventory and ensuring timely delivery of goods. Understanding these overlaps is crucial for optimizing logistics efficiency. \n\nManaging these challenges effectively is critical to the success of inbound\nlogistics. By addressing these issues and implementing strategies to overcome\nthem, businesses can improve the efficiency and effectiveness of their inbound\nlogistics process.\n\n##  How to Optimize Inbound Logistics\n\nBusinesses can use several strategies to optimize their inbound logistics\nprocess and improve efficiency. Some of the key ways to optimize inbound\nlogistics include:\n\n  1. **Implementing an advanced planning and scheduling system** : Businesses can more effectively plan and coordinate their inbound logistics activities by using a system that can track the movement of goods and anticipate demand. This can reduce delays and improve the efficiency of the production process. \n  2. **Developing solid relationships with suppliers** : Building strong, collaborative relationships with suppliers can help improve delivery reliability and timeliness. This can be achieved through regular communication, mutual trust, and shared goals. \n  3. **Leveraging technology** : By using technology such as [ transportation management systems ](https://inboundlogistics.com/articles/tms-must-haves-for-a-competitive-edge) , warehouse management systems, and inventory control systems, businesses can improve the visibility and control of their inbound logistics process. This can reduce costs, improve efficiency, and increase customer satisfaction. \n  4. **Improving transportation and storage** : By optimizing the transportation and storage of goods, businesses can reduce costs and improve the efficiency of their inbound logistics process. This may involve choosing the most cost-effective carriers, using efficient storage methods, and implementing inventory management systems. \n  5. **Focusing on quality** : Ensuring the quality of materials is a critical factor in optimizing inbound logistics. By working with reliable suppliers, implementing quality control measures, and monitoring the quality of materials throughout the process, businesses can reduce defects and improve the overall efficiency of their inbound logistics. \n\n##  Stages of Inbound Logistics\n\nInbound logistics is a critical aspect of supply chain management that\ninvolves managing the flow of goods, information, and finances as they enter\nan organization. It involves various activities, including planning, sourcing,\npurchasing, transportation, receiving, storage, and inventory management, all\nof which are essential for ensuring smooth supply chain operations.\n\n**1\\. Planning** : Identifying the materials or components needed for\nproduction and developing a plan to source, purchase, and transport them.\n\n  * Establish clear objectives and goals for the inbound logistics process. \n  * Identify the types of goods and materials that need to be sourced and the quantities required. \n  * Determine the most cost-effective and efficient means of transportation. \n  * Develop a schedule for receiving goods and materials. \n  * Consider potential risks or challenges during the inbound logistics process and plan accordingly. \n\n**2\\. Sourcing** : Identifying and selecting suppliers that can provide the\nneeded materials or components at a competitive price and with reliable\ndelivery.\n\n  * Identify and evaluate potential suppliers. \n  * Negotiate terms and conditions, including pricing, delivery schedules, and payment terms. \n  * Select the most suitable supplier based on the organization\u2019s needs and preferences. \n  * Maintain ongoing communication with the supplier to ensure that the relationship is mutually beneficial. \n\n**3\\. Purchasing** : Negotiating purchase agreements with suppliers, including\npricing, delivery schedules, and payment terms.\n\n  * Prepare and issue purchase orders to suppliers. \n  * Monitor the order\u2019s progress and ensure it is delivered on time and in the required quantity. \n  * Review and verify invoices to ensure they match the purchase order terms. \n  * Process payments to suppliers in a timely manner. \n\n**4\\. Transportation** : Coordinating the movement of goods from suppliers to\nthe company\u2019s warehouses or production facilities.\n\n  * Coordinate the movement of goods from the supplier to the organization. \n  * Select the most suitable mode of transportation based on factors such as cost, time, and type of goods. \n  * Monitor the progress of the transportation and ensure that it is carried out following the agreed-upon schedule. \n  * Maintain ongoing communication with the transportation provider to address any issues or delays promptly. \n\n**5\\. Receiving** : Checking the condition and quality of materials upon\nreceipt and verifying that they meet the required standards.\n\n  * Verify that the goods received match the purchase order in quantity, quality, and condition. \n  * Inspect the goods for any damage or defects. \n  * Record the receipt of goods in the organization\u2019s inventory management system. \n  * Prepare any necessary documentation, such as receiving reports or invoices. \n\n**6\\. Storage** : Organizing and storing materials in a way that allows for\nefficient retrieval and use in the production process.\n\n  * Determine the appropriate location for storing goods and materials. \n  * Organize and label storage areas to ensure that goods can be easily located and retrieved as needed. \n  * Implement appropriate security measures to protect against theft or damage. \n  * Monitor the condition of stored goods and materials and take any necessary action to ensure their quality and integrity. \n\n**7\\. Inventory management** : Tracking the movement of materials and ensuring\nthat sufficient quantities are available to meet production needs.\n\n  * Regularly review and update the organization\u2019s inventory levels to ensure they are sufficient to meet demand. \n  * Monitor the expiration dates of perishable items and take any necessary action to prevent waste. \n  * Implement an inventory management system to track and manage inventory levels, including barcodes or RFID tags. \n  * Conduct regular physical inventory counts to verify the accuracy of the inventory management system. \n\nBy understanding and managing these stages effectively, businesses can\noptimize their inbound logistics process and improve efficiency.\n\n##  Examples of Inbound Logistics\n\nInbound logistics is a critical aspect of many different industries, and\nnumerous examples of how it is used in practice exist. Some examples of\ninbound logistics in action include:\n\n  1. **Manufacturing** : In the manufacturing industry, inbound logistics involves receiving and storing raw materials needed for production. This may include metals, plastics, and other components used to create finished products. \n  2. **Retail** : In the retail industry, inbound logistics involves receiving and storing the products sold to customers. This may involve coordinating the transportation of goods from suppliers to retail stores or distribution centers and organizing and storing the products in a way that allows for efficient retrieval and display. \n  3. **Construction** : In the construction industry, inbound logistics involves receiving and storing the materials needed for building projects. This may include steel, concrete, and other construction supplies used to build structures. \n  4. **Healthcare** : In the healthcare industry, inbound logistics involves receiving and storing medical supplies and equipment needed for patient care. This may include items such as medication, medical devices, and other supplies that are used in hospitals and other healthcare facilities. \n\nOverall, inbound logistics is vital in many industries, helping businesses\nreceive and store the materials and products they need to operate effectively.\n\n##  Importance of Inbound Logistics\n\nInbound logistics is a crucial aspect of any business, as it plays a vital\nrole in the efficient flow of goods from suppliers to the company\u2019s warehouses\nor production facilities. By effectively managing inbound logistics,\nbusinesses can:\n\n  1. **Reduce costs** : One of the primary benefits of inbound logistics is the ability to reduce costs. By carefully managing the various stages of the inbound logistics process, organizations can optimize their supply chain and reduce waste, leading to cost savings. For example, efficient inbound logistics can help organizations reduce lead times, reducing the need for costly expedited shipping or rush orders. \n  2. **Improve efficiency** : In addition to reducing costs, effective inbound logistics can also help to improve efficiency. By coordinating the flow of goods and materials into the organization, companies can ensure that they have the resources they need to meet customer demand and support their operations. In addition, efficient inbound logistics can help organizations reduce lead times, improving customer satisfaction and increasing competitiveness. \n  3. **Increase competitiveness** : By optimizing the inbound logistics process, organizations can improve the efficiency of their supply chain and reduce costs, which can help to increase profitability and competitiveness. In addition, effective inbound logistics can help to improve customer satisfaction and build strong relationships with suppliers, which can have long-term benefits for the organization. \n  4. **Enhance supply chain visibility** : One of the critical benefits of inbound logistics is improving visibility throughout the supply chain. By accurately tracking and managing inventory levels and the movement of goods and materials, organizations can clearly understand their supply chain and identify any potential bottlenecks or inefficiencies. This can improve decision-making and allow organizations to respond quickly to changes in demand or supply. \n  5. **Ensure quality** : Effective inbound logistics is also essential for ensuring the quality of goods and materials. By carefully inspecting goods upon receipt and implementing appropriate storage and handling procedures, organizations can help to ensure that their products are of the highest quality and meet customer expectations. In addition, effective inbound logistics can help organizations identify and mitigate any potential risks or quality issues before they have a negative impact on the organization. \n\n##  Inbound and Outbound Logistics: The Differences\n\nInbound and outbound logistics operations are two crucial processes for the\nsmooth functioning of a business. While both processes involve the movement of\ngoods, there are several key differences between the two. Here is a breakdown\nof the main differences between inbound and outbound logistics processes:\n\n**Category** |  **Inbound Logistics** |  **Outbound Logistics**  \n---|---|---  \nDirection  |  Goods flow into the company  |  Goods flow out of the company   \nRole  |  Receiving and storing goods  |  Distributing and delivering goods   \nFocus  |  Maximizing efficiency and minimizing cost  |  Maximizing customer satisfaction   \nRelationships  |  Suppliers and vendors  |  Customers and clients   \nStrategy  |  Just-in-time inventory management  |  Fulfillment and delivery strategy   \nType of goods  |  Raw materials and finished products  |  Finished products   \nLocation  |  Warehouse or manufacturing facility  |  Shipping and distribution centers   \nTiming  |  Planned in advance  |  Time-sensitive delivery   \n  \nInbound logistics focuses on bringing goods into the company, while outbound\nlogistics focuses on delivering goods to customers. Both processes play a\ncrucial role in the success of a business and require careful planning and\nexecution.\n\n##  Measuring Success in Inbound Logistics\n\nMeasuring the success of inbound logistics is crucial to identify areas for\nimprovement and optimize the process. Key performance indicators (KPIs) play a\nvital role in evaluating the efficiency of inbound logistics operations.\n\n###  Key Performance Indicators (KPIs)\n\nSome common KPIs used to measure the success of inbound logistics include:\n\n  * **Inventory Turnover** : This KPI measures the number of times inventory is sold and replaced within a given period. A higher turnover rate indicates efficient inventory management and effective inbound logistics processes. \n  * **Fill Rate** : This metric measures the percentage of customer orders that are fulfilled from existing inventory. A high fill rate signifies that the company can meet customer demand promptly, reflecting efficient inbound logistics operations. \n  * **On-Time Delivery Rate** : This KPI tracks the percentage of shipments delivered on time. Timely deliveries are essential for maintaining production schedules and customer satisfaction. \n  * **Lead Time** : This measures the time it takes for raw materials or goods to be delivered from the supplier to the warehouse. Shorter lead times indicate a more responsive and efficient inbound logistics process. \n  * **Inventory Levels** : Monitoring average inventory levels helps ensure that the warehouse holds sufficient stock to meet production needs without overstocking, which can tie up capital and increase storage costs. \n  * **Shipping Costs** : This KPI measures the cost of shipping raw materials or goods from the supplier to the warehouse. Lower shipping costs can significantly impact the overall cost-efficiency of inbound logistics. \n\nBy tracking these KPIs, businesses can identify areas for improvement and\noptimize their inbound logistics processes to reduce costs, improve\nefficiency, and enhance customer satisfaction.\n\n##  Conclusion: The Role of Inbound Logistics in Supply Chain Management\n\nInbound logistics plays a critical role in supply chain management, as it is\nresponsible for bringing raw materials and goods into the supply chain.\nEfficient inbound logistics operations are essential to ensure that businesses\nhave the right materials at the right time to meet customer demand. By\noptimizing inbound logistics processes, businesses can reduce costs, improve\nefficiency, and enhance customer satisfaction.\n\nInbound logistics is closely linked to outbound logistics, and both processes\nmust be carefully planned and executed to ensure the operational success of\nany business. While inbound logistics focuses on sourcing, purchasing, and\ntransporting raw materials, outbound logistics focuses on distributing and\ndelivering finished products to customers. The overlap between these processes\nhighlights the need for a cohesive strategy that integrates both inbound and\noutbound logistics.\n\nBy understanding the importance of inbound logistics and implementing\nstrategies to optimize its processes, businesses can gain a competitive\nadvantage in the market and achieve long-term success. Efficient inbound\nlogistics not only supports smooth production operations but also contributes\nto overall supply chain resilience and responsiveness.\n\n##\n\nIn conclusion, inbound logistics is an essential aspect of business that\ninvolves the planning, organizing, and managing of the flow of goods,\nservices, and information from the point of origin to the point of\nconsumption. It involves various activities such as sourcing, purchasing,\ntransportation, and storage and is critical to the efficient operation of\nbusinesses in many different industries.\n\nHowever, managing inbound logistics can be challenging, and businesses must be\nprepared to deal with issues such as shipping inefficiency, information\nvacuum, supply and demand balance, and capacity constraints.\n\nBusinesses can implement strategies such as an advanced planning and\nscheduling system, developing solid relationships with suppliers, leveraging\ntechnology, improving transportation and storage, and focusing on quality to\noptimize inbound logistics.\n\nBy managing inbound logistics effectively, businesses can reduce costs,\nimprove efficiency, increase competitiveness, enhance supply chain visibility,\nand ensure the quality of their products. 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                "url": "https://www.inboundlogistics.com/articles/what-is-inbound-logistics/"
            },
            "reason": "This page defines inbound logistics, which is relevant to understanding supply chain management. However, it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page defines inbound logistics.",
            "url": "https://www.inboundlogistics.com/articles/what-is-inbound-logistics/"
        },
        {
            "content": {
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                    "source": "https://www.chegg.com/homework-help/questions-and-answers/lynn-manager-transportation-company-goes-product-delivery-schedule-assigns-territories-exe-q129900512"
                },
                "page_content": "Skip to main content\n\n##  Your solution\u2019s ready to go!\n\nOur expert help has broken down your problem into an easy-to-learn solution\nyou can count on.\n\n[ See Answer  See Answer  See Answer done loading\n](https://www.chegg.com/auth?type=simplifiedstudy&action=signup&data=&redirect=%2Fcspofferinterstitial%2Fib)\n\n  * #  Question: Lynn, \ufeffthe manager of a transportation company, goes through the product delivery schedule. She assigns territories to each executive of the delivery team, and also contacts the fleet supervisor to arrange trucks for transportation. Which activity of the value chain is Lynn executing? \ufeff sales \ufeff marketing \ufeff outbound logistics \ufeff customer service \ufeff inbound \n\nLynn  ,  \ufeffthe manager of a transportation company, goes through the product\ndelivery schedule. She assigns territories to each executive of the delivery\nteam, and also contacts the fleet supervisor to arrange trucks for\ntransportation. Which activity of the value chain is Lynn executing?\n\n\ufeff sales\n\n\ufeff marketing\n\n\ufeff outbound logistics\n\n\ufeff customer service\n\n\ufeff inbound logistics\n\n  * There are 3 steps to solve this one. \n\nSolution\n\nHere\u2019s how to approach this question\n\nThis AI-generated tip is based on Chegg's full solution. Sign up to see more!\n\nFirst, consider the definition of each component of the value chain: sales,\nmarketing, outbound logistics, customer service, and inbound logistics.\n\nStep 1\n\nExplained in relation to business activities, the value chain stands for the\nset of activities throu...\n\n[ View the full answer\n](https://www.chegg.com/auth?type=simplifiedstudy&action=signup&data=&redirect=%2Fcspofferinterstitial%2Fib)\n\n[ Step 2  Unlock\n](https://www.chegg.com/auth?type=simplifiedstudy&action=signup&data=&redirect=%2Fcspofferinterstitial%2Fib)\n[ Step 3  Unlock\n](https://www.chegg.com/auth?type=simplifiedstudy&action=signup&data=&redirect=%2Fcspofferinterstitial%2Fib)\n[ Answer  Unlock\n](https://www.chegg.com/auth?type=simplifiedstudy&action=signup&data=&redirect=%2Fcspofferinterstitial%2Fib)\n\n##  Not the question you\u2019re looking for?\n\nPost any question and get expert help quickly.\n\n[ Start learning\n](https://www.chegg.com/auth?type=simplifiedstudy&action=signup&data=&redirect=%2Fcspofferinterstitial%2Fib)\n\n##\n\n###  Chegg Products & Services\n\n  * [ Cheap Textbooks  ](https://www.chegg.com/cheap-textbooks)\n  * [ Chegg Study Help  ](https://www.chegg.com/study)\n  * [ Citation Generator  ](https://www.chegg.com/writing/features/citation-generator)\n  * [ College Textbooks  ](https://www.chegg.com/college-textbooks)\n  * [ Digital Access Codes  ](https://www.chegg.com/access-codes)\n  * [ eTextbooks  ](https://www.chegg.com/etextbooks)\n  * [ Grammar Checker  ](https://www.chegg.com/writing/features/grammar-check)\n  * [ Math Solver  ](https://www.mathway.com/Algebra)\n  * [ Mobile Apps  ](https://www.chegg.com/mobile)\n  * [ Plagiarism Checker  ](https://www.chegg.com/writing/features/plagiarism-checker)\n  * [ Textbook Rental  ](https://www.chegg.com/textbooks)\n  * [ Used Textbooks  ](https://www.chegg.com/used-textbooks)\n  * [ Chegg Perks  ](https://www.chegg.com/perks)\n\n##\n\n###  Company\n\n  * [ About Chegg  ](https://www.chegg.com/about)\n  * [ Chegg For Good  ](https://www.chegg.org)\n  * [ College Marketing  ](https://collegemarketing.chegg.com/)\n  * [ Investor Relations  ](https://investor.chegg.com/Overview/default.aspx)\n  * [ Jobs  ](https://www.chegg.com/about/working-at-chegg)\n  * [ Join Our Affiliate Program  ](https://www.chegg.com/affiliate-program)\n  * [ Media Center  ](https://www.chegg.com/press)\n\n##\n\n###  Chegg Network\n\n  * [ Busuu  ](https://www.busuu.com/)\n  * [ Citation Machine  ](https://www.citationmachine.net/)\n  * [ EasyBib  ](https://www.easybib.com/)\n  * [ Mathway  ](https://www.mathway.com/)\n\n##\n\n###  Customer Service\n\n  * [ Give Us Feedback  ](https://www.chegg.com/contactus/feedback)\n  * [ Customer Service  ](https://www.chegg.com/contactus)\n  * [ Manage Subscription  ](https://www.chegg.com/my/orders)\n\n##\n\n###  Educators\n\n  * [ Academic Integrity  ](https://www.chegg.com/about/academic-integrity)\n  * [ Honor Shield  ](https://www.chegg.com/honorshield)\n  * [ Institute of Digital Learning  ](https://www.chegg.com/about/chegg-institute)\n\n[ ](https://www.facebook.com/chegg) [ ](https://x.com/Chegg) [\n](https://www.instagram.com/chegg/)\n\n[ ](https://chegg-study.app.link/ZbhOSbZUbH) [ ](https://chegg-\nstudy.app.link/ZbhOSbZUbH)\n\n\u00a9 2003-2025 Chegg Inc. 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                "url": "https://www.chegg.com/homework-help/questions-and-answers/lynn-manager-transportation-company-goes-product-delivery-schedule-assigns-territories-exe-q129900512"
            },
            "reason": "This page provides homework help related to transportation and delivery schedules, which is relevant to understanding logistics. However, it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page provides homework help related to transportation and delivery schedules.",
            "url": "https://www.chegg.com/homework-help/questions-and-answers/lynn-manager-transportation-company-goes-product-delivery-schedule-assigns-territories-exe-q129900512"
        },
        {
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                    "resource_type": "webpage",
                    "source": "https://online.hbs.edu/blog/post/what-is-value-chain-analysis"
                },
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Analysis? 3 Steps\n\n  * 03 Dec 2020 \n\n[ Tim Stobierski ](/blog/?author=Tim+Stobierski) [ Contributors\n](/blog/?authortype=Contributors)\n\n  * [ Economics for Managers ](/blog/?course=Economics+for+Managers)\n  * [ Strategy ](/blog/?topic=Strategy)\n\nSuccessful businesses [ create value with each transaction ](/blog/post/how-\ndo-businesses-create-value) \u2014for their customers in the form of satisfaction\nand for themselves and their shareholders in the form of profit. Companies\nthat generate greater value with each sale are better positioned to profit\nthan those that produce less value.\n\nTo evaluate how much value your company is creating, it\u2019s critical to\nunderstand its value chain. Below is an overview of what a value chain is, why\nit\u2019s important to understand, and steps you can take to conduct one and help\nyour company create and retain more value from its sales.\n\n* * *\n\nFree E-Book: How to Formulate a Successful Business Strategy\n\nAccess your free e-book today.\n\n[ DOWNLOAD NOW ](https://info.email.online.hbs.edu/strategy-formulation-ebook)\n\n* * *\n\n##  Understanding the Value Chain\n\nThe term **value chain** refers to the various business activities and\nprocesses involved in creating a product or performing a service. A value\nchain can consist of multiple stages of a product or service\u2019s lifecycle,\nincluding research and development, sales, and everything in between. The\nconcept was conceived by Harvard Business School Professor Michael Porter in\nhis book [ _The Competitive Advantage: Creating and Sustaining Superior\nPerformance_\n](https://www.hbs.edu/faculty/Pages/item.aspx?num=193&_gl=1*12s5wi1*_gcl_aw*R0NMLjE3MTQ4NDk5MDcuQ2owS0NRand1ZGV4QmhES0FSSXNBSS1HV1lXUnZWZ19iTU4tYVJwY1pUeVRibkdaejlSWnJpd25wVjFoaFJnWHQ2a050Y0tGYWlkWnJaNGFBZ2UyRUFMd193Y0I.*_gcl_au*MTkzNzkxMzI0Ni4xNzEzMzY5NzUw)\n.\n\nTaking stock of the processes that comprise your company\u2019s value chain can\nhelp you gain insight into what goes into each of its transactions. By\nmaximizing the value created at each point in the chain, your company can be\nbetter positioned to share more value with customers while capturing a greater\nshare for itself. Similarly, knowing how your firm creates value can enable\nyou to develop a greater understanding of its [ competitive advantage\n](/blog/post/sources-of-competitive-advantage) .\n\n##  Components of a Value Chain\n\nAccording to Porter\u2019s definition, all of the activities that make up a firm's\nvalue chain can be split into two categories that contribute to its margin:\nprimary activities and support activities.\n\n**Primary activities** are those that go directly into the creation of a\nproduct or the execution of a service, including:\n\n  * **Inbound logistics** : Activities related to receiving, warehousing, and inventory management of source materials and components \n  * **Operations** : Activities related to turning raw materials and components into a finished product \n  * **Outbound logistics** : Activities related to distribution, including packaging, sorting, and shipping \n  * **Marketing and sales** : Activities related to the marketing and sale of a product or service, including promotion, advertising, and [ pricing strategy ](/blog/post/value-based-strategy)\n  * **After-sales services** : Activities that take place after a sale has been finalized, including installation, training, quality assurance, repair, and customer service \n\n**Secondary activities** help primary activities become more\nefficient\u2014effectively creating a competitive advantage\u2014and are broken down\ninto:\n\n  * **Procurement** : Activities related to the sourcing of raw materials, components, equipment, and services \n  * **Technological development** : Activities related to research and development, including product design, [ market research ](/blog/post/how-to-do-market-research-for-a-startup) , and process development \n  * **Human resources management** : Activities related to the recruitment, hiring, training, development, retention, and compensation of employees \n  * **Infrastructure** : Activities related to the company\u2019s overhead and management, including financing and planning \n\n[ ](/courses/economics-for-managers/)\n\n##  What Is Value Chain Analysis?\n\n**Value chain analysis** is a means of evaluating each of the activities in a\ncompany\u2019s value chain to understand where opportunities for improvement lie.\n\nConducting a value chain analysis prompts you to consider how each step adds\nor subtracts value from your final product or service. This, in turn, can help\nyou realize some form of competitive advantage, such as:\n\n  * **Cost reduction** , by making each activity in the value chain more efficient and, therefore, less expensive \n  * **Product differentiation** , by investing more time and resources into activities like research and development, design, or marketing that can help your product stand out \n\nTypically, increasing the performance of one of the four secondary activities\ncan benefit at least one of the primary activities.\n\n##  Why Is Value Chain Analysis Important?\n\nValue chain analysis is essential for businesses to understand the sequence of\nactivities required to deliver a product or service.\n\nIn addition to optimizing budgets and establishing competitive advantage,\nbusinesses can also use value chain analysis for:\n\n  * **Supply chain management:** Value chain analysis provides insights into how each component of the supply chain adds value to the final product or service, which can lead to better supplier coordination and logistics management. \n  * **Strategic decision-making:** Because the value chain provides an overview of the company's operations and interactions with external stakeholders, you can use it to help inform [ strategic decisions ](/blog/post/decision-making-techniques) regarding partnerships, outsourcing, product development, and market expansion strategies. \n  * **Improving customer satisfaction:** Insights gained from conducting a value chain analysis can be used to enhance the quality of your product and customer service, which can lead to higher customer satisfaction and loyalty. \n  * **Innovation and development:** The value chain can also highlight opportunities for [ innovation ](/blog/post/importance-of-innovation-in-business) like improving existing processes or identifying new ways in which your product can provide value to the consumer. \n  * **Environmental and social impact:** Additionally, value chain analysis can be used to assess a company's operations' environmental and [ social impacts ](/blog/post/social-impact-skills-needed-to-effect-change) , which can help businesses adopt more sustainable practices and reduce their environmental footprint. \n\n##  How to Conduct a Value Chain Analysis\n\n###  1\\. Identify Value Chain Activities\n\nThe first step in conducting a value chain analysis is to understand all of\nthe primary and secondary activities that go into your product or service\u2019s\ncreation. If your company sells multiple products or services, it\u2019s important\nto perform this process for each one.\n\n###  2\\. Determine Activities' Values and Costs\n\nOnce the primary and secondary activities have been identified, the next step\nis to determine the value that each business activity adds to the process,\nalong with the costs involved.\n\nWhen thinking about the value created by activities, ask yourself: How does\neach increase the end user\u2019s satisfaction or enjoyment? How does it create\nvalue for my firm? For example, does constructing the product out of certain\nmaterials make it more durable or luxurious for the user? Does including a\ncertain feature make it more likely your firm will benefit from [ network\neffects ](/blog/post/what-are-network-effects) and increased business?\n\nSimilarly, it\u2019s important to understand the costs associated with each step in\nthe process. Depending on your situation, you may find that lowering expenses\nis an easy way to improve the value each transaction provides.\n\n###  3\\. Identify Competitive Advantage Opportunities\n\nOnce you\u2019ve compiled your value chain and understand the cost and value\nassociated with each step, you can analyze it through the lens of whatever\ncompetitive advantage you\u2019re trying to achieve.\n\nFor example, if your primary goal is to reduce your firm\u2019s costs, you should\nevaluate each piece of your value chain through the lens of reducing expenses.\nWhich steps could be more efficient? Are there any that don\u2019t create\nsignificant value and could be outsourced or eliminated to substantially\nreduce costs?\n\nSimilarly, if your primary goal is to achieve product differentiation, which\nparts of your value chain offer the best opportunity to realize that goal?\nWould the value created justify the investment of additional resources?\n\nUsing value chain analysis, you can uncover several opportunities for your\nfirm, which can prove difficult to prioritize. It\u2019s typically best to begin\nwith improvements that take the least effort but offer the greatest [ return\non investment ](/blog/post/how-to-calculate-roi-for-a-project) .\n\n[ ](https://info.email.online.hbs.edu/strategy-formulation-ebook)\n\n##  One Piece of the Puzzle\n\nValue chain analysis can be a highly effective means of understanding and\ncontextualizing your business\u2019s processes, but it\u2019s just one tool at your\ndisposal. There's a host of [ other frameworks and concepts\n](/blog/post/economics-skills) that can help you evaluate organizational\nperformance, craft winning strategies, and be more effective in your role.\n\n**_Ready to learn additional frameworks that can enable you to make smarter\nbusiness decisions? Explore our eight-week course[ Economics for Managers\n](/courses/economics-for-managers/) and other [ online Strategy courses\n](/subjects/strategy/) , and find out more about how to develop effective\npricing strategies. _ **\n\n_This post was updated on May 16, 2024. It was originally published on\nDecember 3, 2020._ **_  \n_ **\n\n###  About the Author\n\n_Tim Stobierski is a contributing writer for Harvard Business School Online.\nOn the side, he writes poetry; his first book of poems, \"Dancehall,\" was\npublished by Antrim House Books in July 2023._\n\n[ All FAQs ](/more-info/faqs)\n\n###  Top FAQs\n\nHow are HBS Online courses delivered?  \\+  \u2013\n\n**We offer self-paced programs (with weekly deadlines) on the[ HBS Online\ncourse platform ](/more-info/learning-model/) ** .\n\nOur platform features short, highly produced videos of HBS faculty and guest\nbusiness experts, interactive graphs and exercises, cold calls to keep you\nengaged, and opportunities to contribute to a vibrant online community.\n\nAre HBS Online programs available in languages other than English?  \\+  \u2013\n\nWe expect to offer our courses in additional languages in the future but, at\nthis time, HBS Online can only be provided in English.\n\nAll course content is delivered in written English. 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                    "source": "https://www2.deloitte.com/us/en/insights/focus/transportation/future-of-transport-industry.html"
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                "page_content": "Please enable JavaScript to view the site.\n\nArticle\n\n13 minute read  01 November 2022\n\n#  The future of freight: Transforming the movement of goods\n\n##  Supply chain issues and production bottlenecks brought to the fore by the\npandemic presented opportunities to reshape freight operations\n\n####  Larry Hitchcock\n\nUnited States\n\n###  Larry Hitchcock\n\n###  US Transportation Leader\n\nLarry is Deloitte\u2019s US Transportation sector leader and a principal with\nDeloitte Consulting LLP in the Mergers, Acquisitions and Restructuring\npractice. He has more than 29 years of professional experience, working in a\nnumber of areas within M&A including large-scale restructuring, due diligence,\nmerger planning, divestitures, and integration. He regularly serves clients in\nthe US and other major geographic markets across a variety of modes of\ntransportation.\n\n  * [ ](mailto:lhitchcock@deloitte.com \"mail\") [ lhitchcock@deloitte.com ](mailto:lhitchcock@deloitte.com)\n  * [ ](tel:+1%20312%20486%202202 \"phone\") [ +1 312 486 2202 ](tel:+1%20312%20486%202202)\n  * [ ](https://www.linkedin.com/pub/larry-hitchcock/6/ba2/9a0 \"Connect_via_LinkedIn\")\n  * [ ](https://twitter.com/DeloitteUS \"Connect_via_Twitter\")\n\n####  Yasir Mehboob\n\nUnited States\n\n###  Yasir Mehboob\n\n###  Managing Director | Deloitte Consulting LLP \n\nYasir has nearly 20 years of consulting experience serving clients in the\ntransportation, logistics, distribution, and consumer products industries.\nYasir has extensive experience advising senior executives on making business\nportfolio choices, pursuing organic and inorganic growth, setting priorities\nfor large transformation programs (high-stakes strategic re-positioning,\nintegrations, divestitures, and restructuring), and designing enterprise and\nfunctional operating models. Yasir is a leader in Value Creation Services\nwithin Deloitte's M&A practice. Yasir established Deloitte\u2019s Synergy Center of\nExcellence and leads initiatives to help clients maximize value from M&A and\nrestructuring programs by deploying data-driven insights, innovative methods,\nand digital tools.\n\n  * [ ](mailto:ymehboob@deloitte.com \"mail\") [ ymehboob@deloitte.com ](mailto:ymehboob@deloitte.com)\n  * [ ](tel:+1%20214%20840%207791 \"phone\") [ +1 214 840 7791 ](tel:+1%20214%20840%207791)\n  * [ ](https://www.linkedin.com/in/yasir-mehboob-45386a3/ \"Connect_via_LinkedIn\")\n\n####  Madhav Mullapudi\n\nUnited States\n\n###  Madhav Mullapudi\n\n###  Principal | Deloitte Consulting LLP \n\nMadhav is a principal in the Technology consulting practice with more than 20\nyears of experience in assisting clients with business and digital\ntransformations in front and back office. Madhav has deep experience in\nEnterprise IT and Digital strategy development, Sourcing, Enterprise\nArchitecture, and business transformations with Digital and ERP technologies.\nMadhav leads the technology for Auto, Travel, Transportation, and Hospitality.\nNotably, Madhav led the global enterprise digital transformation in Finance\nand Operations, for a $67B+ global Transportation company with operations in\n200+ countries. Modernizing the business operations with ERP Cloud, Robotics,\nMachine Learning, and Cognitive Technologies.\n\n  * [ ](mailto:mmullapudi@deloitte.com \"mail\") [ mmullapudi@deloitte.com ](mailto:mmullapudi@deloitte.com)\n  * [ ](tel:+1%20847%20452%200525 \"phone\") [ +1 847 452 0525 ](tel:+1%20847%20452%200525)\n  * [ ](https://www.linkedin.com/in/madhav-m-3a081414 \"Connect_via_LinkedIn\")\n\n####  Maggie Rauch\n\nUnited States\n\n###  Maggie Rauch\n\n###  Research Manager | Transportation, Hospitality & Services \n\nAs Deloitte\u2019s research manager for Transportation, Hospitality & Services,\nMaggie Rauch collaborates with firm leadership to design and execute research\non the state and future of the industry. She has a decade of experience as a\ntravel industry subject matter expert and research team leader.\n\n  * [ ](mailto:magrauch@deloitte.com \"mail\") [ magrauch@deloitte.com ](mailto:magrauch@deloitte.com)\n  * [ ](tel:+1%20212%20436%205947 \"phone\") [ +1 212 436 5947 ](tel:+1%20212%20436%205947)\n\n####  Upasana Naik\n\nIndia\n\n###  Upasana Naik\n\n###  Senior Analyst\n\nUpasana Naik is a senior analyst at Deloitte\u2019s Consumer Industry Center. She\nworks with leadership to conceptualize, design, and develop research projects\nand statistical analysis focused on the transportation, hospitality and\nservices industry. She has more than three years of experience in the TH&S\nindustry.\n\n  * [ ](mailto:upnaik@deloitte.com \"mail\") [ upnaik@deloitte.com ](mailto:upnaik@deloitte.com)\n\n  * [ __ ](javascript:void\\(0\\) \"Save for later\")\n  * __\n  * [ __ ](javascript:void\\(0\\) \"Share\")\n\n    *     *     * \n\n###  Share article highlights\n\nSee something interesting? Simply select text and choose how to share it:\n\n  * Email a customized link that shows your highlighted text. \n\n  * Copy a customized link that shows your highlighted text. \n\n  * Copy your highlighted text. \n\n[ __ Share by email ](mailto:?subject=testSubject)\n\n[ ]() [ ](javascript:void\\(0\\)) [ ](javascript:void\\(0\\)) [\n](javascript:void\\(0\\))\n\n\u2713 Link copied to clipboard\n\n  *   *   *   *   *   *   *   *   *   * \nOpens in new window\n\n##  The future of freight: Transforming the movement of goods\n\nby\n\n  * Larry Hitchcock \n  * Yasir Mehboob \n  * Madhav Mullapudi \n  * Maggie Rauch \n  * Upasana Naik \n\n  * [ __ ](javascript:void\\(0\\) \"Save for later\")\n  * __\n  * [ __ ](javascript:void\\(0\\) \"Share\")\n\n    *     *     * \n\n###  Share article highlights\n\nSee something interesting? Simply select text and choose how to share it:\n\n  * Email a customized link that shows your highlighted text. \n\n  * Copy a customized link that shows your highlighted text. \n\n  * Copy your highlighted text. \n\n[ __ Share by email ](mailto:?subject=testSubject)\n\n[ ]() [ ](javascript:void\\(0\\)) [ ](javascript:void\\(0\\)) [\n](javascript:void\\(0\\))\n\n\u2713 Link copied to clipboard\n\n###  Introduction ****\n\nIn the years that led up to 2019, the twin rise of e-commerce and consumer\nexpectations began placing unprecedented strain on global transportation\nnetworks and logistics providers.  1  Manufacturers and retailers responded by\npushing their existing systems\u2014a wide-ranging global network of tightly\ncoordinated just-in-time production and fulfillment operations\u2014even harder.\nWhen the pandemic hit in early 2020, demand shifted precipitously, just as\nproduction began pausing unpredictably everywhere from Dubai to Shenzhen.\nSimultaneously, moving goods through ports and on planes became significantly\nmore complicated. The result: disastrous bottlenecks and price spikes that\nunderlined the fragility of our overstretched supply chains and accelerated\nthe urgency of rethinking leading practices for how we move goods.\n\n**Learn more**\n\n  * [ Explore the Future of Movement of Goods collection ](/us/en/insights/focus/transportation/future-of-movement-of-goods.html?icid=learn_more_content_click)\n  * [ Explore the Deloitte State of the Consumer Tracker ](/us/en/insights/industry/retail-distribution/consumer-behavior-trends-state-of-the-consumer-tracker.html?icid=learn_more_content_click)\n  * Learn about Deloitte\u2019s services \n  * [ Go straight to smart. Get the Deloitte Insights app ](/us/en/insights/legal/deloitte-insights-app.html?icid=learn_more_content_click)\n\nOpens in new window\n\nToday the transportation industry is at an inflection point, as several\nmassive shifts bear down on it at once. Nearshoring efforts are underway\nacross a significant number of industries as companies strive to shorten and\nbolster supply chains. China\u2019s dominance in global trade is expected to wane,\nits trade growth dropping from 26% to 13% in the next five years,  2  and\ncountries in Central and Southeastern Europe, as well as Central America and\nMexico, picking up the slack with competitive labor and closer proximity to\nend-use markets.\n\nThese developments on their own would constitute a seismic shift in the future\nof freight, but they are expected to be accompanied by revolutions in data\nscience (IoT, analytics, and artificial intelligence), material science\n(electric vehicles), and engineering (autonomous vehicles). Every shift\nrepresents an opportunity for new competitors to enter the market, as\nstartups, megaretailers, and hyperscalers all vie for a piece of the trillions\nof dollars at stake.\n\n###  Research methodology\n\nTo better understand a freight system responding to short-term shocks and\npreparing for longer-term transformation, Deloitte surveyed 305 executives  3\nat transportation and manufacturing companies in the United States and Europe\nwith annual revenues ranging from US$500 million to over US$50 billion (figure\n1). Additionally, we conducted a series of executive interviews for\nperspectives on the future of the broader industry.\n\n[ ](/us/en/insights/focus/transportation/future-of-transport-\nindustry/_jcr_content/root/responsivegrid_380572564/aside/aside-\nparsys/advanced_image_94578.coreimg.jpeg/1722605239295/us175394-figure1.jpeg)\n\n[ __ Download  ](/content/dam/insights/articles/us175394_cic_consumer-\ntransportation-pov/figures/US175394_Figure1.jpg \"Download\") __ Share\n\n######  Share image\n\n  *   *   * \n\n######  Or copy link\n\n__\n\n__\n\nDeloitte\u2019s research reveals a transportation industry poised for significant\ntransformation, where success will be determined largely by the ability to\ndeftly navigate five major forces. These combine to present major challenges\nand opportunities for the transportation industry.\n\n  * **Onshoring and nearshoring to redraw the transportation map:** Our research shows increased interest in moving manufacturing closer to the end consumer to mitigate disruption risk and the inflationary impact on the cost of goods. Even if this happens at half the rate our survey respondents expect, it will represent radical change, creating new opportunities for established leaders and openings for new competitors to enter the market. \n  * **Well-curated data is the great differentiator:** Companies with advanced, unified digital strategies are currently at a significant advantage, as an industry that still suffers from data fragmentation rushes to close the gap. Nearly half (48%) of survey respondents expect data to improve visibility into assets and goods in the next three years. Over the same time horizon, many say data will help improve customer relationship management (44%) and workforce optimization (35%). The ascent of data and analytics could pave the way for new competition from digital-native startups and hyperscalers to set their sights on transportation as a source of profits. \n  * **New competitive dynamics abound:** As the industry reconstitutes itself, cloud services providers, megaretailers, vehicle manufacturers, and tech startups are pursuing the transportation industry and its profit streams. As their interest and expertise grow, they are positioned to usurp territory and customers from legacy logistics companies while prompting new models of collaboration. \n  * **Restructuring will align core capabilities to a changing environment:** Transportation leaders recognize they need to change to meet this moment. Most survey respondents are in the process of reshuffling their structure and operations\u201460% are outsourcing noncore capabilities, and a similar share (59%) are actively seeking acquisitions to expand their capabilities. These trends are not mutually exclusive: Companies that are outsourcing are also building or acquiring new core capabilities. \n  * **New vehicles and new insights mean new competition:** The coming wave of next-generation vehicles harnessing electric power, autonomous technology, and IoT data will not only alter the capabilities, efficiency, and sustainability of the transportation system, but will also potentially precipitate a power shakeup. Among our survey respondents, 60% believe it is inevitable that truck manufacturers will seek to become fleet managers as technology advances and lines of supply are redrawn. \n\nLeaders should plan for rapid acceleration of these forces and configure their\ncompanies to win in a constantly evolving environment _._ Alongside these\ntrends, the role of the public sector, in the form of state, federal, and\ninternational governments, is paramount _._ These bodies play roles in\nmodernizing infrastructure, regulating or deregulating the transportation\nindustry, and establishing incentives around emissions, nearshoring, EV, AV,\nand more. A new era of partnerships with governments and regulators will\nfactor into the long-term success of the industry\u2019s incumbents and new\nentrants.\n\n###  Nearshoring redraws the map\n\nAnalysts have been predicting a nearshoring boom for decades, but the \u201ctrend\u201d\nhas stubbornly failed to yield a significant shift in actual investments until\nnow. Today, the fresh memory of a global supply chain collapse, favorable\nmacroeconomic forces, and a surge in robotics and automation are combining to\ncreate conditions for this movement to finally have legs.\n\nAmerican companies are expected to reshore nearly 350,000 jobs in 2022,  4  up\nfrom 260,000 in 2021. Major automobile and electronics manufacturers are set\nto build new facilities costing billions of dollars to manufacture their\nhighest-value products in the United States\u2014investments in battery production\nplants announced by automotive companies in 2022 alone exceed US$13 billion.\nLabor availability and cost of manufacturing in Western Europe and the United\nStates are being mitigated by advances in robotics and automation, stimulating\nthe reshoring of manufacturing for everything from kitchen utensils to\nhardwood flooring.  5\n\nOur survey respondents anticipate a significant share of Asia-originating\nfreight to move onshore or nearshore to alleviate supply chain challenges and\nimprove competitive positioning (figure 2).\n\n[ ](/us/en/insights/focus/transportation/future-of-transport-\nindustry/_jcr_content/root/responsivegrid_380572564/advanced_image.coreimg.jpeg/1722605239442/us175394-figure2.jpeg)\n\n[ __ Download  ](/content/dam/insights/articles/us175394_cic_consumer-\ntransportation-pov/figures/US175394_Figure2.jpg \"Download\") __ Share\n\n######  Share image\n\n  *   *   * \n\n######  Or copy link\n\nTransportation executives whose companies have begun preparing for nearshoring\nanticipate 20% of Asia-originating freight will move to closer-proximity\nmarkets by 2025 (figure 3), doubling to 40% of freight originations by 2030.\nManufacturers\u2019 expectations are similar, and 62% of them have begun this\nprocess already. Survey respondents expect agriculture, apparel, and consumer\nelectronics to see supply lines being reconfigured the most.\n\n[ ](/us/en/insights/focus/transportation/future-of-transport-\nindustry/_jcr_content/root/responsivegrid_380572564/advanced_image_1772226252.coreimg.jpeg/1722605239533/us175394-figure3.jpeg)\n\n[ __ Download  ](/content/dam/insights/articles/us175394_cic_consumer-\ntransportation-pov/figures/US175394_Figure3.jpg \"Download\") __ Share\n\n######  Share image\n\n  *   *   * \n\n######  Or copy link\n\nThis reconfiguring of supply chains inside countries and regions could have\nsignificant consequences for transportation companies as they are forced to\nrethink their footprint, infrastructure, and relationships. Current supply\nchains are based on decades of work by executives who built their careers\nestablishing operations in Southeast Asia, developing the supply lines needed\nto move products, across the ocean, through ports, and into major consumer\nmarkets such as France, Germany, India, Japan, the United Kingdom, and the\nUnited States. This new moment carries with it the burden of forging new,\ninterconnected shipping networks inside countries and regions. But it also\ncarries the promise of reduced supply risk that comes from widely distributed\nfreight networks, along with reduced labor and transportation costs. ****\n\n###  Different impacts, different strategies\n\nAny significant shift in production geographies will impact companies across\nmost modes of transportation, but the degree of impact, and the nature of the\nmost effective response will vary from company to company. For example, if\nnearshoring takes place at the rate projected by our survey respondents, ocean\ncarriers like COSCO and A.P. Moller-Maersk would require a far different\nresponse than a carrier focused on intra-European or intra-US trucking.\n\nMaersk, for instance, has acquired digital fulfillment firm Visible Supply\nChain Management LLC, which specializes in parcel delivery, along with a\nCalifornia-based warehouse distribution company, to strengthen its position in\nthe United States.  6  The Denmark-based container logistics company has built\na strategy to simplify global logistics by integrating each step of the supply\nchain from factory to doorstep. With customers increasingly demanding\nsimplification and reliability, Maersk seeks to deliver that by supplementing\nits large fleet of vessels and terminals with new assets in land-based\ntransportation, warehousing, and logistics solutions.\n\nSupply chain companies like DHL and XPO Logistics face different challenges.\nNewly established manufacturing plants would lead to a redistribution of\nwarehouses and fleets in North America and Europe, raising the prospect of\nwinding down operations in markets where these companies operate, while\nramping up in others. This reconfigured map of plants and warehouses would\ncarry through to the location of workforces and company-owned or leased\nfleets.\n\n###  The great data unlock\n\nFor decades, the transportation industry has generated massive amounts of\ndata, but until now it has only been able to unlock a fraction of it. Today\u2019s\ntransportation companies have access to not only far higher-resolution data,\nbut they can also take advantage of cutting-edge data science to perform\nanalytics in near-real time.\n\nIn a modern, fully digitized parcel company, every package delivery both\nembeds and generates data. For a company that ships upward of 17 million\npackages per day, across 200 countries, the data points add up quickly,\noffering enormous predictive power for companies with the ability to harvest\nand contextualize it.\n\nStill, there are challenges to making this information truly valuable for\ndecision-makers. Our research and experience point to four key friction areas:\n\n  * Information within transportation companies is often organized solely to meet the needs of its functions, business units, and regulators. The insights shippers seek often require another layer of specialized analysis that ingests and takes into account data from all areas of the business. \n  * The advent of data warehouses and data lakes offers the potential to tap wide swaths of data, but the tools and technologies to analyze them are still evolving and leading practices are still emerging. Companies are investing in data scientists, but are often at a loss to know when they have enough, or whether they are pointed at the correct targets. \n  * Many of the largest transportation companies have established free-standing information services units. These structures often place chief information officers and their teams in the position of making trade-offs due to finite resources. They face difficult choices: invest in contemporary information assets or allocate resources to maintain and improve legacy systems. This dilemma can impede the fast progress customers and company leaders expect. \n  * Like other highly regulated industries, transportation companies commit significant resources to fulfill the constantly evolving demands of regulators. For example, in the United States, the Surface Transportation Board requires Class I rail carriers to provide details as varied as demurrage and accessorial charges, carload waybills, and agricultural contract summaries. In May 2022, the Surface Transportation Board issued a decision requiring detailed weekly reports on service performance.  7  At the opposite end of the government action spectrum, companies in the industry are still awaiting the Securities and Exchange Commission\u2019s final guidance on environmental, sustainability, and governance (ESG) reporting requirements. These new reporting standards place additional demands on technology resources, which can place added demands on scarce resources. \n\nUndeterred by these constraints, 78% of our respondents intend to (or already\ndo) monetize data as a value-add service or capability (figure 4), as they now\nhave inhouse data scientists. Survey respondents told us they expect data to\nprovide the most value in visibility of their end-to-end logistics, customer\nrelationship management, demand planning, and workforce management.\n\n[ ](/us/en/insights/focus/transportation/future-of-transport-\nindustry/_jcr_content/root/responsivegrid_380572564/advanced_image_60189126.coreimg.jpeg/1722605239690/us175394-figure4.jpeg)\n\n[ __ Download  ](/content/dam/insights/articles/us175394_cic_consumer-\ntransportation-pov/figures/US175394_Figure4.jpg \"Download\") __ Share\n\n######  Share image\n\n  *   *   * \n\n######  Or copy link\n\nData mastery is quickly becoming table stakes for the transportation industry.\nTo keep up, many are turning to startups and cloud services providers. In\nfact, respondents say cloud service providers are as likely as legacy third-\nparty logistics companies (3PLs) to become leading providers of data services\nin transportation by 2030. ****\n\n###  New competition, new cooperation\n\nMost transportation companies, especially those that operate at significant\nscale, are used to building or acquiring the capabilities needed to compete\neffectively. However, the novel features of the future transportation\nlandscape may presage a new era of collaboration, forcing companies to\nevaluate their core strengths, analyzing where they can provide world-class\nservice, and where they are better off partnering with another entity that has\nattained high-level domain expertise.\n\nJust 29% of surveyed transportation executives regard legacy logistics\nproviders as \u201cbest-positioned\u201d to make progress in data optimization by 2030\n(figure 5). Nearly 60% expect new entrants, retail giants, and cloud service\nproviders to emerge as leaders in the new environment created by a confluence\nof trade flows, advances in technology, and changes in public policy.\n\n[ ](/us/en/insights/focus/transportation/future-of-transport-\nindustry/_jcr_content/root/responsivegrid_380572564/advanced_image_255791738.coreimg.jpeg/1722605239796/us175394-figure5.jpeg)\n\n[ __ Download  ](/content/dam/insights/articles/us175394_cic_consumer-\ntransportation-pov/figures/US175394_Figure5.jpg \"Download\") __ Share\n\n######  Share image\n\n  *   *   * \n\n######  Or copy link\n\nThis is not to say it\u2019s impossible to build or acquire these capabilities,\nonly that it requires sustained focus and leadership commitment. FedEx, for\nexample, has made significant moves to take advantage of its scale while\nbuilding the agility to respond to change. Its DataWorks unit coalesces\ncapabilities, utilizes data science and machine learning, and works to\nmonetize data derived from packages the company ships.  8  In parallel, the\ncompany announced a multiyear collaboration agreement with Microsoft to\nintroduce a cross-platform \u201clogistics as a service\u201d option for retailers,\nmerchants, and brands as another way to navigate the pace of change in freight\nand transportation.  9  More recently, FedEx acquired ShopRunner, which offers\nits members exclusive deals and standard e-commerce services such as free two-\nday shipping and free returns.  10  ****\n\nStill, our survey respondents were clear that the capabilities that will\ndefine success in the next era of transportation are often _not_ core to its\ncurrent leaders. This provides a significant opening for nimbler, tech-driven\nplayers to find footholds in the market. Uber Freight\u2019s acquisition of\nTransplace, for instance, aims to strengthen the parent company\u2019s push to\n\u201cdemocratize\u201d the freight and logistics process by promoting transparency and\ndriving efficiency across the logistics value chain.  11  If successful, it\npresents a challenging new business model that provides a supply of ready\ntransportation that manufacturers and retailers are hungry for. Likewise,\ncloud providers, megaretailers, vehicle manufacturers, and startups are in a\nprime position to provide over-the-top services that pose significant\nchallenges to legacy logistics providers.\n\n###  Restructuring to better align capabilities\n\nCore capabilities in freight movement have historically included portfolio\nplanning, demand planning, workforce planning, safety, transportation\nscheduling, warehouse management, order fulfillment, and returns. The\ncentrality of these capabilities will likely endure, but broad-based changes\nin freight flows and technology may change how they are supported and\nperformed.\n\nNear-term pressures on margins, and changes in the location and scope of\noperations could prompt companies to rethink how support functions are\nperformed. Back-office capabilities are the most susceptible to change, and\nthe ones that are increasingly available via software-as-a-service and\nplatform-as-a-service models. Maintaining high-level expertise in these areas,\nwhile building the partnerships and capabilities necessary to operate in\nincreasingly cloud-based environments, could become more burdensome over time.\n\nTransportation leaders have already begun divesting from lower-value\nactivities to allow for more focus on areas of critical and differentiated\nexpertise. Our research shows that 60% of respondents plan to outsource more\nof their noncore capabilities, while 59% plan to add new capabilities through\nacquisition to ensure their operations and service offerings align with the\ncurrent environment (figure 6).\n\n[ ](/us/en/insights/focus/transportation/future-of-transport-\nindustry/_jcr_content/root/responsivegrid_380572564/advanced_image_822646814.coreimg.jpeg/1722605239926/us175394-figure6.jpeg)\n\n[ __ Download  ](/content/dam/insights/articles/us175394_cic_consumer-\ntransportation-pov/figures/US175394_Figure6.jpg \"Download\") __ Share\n\n######  Share image\n\n  *   *   * \n\n######  Or copy link\n\n###  Fleet transformation  \n\nPaced by emerging technology, public policy, and other factors, the\ntransformation of fleets is coincidental, but not a primary driver for the\ncurrent strategic shifts in the movement of goods. The emergence of EVs as a\nviable platform for long-haul delivery depends largely on public policy,\npowertrain availability, and advancements in electrical grids. AVs should help\nalleviate driver shortages for fleet operators and trucking companies (figure\n7), but it is years away from widespread adoption and complete or near-\ncomplete automation. Even when fully implemented, the transportation industry\nwill likely make extensive use of driver-assisted vehicles, rather than\nvehicles that are fully autonomous, whether parcel, courier and express\ndelivery, or long-haul transportation of consumer durables.\n\n[ ](/us/en/insights/focus/transportation/future-of-transport-\nindustry/_jcr_content/root/responsivegrid_380572564/advanced_image_1873506656.coreimg.jpeg/1722605240030/us175394-figure7.jpeg)\n\n[ __ Download  ](/content/dam/insights/articles/us175394_cic_consumer-\ntransportation-pov/figures/US175394_Figure7.jpg \"Download\") __ Share\n\n######  Share image\n\n  *   *   * \n\n######  Or copy link\n\nWhat is changing in the near term is the adoption of thoughtful onboard\ntechnology, including IoT sensors to monitor freight, smart systems to ensure\nvehicle health and longevity, and tracking technology to monitor drivers\u2019\nhealth and wellbeing. Meanwhile, significant automation work is being done in\nthe area of drayage, which is made easier thanks to the closed systems of\ndocking facilities and warehouses.\n\nStill, companies are investing in EV or AV transformation. Those respondents\nmaking investments expect 35% electrification and 45% automation by 2030. When\nasked which aspects of global freight flows will see the greatest impact,\nrespondents foresee the most changes in drayage and the least in middle-mile\ntransportation (figure 8).\n\n[ ](/us/en/insights/focus/transportation/future-of-transport-\nindustry/_jcr_content/root/responsivegrid_380572564/advanced_image_108399914.coreimg.jpeg/1722605240125/us175394-figure8.jpeg)\n\n[ __ Download  ](/content/dam/insights/articles/us175394_cic_consumer-\ntransportation-pov/figures/US175394_Figure8.jpg \"Download\") __ Share\n\n######  Share image\n\n  *   *   * \n\n######  Or copy link\n\nInterestingly, almost all our respondents (92%) expected a specific disruption\nto what has typically been a core component of their side of the business: EV\nand AV manufacturers using their expertise in making vehicles to try to move\ninto the transportation and logistics business. While 32% of respondents said\nOEMs moving into a fleet management role was \u201clikely,\u201d (figure 9) 60% called\nit \u201cinevitable.\u201d It will be interesting to see how this aspect of the coming\nmobility revolution plays out, and whether fleet management itself becomes yet\nanother piece of infrastructure that can be outsourced by tomorrow\u2019s lean,\ntechnology-driven transportation companies.  \n\n[ ](/us/en/insights/focus/transportation/future-of-transport-\nindustry/_jcr_content/root/responsivegrid_380572564/advanced_image_544206111.coreimg.jpeg/1722605240220/us175394-figure9.jpeg)\n\n[ __ Download  ](/content/dam/insights/articles/us175394_cic_consumer-\ntransportation-pov/figures/US175394_Figure9.jpg \"Download\") __ Share\n\n######  Share image\n\n  *   *   * \n\n######  Or copy link\n\n###  Conclusion ****\n\nAs the transportation industry continues to evolve in the context of short-\nterm shocks and longer-term transformation, success will likely depend on\nstrategies that account for the following:\n\n  * Nearshoring has been in the conversation for a long time without much true change. However, the lessons of the pandemic, advances in robotics, changes in labor markets, and shifts in geopolitics could drive real change in the next few years. Navigating these newly drawn maps would require reconfiguring partnerships, supply lines, infrastructure, and relationships with the public sector. \n  * The data revolution and the rise of modernized transportation fleets hold promise for established logistics leaders to boost efficiency and provide unprecedented insights. But these will also come with increased competition from newcomers to transportation who have deep competency in data science. Data fluency and transparency will be table stakes for tomorrow\u2019s transportation companies. Innovation and rigorous alignment with strategic priorities will set true leaders apart from the pack, along with the ability to partner and acquire wisely. The next few years could be critical as companies decide which of their operations are their core competencies and which are better handled by outside partners. \n\nWhen it comes to public policy, transportation companies should have both a\nbroad aperture accounting for globalization and national economic strategies,\nand more targeted engagement at the state level. As public sector priorities\nand private sector opportunities continue to be closely intertwined, effective\ncollaboration will likely take a variety of forms, ranging from tax incentives\nand workforce training to initiatives that involve federal- and state-funded\norganizations and research institutions. Together, government and industry\nleaders can help guide the modernization of infrastructure and practices to\nset the future of freight on a more stable and resilient path.\n\n####  Let\u2019s make this work.\n\nChange your Analytics and performance cookie settings  to access this feature.\n\n###\n\n  1. Michael Daher et al., [ _How are global shippers evolving to meet tomorrow\u2019s demand?_ ](https://www2.deloitte.com/us/en/insights/focus/future-of-mobility/future-of-freight-connected-data-intelligent-automation.html) Deloitte Insights, December 11, 2019. \n\nView in Article\n\n  2. Mark Solomon, \u201c [ Report: China\u2019s share of global trade growth to plunge in next 5 years ](https://www.freightwaves.com/news/report-chinas-share-of-global-trade-growth-to-plunge-in-next-5-years) ,\u201d Freight Waves, September 15, 2022. \n\nView in Article\n\n  3. Sample included 210 transportation providers from the United States (158) and Europe* (52), and 105 US-based manufacturers. \n\nView in Article\n\n  4. Reshoring Initiative, \u201c [ IH 2022 data report: Multiple supply chain risks accelerate reshoring ](https://reshorenow.org/content/pdf/2022_1H_data_report-final5.5.pdf) ,\u201d 2022. \n\nView in Article\n\n  5. Reshoring Initiative, \u201c [ Consumer product cases of reshoring ](https://www.reshorenow.org/content/pdf/Consumer_Product_Cases_of_Reshoring.pdf) ,\u201d accessed October 18, 2022. \n\nView in Article\n\n  6. Paul Berger, \u201c [ Maersk is hungry for more US logistics companies ](https://www.wsj.com/articles/maersk-is-hungry-for-more-u-s-logistics-companies-11644951967) ,\u201d _Wall Street Journal,_ February 2022. \n\nView in Article\n\n  7. Surface Transportation Board, \u201c [ STB requires additional service reporting from railroads ](https://www.stb.gov/news-communications/latest-news/pr-22-28/) ,\u201d May 6, 2022. \n\nView in Article\n\n  8. Steve Banker, \u201c [ FedEx works to monetize their big data ](https://www.forbes.com/sites/stevebanker/2022/01/20/fedex-works-to-monetize-their-big-data/?sh=2bf693d1277d) ,\u201d _Forbes_ , January 20, 2022. \n\nView in Article\n\n  9. Microsoft News Center, \u201c [ FedEx and Microsoft announce new cross-platform logistics solution for e-commerce ](https://news.microsoft.com/2022/01/24/fedex-and-microsoft-announce-new-cross-platform-logistics-solution-for-e-commerce/) ,\u201d January 24, 2022. \n\nView in Article\n\n  10. FedEx, \u201c [ FedEx completes acquisition of ShopRunner, expanding its e-commerce capabilities ](https://newsroom.fedex.com/newsroom/global/fedex-completes-acquisition-of-shoprunner-expanding-its-e-commerce-capabilities) ,\u201d December 28, 2020. \n\nView in Article\n\n  11. Lior Ron, \u201c [ Reimagine the way goods move ](https://www.uberfreight.com/blog/reimagining-the-way-goods-move-uber-freights-next-chapter/) ,\u201d Uber Freight, October 3, 2022. \n\nView in Article\n\n###\n\nThe authors would like to thank **Stephen Rogers, Srinivasarao Oguri, Satish\nNelanuthula,** and **Rithu Mariam Thomas** for their contributions to this\narticle.\n\nCover image by: **Sylvia Chang**\n\n###  Topics in this article\n\n  * [ Transportation & Logistics  ,  ](/us/en/insights/tags/transportation-and-logistics.html)\n  * [ Supply Chain  ,  ](/us/en/insights/tags/supply-chain.html)\n  * Consumer Industry \n\n###  Transportation, Hospitality, and Services\n\nTransportation, Hospitality, and Services (THS) companies are often navigating\nan increasingly competitive environment. Deloitte\u2019s THS practice provides\ninsights to help meet the most complex challenges facing the industry today,\nincluding driving digital and technology innovation, attaining operational\nexcellence, and elevating the customer experience.\n\n[ ](https://www2.deloitte.com/us/en/pages/consumer-\nbusiness/topics/transportation-hospitality-and-services-trends.html)\n\n####  Larry Hitchcock\n\nUS Transportation Leader\n\n[ lhitchcock@deloitte.com ](mailto:lhitchcock@deloitte.com)\n\n[ +1 312 486 2202 ](tel:+1%20312%20486%202202)\n\n###  Related content\n\n### [ 2024 Deloitte holiday retail survey  Article  6 months ago\n](/us/en/insights/industry/retail-distribution/holiday-retail-sales-consumer-\nsurvey.html)\n\n### [ Plant-based meat gets a reality check  Article  2 years ago\n](/us/en/insights/industry/retail-distribution/future-of-fresh-food-\nsales/plant-based-meat-sales.html)\n\n### [ Fresh food as medicine for the heartburn of high prices  Article  2\nyears ago  ](/us/en/insights/industry/retail-distribution/future-of-fresh-\nfood-sales/fresh-food-as-medicine-for-the-heartburn-of-high-prices.html)\n\n### [ 2022 Deloitte back-to-college survey  Interactive  2 years ago\n](/us/en/insights/industry/retail-distribution/back-to-college-survey.html)\n\n###  Explore the Transportation & hospitality collection\n\n### [ The Transportation Security Administration makes digital transformation\nhuman  Article  2 years ago  ](/us/en/insights/focus/tech-trends/2023/tsa-\nchanges-human-digital-transformation.html)\n\n### [ Leading at the front(line)  Article  2 years ago\n](/us/en/insights/industry/retail-distribution/dei-diversity-and-inclusion-\nfor-frontline-workers.html)\n\n### [ Getting back to getaways: 2022 Deloitte summer travel survey  Article  2\nyears ago  ](/us/en/insights/focus/transportation/summer-travel-survey-\npredictions.html)\n\n### [ Reshaping the landscape: Corporate travel in 2022 and beyond  Article  3\nyears ago  ](/us/en/insights/focus/transportation/business-travel-trends-\noutlook-2022.html)\n\n### [ Return to a world transformed  Article  3 years ago\n](/us/en/insights/focus/transportation/future-of-business-travel-post-\ncovid.html)\n\n### [ Keen but cautious  Article  3 years ago\n](/us/en/insights/focus/transportation/summer-travel-plans-survey-2021.html)\n\n###  Subscribe\n\nto receive more business insights, analysis, and perspectives from Deloitte\nInsights\n\n[ ](https://my.deloitte.com/)\n\nDeloitte Insights and our research centers deliver proprietary research\ndesigned to help organizations turn their aspirations into action.\n\n  * [ __ ](//www.facebook.com/DeloitteUS/)\n  * [ __ ](https://twitter.com/Deloitte)\n  * [ __ ](//www.linkedin.com/company/deloitte-insights)\n  * [ __ ](https://www.youtube.com/@DeloitteInsights)\n\n####  Deloitte Insights\n\n  * [ Home ](/us/en/insights.html?icid=dibottom_insights)\n  * [ Topics ](/us/en/insights/topic.html?icid=dibottom_topic)\n  * [ Industries ](/us/en/insights/industries.html?icid=dibottom_industries)\n  * [ About Deloitte Insights ](/us/en/insights/about-deloitte-insights.html?icid=dibottom_about-deloitte-insights)\n\n####  DELOITTE RESEARCH CENTERS\n\n  * [ Cross-Industry ](/us/en/insights/research-centers/center-for-integrated-research.html?icid=dibottom_center-for-integrated-research)\n  * [ Economics ](/us/en/insights/research-centers/economics.html?icid=dibottom_economics)\n  * [ Consumer ](/us/en/insights/research-centers/consumer-industry-center.html?icid=dibottom_consumer-industry-center)\n  * [ Energy & Industrials ](/us/en/insights/research-centers/center-energy-industrials.html?icid=dibottom_center-energy-industrials)\n  * [ Financial Services ](/us/en/insights/research-centers/center-for-financial-services.html?icid=dibottom_center-for-financial-services)\n  * [ Government & Public Services ](/us/en/insights/research-centers/center-for-government-insights.html?icid=dibottom_center-for-government-insights)\n  * [ Life Sciences & Health Care ](/us/en/insights/research-centers/center-for-health-solutions.html?icid=dibottom_center-for-health-solutions)\n  * [ Tech, Media & Telecom ](/us/en/insights/research-centers/center-for-technology-media-telecommunications.html?icid=dibottom_center-for-technology-media-telecommunications)\n\n[ __ ](/us/en.html)\n\nLearn about Deloitte\u2019s offerings, people, and culture as a global provider of\naudit, assurance, consulting, financial advisory, risk advisory, tax, and\nrelated services.\n\n\u00a9 2025. 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[ Join My Deloitte ](https://my.deloitte.com?site=us-en)\n\n",
                "url": "https://www2.deloitte.com/us/en/insights/focus/transportation/future-of-transport-industry.html"
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                    "source": "https://www.ncat.edu/cobe/transportation-institute/"
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                "page_content": "Skip To Main Site Navigation  Skip to Content  Skip To Left Navigation  Skip\nTo Footer\n\n  * [ Home ](../../index.php)\n  * [ College of Business & Economics ](../index.php)\n  * [ Transportation Institute ](index.php)\n\nWillie A. Deese College of Business and Economics\n\n#  Transportation Institute\n\n##  Transportation and Supply Chain News\n\n[ ](/news/2024/07/gartner-graduate-supply-chain.php \"Opens in a new tab or\nwindow\")\n\n###  [ Gartner: A&T Supply Chain Management Graduate Program No. 15 in North\nAmerica ](/news/2024/07/gartner-graduate-supply-chain.php \"Opens in a new tab\nor window\")\n\n07/23/2024 in [ College of Business and Economics\n](https://www.ncat.edu/news/categories/cobe-news.php) , [ Transportation and\nSupply Chain ](https://www.ncat.edu/news/categories/transportation-and-supply-\nchain-news.php) , [ The Graduate College\n](https://www.ncat.edu/news/categories/grad-news.php)\n\n[ ](/news/2023/11/deese-professor-johnson-boeing-tmcf-hbcu-capacity-grant.php\n\"Opens in a new tab or window\")\n\n###  [ N.C. A&T Deese College Professor Johnson Receives Boeing TMCF HBCU\nCapacity Grant ](/news/2023/11/deese-professor-johnson-boeing-tmcf-hbcu-\ncapacity-grant.php \"Opens in a new tab or window\")\n\n11/29/2023 in [ Employees ](https://www.ncat.edu/news/categories/employees-\nnews.php) , [ College of Business and Economics\n](https://www.ncat.edu/news/categories/cobe-news.php) , [ Transportation and\nSupply Chain ](https://www.ncat.edu/news/categories/transportation-and-supply-\nchain-news.php)\n\n[ ](/news/2023/10/transportation-institute-recognizes-asetts-scholars.php\n\"Opens in a new tab or window\")\n\n###  [ N.C. A&T Transportation Institute Recognizes ASETTS Scholars\n](/news/2023/10/transportation-institute-recognizes-asetts-scholars.php \"Opens\nin a new tab or window\")\n\n10/10/2023 in [ College of Business and Economics\n](https://www.ncat.edu/news/categories/cobe-news.php) , [ Transportation and\nSupply Chain ](https://www.ncat.edu/news/categories/transportation-and-supply-\nchain-news.php)\n\n[ View More News ](/news/categories/students-news.php)\n\nWelcome to the Transportation Institute  in the Willie A. Deese College of\nBusiness and Economics at North Carolina A&T State University. The\nTransportation Institute is an interdisciplinary research, training, and\ntechnology transfer unit that draws faculty, staff, and students from various\ndepartments within the Deese College of Business and Economics, the College of\nArts and Sciences, the College of Engineering and throughout the entire\nUniversity.\n\nEstablished in 1970, the Transportation Institute has been a leader in\ntransportation-related research, education, and technology transfer. The\nmission of the Transportation Institute is to serve as a national, regional,\nand local clearinghouse for transportation education, research, and outreach;\noffering seminars, workshops, lectures, publications, and other information\nfor public and private transportation practitioners, decision-makers, and the\ngeneral public.\n\nThe Institute educates students and professionals from diverse populations to\nprovide qualified transportation professionals in the workforce. The programs\nand activities conducted by the Institute are designed to provide ongoing\ninitiatives in the areas of education, research, and workforce development.\nThe Institute is a multidisciplinary unit that is dedicated to:\n\n  * Enhancing student learning and faculty development through educational experiences in transportation, research, internships, professional meetings, scholarships, and stipends. \n  * Expanding faculty research opportunities through funded release time, conference travel, and summer employment. \n  * Serving as a regional resource. \n  * Implementing programs that create an environment which fosters learning for the 21st century. \n  * Advancing diversity in the transportation workforce. \n\nResearch efforts have led to numerous publications. Education programs have\nresulted in graduates being sought by Fortune 500 firms, federal and state\nagencies, and many smaller firms both public and private.\n\nBack to Top\n\n\u00a9 2025 N.C. A&T\n\n[ 1601 E. Market Street, Greensboro, NC 27411 ](https://goo.gl/maps/bHUMzUVA5gN2) |  [ 336.334.7500 ](tel:+13363347500)\n\n  * [ Mission ](/about/initiatives/mission-and-vision.php)\n  * [ Legal / Title IX ](/legal/index.php)\n  * [ Employment ](/about/jobs/index.php)\n  * [ Privacy Policy ](/_files/pdfs/legal/privacy_policy.pdf)\n  * [ Contact Us ](/contact-us/index.php)\n  * [ Site Map ](/sitemap/index.php)\n\n[ Facebook  __ ](https://www.facebook.com/ncatsuaggies \"Facebook opens in a\nnew window.\") [ Twitter  __ ](https://twitter.com/ncatsuaggies \"Twitter opens\nin a new window.\") [ Instagram  __\n](https://www.instagram.com/ncatsuaggies/?hl=en \"Instagram opens in a new\nwindow.\") [ YouTube  __ ](https://www.youtube.com/user/ncatsuaggies \"YouTube\nopens in a new window.\")\n\n",
                "url": "https://www.ncat.edu/cobe/transportation-institute/"
            },
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            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page is the website for the Transportation Institute at North Carolina A&T State University.",
            "url": "https://www.ncat.edu/cobe/transportation-institute/"
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                    "source": "https://mitsloan.mit.edu/ideas-made-to-matter/5-supply-chain-technologies-deliver-competitive-advantage"
                },
                "page_content": "Skip to main content\n\nFacing globalization, increased product complexity, and heightened customer\ndemands, companies are taking up advanced technologies to transform their\nsupply chain from a pure operations hub into the epicenter of business\ninnovation.\n\nUsing sensors and ever-improving internet connectivity, forward-thinking\ncompanies are collecting data at every checkpoint, from the status of raw\nmaterials flow to the condition and location of finished goods.\n\nMachine learning, artificial intelligence (AI), and advanced analytics help\ndrive automation and deliver insights that promote efficiencies \u2014 making on-\nthe-fly route changes to accelerate product delivery, for example, or swapping\nout materials to take advantage of better pricing or availability.\n\n3D printing allows firms to localize production of goods closer to customers,\nallowing for faster turnaround, reduced transportation costs, and greater\npersonalization. Additive manufacturing is also opening doors to easy\nproduction of spare parts, enabling companies to slash inventory, cut costs,\nand create supplementary revenue streams.\n\nThese advanced technologies are serving as a springboard for new business\nmodels \u2014 for example, many firms are piggybacking off the \"internet of things\"\n(IoT) to offer predictive maintenance services that guarantee product uptime\nwhile generating recurring revenue.\n\n\u201cLooking into the future, it\u2019s about resiliency and an ability to adapt to\nchanges in the marketplace and new business models,\u201d said Simon Ellis, program\nvice president with IDC Manufacturing Insights, a market-research firm. \u201cIf a\ncompetitor comes along with a next-generation, digitally fueled capability,\n[companies] need to find a way to avoid being disrupted.\u201d\n\nHere are five of the top technologies poised to overhaul supply chain\noperations:\n\n##  **The internet of things (IoT)**\n\nWith IDC projecting double-digit annual growth for worldwide IoT spending\nthrough 2022, there is ample opportunity for connected and sensored \u201cthings\u201d\u2014\nthink finished goods, shipping containers, or warehouse stations \u2014 to\ncommunicate information and deliver insights that will upend traditional\nsupply chain practices.\n\nIDC expects discrete manufacturers, process manufacturers, and transportation\ncompanies to spend the most on IoT deployments, primarily to support\nmanufacturing operations and the management of production assets, and, in the\ntransportation space, for freight monitoring and fleet management.\n\nBy tracking location, weather conditions, environmental status, traffic\npatterns, and more, suppliers can leverage AI and advanced analytics to\ndetermine, for example, if a shipment of refrigerated goods is at risk for\nequipment failure. Armed with such knowledge, suppliers can automatically\nreroute delivery to a closer distribution center or proactively dispatch a\nrepair crew to prevent spoilage.\n\nThe ability to monitor assets throughout the logistics journey also helps\neliminate misplaced inventory and lost shipments, further reducing risk and\nrevenue loss.\n\n\u201cWith just-in-time manufacturing, we care a lot about where a product is, when\nit\u2019s going to arrive, and how it fits into the overall logistics flow,\u201d said\nan emeritus professor of information technologies at the MIT Sloan School of\nManagement. \u201cIoT devices, combined with the cloud and AI, make all that much\nmore effective and comprehensive.\u201d\n\nOn the downside, IoT opens the door to increased cybersecurity risks, and even\nworse, physical exposure, especially for large-scale, mission-critical\nindustrial assets.\n\n\u201cThe more IoT becomes a part of manufacturing and logistics systems, the risk\nisn\u2019t just in data attacks, but physical dangers\u201d like an oil rig or\nmanufacturing line explosion, said Madnick, the founding director of the [\nInterdisciplinary Consortium for Improving Critical Infrastructure\nCybersecurity ](https://ic3-2017.mit.edu/) .\n\n\u201cChange, although good, always comes with risk. People have to go in with\ntheir eyes open,\u201d Madnick said.\n\n##  **Blockchain**\n\nWhile primarily associated with cryptocurrencies, blockchain, the distributed\nledger technology, also ranks high on the list of technologies poised to bring\nimproved visibility and transparency to supply chain processes.\n\nBecause blockchain creates an immutable record of transactions, the technology\nis well situated to track the provenance of goods and establish trust in\nshared supplier information, especially when the parties have competing\nagendas and don\u2019t particularly engender trust.\n\n\u201cWhat blockchain brings to the table is the notion of immutability \u2014 nothing\ncan ever be erased,\u201d Madnick said. \u201cIt also goes back to the issue of trust \u2014\nnothing is ever lost or altered.\u201d\n\n[ Further reading: Blockchain, explained ](https://mitsloan.mit.edu/ideas-\nmade-to-matter/blockchain-explained)\n\nBlockchain can establish an audit trail that is far more effective than\ntraditional methods like email or simple electronic record keeping, proponents\nsay.\n\nAs a result, blockchain\u2019s biggest potential is for facilitating track-and-\ntrace applications that help companies document the chain of custody of goods.\nDoing so can prevent leakage, help identify counterfeit items and fraud,\npinpoint at-risk suppliers, demonstrate that regulatory requirements are being\nmet, and create transparency around sourcing.\n\n[ IDC projects ](https://www.mhlnews.com/technology-\nautomation/article/22055896/top-10-predictions-for-worldwide-supply-chains-\nin-2020) that a quarter of OEMs will leverage blockchain to source spare parts\nby 2023 \u2014 a move it predicts will improve accuracy of usable parts by 60% and\nlower costs by 45%.\n\nA lot of early blockchain supply chain use cases are food related. For\nexample, [ Walmart ](https://mitsloan.mit.edu/ideas-made-to-matter/blockchain-\nbusiness-starts-supply-chain) is running a pilot project with IBM\u2019s Food Trust\nSolution to track lettuce from its suppliers to Walmart shelves on the heels\nof recent E. coli outbreaks. SAP and Bumble Bee Foods are collaborating to use\nthe SAP Cloud Platform Blockchain service to trace the journey of yellowfin\ntuna from the point of catch to the store shelf to address consumers\u2019 demands\nfor safe and sustainably sourced food.\n\nOne of the biggest hurdles to leveraging blockchain is that it takes a\nvillage. In most cases, it\u2019s not one company implementing blockchain to garner\ntraceability for its singular supply chain. Rather, to succeed, efforts will\nrequire an industry consortia-backed initiative that benefits a variety of\ncompeting partners.\n\n##  **AI, machine learning, and analytics**\n\nEvery modern supply chain has a vast treasure trove of data that can unlock\ninsights into complex global supply networks.\n\nBy harnessing a combination of technologies like AI, machine learning, and\npredictive analytics, companies can automate warehouse operations, improve\ndelivery times, proactively manage inventory, optimize strategic sourcing\nrelationships, and create new customer experiences that increase satisfaction\nand boost sales.\n\n\u201cIn the past, the problem was we didn\u2019t have enough data \u2014 now we have massive\namounts of data, and the problem relates to what can we do with it,\u201d said\nSergio Caballero, a research scientist at the [ MIT Center for Transportation\nand Logistics ](https://ctl.mit.edu/) .\n\nThat\u2019s where AI and machine learning come into play. Using algorithms and\npredictive methods, companies can parse through larger data sets and garner\ninsights at a granular level \u2014 all with little to no human intervention.\nAccording to IDC, half of all manufacturing supply chains will invest in AI by\nthe end of 2021, garnering a 15% productivity spike.\n\n[ Read more AI coverage ](https://mitsloan.mit.edu/ideas-made-to-\nmatter/artificial-intelligence)\n\nConsider the logistics nightmare of coming up with a transportation plan for\nthousands of product SKUs needing to ship out to hundreds of warehouses and\ndistribution centers scattered across the globe. \u201cYou need a way to automate\nthe collection and analysis of data [other than] manually,\u201d Caballero\nexplained. Using machine learning to optimize the SKU data, \u201cyou can come up\nwith a master shipping plan that\u2019s truly optimized.\u201d\n\nPredictive analytics are also a high priority. Deloitte\u2019s [ 2019 Supply Chain\nDigital and Analytics Survey\n](https://www2.deloitte.com/us/en/pages/operations/articles/digital-\ndisruption-supply-chain-analytics.html) found that surveyed companies are\ninvesting in predictive analytics primarily to drive cost reduction (cited by\n81% of respondents) and improve customer experience (60%). The most promising\nuse cases for supply chain analytics cited by respondents: Inventory\nvisibility and optimization (32%), strategic sourcing and optimization (26%),\nand real-time product intelligence (22%).\n\nWhile most understand the big-picture potential of the technology trio, supply\nchain managers tend to underestimate what\u2019s required in terms of skills and\nboosting data quality to deliver real business value, Cabellero said. \u201cMany\ncompanies still don\u2019t have a clear business case for the technology or\nunderstand how it can be beneficial,\u201d he said.\n\n##  **Robots and automation**\n\nRobots have long played a role in the supply chain, used to move goods and\nmaterials throughout a warehouse, during transport, and as part of the\nfulfillment process. But as AI technologies push robots to higher levels of\nsophistication, machines will be assigned many manual tasks now owned by\nhumans, from picking and packing orders to automating heavy loading tasks.\n\nAI, machine learning, and IoT connectivity are helping to significantly\nimprove the precision and mobility of industrial robots while aiding in\nsafety, allowing for a new generation of cobots (collaborative robots) that\ncan work alongside humans as opposed to being cordoned off in a separate\nsafety zone.\n\n[ Cobots, defined\n](https://www.instagram.com/p/B52lmvslBjI/?utm_source=ig_web_copy_link)\n\nThe potential for human-robot collaboration is fueling large-scale deployments\nthroughout the supply chain. According to IDC, by 2023 some 65% of warehouse\nactivities will employ robots and situational data analytics to help with\nstorage optimization, increasing warehouse capacity by over 20% and cutting\nwork order processing time in half.\n\nThat same research predicts that over 60% of global manufacturers will invest\nin AI-enabled robotic process automation by 2023, resulting in increased\nproductivity and helping to close the ongoing talent gap for supply chain\nskills.\n\nAmazon, the poster child for logistics and fulfillment, has bet big on\nwarehouse robots, as showcased by its 2012 acquisition of Kiva Systems.\n\nKiva robots, used to transport inventory pallets from one place to another,\nare designed to work with human warehouse workers \u2014 not replace them. The\nrobots bring heavy pallets to human workers for unpacking, with workers no\nlonger having to log significant warehouse miles to get their job done. \u201cThis\neliminates a tremendous amount of waste in a traditional warehouse that is\nassociated with people walking,\u201d said a professor of management science at MIT\nSloan.\n\nThe e-commerce giant has expanded its use of robots with cobots that help\npick, sort, transport, and store packages, and it recently introduced robots\nthat scan and box items for shipment into some facilities this year, touting\nan ability to pack at four to five times the rate of the average human worker.\nAmazon also claims robots make it possible to store 40% more inventory,\nallowing it to meet Prime delivery promises.\n\nWhile inching closer, even Amazon is still years away from \u201clights out\u201d\noperations that require little or no human intervention, and experts like\nGraves question whether that\u2019s ultimately the right goal.\n\n\u201cThis is somewhat of an open question, but to the extent you have hardware and\nsoftware running facilities, you still need people to maintain, monitor, and\noperate them,\u201d Graves said, while adding, \u201cof course, there will be some\nexceptions.\u201d\n\n##  **3D printing**\n\nConsumers\u2019 appetite for personalized products, coupled with a push for made-\nto-order and localized production, is focusing attention on 3D printing.\n\nThanks to new materials, metal additive manufacturing technologies, and less\nexpensive hardware, supply chain players are ramping up investment in the\ntechnologies, allowing them to decentralize production and make product and\nparts in local assembly hubs.\n\nMaking products closer to where there is demand allows companies to cut back\non logistics and transportation costs, reduce their carbon footprint, sidestep\ngeopolitical risks and tariffs associated with offshore outsourcing, and get\nproducts to consumers faster \u2014 a competitive upside in today\u2019s instant-\ngratification society.\n\nThe ability for on-demand production of parts, and in some cases, full\nproduct, has great appeal to lots of players in the supply chain, from OEMs to\ndealers. Moreover, with advances in materials, less expensive hardware, and\nnew AI-driven software design tools, companies can produce fully functional\nparts, not just prototypes, that are lighter with less material waste than was\npossible with traditional technologies.\n\n\u201cOn-demand production avoids tremendous investments in warehouses and\ninventory and allows companies to provide better customer service,\u201d said MIT\nSloan\u2019s Graves.\n\n##  **A high-stakes makeover**\n\nWhile there\u2019s still a huge learning curve with some of the more advanced\ntechnologies, there\u2019s no question that the supply chain is in the midst of a\nhigh-stakes makeover.\n\nThat said, IDC Manufacturing Insights\u2019 Ellis reiterated the cautionary tale of\nfocusing too much on technology at the expense of what\u2019s good for the\nbusiness.\n\n\u201cTechnology is the bright shiny object, but at the end of the day, it must\neither solve a business problem or put the company in a possible to seize on\nnew opportunity,\u201d Ellis said. \u201cIt all goes back to the goal of resiliency and\npursuing new business models.\u201d\n\nFor more info  Tracy Mayor  Senior Associate Director, Editorial  [ (617)\n253-0065 ](tel:\\(617\\) 253-0065 \"Call at \\(617\\) 253-0065\") [ tmayor@mit.edu\n](mailto:tmayor@mit.edu \"email at tmayor@mit.edu\")\n\n[ **Ideas Made to Matter** Smart meters generate revenue, improve efficiency\nfor public utilities  ](/ideas-made-to-matter/smart-meters-generate-revenue-\nimprove-efficiency-public-utilities \"Smart meters generate revenue, improve\nefficiency for public utilities\") [ **Ideas Made to Matter** Scope 3 emissions\ntop supply chain sustainability challenges  ](/ideas-made-to-\nmatter/scope-3-emissions-top-supply-chain-sustainability-challenges \"Scope 3\nemissions top supply chain sustainability challenges\") [ **Ideas Made to\nMatter** IKEA CEO: 3 ways to gain competitive advantage with sustainability\n](/ideas-made-to-matter/ikea-ceo-3-ways-to-gain-competitive-advantage-\nsustainability \"IKEA CEO: 3 ways to gain competitive advantage with\nsustainability\")\n\n##  The Mission\n\nThe mission of the MIT Sloan School of Management is to develop principled,\ninnovative leaders who improve the world and to generate ideas that advance\nmanagement practice.\n\n##  Find Us\n\n[ **MIT Sloan School of Management** 100 Main Street  Cambridge, MA 02142\n](https://www.google.com/maps/place/MIT+Sloan+School+of+Management/@42.3610109,-71.085189,17z/data=!3m1!4b1!4m5!3m4!1s0x89e370a66efa6057:0x9bcd706c8ad3aa7a!8m2!3d42.361007!4d-71.082995\n\"Map of MIT Campus - Opens in new window\") [ 617-253-1000 ](tel:617-253-1000\n\"Call 617-253-1000\")\n\n##  Links\n\n\u00a92025 MIT Sloan School of Management\n\n",
                "url": "https://mitsloan.mit.edu/ideas-made-to-matter/5-supply-chain-technologies-deliver-competitive-advantage"
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            "summary": "This page discusses supply chain technologies that deliver competitive advantage.",
            "url": "https://mitsloan.mit.edu/ideas-made-to-matter/5-supply-chain-technologies-deliver-competitive-advantage"
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                    "source": "https://plana.earth/academy/what-are-scope-1-2-3-emissions"
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                "page_content": "[ Access the online course Business services Sustainability Programme 2023\n](https://plana.earth/sustainability-programmes/business-services) [ Acc\u00c3\u00a9dez\nau cours en ligne Business services Sustainability Programme 2023\n](https://plana.earth/sustainability-programmes/business-services) [\nRegistrierien sie sich f\u00c3\u00bcr das Business services Sustainability Programme\n2023  ](https://plana.earth/sustainability-programmes/business-services)\n\n* [ Home ](https://plana.earth/)\n* [ Carbon footprint ](https://plana.earth/glossary/carbon-footprint)\n* [ GHG emissions scopes and categories ](https://plana.earth/academy/ghg-emission-scopes-categories)\n\n  * [ What are Scopes 1, 2 and 3 of Carbon Emissions?  ](/academy/what-are-scope-1-2-3-emissions)\n\n#  What are Scopes 1, 2 and 3 of Carbon Emissions?\n\n\u00f0\u009f\u009b \u00ef\u00b8\u008f Cette page est en cours de traduction en Fran\u00c3\u00a7ais.\n\n\u00f0\u009f\u009b \u00ef\u00b8\u008f Diese Seite wird derzeit ins Deutsche \u00c3\u00bcbersetzt.\n\nAll you have to know, right here.\n\n[ Climate Science  ](/category/climate-science)\n\nPlease [ accept marketing-cookies ](javascript:Cookiebot.renew\\(\\)) to access\nthe audio reading feature.\n\n[ Tara Bernoville  ](/author/tara-bernoville)\n\nJune 12, 2022\n\nCarbon emissions are on the international scope. Experts have warned us for\ndecades that [ inaction will lead to drastic hunger levels\n](https://www.forbes.com/sites/deloitte/2020/01/22/reducing-environmental-\nimpact-is-now-a-business-imperative/#254579856cc6) , mass migration due to\nflooding, the collapse of financial markets and many more socio-economic\ndisasters. If businesses were anxious about COVID-19, climate change will give\nthem goosebumps. That is why leaders and executives are now increasing their\nattention to sustainability, and reviewing their mission and purpose.\nSustainability is a business imperative, and should not be considered as a\nmere component of corporate social responsibility.\n\nBusinesses must reduce their environmental impact. One of the most significant\nways to do this is by reducing their carbon footprint, and this starts with\nmonitoring carbon emissions. **Our comprehensive guide explains** [ **emission\nscopes** ](https://plana.earth/academy/ghg-emission-scopes-categories) **1, 2\n& 3 (as defined by the GHG Protocol), and how ** [ **Plan A helps companies\ncalculate their carbon footprint** ](/measure-emissions) **and achieve\nambitious decarbonisation goals.**\n\nScope 1 2 3 emissions credit: Dmitry Makeev\n\n##  Reducing carbon emissions is a business imperative\n\nRecent announcements from GAFA and other major companies show how significant\ncarbon footprints have become for businesses. Apple, for example, has\ncommitted to making its [ supply chain carbon-neutral by 2030\n](https://www.apple.com/newsroom/2020/07/apple-commits-to-be-100-percent-\ncarbon-neutral-for-its-supply-chain-and-products-by-2030/) . Nine other huge\ncompanies (inc. Starbucks, Microsoft, Unilever, Nike) are founders of\n_Transform to Net Zero_ , with the mission to [ accelerate the transition to a\nnet-zero carbon economy ](https://transformtonetzero.org/) .\n\nThe fact is, [ carbon emissions are responsible for 81% of overall GHG\nemissions ](https://www.epa.gov/ghgemissions/overview-greenhouse-gases) , and\nbusinesses are responsible for a lot of it. The rest of GHG emissions are:\n**methane** (10%), **nitrous oxide** (7%) and **fluorinated gases** (3%).\nBusinesses must monitor and report their CO  2  emissions, which is the key\nfirst step in reducing them. To do so, **companies must classify their** [\n**carbon footprint** ](/glossary/carbon-footprint) **in three scopes** .\n\n> \"Companies that persist in treating climate change solely as a corporate\n> social responsibility issue, rather than a business problem, will risk the\n> greatest consequences.\"\n\nMichael E. Porter and Forest L. Reinhardt\n\n\u00e2\u0080\u008d\n\n\u00e2\u0080\u008d\n\n##  Explained: Scope 1, 2 & 3 emissions\n\nAccording to the leading [ GHG Protocol corporate standard\n](https://ghgprotocol.org/sites/default/files/standards_supporting/FAQ.pdf) ,\na company's greenhouse gas emissions are classified into **three scopes** .\nScope 1 and 2 are mandatory to report, whereas scope 3 is voluntary in some\ncases and is the hardest to monitor. However, **companies succeeding in\nreporting all three scopes (for example by** [ **leveraging carbon accounting\nsoftware** ](/academy/best-carbon-accounting-software-2023) **) will gain a\nsustainable competitive advantage** .\n\nScheme 1,2,3 scope emissions Credit: Plan A based on GHG protocol\n\n###  Scope 1: direct emissions\n\n[ **Scope 1 emissions** ](/glossary/scope-1-emissions) **** are direct\nemissions from company-owned and controlled resources. In other words,\nemissions are released into the atmosphere as a direct result of a set of\nactivities, at a firm level. It is divided into four categories: stationary\ncombustion (e.g fuels, heating sources). All fuels that produce GHG emissions\nmust be included in scope 1.\u00c2\n\nThen, **mobile combustion** is all vehicles owned or controlled by a firm,\nburning fuel (e.g. cars, vans, trucks). The increasing use of \u00e2\u0080\u009celectric\u00e2\u0080\u009d\nvehicles (EVs), means that some of the organisation fleets could fall into\nScope 2 emissions.\n\nScope 1 emissions - Transportation  \nCredit: Rodrigo Abreu\n\n**Fugitive emissions** are leaks from greenhouse gases (e.g. refrigeration,\nair conditioning units). It is important to note that refrigerant gases are a\nthousand times more dangerous than CO  2  emissions. Companies are encouraged\nto report these emissions.\n\n**Process emissions** are released during industrial processes, and on-site\nmanufacturing (e.g. production of CO  2  during cement manufacturing, factory\nfumes, chemicals).\n\nScope 1 emissions Credit: Torbenbrinker\n\n###  Scope 2: indirect emissions - owned\n\n[ **Scope 2 emissions** ](/glossary/scope-2-emissions) are indirect emissions\nfrom the generation of purchased energy, from a utility provider. In other\nwords, all GHG emissions released in the atmosphere, from the **consumption of\npurchased electricity, steam, heat and cooling** .\n\nScope 2 emissions credit: Norbert Nagel\n\nFor most organisations, electricity will be the unique source of scope 2\nemissions. Simply stated, [ the energy consumed falls into two scopes\n](https://ghgprotocol.org/scope_2_guidance) : Scope 2 covers the electricity\nconsumed by the end-user. Scope 3 covers the energy used by the utilities\nduring transmission and distribution (T&D losses).\n\n###  **Scope 3: indirect emissions - n** ot owned\n\n**Read this paragraph carefully as scope 3 emissions represent the holy grail\nof emissions.\u00c2**\n\n[ Scope 3 emissions ](/glossary/scope-3-emissions) are all indirect emissions\n- not included in scope 2 - that occur in the value chain of the reporting\ncompany, including both upstream and downstream emissions. In other words,\nemissions are linked to the company's operations. According to the [ GHG\nprotocol ](/glossary/greenhouse-gas-ghg-protocol) , scope 3 emissions are\nseparated into 15 categories.\n\n####  **Upstream activities**\n\nScope 3 emissions - Travel  \nCredit: Arpingstone\n\nUpstream activities fall under several categories: for many companies, [\n**business travel** **emissions** ](/glossary/scope-3-category-6) is one of\nthe most significant to report (e.g. air travel, rail, underground and light\nrail, taxis, buses and business mileage using private vehicles). Also, [\n**employee commuting** **emissions** ](/glossary/scope-3-category-7) shall be\nreported, as it results from the emissions emitted through travel to and from\nwork. It can be decreased through public transportation and home office.\u00c2\n\n[ **Waste generated** **in operations** ](/glossary/scope-3-category-5)\nrelates to waste sent to landfills and wastewater treatments. Waste disposal\nemits methane (CH  4  ) and nitrous oxide (N  2  O), which cause greater\ndamage than CO  2  emissions.\n\nScope 3 emissions \u00c2 \u00e2\u0080\u0093 Waste  \nCredit: Acabashi\n\n[ Purchased goods and services ](/glossary/scope-3-category-1) , includes all\nthe upstream ('cradle to gate') emissions from the production of goods and\nservices purchased by the company in the same year. It is useful to\ndifferentiate between purchases of production-related products (e.g,\nmaterials, components and parts) and non-production-related products (e.g,\noffice furniture, office supplies and IT support).\n\nScope 3 emissions \u00e2\u0080\u0093 Office supplies  \nCredit: Friedrich Haag\n\n[ **Transportation and distribution emissions**\n](/glossary/scope-3-category-9) occur in upstream (suppliers) and downstream\n(customers) elements of the value chain. It includes emissions from\ntransportation by land, sea and air, as well as emissions relating to third-\nparty warehousing.\n\n[ Fuel and energy-related activities\n](https://ghgprotocol.org/sites/default/files/standards_supporting/Chapter3.pdf)\ninclude emissions relating to the production of fuels and energy purchased and\nconsumed by the reporting company, in the reporting year that is not included\nin scope 1 and 2.\n\nScope 3 emissions \u00e2\u0080\u0093 Fuel Production  \nCredit: Khamkeo Vilaysing\n\n[ **Capital goods**\n](https://ghgprotocol.org/sites/default/files/standards_supporting/Chapter2.pdf)\nare final products that have an extended life and are used by the company to\nmanufacture a product, provide a service or, store, sell and deliver\nmerchandise. Examples of capital goods include buildings, vehicles, machinery.\nFor purposes of accounting for scope 3 emissions, companies should not\ndepreciate, discount, or amortise the emissions from the production of capital\ngoods over time. Instead, companies should account for the total cradle-to-\ngate emissions of purchased capital goods in the year of acquisition (GHG\nprotocol).\n\n####  **Downstream activities**\n\nScope 3 emissions - Investments  \nCredit: Sharon Mccutcheon\n\n[ **Investment** **emissions** ](/glossary/scope-3-category-15) are included\nlargely for financial institutions, but other organisations can still\nintegrate it into their reporting. According to GHG accounting, investments\nfall under 4 categories: equity investments, debt investments, project\nfinance, managed investments and client services.\n\n[ **Franchises emissions** ](/glossary/scope-3-category-14) are businesses\noperating under a licence to sell or distribute another company\u00e2\u0080\u0099s goods or\nservices within a certain location. Franchisees (e.g. companies that operate\nfranchises and pay a fee to the franchisor) should include emissions, from\noperations under their control. \u00e2\u0080\u009cFranchisees may optionally report upstream\nscope 3 emissions associated with the franchisor\u00e2\u0080\u0099s operations (i.e., the\nscope 1 and scope 2 emissions of the franchisor) in category 1 (Purchased\ngoods and services).\"\n\nScope 3 emissions \u00e2\u0080\u0093 Franchises  \nCredit: Gillfoto\n\n[ **Leased assets emissions** ](/glossary/scope-3-category-13) correspond to\nleased assets by the reporting organisation (upstream) and assets to other\norganisations (downstream). The calculation method is complex and shall be\nreported in scope 1 or 2, depending on the nature of the leased asset.\u00c2\n\n[ **Used of sold products emissions** ](/glossary/scope-3-category-11) **** is\nincluded, concerning \"in-use\" products that are sold to the consumers. It\nmeasures the emissions resulting from product usage, even if it varies\nconsiderably. For example, the use of an iPhone will take many years to equal\nthe emissions emitted during production.\n\nAt the same time, \" [ **end of life treatment emissions**\n](/glossary/scope-3-category-12) \" corresponds to products sold to consumers,\nand is reported similarly as \"waste generated during operations\". Companies\nmust assess how their products are disposed of, which can be difficult as it\nusually depends on the consumer. This encourages firms to design recyclable\nproducts that limit landfill disposal.\n\nScope 3 emissions \u00e2\u0080\u0093 End of life treatment  \nCredit: Alfonso Navarro\n\n##  Why measure all 3 scopes?\n\nThe importance of scope 3 emissions - Apple carbon footprint \u00c2  \nCredit: Apple\n\nMore often than not, **emissions along the value chain represent the biggest\nGHG impact** . For decades, companies have **missed significant opportunities\nfor improvement** . For example, Kraft Foods reported that 90% of its total\nemissions, fell under its value chain (cf. scope 3). Finally, companies must\nconduct a full GHG emission inventory - scope 1, 2 and 3 - to focus their\nefforts on reducing carbon emissions, carbon footprint and becoming carbon-\nneutral.\n\n**Reporting and reducing carbon emissions is time-consuming, challenging and\ndeserves close expertise.** [ **Plan A** ](https://plana.earth/) **offers\nunique tools to reduce your carbon emissions, per scope.** [ **Start your net-\nzero journey by scheduling a call with Plan\u00c2 A's experts.**\n](https://plana.earth/request-demo)  \n\nRead more\n\n[ ](/academy/net-zero-targets)\n\n[ Net-zero targets: From target-setting to achievement  ](/academy/net-zero-\ntargets) [ Climate Science  ](/category/climate-science)\n\n[ ](/academy/dual-reporting)\n\n[ Navigating dual reporting for Scope 2 emissions: Location vs market\n](/academy/dual-reporting) [ Climate Science  ](/category/climate-science)\n\n[ ](/academy/climate-risk)\n\n[ What is climate risk, and how can companies manage it?  ](/academy/climate-\nrisk) [ Climate Science  ](/category/climate-science)\n\nNo items found.\n\nOur sustainability experts\n\n##  Get your company on the path to net-zero\n\nOur sustainability experts will find the right solution for you.\n\n[ Schedule a call  ](/request-demo)\n\n[ ](/)\n\nProduct\n\n[ Product overview ](/product) [ Collect data ](/collect-data) [ Measure\nemissions ](/measure-emissions) [ Report on ESG ](/report-sustainability) [\nSet targets ](/set-decarbonisation-targets) [ Emissions reduction ](/reduce-\ncarbon-footprint)\n\nSolutions\n\n[ Offerings ](/offerings) [ Software & IT ](/industries/software-and-it) [\nBusiness services ](/industries/business-services) [ Fleet management\n](/industries/fleet) [ Media ](/industries/media) [ Fashion & apparel\n](/industries/fashion-apparel)\n\nAbout us\n\n[ Mission ](/about) [ Careers ](/careers) [ Press ](/press) [ Sustainability\nInitiative ](/sustainability-initiative)\n\nResources\n\n[ Academy ](/academy) [ Whitepaper centre ](/whitepaper) [ Regulation centre\n](/policy-centre) [ Online courses ](/online-courses) [ Carbon scanner\n](/carbon-scanner-en) [ Corporate sustainability glossary ](/glossary) [\nEvents hub ](/events-hub) [ Best carbon accounting software ](/academy/best-\ncarbon-accounting-software-2023) [ All articles ](/all-articles) [\nSustainability Navigator ](/sustainability-navigator)\n\nCertifications & Awards\n\n[ ](https://www.certipedia.com/quality_marks/0000081059?locale=en)\n\n[ ](https://www.bcorporation.net/en-us/find-a-b-corp/company/plan-a-earth/)\n\nOffices  \n\u00e2\u0080\u008d\n\nParis\n\nClimate House - 39 Rue du Caire, 75002 Paris  \n\nLondon\n\n86-90 Paul Street,  \nEC2A 4NE\n\nBerlin\n\nSchlesische Strasse 26,  \n10997 Berlin\n\nMunich\n\nRosental 7,  \n80331 Munich\n\n[ ](https://de.linkedin.com/company/planaearth#) [\n](https://twitter.com/planaearth?lang=en) [\n](https://www.instagram.com/planaearth/?hl=en) [\n](https://www.facebook.com/planaearth)\n\n[ Legal resources ](/terms-conditions) [ Privacy Policy ](/privacy-policy) [\nApp status ](https://plana.statuspage.io/) [ Information security ](/security)\n\nWelcome to Gaia\n\n[ READ\u00c2 THE\u00c2 TERMS\u00c2 OF\u00c2 USE ](https://plana.earth/ai-chatbot-terms-of-use)\n\nSustainability is a deep and broad ocean to navigate. Use my knowledge and\nintelligence to learn exponentially and find the right resources to make your\ncase.  \n\n",
                "url": "https://plana.earth/academy/what-are-scope-1-2-3-emissions"
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            "summary": "This page explains scope 1, 2, and 3 emissions.",
            "url": "https://plana.earth/academy/what-are-scope-1-2-3-emissions"
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                    "source": "https://www.nationalacademies.org/trb/transportation-research-board"
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                "url": "https://www.nationalacademies.org/trb/transportation-research-board"
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                    "source": "https://www.usfca.edu/management-programs/articles/introduction-to-sustainable-supply-chains/"
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                "page_content": "#  Good for the Planet, Good for Business: An Introduction to Sustainable\nSupply Chains\n\n  * [ __ ](https://www.usfca.edu/management-programs)\n  * __\n  * [ Articles ](/articles/)\n  * / \n  * [ Program Articles ](https://www.usfca.edu/management-programs/articles/category/program-articles/)\n  * __\n  * **Good for the Planet, Good for Business: An Introduction to Sustainable Supply Chains**\n\nShare this on social media:\n\n[ Facebook\n](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.usfca.edu%2Fmanagement-\nprograms%2Farticles%2Fintroduction-to-sustainable-supply-chains%2F) [ Twitter\n](https://twitter.com/intent/tweet?text=Good+for+the+Planet%2C+Good+for+Business%3A+An+Introduction+to+Sustainable+Supply+Chains+https://www.usfca.edu/management-\nprograms/articles/introduction-to-sustainable-supply-chains/) [ Linkedin\n](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.usfca.edu%2Fmanagement-\nprograms%2Farticles%2Fintroduction-to-sustainable-supply-\nchains%2F&title=Good+for+the+Planet%2C+Good+for+Business%3A+An+Introduction+to+Sustainable+Supply+Chains)\n[ Email\n](mailto:?subject=Good+for+the+Planet%2C+Good+for+Business%3A+An+Introduction+to+Sustainable+Supply+Chains&body=Check\nout this article https%3A%2F%2Fwww.usfca.edu%2Fmanagement-\nprograms%2Farticles%2Fintroduction-to-sustainable-supply-chains%2F)\n\nLatest Posts\n\n  * [ What Jobs Can You Do With an MBA Degree? ](https://www.usfca.edu/management-programs/articles/what-job-can-you-do-with-an-mba/)\n  * [ Good for the Planet, Good for Business: An Introduction to Sustainable Supply Chains ](https://www.usfca.edu/management-programs/articles/introduction-to-sustainable-supply-chains/)\n\nCategories\n\n  * [ Career Articles ](https://www.usfca.edu/management-programs/articles/category/career-articles/)\n  * [ Program Articles ](https://www.usfca.edu/management-programs/articles/category/program-articles/)\n\n[ Request Info ](/management-programs/request-information/) [ Apply Now\n](/management-programs/apply-now/)\n\nRequest Information\n\nTo [ **download a program brochure** ](javascript:void\\(0\\);) and learn more\nabout the online master\u2019s programs offered by the Masagung Graduate School of\nManagement, please fill out the form. You can also get in touch with an\nenrollment specialist directly by calling us at [ (813) 590-1402 ](tel:\\(813\\)\n590-1402) .\n\nUSF Masagung Graduate School of Management  \n101 Howard Street, Suite 500  \nSan Francisco, CA 94105  \n[ (813) 590-1402 ](tel:\\(813\\) 590-1402)\n\n[ __ ](https://www.facebook.com/USFManagementSchool) [ __\n](https://www.instagram.com/usfsom/) [ __\n](https://www.linkedin.com/school/university-of-san-francisco-school-of-\nmanagement/) [ __ ](https://www.x.com/USFSOM) [ __\n](https://www.youtube.com/channel/UCwtk_l-K9FyGsS8JlEB4zeQ)\n\n  * [ Home ](https://www.usfca.edu/management-programs/)\n  * [ Online MBA Program Overview ](https://www.usfca.edu/management-programs/mba/)\n  * [ Online MBA Curriculum ](https://www.usfca.edu/management-programs/mba/curriculum/)\n  * [ Online MSA Program Overview ](https://www.usfca.edu/management-programs/msa/)\n  * [ Online MSA Curriculum ](https://www.usfca.edu/management-programs/msa/curriculum/)\n  * [ Online MIM Program Overview ](https://www.usfca.edu/management-programs/mim/)\n  * [ Online MIM Curriculum ](https://www.usfca.edu/management-programs/mim/curriculum/)\n  * [ Faculty ](https://www.usfca.edu/management-programs/faculty/)\n  * [ Admissions ](https://www.usfca.edu/management-programs/admissions/)\n  * [ International Students ](https://www.usfca.edu/management-programs/admissions/international-students/)\n  * [ Tuition ](https://www.usfca.edu/management-programs/admissions/tuition/)\n  * [ About ](https://www.usfca.edu/management-programs/about/)\n  * [ FAQ ](https://www.usfca.edu/management-programs/about/faq/)\n\n  * [ Request Info ](/management-programs/request-information/)\n  * [ Apply ](/management-programs/apply-now/)\n\n* * *\n\n\u00a9 2025 University of San Francisco. All rights reserved. | [ Privacy Policy ](https://legal.allcampus.org/privacy-policy/)\n\n",
                "url": "https://www.usfca.edu/management-programs/articles/introduction-to-sustainable-supply-chains/"
            },
            "reason": "This page provides an introduction to sustainable supply chains, which is relevant to understanding sustainability efforts in a value chain. However, it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page provides an introduction to sustainable supply chains.",
            "url": "https://www.usfca.edu/management-programs/articles/introduction-to-sustainable-supply-chains/"
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                    "source": "https://www.prologis.com/blog/role-transportation-supply-chain-management"
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                "page_content": "Skip to main content\n\n#\n\nReal Estate\n\n##  The Role of Transportation in Supply Chain Management\n\nBy: Carter Andrus\n\nMay 20, 2022\n\n2 min 56 read\n\nShare article\n\n  * LinkedIn \n  * Twitter \n  * Mail \n\nOf all the processes in your supply chain, few have an impact on your business\nquite like your choice of transportation. Transportation methods ensure\ndeliveries to and from your facility flow smoothly and arrive at their\ndesignated destinations on time.\n\nBecause of the importance of transportation to your business\u2019s success, it\u2019s\nvital to include this factor in your supply chain management strategy. In\nfact, it is so important that transportation is considered one of the three\nprimary components of supply chain management.\n\n##  The Three Components of Supply Chain Management\n\nA supply chain features three main components: purchasing, manufacturing and\ntransportation. You will need to make many key decisions across these three\ncomponents from start to finish, including:\n\n  * Materials to be used for products \n  * Production amounts \n  * Inventory levels \n  * Distribution network configuration \n  * Transportation for both receiving and shipping \n\nEffective transportation management is often the competitive differentiation\nfor a company and should be included in any supply chain management strategy.\n\n##  How Transportation Works in Supply Chain Management\n\nTransportation in a supply chain refers to the movement of products from one\nlocation to another, which begins at the start of the supply chain as\nmaterials make their way to the warehouse and continues all the way to the end\nuser with the customer\u2019s order delivered at the doorstep.\n\nBecause of the importance of transportation, warehouse managers should examine\ntransportation within their supply chains. Ultimately, this is the only way to\nachieve lower total costs for a model where transportation can account for as\nmuch as 60 percent of total operational costs, a significant portion of a\ncompany's supply chain costs.\n\n[ ](/sites/corporate/files/images/2020/03/cologne_am_eifeltor_20_dc4.jpg)\n\n##  Supply Chain Transportation Risks to Consider\n\nModern supply chain transportation managers deal with more risks than ever\nbefore, so mitigating these risks is key to keep a supply chain moving with\nminimal delays. Recent risks facing the transportation industry include driver\nshortages, cyberattacks and a deteriorating infrastructure, to name a few.\n\nAccording to the American Trucking Association, the trucking industry projects\na shortage of more than 100,000 drivers by 2022. At an average age of 56,\nAmerica\u2019s truckers will soon retire in large numbers with nowhere near enough\nreplacements. With fewer drivers, greater demand will be placed on the drivers\nstill on the road, which could increase the risks of fatigue-caused accidents.\n\nIt is essential for companies to stay up to speed with technological advances\nin order to remain competitive. With an explosion of vehicle technology in\nrecent years (including automation and internet-connected sensors), the\nindustry is more exposed to a new wave of risks, such as cyberattacks by\nhackers, so it\u2019s important drivers use the latest in security tactics and\nsoftware.\n\nAnother growing risk in the transportation field is the continued decline of\nAmerica\u2019s roadways and transportation infrastructure. From crumbling bridges\nand roadways to increased traffic congestion on the rails and in the air,\ndelays can occur anywhere. As a result, vehicles are more likely to consume\nadditional fuel and incur damage, thus requiring more frequent maintenance and\nrepairs.\n\nYour supply chain\u2019s success depends on a strategic use of appropriate\ntransportation. An example would be to adopt a responsive transportation\nsystem, which uses cross docking\u2014exchanging a product between trucks so that\neach truck delivers products from different suppliers to the designated\ndestinations. In the end, cross docking helps lower overall costs.\n\nTo help manage these and other risks and to increase performance and\nreliability, companies need to enhance visibility and transparency across the\ntransportation supply chain and use a well-executed transportation management\nsystem. Learn more about the [ modern supply chain ](/logistics-industry-\nresearch/the-modern-supply-chain) and how transportation factors into supply\nchain management.\n\n##  Real Estate Expertise\n\nPart of a successful supply chain management strategy is to find the right\nlocation for your facility. Explore how acquires, develops and maintains the\nlargest collection of high-quality logistics real estate in the world.\n\n[ Learn More ](/real-estate/real-estate-operations)\n\n[ ](/sites/corporate/files/images/2021/02/Large-Tres%20Rios%205_6_Final.jpg)\n\n[ Learn More ](/real-estate/real-estate-operations)\n\n##  Carter Andrus\n\n##  Chief Operating Officer\n\nCarter Andrus serves on the Executive Committee at Prologis and is responsible\nfor the global strategy of the company's real estate operations, including its\ncore real estate portfolio comprising 1.2 billion square feet and capital\ndeployment activities across the 20 countries in which Prologis operates.\nPreviously, Andrus was global head of operations, where he was responsible for\nall aspects of the company's real estate operations and the regional team\u2019s\nresponsibilities for ancillary business functions, such as Essentials. He\nholds a Bachelor of Arts in economics from the University of Michigan.\n\n[ Read More Posts by Carter ](/blog/author/carter-andrus)\n\n##  LET'S GET STARTED\n\nEvery connection starts with a conversation. Our team is here to help.\n\n[ Contact Us  ](/contact-us) [ Office Locations  ](/contact-us/office-\nlocations) [ Customer Login  ](https://crc.prologisessentials.com)\n\n[ ](/)\n\n\u00a9 2025 Prologis, Inc. All rights reserved.\n\n",
                "url": "https://www.prologis.com/blog/role-transportation-supply-chain-management"
            },
            "reason": "This page discusses the role of transportation in supply chain management, which is relevant to understanding logistics. However, it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page discusses the role of transportation in supply chain management.",
            "url": "https://www.prologis.com/blog/role-transportation-supply-chain-management"
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                    "source": "https://hagertyconsulting.com/supply-chain-resilience-transportation-considerations/"
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                "page_content": "Link coppied!\n\n  * [ Solutions ](/solutions)\n  * [ Resources ](/resources/)\n  * [ About ](/about)\n  * [ Team ](/team)\n  * [ Careers ](/careers)\n\n[ Contact Us ](/contact#)\n\nSearch\n\nBack\n\n[ Our Solutions  Emergency and grants management solutions empowering\ncommunities to prepare, respond, and recover efficiently.  ](/solutions)\n\n[ Emergency Management ](/solutions/emergency-management/)\n\n  * [ Prepare ](/solutions/emergency-management/prepare)\n  * [ Respond ](/solutions/emergency-management/respond/)\n  * [ Recover ](/solutions/emergency-management/recover)\n  * [ Mitigate ](/solutions/emergency-management/mitigate/)\n\n[ Grants Management ](/solutions/grants-management/)\n\n  * [ Recovery Programs ](/solutions/grants-management/recovery-programs/)\n  * [ Hazard Mitigation Assistance ](/solutions/grants-management/hazard-mitigation/)\n  * [ Additional Grant Programs ](/solutions/grants-management/additional-grant-programs/)\n\n[ Markets ](/solutions/markets/)\n\n  * [ Climate & Sustainability ](/solutions/markets/climate-sustainability/)\n  * [ Community Development ](/solutions/markets/community-development/)\n  * [ Higher Education & Universities ](/solutions/markets/higher-education/)\n  * [ Homeland Security & Transportation ](/solutions/markets/homeland-security-transportation/)\n  * [ Infrastructure Resilience ](/solutions/markets/infrastructure-resilience/)\n  * [ Private Sector ](/solutions/markets/private-sector/)\n  * [ Public Health & Healthcare ](/solutions/markets/public-health-healthcare/)\n\nBack\n\n[ Insights  Tools and insights to help emergency and grants management experts\nnavigate what\u2019s next.  ](/resources)\n\n  * [ Blog ](/blog)\n  * [ Case Studies ](/case-studies)\n  * [ Publications ](/publications)\n  * [ News ](/news)\n  * [ Events ](/events)\n\n[ Featured Publication  Essential Disaster Recovery Tips\n](/publications/essential-disaster-recovery-tips/)\n\n[ Blog  A Major Shift: HUD\u2019s Recent Universal Notice for CDBG-DR Funding\n](/a-major-shift-huds-recent-universal-notice-for-cdbg-dr-funding/)\n\nBack\n\n[ About Hagerty  We help clients protect their people, operations, and\ncommunities before, during, and after disasters.  ](/about)\n\n  * [ Contracts ](/contracts)\n\n[ Case Study  Hurricane Michael Recovery  ](/case-studies/hurricane-michael-\nrecovery/)\n\n[ Featured Publication  FEMA Hazard Mitigation Assistance\n](/publications/fema-hazard-mitigation-assistance/)\n\nBack\n\nBack\n\n[ Back to Blog ](https://hagertyconsulting.com/blog/)\n\nJanuary 05, 2023\n\n#  Supply Chain Resilience: Transportation Considerations\n\n_ This article provides transportation supply chain resiliency considerations\nas an expansion to  _ [ **_ Supply Chain Resilience: An Urgent Priority  _ **\n](https://hagertyconsulting.com/about-us/blog/supply-chain-resilience-an-\nurgent-priority/) _ which highlights overall supply chain disruption\nchallenges and includes mitigation and resilience strategies.  _\n\nThe ability to transport goods and resources effectively represents a critical\nlink within the global the supply chain. Nearly all goods and resources,\nwhether farm-to-table or shipped worldwide, rely on an often complex\ntransportation network to reach the consumer. The supply chain comprises a\nnetwork of people, processes, and technology necessary to produce and\ndistribute commodities globally. The last several years have shown an ever-\ngrowing demand on supply chains from consumers and retailers accompanied by\nunpredictable transportation challenges. As a result, the global supply chain\ncontinues to suffer,  [ ** inflicting cascading obstacles  **\n](https://www.masstransitmag.com/management/article/21289077/what-can-be-done-\nabout-transits-supply-chain-challenges) throughout the rest of society.\n\nThough many factors contribute to these supply chain trends that are seen\nglobally, the magnitude of reliance on the transportation sector across all\nindustries has the ability to combat these issues systematically. Stakeholders\ncan best posture their communities for success by proactively identifying\ntransportation threats and properly communicating how best to utilize their\ntransportation capabilities to create resilient and capable supply chains.\n\n##  Threats and Potential Impacts\n\nStakeholders and the public are  [ ** increasingly recognizing supply chain\ndelays and shortages  ** ](https://www.axios.com/2022/12/19/antibiotic-drug-\nshortages-highlight-americas-supply-chain-problems-again) as an area of\nconcern. These shortcomings result in consumer inconvenience, inflation, and\nare increasingly responsible for public health and safety concerns, as we have\nrecently seen with  [ ** pediatric  ** ** medication  **\n](https://www.forbes.com/sites/ariannajohnson/2022/12/20/heres-why-there-is-a-\nshortage-for-childrens-tylenol-advill-and-motrin-and-what-to-do-about-\nit/?sh=5ded784e28f4) and  [ ** formula shortages  **\n](https://www.cdc.gov/nutrition/infantandtoddlernutrition/formula-\nfeeding/infant-formula-shortage.html) .\n\nThe pandemic has irrevocably impacted the supply chain and changed consumer\nhabits. This can be seen with the  [ ** exponential growth of the e-commerce\nindustry  ** ](https://www.census.gov/library/stories/2022/04/ecommerce-sales-\nsurged-during-\npandemic.html#:~:text=According%20to%20the%20most%20recent,to%20%24815.4%20billion%20in%202020)\n, which requires last-mile delivery and substantial transportation\ninfrastructure to provide goods directly to consumers. Additionally, it has\ncreated an increasing focus on the domestic production of critical resources\nand diversification of how goods are routed into ports around the nation.\nMoreover, as the impacts of COVID-19 continue to loom in the background,\ntransportation challenges continue to emerge, such as the  [ ** recently\navoided rail strike  ** ](https://www.reuters.com/world/us/us-house-set-\napprove-bill-block-rail-strike-2022-11-30/) , further adding strain and\npressure to the supply chain.\n\nSocietal impacts have been  [ ** exacerbated  **\n](https://www.cnbc.com/2022/12/23/supply-chain-managers-expect-problems-\ncontinue-2024.html#:~:text=Among%20the%20biggest,and%20canceled%20sailings) by\nongoing  labor  shortages across the transit workforce, fluctuating oil\nprices, and infrastructure limitations that further restrict the effective and\nefficient transportation of goods across the nation. Additionally, malicious\nactors, including  [ ** cyber attacks  ** ](https://hagertyconsulting.com/wp-\ncontent/uploads/2022/05/Hagerty-Cybersecurity-Onepager_Final.pdf) , pose a\nsignificant threat to increasingly automated and technology reliant supply\nchains. Not only is customer data privacy at risk, but attacks can also cause\nphysical damage to cargo or transportation equipment and disrupt significant\nroutes for prolonged periods.\n\nCollectively, these emerging supply chain challenges are among many to offer\ncontext that stakeholders may consider when addressing future impacts on\nalready strained systems.\n\n##  Transportation Supply Chain Indicators\n\nIt is important for emergency managers to recognize the critical linkage that\ntransportation has within the current supply chain issues. With this\nawareness, it is possible to identify the Key Performance Indicators (KPIs)\nthat can then be used to anticipate transportation-related supply chain issues\nin order to mitigate their frequency and severity. As emergency managers,\njurisdictions, and agencies understand the patterns of the KPIs, they can\nsubsequently leverage this to prepare and develop resiliency throughout future\nshipments, deliveries, and distributions.\n\n** Transportation  ** ** Labor  ** ** Capacity  **\n\nMonitoring employment trends across the transportation modalities (i.e., rail,\nmaritime, road, and air) helps jurisdictions and agencies determine how the\ndelayed supply chain will affect them and consider alternative transit modes.\nFewer transit workers lead to delayed delivery times, which is a direct cause\nof inflation and insufficiency as supply cannot meet the demand.\n\n** Freight Movement  **\n\nThe rate at which imported containers move inland from ports also helps\njurisdictions and agencies project how much staffing they need, how to prepare\ntheir modes of transportation, and what to communicate to their consumers.\nIdentifying current capacity is critical for preparing for future capabilities\nand needs.\n\n** Delivery Routes  **\n\nUnderstanding all possible transportation routes and modes for goods and\nresources can aid jurisdictions and agencies in identifying optimization\nroutes. These routes avoid highly populated areas and damaged infrastructure,\nencouraging timely and safe deliveries.\n\nJurisdictions must recognize that  Logistic Supply Chains and Distribution\nPlans differ from location to location based on their demographic\u2019s wants,\nneeds, and goals. Supply chains may also vary due to available resources and\nparticular nuances within a jurisdiction. Because of this, jurisdictions must\nunderstand that identifying the most appropriate KPIs for their unique\ncircumstance is the most effective way to account for their needs and address\nthe challenges they are seeing.\n\n##  Preparedness and Mitigation Strategies\n\nAvailable at local, state, and federal levels are response and recovery\nresources for transit industries to use while combating transportation-related\nsupply chain challenges. Some available funding resources are  [ **\nInfrastructure Investment and Jobs Act  ** ](https://hagertyconsulting.com/wp-\ncontent/uploads/2022/08/INFRA-Funds-Management.pdf) (IIJA) and  [ ** Promoting\nResilient Operations for Transformative, Efficient, and Cost-Saving\nTransportation  ** ](https://highways.dot.gov/newsroom/biden-administration-\nannounces-new-protect-formula-program-73-billion-\nbipartisan#:~:text=The%20new%20Promoting%20Resilient%20Operations%20for%20Transformative%2C%20Efficient%2C,and%20evacuation%20routes%2C%20and%20addressing%20at-\nrisk%20highway%20infrastructure.) (PROTECT). These resources and others offer\nbillions of dollars to communities all over the United States (US) to improve\nthe resilience of transportation infrastructures.\n\nWhile jurisdictions can access many response and recovery resources to support\nthe transit industry\u2019s role in the supply chain, many emergency managers would\nsuggest that the best way to improve resilience strategies in the transit\nsector is by enhancing preparedness and mitigation postures through:\n\n** Assessments  **\n\nHazard Vulnerability Assessments, Critical Transportation Infrastructure\nVulnerability Assessments, and traditional Risk Assessments are helpful tools\nto measure how supply chain disruption can affect organizations. These\nstrengthen an organization\u2019s resilience by measuring risks and potential\nimpacts, assessing the economic costs of failing infrastructure, and\nidentifying profitable investments. In addition, once assessments are\ncomplete, the organization can use the results to develop improvement road\nmaps.\n\n** Continuity of Operation Planning  **\n\nProactive response and recovery planning can be conducted by developing and\nimplementing Continuity of Operation Plans (COOPs). COOPs organize policies\nand procedures that encourage the delivery of an organization\u2019s essential\nfunctions during a disrupting event such as supply chain delays. A COOP can\nhelp a community withstand delayed shipments of highly critical goods and\nidentify alternate transport strategies when developed and implemented\nappropriately.\n\n** Seminars, Trainings, and Exercises  **\n\nSeminars, trainings, and exercises are great ways to learn and test the\ntransportation capabilities of organizations and the community. Through these\nactivities, organizations can identify existing and emerging gaps in their\nsupply chain management policies and procedures and address them proactively.\nSeminars, trainings, and exercises also encourage engagement with regional\npartners to learn how to help one another during a supply chain disruption.\nRelationships formed during events such as a transportation-related supply\nchain exercise allow jurisdictions to evaluate existing plans of action during\nblue sky days while strengthening interpersonal relationships that can be\nleveraged during gray sky events.\n\n###  Hagerty Can Help\n\nHagerty has experience offering its transportation clients and their\nstakeholders a range of preparedness tools and services that help improve\ntheir overall  mitigation and resiliency needs  . From developing regional\npreparedness frameworks to conducting assessments, trainings, and exercises,\nHagerty can help.\n\n____________________________________________________________________________________________________________\n\n[ Chris Faircloth  ](https://hagertyconsulting.com/our-people/) i  s  a\nSenior  Managing Associate and the  Preparedness Division  \u2019  s Transportation\nSector lead at Hagerty  .  With Hagerty, he  primarily  works with rail and\nmaritime  partners  to build preparedness and response initiatives  . Prior to\njoining Hagerty, he worked in emergency medicine overseeing local EMS\noperations and international health programs for austere environments  ,\nincluding the maritime and aviation industries.\n\n[ Avery DeLong  ](https://www.linkedin.com/in/lauren-a-delong98/) is  a\nHagerty  A  ssociate with a diverse range of experience working on projects\nwithin Hagerty that consist of transportation, energy,  Complex Coordinated\nTerrorist Attack (  CCTA  )  ,  continuity, and cyber.  Prior to joining\nHagerty, she worked on building community resilience  by identifying public\nhealth, healthcare, and other critical infrastructures that would be impacted\nduring different types of disastrous events.\n\nShare this post\n\n  * https://hagertyconsulting.com/supply-chain-resilience-transportation-considerations/ \n  * [ ](https://www.linkedin.com/shareArticle?mini=true&url=https://hagertyconsulting.com/supply-chain-resilience-transportation-considerations/&title=&summary=Supply Chain Resilience: Transportation Considerations&source=)\n  * [ ](https://twitter.com/intent/tweet?text=Supply Chain Resilience: Transportation Considerations&url=https://hagertyconsulting.com/supply-chain-resilience-transportation-considerations/)\n  * [ ](https://www.facebook.com/sharer/sharer.php?u=https://hagertyconsulting.com/supply-chain-resilience-transportation-considerations/)\n\n  * [ Mitigation & Resilience ](https://hagertyconsulting.com/blog/#mitigation-resilience)\n\n##  Related Resources\n\nSign up for the newsletter\n\n  * [ Blog  The Hagerty Advantage \u2013 Our People: Celebrating Women\u2019s History Month  ](https://hagertyconsulting.com/the-hagerty-advantage-our-people-celebrating-womens-history-month/)\n  * [ Blog  The Hagerty Advantage \u2013 Our People: Employee Appreciation 2023  ](https://hagertyconsulting.com/the-hagerty-advantage-our-people-employee-appreciation-2023/)\n  * [ Blog  Increasing Flexibility and Accessibility: Recent Changes to FEMA\u2019s Benefit Cost Analysis for Mitigation Grants  ](https://hagertyconsulting.com/increasing-flexibility-and-accessibility-recent-changes-to-femas-benefit-cost-analysis-for-mitigation-grants/)\n\n##  Comprehensive Emergency and Grants Management Services\n\nDiscover how our solutions help communities overcome disaster challenges and\nmaximize funding opportunities.\n\n[ Contact us  ](/contact)\n\n[ ](https://hagertyconsulting.com)\n\nDisaster Discourse Newsletter\n\nSolutions\n\n  * [ Emergency Management ](/solutions/emergency-management/)\n  * [ Grants Management ](/solutions/grants-management/)\n  * [ Markets ](/solutions/markets/)\n\nCompany\n\n  * [ About ](/about)\n  * [ Team ](/team)\n  * [ Contracts ](/contracts)\n  * [ Careers ](/careers)\n  * [ Contact ](/contact/)\n\nResources\n\n  * [ Blog ](/blog)\n  * [ Case Studies ](/case-studies)\n  * [ Publications ](/publications)\n  * [ News ](/news)\n  * [ Events ](/events)\n\n  * [ ](https://www.linkedin.com/company/hagerty-consulting/)\n  * [ ](https://x.com/HagertyConsult)\n  * [ ](https://www.facebook.com/HagertyConsulting/)\n  * [ ](https://www.youtube.com/user/HagertyConsultingInc)\n\n\u00a9 2025 Hagerty Consulting, Inc. 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                "url": "https://hagertyconsulting.com/supply-chain-resilience-transportation-considerations/"
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            "reliability_score": 0.7,
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            "summary": "This page discusses supply chain resilience and transportation considerations.",
            "url": "https://hagertyconsulting.com/supply-chain-resilience-transportation-considerations/"
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                "page_content": "Skip to content\n\n#  Welcome EASO to the Hub Group Family\n\nHub Group is expanding our Mexico intermodal and cross-border service offering\nthrough a joint venture with EASO, a family-led, premier intermodal and\ntrucking logistics provider in Mexico. EASO is the largest intermodal carrier\nin Mexico, and combined with Hub Group\u2019s network and robust capabilities, will\nenhance end-to-end solutions and add significant scale for our customers.\n\n[ Read the Press Release ](https://investors.hubgroup.com/news-releases/news-\nrelease-details/hub-group-expand-its-mexico-intermodal-and-cross-border-\nservice \"north american cross border\")\n\n[ Learn More about EASO ](https://easo.com/)\n\n  *   * 01 \n\n###  [ 50 Years ](https://www.hubgroup.com/50years/)\n\nService, Integrity and Innovation have powered Hub Group through five decades\n\u2013 and counting.\n\n  * 02 \n\n###  [ The Way Ahead ](https://www.hubgroup.com/thewayahead/)\n\nFind out more about how Hub Group goes above and beyond for our customers.\n\n  * 03 \n\n###  [ Cause Container ](https://www.hubgroup.com/cause-container/)\n\nOur award-winning cause marketing campaign, #CauseContainer, raises funds for\ncharities as our containers hit the road.\n\n##  The Way Ahead\n\nHub Group creates innovative, end-to-end supply chain solutions tailored to\nyour unique business needs. From activating comprehensive technology for added\nvisibility and efficiency, to leveraging strong third-party relationships and\nthe industry\u2019s second-largest private intermodal fleet, we provide access to\nthe right support and the right end-to-end supply chain solutions, at the\nright time.\n\nWe work with you to personalize our offerings to meet your needs. And with a\nsingle point of contact, a robust lineup of tech-enabled assets and strong\nthird-party relationships, you\u2019ll be on the receiving end of innovative, new\nideas that drive long-term potential.\n\n##  Transportation Solutions\n\nOur robust suite of transportation solutions delivers greater efficiency to\nyour organization\u2019s supply chain.\n\n###  Intermodal\n\nWith over 50 years of time-tested expertise and in-depth data, Hub Group\nprovides flexible, reliable intermodal transportation services across North\nAmerica. Thousands of experienced professionals serve and support our asset-\nbased intermodal program, fine-tuning our services to meet your unique\ntransportation needs.\n\n[ Learn More ](https://www.hubgroup.com/transportation-solutions/intermodal/)\n\n###  Truck Brokerage\n\nOur truck brokerage program combines cutting-edge technology with an expansive\noperations network to ensure cost-effective, safe and timely delivery of your\nfreight. With a strategic blend of national and regional carriers at the\nready, Hub Group guarantees truck brokerage services fine-tuned to meet your\nbusiness requirements.\n\n[ Learn More ](https://www.hubgroup.com/transportation-solutions/truck-\nbrokerage/)\n\n###  Asset Trucking\n\nWe believe in putting reliability and safety first. Hub Group invests in up-\nto-date, high-quality trucks and equipment, minimizing breakdowns and delays.\nYou can rest assured that your shipment is in safe hands.\n\n[ Learn more ](https://www.hubgroup.com/transportation-solutions/asset-\ntrucking/)\n\n###  Dedicated Trucking\n\nOur dedicated trucking group provides unparalleled service that delivers\ngreater supply chain efficiency and regulates costs. From fleet management to\n24/7 administrative support, we handle the ins and outs of dedicated trucking\nso you can focus on your core business.\n\n[ learn more ](https://www.hubgroup.com/transportation-solutions/dedicated-\ntrucking/)\n\n##  Logistics Management Solutions\n\nAs an award-winning 3PL company, Hub Group pairs multimodal capabilities that\nharness the power of technology with unmatched industry service and expertise.\n\n###  [ Managed Solutions ](https://www.hubgroup.com/logistics-\nmanagement/managed-solutions/)\n\nOur managed solutions span the full range of 3PL capabilities.\n\n###  [ Consolidation & Fulfillment ](https://www.hubgroup.com/logistics-\nmanagement/consolidation-fulfillment/)\n\nWe cut costs with strategic warehouse networks and consolidation expertise,\ncreating a solid supply chain framework.\n\n###  [ International Freight ](https://www.hubgroup.com/logistics-\nmanagement/international-freight/)\n\nWe design international solutions that combine buying power with added freight\nvisibility, savings and more.\n\n###  [ Final Mile ](https://www.hubgroup.com/logistics-management/final-mile/)\n\nWe focus on extending your standard of quality all the way to your customers\u2019\ndoors and businesses.\n\n##  Industries we serve\n\nSupply chain solutions are not one-size-fits-all. Whether you\u2019re moving\ndurable goods or temperature-sensitive cargo, we tailor our supply chain\nservices to support your industry nuances.\n\n[ View All Industries ](https://www.hubgroup.com/industries-we-serve/)\n\n  *     * [ Transportation Solutions ](https://www.hubgroup.com/transportation-solutions/)\n    * [ Logistics Management ](https://www.hubgroup.com/logistics-management/)\n    * [ Industries We Serve ](https://www.hubgroup.com/industries-we-serve/)\n    * [ Drive with Hub Group ](https://www.hubgroup.com/drive-with-hub-group/)\n    * [ Careers ](https://www.hubgroup.com/careers/)\n    * [ Hub Connect ](https://www.hubgroup.com/hub-connect/)\n    * [ About Hub Group ](https://www.hubgroup.com/about-us/)\n    * [ Contact Us ](https://www.hubgroup.com/about-us/contact-us/)\n\n  * [ ](https://www.hubgroup.com/)\n\n[ ](https://www.facebook.com/HubGroupInc/) [\n](https://twitter.com/hubgroup?lang=en) [\n](https://www.linkedin.com/company/hub-group/)\n\n    * [ Privacy Policy ](https://www.hubgroup.com/privacy-policy/)\n    * [ Terms of Use ](https://www.hubgroup.com/terms-of-use/)\n    * [ Terms of Service ](https://www.hubgroup.com/terms-of-service/)\n    * [ Ocean BOL ](https://www.hubgroup.com/ocean-bol/)\n    * [ Consolidation & Fulfillment Terms and Conditions ](https://www.hubgroup.com/consolidation-and-fulfillment-terms-and-conditions/)\n    * [ Policy For Vehicle Event Technology ](https://www.hubgroup.com/policy-for-vehicle-event-technology/)\n\n\u00a9 1996-2025 Hub Group, Inc. All Rights Reserved.\n\n",
                "url": "https://www.hubgroup.com/"
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            "reason": "This page is the website for Hub Group, a major player in the logistics industry. It is relevant to understanding the logistics landscape, but it does not explicitly mention Trafic, so the reliability is moderate.",
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                "page_content": "  * Skip to primary navigation \n  * Skip to main content \n\n  * [ Jobs ](https://tti.tamu.edu/jobs/)\n  * [ Pressroom ](/news/)\n  * [ MyTTI ](https://my.tti.tamu.edu/)\n  * [ Contact Us ](https://tti.tamu.edu/contact/)\n\n  * [ Facebook ](http://www.facebook.com/#!/ttitamu \"TTI Facebook\")\n  * [ Twitter ](https://twitter.com/TTITAMU \"TTI Twitter\")\n  * [ LinkedIn ](https://www.linkedin.com/company/texasa&mtransportationinstitute \"TTI LinkedIn\")\n  * [ YouTube ](http://www.youtube.com/ttitamu \"TTI YouTube\")\n  * [ Instagram ](https://instagram.com/ttitamu/ \"TTI Instagram\")\n  * [ SlideShare ](http://www.slideshare.net/TTITAMU/ \"TTI SlideShare\")\n  * [ RSS ](/feed/)\n\nYou are here:  [ Home  ](https://tti.tamu.edu/) /  Supply Chain Technology Hub\n\n##  Overview\n\n[ ](https://tti.tamu.edu/wp-content/uploads/2022/09/supply-chainA.jpg)\n\nWhether you are a technology provider interested in learning where your\nproduct will provide the most value or whether you are a business encountering\nsupply chain issues, the Texas A&M Transportation Institute\u2019s (TTI\u2019s) Supply\nChain Technology Hub can help you. The hub is specifically focused on\nevaluating supply chain technologies designed to aid in the movement and\ntracking of goods. Not only does the hub evaluate technologies, but it also\nanalyzes and develops business cases where the technologies can be used\neffectively. In some cases, it may be necessary to look at a broader set of\nactivities of the supply chain to solve a business problem. In such cases, TTI\nhas immediate access to experts in The Texas A&M University System that will\nassist in the analysis of the most complex and wide-ranging issues.\n\nOur services include:\n\n  * **Technology integration** \u2013 Integration of AutoID technologies \n  * **Visibility systems design** \u2013 Design of tracking/tracing and Internet of Things systems \n  * **Technology testing in supply chain operations** \u2013 Radio frequency identification system, barcoding, GPS, wireless sensor networks, biometrics, Bluetooth, etc. \n  * **Simulations of technology impacts** \u2013 Benefits of technology implementation \n  * **Supply chain network design and testing through simulation** \u2013 Supply chain echelons interactions for more sustainable, efficient and effective operations \n  * **Supply chain resilience evaluations** \u2013 Risk assessment, redundancies, robustness, and contingency \n  * **Maritime nodes analyses (Ports modeling)** : \n    * Seaport terminal operation analyses \n    * Cargo sea flows analyses \n\n##  Value Proposition\n\n[ ](https://tti.tamu.edu/wp-content/uploads/2022/09/supply-chainB-scaled.jpg)\n\nOur mission is to cover user needs such as:\n\n  * Know-how and technical knowledge \n  * Resources, time or facilities \n  * Financial and implementation investment burden \n  * Mistrust in vendors or consulting firms that present biased solutions \n\nWe pledge to our technology partners to provide:\n\n  * A platform to promote technological products via testing \n  * A distribution channel via technology solutions implementations \n\n##  Texas A&M System and TTI Partnership\n\n###  Human Capital\n\nTTI and Texas A&M System staff have broad knowledge, expertise, and experience\nin the supply chain and logistics industry.\n\n###  Robust Knowledge Base and Project Experience\n\n  * Supply chain and logistics project experience \n  * Supply chain improvement initiatives and technology implementations \n  * Experience across all transportation modes \n\n###  Ecosystem\n\nTTI has relationships and has managed supply chain technology testing\nlaboratories with both public and private entities.\n\n###  Testing Facilities\n\n  * [ Connected Infrastructure Lab ](https://tti.tamu.edu/facilities/connected-infrastructure-lab/)\n  * [ Model and Machining Center ](https://tti.tamu.edu/facilities/model-and-machining-center/)\n  * [ Proving Grounds Research Facility ](https://tti.tamu.edu/facilities/proving-grounds/)\n\n##  Our Team\n\n**Mario Monsreal**  \nTTI Senior Research Scientist  \n[ [email protected]  ](/cdn-cgi/l/email-\nprotection#5934743436372a2b3c3835192d2d30772d38342c773c3d2c)\n\n**Jim Kruse**  \nTTI Senior Research Scientist  \n[ [email protected]  ](/cdn-cgi/l/email-\nprotection#107a3d7b62656375506464793e64717d653e757465)\n\n**Juan Carlos Villa**  \nTTI Research Scientist  \n[ [email protected]  ](/cdn-cgi/l/email-\nprotection#f298df849b9e9e93b286869bdc86939f87dc979687)\n\n**David Bierling**  \nTTI Program Manager/Research Scientist  \n[ [email protected]  ](/cdn-cgi/l/email-protection#c5a1ada785b1a4a8b0eba0a1b0)\n\n  * [ The State of Texas ](https://www.texas.gov/)\n  * [ Texas Homeland Security ](https://gov.texas.gov/)\n  * [ Texas Veterans Portal ](https://veterans.portal.texas.gov/)\n  * [ State Expenditure Database ](http://www.texastransparency.org/)\n  * [ Statewide Search ](https://www.tsl.texas.gov/trail/index.html)\n  * [ State Auditor\u2019s Office Hotline ](https://sao.fraud.texas.gov/)\n  * [ TAMUS Risk, Fraud & Misconduct Hotline ](https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=19681)\n  * [ Site Policies ](https://tti.tamu.edu/notices-policies/)\n  * [ Open Records Policy ](https://tti.tamu.edu/notices-policies/open-records-policy/)\n  * [ Statutorily Required Reports ](https://tti.tamu.edu/statereq_reports/)\n  * [ TTI Rules ](https://tti.tamu.edu/rules/)\n  * [ Veterans ](https://tti.tamu.edu/veterans/)\n  * [ Equal Opportunity ](https://tti.tamu.edu/jobs/commitment-to-equal-opportunity/)\n  * [ COVID-19 Info ](https://tti.tamu.edu/covid-19-information/)\n  * [ Jobs ](https://tti.tamu.edu/jobs/)\n\n[ ](https://www.tamus.edu/ \"Texas A&M University System\")\n\n[ \u00a9 2025 Copyright Statement ](https://tti.tamu.edu/notices-\npolicies/copyright-statement/) / [ Legal Notices and Policies\n](https://tti.tamu.edu/notices-policies/)\n\nComments, suggestions, or queries? [ Contact us!\n](https://tti.tamu.edu/contact/)\n\nTexas A&M Transportation Institute  \u00b7  3135 TAMU  \u00b7  College Station, Texas\n77843-3135\n\n(979) 317-2000\n\n",
                "url": "https://tti.tamu.edu/supplychain/"
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            "search_query": "company 'Trafic' activities value chain",
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            "url": "https://tti.tamu.edu/supplychain/"
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                    "source": "https://www.oracle.com/scm/logistics/transportation-management/"
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                "page_content": "  * Skip to content \n  * [ Accessibility Policy ](https://www.oracle.com/corporate/accessibility/)\n\n[ ](https://www.oracle.com/)\n\n[ Country  ](/countries-list.html#countries)\n\nCloud Account  [ Sign in to Cloud ](/cloud/sign-in.html) [ Sign Up for Free\nCloud Tier ](/cloud/free/)\n\nOracle Account\n\n  * [ Sign-In ](https://www.oracle.com/webapps/redirect/signon?nexturl=)\n  * [ Create an Account ](https://profile.oracle.com/myprofile/account/create-account.jspx)\n\n  * [ Help ](/corporate/contact/help.html)\n  * [ Sign Out ](javascript:sso_sign_out\\(\\);)\n\n[ Contact Sales  ](/corporate/contact/ \"Contact Sales\")\n\n[ Menu  ](/global-menu-v2/)\n\n  1. [ Applications ](/applications/)\n  2. [ Supply Chain Management ](/scm/)\n  3. [ Logistics ](/scm/logistics/)\n\n#  Transportation Management\n\nManage all transportation activity throughout your global supply chain.\nCombining ease of use with industry-leading capabilities, Oracle\nTransportation Management enables you to run your logistics operations more\nefficiently, reduce freight costs and optimize service levels.\n\n[ Try a free demo ](/scm/logistics/demo-form/    \"Request a demo of Oracle\nLogistics now\")\n\nTake a tour\n\nLearn about Oracle's transportation orchestration solution (2:24)\n\n  * **[ Gartner  \u00ae  recognizes Oracle as a TMS Leader ](/scm/logistics/transportation-management/report/) **\n\nOracle has been named a Leader in the Gartner  \u00ae  Magic Quadrant  \u2122  for\nTransportation Management Systems for the 18th time.  *\n\n[ Read the transportation management systems report\n](/scm/logistics/transportation-management/report/)\n\n  * **[ Oracle a Leader in 2024 Gartner  \u00ae  Magic Quadrant  \u2122  for Warehouse Management Systems ](/scm/logistics/warehouse-management/analyst-report/) **\n\nFind out why Oracle was named a Leader in the Gartner Magic Quadrant for\nWarehouse Management Systems for the 9th consecutive year.  **\n\n[ Read the warehouse management systems report ](/scm/logistics/warehouse-\nmanagement/analyst-report/)\n\n  * **[ Explore the Power of AI in Logistics ](https://go.oracle.com/LP=143618?elqCampaignId=565743) **\n\nWatch on demand to learn how an AI-powered supply chain can help you achieve\nperfect delivery.\n\n[ Access the AI in Logistics webinar\n](https://go.oracle.com/LP=143618?elqCampaignId=565743)\n\n##  Explore Transportation Management\n\n####  Operational Planning\n\n#####  Optimize your logistics network\n\nDetermine the best way to fulfill transportation requirements from simple\npoint-to-point to complex multimodal, multileg, and cross-dock operations.\n\n#####  Streamline bids and orders\n\nSecure bids and efficiently plan inbound, outbound, and interfacility orders\nby collaborating with logistics service providers and shipping partners.\n\n  *   * [ Data sheet: Oracle Transportation Operational Planning Cloud (PDF) ](/a/ocom/docs/applications/supply-chain-management/oracle-transportation-operational-planning-ds.pdf)\n  * [ Data sheet: Transportation Sourcing (PDF) ](/a/ocom/docs/applications/supply-chain-management/oracle-transportation-sourcing-ds.pdf)\n  * [ Data sheet: Transportation Cooperative Routing (PDF) ](/a/ocom/docs/applications/supply-chain-management/oracle-transportation-cooperative-routing-ds.pdf)\n\n#####  Build effective shipping plans\n\nIdentify historical shipping patterns and determine optimal asset utilization\nvia efficient lane combinations of freight or cooperative routes.\n\n####  Transportation Management\n\n#####  Maximize productivity through automated processes\n\nProactively manage the lifecycle of orders and shipments through automated\nmilestone monitoring.\n\n#####  Automate freight billing and payment\n\nConsolidate and execute transportation orders from multiple sources and\neliminate inefficient and redundant settlement procedures.\n\n  *   * [ Data sheet: Oracle Transportation Management Cloud (PDF) ](/a/ocom/docs/applications/supply-chain-management/oracle-transportation-management-cloud-ds.pdf)\n  * [ Data sheet: Transportation Intelligence (PDF) ](/a/ocom/docs/applications/supply-chain-management/oracle-transportation-intelligence-ds.pdf)\n  * [ Data sheet: Freight Payment, Billing, and Claims (PDF) ](/a/ocom/docs/applications/supply-chain-management/oracle-freight-payment-billing-claims-ds.pdf)\n\n#####  Effectively measure performance and monitor trends\n\nMake better supply chain decisions by providing greater insight into both\ninternal operations and trading partner performance.\n\n####  Fleet Management\n\n#####  Implement fleet-specific planning and optimization\n\nIncorporate current state of the fleet in the planning and optimization\nprocess to fully utilize fleet resources with consideration of external\ncarrier capabilities.\n\n#####  Leverage an integrated fleet environment\n\nManage all orders and shipments in a single system that considers all\navailable fulfillment capabilities including contract and private\ntransportation.\n\n  *   * [ Take a tour of Oracle Fusion Cloud Fleet Management ](/scm/logistics/transportation-management/fleet-management-product-tour/)\n  * [ How Solistica transforms logistics ](https://blogs.oracle.com/scm/on-the-road-to-a-better-world-how-solistica-transforms-logistics-with-oracle-cloud)\n  * [ Flow Progressive Logistics streamlines operations and improves client service ](/customers/flow-progressive-1-fin-cl/)\n  * [ Datasheet: Oracle Fleet Management Cloud (PDF) ](/a/ocom/docs/applications/supply-chain-management/oracle-fleet-management-ds.pdf)\n\n#####  Monitor financial performance\n\nMeasure and control financial performance by leveraging capabilities for\ncosting, payables, cost accruals, revenue recognition, and claim and dispute\nmanagement.\n\n####  Logistics Network Modeling\n\n#####  Determine impact of change and disruption\n\nStay ahead of changes with an adaptive logistics network. Perform detailed,\nwhat-if scenario modeling based on the operational details of your existing\ntransportation network and to get highly accurate results.\n\n  *   * [ Datasheet: Oracle Logistics Network Modeling Cloud (PDF) ](/a/ocom/docs/applications/supply-chain-management/oracle-logistics-network-modeling-ds.pdf)\n  * [ Take a tour of Oracle Logistics Network Modeling ](https://www.oracle.com/webfolder/s/quicktours/scm/gqt-scm-log-lnmoverview/index.html)\n  * [ Datasheet: 7 key benefits of transportation orchestration (PDF) ](/a/ocom/docs/applications/scm/perfect-delivery-outsourcing-infographic-emea.pdf)\n  * [ Read the ISG report (PDF) ](/a/ocom/docs/applications/scm/perfect-delivery-outsourcing-report.pdf)\n\n#####  Analyze dashboards and operational metrics\n\nCompare results side-by-side to determine best course of action.\n\n####  Digital Assistant\n\n#####  Provide real-time shipment status\n\nReceive and respond to inquiries instantly and 24/7 and resolve issues faster\nwhile providing better customer service.\n\n  *   * [ Take a tour of Logistics Digital Assistant ](https://www.oracle.com/webfolder/s/quicktours/scm/gqt-scm-log-otm-digitalassistant/index.html)\n  * [ Learn more about Oracle Digital Assistant for ERP and SCM ](/chatbots/digital-assistant-for-erp-scm/)\n\n#####  Gain better supply chain visibility\n\nReduce support expenditures and improve customer satisfaction by leveraging\nnew channels for communication.\n\n####  Machine Learning\n\n#####  Predict transit times accurately\n\nGain informed decisions on which carrier, route, and service level to use and\nimprove lead time estimates.\n\n#####  Eliminate excess inventory\n\nLower inventory costs by reducing safety stock levels and warehousing costs.\n\n  *   * [ Take a tour of Logistics Machine Learning ](/scm/logistics/transportation-management/#tour)\n\n#####  Allocate resources efficiently\n\nReduce supply chain risk with lower unplanned delays and less need for\nexpedited shipments and associated extra freight costs.\n\n###  Machine learning for more accurate transit time prediction\n\nMake better planning decisions, improve customer satisfaction, and lower\nsupply chain risk by adapting a machine learning (ML) approach to\ntransportation planning. Let's take a closer look and see how it works.\n\n###  Make better decisions\n\nGet more accurate estimated time of arrival (ETA) during the shipment planning\nprocess. Receive updated ETA based on in-transit events, and obtain the total\ntransportation lead time at order capture. Oracle Transportation Management\n(OTM) leverages industry-leading ML algorithm and infrastructure for\nintelligent transit time prediction.\n\n###  Predict ETA\n\nCustomers view predicted shipment arrival and transit times in their daily\nworkbenches. Predictions can be incorporated into standard OTM workflow and\nagents for fast response and action.\n\n###  Configure in a no-code environment\n\nMachine learning models are fully configurable and can be fine-tuned to fit\nbusiness-specific needs and transportation scenarios. A no-code environment\nmakes configuration easy.\n\n###  Respond to real-time risk events\n\nIncorporate events, such as GPS updates and disruptions, and external factors,\nsuch as weather and traffic, to improve your responsiveness to real-time\nfactors.\n\n###  Retrain models to automatically adapt to the most recent data\n\nRetrain your models with the most recent shipment history. With ML natively\nintegrated into OTM processes, you can trigger conditional logic or set up\nrecurring actions. Over time, your model accumulates a richer set of shipment\nhistory and gets periodically retrained with incremental data, becoming more\naccurate in a lights-out, self-improving process.\n\n###  Gain insights and track performance\n\nUsers have full visibility into model accuracy and performance. This helps\nusers further fine-tune the model and build up trust and confidence in AI.\n\n###  Develop actionable insights\n\nPredict end-to-end transit time for multiple transportation legs and convert\nthis information into actionable insights. Users can easily identify at-risk\nshipments, make corrections, and improve performance.\n\n###  Combine machine learning with Oracle Transportation Management\n\nLeverage our best-in-class logistics platform to make better planning\ndecisions, improve customer satisfaction, and lower supply chain risks.\n\n**Streamline logistics for a sustainable tomorrow**\n\nExplore four ways to boost sustainability with Oracle Logistics\u2014from improving\nwarehouse and workforce efficiency, to lowering carbon footprint.\n\n[ View the brief (PDF) ](/a/ocom/docs/logistics-and-sustainability.pdf)\n\n**Connected Logistics**\n\nWondering how ice cream gets from the factory to the store in perfect\ncondition? Learn how Oracle helps companies track and deliver products at the\nright place and right time.\n\n[ Watch the video (2:30) ](?ytid=3kRLDHpgAqo \"Connected Logistics video\")\n\n  \n\nSee why orchestrating data is key to future logistics improvements and\nsustainability goals\n\n[ Watch a demo\n](https://go.oracle.com/LP=123591?elqCampaignId=334395&src1=:ow:o:s:mt:::NA22_GEN_FD_CO67_M0601_SO015YO01_DO1082_AO01_RO001&intcmp=WWMK220131P00008:ow:o:s:mt:::NA22_GEN_FD_CO67_M0601_SO015YO01_DO1082_AO01_RO001)\n\n[ Learn how (PDF) ](/a/ocom/docs/applications/scm/perfect-delivery-\noutsourcing-how-to-emea.pdf)\n\nCustomers in diverse industries leverage Oracle Cloud Logistics to drive\noperational excellence.\n\n  * [ ](/customers/cnh-industrial-1-tm/ \"Read how CNH Industrial cuts transportation and logistics overhead and speeds up control and dispatch processes\")\n  * [ ](/customers/grupo-bimbo/ \"Read how Grupo Bimbo moves to Oracle Cloud to help keep the world fed\")\n  * [ ](/customers/land-o-lakes/ \"Read how Land O\u2019Lakes navigates supply chain disruption with Oracle Fusion Cloud SCM\")\n  * [ ](?ytid=LUqjiR9TgpA \"Watch how Nahdi transforms pharmacy retail for a healthy community\")\n  * [ ](/customers/tetra-pak/ \"Read how Tetra Pak modernizes global logistics with Oracle Cloud\")\n  * [ ](?ytid=_inc4H-zSzE \"Watch how The Wonderful Company Gains Visibility with Oracle Cloud\")\n  * [ ](/customers/unilever-1-trans-mgmt/ \"Read how Unilever cuts transport costs and emissions with Oracle\")\n\n###  Unilever cuts transportation costs and emissions with Oracle\n\n[ Read the Unilever story ](/customers/unilever-1-trans-mgmt/)\n\n##  Key benefits\n\n  * ###  Quickly adapt to supply chain disruptions \n\nGain insight into alternative routes and carriers using what-if scenario\nmodels to understand the potential impact and deploy changes to your logistics\nnetwork.\n\n[ How Sonoco meets the logistical challenges of COVID-19\n](https://www.forbes.com/sites/oracle/2020/07/13/astute-planning-plus-the-\nright-tech-keep-packaging-company-sonoco-rolling/?sh=7cebc6513f1c)\n\n  * ###  Ensure on-time shipments and deliveries \n\nOptimize shipments across global networks through effective transportation\nplanning and execution.\n\n[ Tetra Pak modernizes global logistics with Oracle Cloud\n](https://www.oracle.com/customers/tetra-pak/)\n\n  * ###  Provide excellent customer service \n\nMeet customer demands for fast, responsive service. Receive instant updates on\nshipment status and resolve issues faster.\n\n[ Watch Oracle\u2019s SCM digital assistant in action (1:57) ](?ytid=Yo4GWbTzfRQ)\n\n###  Adaptive logistics: 5 steps to prepare for uncertainty\n\nJoan Lim, Senior Manager Product Marketing, Oracle\n\nDisruptions and uncertainty have always existed in the global economy - a fact\nthat recent events have only served to reinforce. I\u2019m referring to the global\npandemic, which seemingly overnight turned the world upside down, stretched\nsupply chains to their breaking point, and sent businesses scrambling to\nadjust to a radical new reality.\n\n[ Read the complete post ](https://blogs.oracle.com/scm/post/adaptive-\nlogistics-5-steps-to-prepare-for-uncertainty)\n\n####  Featured blogs\n\n[ View all ](https://blogs.oracle.com/scm/logistics)\n\n###  Resources\n\n####  Learn what\u2019s new in the latest with Transportation Management release\n\nReview readiness material to learn what's new in your Cloud SCM service and\nplan for quarterly updates.\n\n[ Get the most from your Cloud SCM service\n](https://www.oracle.com/webfolder/technetwork/tutorials/tutorial/readiness/offering.html?offering=otm-21)\n\n####  Additional information\n\n  * [ See SCM updates ](/scm/innovations/)\n\n####  Get started on managing your logistics processes more efficiently\n\nReview the latest Oracle Cloud Logistics documentation and product\ninformation.\n\n[ Learn more about Logistics Cloud Suite\n](https://docs.oracle.com/en/cloud/saas/logistics-cloud-suite/index.html)\n\n####  Join a community of your peers\n\nCloud Customer Connect is Oracle's premier online cloud community. With more\nthan 200,000 members, it's designed to promote peer-to-peer collaboration and\nsharing of best practices, product updates, and feedback.\n\n[ Join today ](https://cloudcustomerconnect.oracle.com/pages/home)\n\n####  Develop your Transportation Management skills\n\nOracle University provides learning solutions to help build cloud skills,\nvalidate expertise, and accelerate adoption. Get access to free basic training\nand accreditation with the Oracle Learning Explorer program.\n\n[ Get certified with Transportation Management\n](https://education.oracle.com/searchresults?&N=4150744934&Nr=product.active%3A1&Nrpp=20&Ntt=Oracle%2BLogistics%2BCloud&Rdm=930&suppressResults=false&searchType=guided&type=search)\n\n####  Learning resources\n\n  * [ Cloud SCM training ](https://education.oracle.com/learn/saas-scm/pPillar_646)\n  * [ Oracle Guided Learning ](https://education.oracle.com/oracle-cloud-guided-learning)\n  * [ Cloud SCM Learning Subscription ](https://education.oracle.com/oracle-supply-chain-management-cloud-learning-subscription/ls_662)\n  * [ Cloud SCM Certification ](https://education.oracle.com/oracle-certification-path/pPillar_646)\n\n####  Support\n\n  * [ My Oracle Support ](https://support.oracle.com/portal/)\n  * [ Support Policies and Practices ](/support/policies.html)\n  * [ Customer Success Services ](/customer-success/run-and-operate/)\n\n####  Services\n\n  * [ Consulting ](/consulting/)\n  * [ Find a Partner ](https://partner-finder.oracle.com/catalog/opn/index.html)\n\n####  Pages\n\n  * [ Analyst reports ](/corporate/analyst-reports/#category-scm)\n  * [ Industry solutions ](/industries/)\n  * [ Press releases ](/news/)\n\n####  Trending\n\n  * [ What is a transportation management system (TMS)? ](/scm/logistics/transportation-management/what-is-transportation-management-system/)\n  * [ What is a warehouse management system (WMS)? ](/scm/logistics/warehouse-management/what-is-warehouse-management/)\n\n####  Downloads\n\n  * [ ARC Research: Overcome Disruptions and Exceed Expectations (PDF) ](/a/ocom/docs/applications/scm/arc-logistics-en.pdf)\n  * [ How to Prepare Your Logistics Network to Adapt to Disruptions (PDF) ](/a/ocom/docs/scm-adaptive-logistics.pdf)\n  * [ Infographic: 4 Ways to Execute the Perfect Delivery (PDF) ](/a/ocom/docs/applications/scm/perfect-delivery-infographic.pdf)\n  * [ How to Drive Customer Satisfaction with Perfect Delivery (PDF) ](/a/ocom/docs/scm-perfect-delivery-pov-report.pdf)\n\n##  You may also be interested in\n\n####  Global Trade Management\n\n#####  Centralize global trade processes\n\n[ See global trade management product details ](/scm/logistics/global-trade-\nmanagement/)\n\n####  Warehouse Management\n\n#####  Maximize omnichannel fulfillment\n\n[ See warehouse management product details ](/scm/logistics/warehouse-\nmanagement/)\n\n####  Blockchain and the Internet of Things (IoT)\n\n#####  Drive action with real-time insights\n\n[ See IoT product details ](/internet-of-things/)\n\n####  Oracle Digital Assistant\n\n#####  Improve customer experience with chatbots and conversational AI\n\n[ See digital assistant product details ](/chatbots/)\n\n##  Get started with Logistics\n\n[ Request a demo\n](https://go.oracle.com/LP=52448?elqCampaignId=94583&src1=ad:pas:go:dg:scm&src2=wwmk170508p00018c0001&SC=sckw=WWMK170508P00018C0001&mkwid=%7Cpmt%7Cb%7Cpdv%7Cc%7C&GOOGLE&%2Boracle+%2Bscm+%2Bdemo&CjwKCAjwvOHzBRBoEiwA48i6AsG4vBFT16Amh3nFKvxJsCL728qxpT41J3yebIEfYtcI6XyTU9LgWxoCbPQQAvD_BwE&gclid=CjwKCAjwvOHzBRBoEiwA48i6AsG4vBFT16Amh3nFKvxJsCL728qxpT41J3yebIEfYtcI6XyTU9LgWxoCbPQQAvD_BwE&gclsrc=aw.ds)\n\n[ Take a tour ](/scm/product-tours/)\n\n[ Contact us ](/applications/supply-chain-management/contact-form.html\n\"Contact Oracle SCM\")\n\n*Gartner  \u00ae  Magic Quadrant  \u2122  for Transportation Management Systems, Brock Johns, et al. 24 March 2025. \n\n**Gartner  \u00ae  Magic Quadrant  \u2122  for Warehouse Management Systems, Simon\nTunstall, Dwight Klappich, Rishabh Narang, Federica Stufano; 2 May 2024.\n\nGartner does not endorse any vendor, product or service depicted in its\nresearch publications, and does not advise technology users to select only\nthose vendors with the highest ratings or other designation. Gartner research\npublications consist of the opinions of Gartner's research organization and\nshould not be construed as statements of fact. Gartner disclaims all\nwarranties, expressed or implied, with respect to this research, including any\nwarranties of merchantability or fitness for a particular purpose. GARTNER and\nMagic Quadrant are registered trademarks and service mark of Gartner, Inc.\nand/or its affiliates in the U.S. and internationally and are used herein with\npermission. All rights reserved.\n\n  * [ Country/Region ](/universal-menu/#u10countrymenu)\n\n",
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                "page_content": "[ Home ](https://www.unt.edu/)\n\n[ Academics ](https://www.unt.edu/academics/)\n\nLogistics and Supply Chain Management Degree\n\n#  Logistics and Supply Chain Management Degree\n\nBachelor of Science (B.S.)\n\nProgram type:\n\n* * *\n\nMajor\n\nFormat:\n\n* * *\n\nOn Campus\n\nEst. time to complete:\n\n* * *\n\n4 years\n\nCredit Hours:\n\n* * *\n\n120\n\nIt's simple supply and demand: we supply you with the career skills to put\nyourself in high demand.\n\nKnown nationally for an innovative curriculum and dynamic programs that help\narm our graduates with critical thinking skills and real-life interaction with\nlogistics executives, company case studies and a required paid internship, the\nB.S. in Logistics and Supply Chain Management prepares you for a rewarding\ncareer in logistics as a practitioner or an academic.\n\n[ Requirements\n](http://catalog.unt.edu/preview_program.php?catoid=35&poid=16280&returnto=3953)\n[ Discover UNT at Frisco ](https://frisco.unt.edu/) [ Tuition & Aid\n](https://cob.unt.edu/scholarships) [ How to apply\n](https://admissions.unt.edu/)\n\n###  Want more info?\n\nWe're so glad you're interested in UNT! Let us know if you'd like more\ninformation and we'll get you everything you need.\n\n[ Request More Info ](https://admissions.unt.edu/requestinfo)\n\n##  Why Earn a Logistics and Supply Chain Management Degree?\n\nLogistics and supply chain management encompasses all of the activities\ninvolved in getting a product to the consumer. The field is so broad that\nvirtually any business could be a potential employer.\n\nComponents of the program include customer service, demand forecasting,\ndistribution communications, inventory control, material handling, order\nprocessing, parts and service support, plant and warehouse site selection\n(location analysis), purchasing, packaging, returned goods handling, salvage\nand scrap disposal, traffic and transportation, and warehousing and storage.\n\nThe logistics and supply chain management program will provide you with a\nwell-rounded, state-of-the-art education using a \"learn today, apply tomorrow\"\nclassroom philosophy.\n\nMarketable Skills\n\n  * Supply chain management decision-making \n  * Problem recognition/solution generation \n  * Teamwork \n  * Leadership ability \n  * Oral and written communication \n\n##  Logistics and Supply Chain Management Degree Highlights\n\nYou can achieve professional certification in transportation, logistics and\ndistribution (CTLD) from the American Society of Transportation and Logistics.\n\nGartner Research recently ranked us 6th among all undergraduate logistics and\nsupply chain management programs in North America, enabling us to attract many\nlarge and well-known corporations to recruit UNT students.\n\nOur faculty members publish in journals such as the Journal of Business\nLogistics, International Journal of Logistics Management, International\nJournal of Physical Distribution and Logistics Management, Journal of the\nOperational Research Society, European Journal of Operational Research and the\nInternational Journal of Production Economy.\n\nThe Dallas-Fort Worth area is a national leader in distribution,\ntransportation and logistics services and students have interned or obtained\nfull-time positions at more than 250 area firms.\n\nYou can now work toward this valuable degree at UNT at Frisco, allowing you to\nbenefit from industry engagement with nearby companies while completing your\njunior and senior years.\n\nWe've developed the curriculum with input from the Dallas/Fort Worth\nRoundtable of the Council of Supply Chain Management Professionals, the North\nTexas Commission's Logistics Development and Marketing Committee, and an\nadvisory board of 20 senior logistics executives.\n\n###  What Can You do With a Logistics and Supply Chain Management Degree?\n\nThe B.S. in Logistics and Supply Chain Management prepares you for employment\nin a large number of different positions and types of firms across the entire\nsupply chain.\n\nGraduates typically obtain jobs in (as):\n\n  * Freight broker \n  * Logistics or Operations Analyst \n  * Account sales \n  * Production and Inventory Planning \n  * Fleet or Railroad operations \n  * International logistics including Ocean freight and Marine freight management \n\nGraduates continue their careers as:\n\n  * Account Executives \n  * Director of Logistics \n  * Director of Transportation \n  * Director of Operations \n  * Vice President of Supply Chain Management \n\n##  Logistics and Supply Chain Management Degree Courses You Could Take\n\nGlobal Alliances and International Supply Chain Management (3 hrs)\n\nSupply chain and alliance strategy in the multi-national firms. Materials\nmanagement, international sourcing and distribution, and importing/exporting\nprocedures. International carrier management and operations are examined.\n\nE-Logistics in Supply Chain Management (3 hrs)\n\nComprehensive inquiry into the role of e-commerce in collaborative\ndistribution and logistics relationships. Special attention is afforded to\nresource and technology interdependencies, exchange governance mechanisms and\nrelationship management bench-marking. Emphasis is given to the tools for\ncreating value in the supply chain.\n\nAdvanced Logistics Management (3 hrs)\n\nApplication of logistics decision-making tools and skills as they apply to\ninventory, transportation, and warehouse management. Course stresses hands-on\napplication of analytical tools useful in logistics; analysis of the\ncharacteristics of logistics system elements and their interrelationships\nwithin a company; developing skills to analyze technical logistics problems;\nand developing executive-level communications skills leading to the concise\nstatement of problems and proposed solutions.\n\nIntroduction to Data Warehousing (3 hrs)\n\nInvestigates model-based approaches to the design of data warehouses. Examines\ntheir critical role in decision systems for business and industry.\n\nModeling for Business Intelligence (3 hrs)\n\nHow modeling for business intelligence systems can be utilized as a key\nelement within a managerial decision process. Attention is paid to how and why\nsuch a model is used in a BI support system environment. Topics include the\nuse of mathematical, statistical and business models that are both structured\nand semi-structured decision problems.\n\nLogistics and Supply Chain Management (3 hrs)\n\nAnalysis and design of domestic and international logistics systems. Topics\ninclude transportation, warehousing, inventory control, materials handling and\npackaging, and plant and warehouse locations within and between firms.\nEmphasis on concepts and practices that provide firms with a competitive\nadvantage.\n\n###  Learn More About UNT\n\nWatch this video to learn more about what makes UNT great!\n\n##  Explore More Options\n\nRelated Programs\n\n  \n[ Aviations Logistics Degree ](/academics/programs/aviation-logistics-\ndegree.html)  \n  \n[ Operations and Supply Management Degree ](/academics/_archive/operations-\nand-supply-management-degree.html)\n\nSimilar Areas of Study\n\n[ Business & Industry ](/academics/business-industry.html)  \n\n[ G. Brint Ryan College of Business ](https://cob.unt.edu/)\n\nDepartment of Logistics and Operations Management\n\n[ 940-565-3085 ](tel:940-565-3085)\n\n[ Steve.Joiner@unt.edu ](mailto:Steve.Joiner@unt.edu)\n\nBusiness Leadership Building, Room 206\n\nThinking about UNT?\n\nIt\u2019s easy to apply online. Join us and discover why we\u2019re the choice of over\n46,000  students.\n\n[ Apply Now  ](https://www.unt.edu/admissions/apply-now.html)\n\n[ Visit UNT  ](https://tours.unt.edu/)\n\n[ Get Info  ](https://www.unt.edu/admissions/requestinfo.html)\n\n[ ](/)\n\n1155 Union Circle  \nDenton, Texas 76203-5017\n\nMAIN: [ 940-565-2000 ](tel:940-565-2000)\n\nTTY: [ 800-735-2989 ](tel:800-735-2989)\n\nADMISSIONS: [ 940-565-2681 ](tel:940-565-2681)\n\n[ Report Website Issues ](mailto:web@unt.edu?subject=UNT Website)\n\n[ Contact UNT Admissions ](https://www.unt.edu/admissions/contact-\nus/index.html)\n\n[ ](https://www.facebook.com/northtexas/) [ ](https://x.com/UNTSocial) [\n](https://www.youtube.com/user/universitynorthtexas) [\n](https://www.instagram.com/unt/) [\n](https://www.linkedin.com/school/northtexas/) [ ](/social/index.html)\n\n[ ELECTRONIC ACCESSIBILITY ](https://policy.unt.edu/policy/14-005)\n\n[ UNT POLICIES ](https://policy.unt.edu/)\n\n[ YOUR PRIVACY ](/privacy.html)\n\n[ Current Students ](/current-students.html)\n\n[ Faculty + Staff ](/faculty-staff.html)\n\n[ Alumni + Friends ](/alumni-friends.html)\n\n[ Parents + Family ](/parents-family.html)\n\n[ Community + Visitors ](/community.html)\n\n* * *\n\n[ Mental Health Resources ](https://studentaffairs.unt.edu/counseling-and-\ntesting-services/student-counseling/index.html)\n\n[ Hazing Prevention and Response ](https://studentaffairs.unt.edu/dean-of-\nstudents/policies/hazing/index.html)\n\n[ Clery Security & Fire Safety Report ](/clery/index.html)\n\n[ Title IX & Sexual Misconduct Policy ](https://titleixeo.unt.edu/title-ix)\n\n[ Report Sexual Misconduct\n](https://cm.maxient.com/reportingform.php?UnivofNorthTexas&layout_id=6)\n\n[ COMPLIANCE TRUST LINE ](https://trustline.unt.edu)\n\n[ Requests for Public Information ](https://www.untsystem.edu/offices/general-\ncounsel/public-information-requests/pir-form.php)\n\n[ Bond Holder Information ](https://bonds.untsystem.edu/university-of-north-\ntexas-system-tx/i3198)\n\n[ Disclaimer ](/disclaimer)\n\n[ EO/TIX ](https://titleixeo.unt.edu/)\n\n[ UNT Libraries ](https://library.unt.edu/)\n\n[ UNT Calendar ](https://calendar.unt.edu/)\n\n[ UNT News ](https://news.unt.edu/)\n\n[ Campus Map ](https://map.unt.edu)\n\n[ Jobs at UNT ](https://careers.untsystem.edu/unt/home)\n\n* * *\n\n[ Texas Veterans Portal ](https://veterans.portal.texas.gov/)\n\n[ Compact with Texans ](/compact-with-texans)\n\n[ Texas.gov ](https://texas.gov/)\n\n[ Texas Homeland Security ](https://gov.texas.gov/)\n\n[ State Auditor\u2019s Office Fraud, Waste or Abuse Hotline\n](https://sao.fraud.texas.gov/)\n\n[ Statewide Search ](https://www.tsl.texas.gov/trail/index.html)\n\n[ Linking Notice ](https://technology.untsystem.edu/divisions/citc/it-\nstandards/linking-notice.php)\n\n[ Required Links ](/required-links.html) [ Site List\n](https://www.unt.edu/site-list.html)\n\nUniversity of North Texas. All Rights Reserved.\n\n[\n](https://a.cms.omniupdate.com/11/?skin=unt&account=unt&site=www&action=de&path=/academics/programs/logistics-\nand-supply-chain-management-degree.pcf)\n\n",
                "url": "https://www.unt.edu/academics/programs/logistics-and-supply-chain-management-degree.html"
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                    "source": "https://www.ilscompany.com/7-successful-strategies-to-improve-your-supply-chain/"
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                "page_content": "#  7 Successful Strategies to Improve Your Supply Chain\n\n##  REQUEST A QUOTE\n\nFor job openings follow us on [ LinkedIn\n](https://www.linkedin.com/company/the-ils-company/) & [ Facebook\n](https://www.facebook.com/ILSCompany/) !  \nWe currently don\u2019t sponsor visas or hire for driver positions, or positions\noutside the US & Mexico\n\n[ Click here for more info ](https://www.ilscompany.com/careers/)\n\n  * [ About ](https://www.ilscompany.com/about-ils/)\n  * [ Our Logo ](https://www.ilscompany.com/logistics-services/)\n  * [ ILS EMPLOYEE BENEFITS ](https://www.ilscompany.com/careers/)\n  * [ Terms and Conditions ](https://www.ilscompany.com/terms-conditions/)\n  * [ Aviso de privacidad ](https://www.ilscompany.com/aviso-de-privacidad/)\n\n  * [ Why **ILS** ](https://www.ilscompany.com/why-ils/)\n\n  * Services \n  * [ Import/Export ](https://www.ilscompany.com/service/importexport/)\n  * [ International Freight Forwarding ](https://www.ilscompany.com/service/intl-freight-forwarding/)\n  * [ Warehouse and Distribution ](https://www.ilscompany.com/service/warehousing-and-distribution/)\n  * [ Transportation Brokerage ](https://www.ilscompany.com/service/transportation-brokerage/)\n  * [ Supply Chain Solutions ](https://www.ilscompany.com/service/supply-chain/)\n\n  * Our Partners \n  * [ Carriers ](https://www.ilscompany.com/partner/carriers/)\n  * [ Brokers ](https://www.ilscompany.com/partner/brokers/)\n  * [ Shippers ](https://www.ilscompany.com/partner/shippers/)\n\n  * **Customer & ** Carrier Tools \n  * [ New Transportation Management System ](https://webapps.ilscompany.com/Hwb15Boo/gamlogin.aspx)\n  * [ Warehouse Management System ](https://webapps.ilscompany.com/WMS/hinloginseg.aspx)\n  * [ Access LTL account ](http://ils.accufrate.com/ClientLogin.aspx?id=)\n  * [ Request A Quote ](https://www.ilscompany.com/request-a-quote/)\n\n  * [ Resources ](https://www.ilscompany.com/resources/)\n  * [ Trailer Dimensions ](https://www.ilscompany.com/trailer-dimensions/)\n  * [ Incoterms ](https://www.ilscompany.com/incoterms/)\n  * [ Packing ](https://www.ilscompany.com/packing/)\n  * [ Blog ](https://www.ilscompany.com/blog/)\n  * [ Videos ](https://www.ilscompany.com/resources/videos/)\n\n  * [ Contact Us ](https://www.ilscompany.com/contacts/)\n  * [ Contacts & Directory ](https://www.ilscompany.com/contacts/)\n  * [ Denuncia an\u00f3nima ](https://www.ilscompany.com/denuncia-anonima/)\n\n\u00a9 2025 The ILS Company. All Rights Reserved. | Tucson Web Design by [ Anchor Wave ](https://www.anchorwave.com/)\n\n  * [ ](https://www.facebook.com/ILSCompany/)\n  * [ ](https://www.linkedin.com/company/the-ils-company/)\n\nWe use cookies to ensure that we give you the best experience on our website.\nIf you continue to use this site we will assume that you are happy with it.\nAccept  [ Privacy Policy ](https://www.ilscompany.com/privacy-policy/)\n\n",
                "url": "https://www.ilscompany.com/7-successful-strategies-to-improve-your-supply-chain/"
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                    "source": "https://www.alamo.edu/pac/academics/search-programs/professional-and-technical/logistics/"
                },
                "page_content": "Skip to main content\n\n#  Logistics and Supply Chain Management\n\n[ Apply Now ](/pac/admissions-aid/how-to-apply/)\n\nSupply Chain Manager  Logistics Analyst  Logistician\n\nDirect or coordinate production, purchasing, warehousing, distribution, or\nfinancial forecasting services or activities to limit costs and improve\naccuracy, customer service, or safety. Examine existing procedures or\nopportunities for streamlining activities to meet product distribution needs.\nDirect the movement, storage, or processing of inventory.\n\nJobs available locally  1,924  |  Demand Locally  +2 %  |  Annual Wage Range  $50,209 \u2013 $164,145   \n---|---|---  \n  \nAnalyze product delivery or supply chain processes to identify or recommend\nchanges. May manage route activity including invoicing, electronic bills, and\nshipment tracing.\n\nJobs available locally  2,491  |  Demand Locally  +3 %  |  Annual Wage Range  $46,144 \u2013 $116,298   \n---|---|---  \n  \nAnalyze and coordinate the ongoing logistical functions of a firm or\norganization. Responsible for the entire life cycle of a product, including\nacquisition, distribution, internal allocation, delivery, and final disposal\nof resources.\n\nJobs available locally  2,491  |  Demand Locally  +3 %  |  Annual Wage Range  $46,144 \u2013 $116,298   \n---|---|---  \n  \n[ ](/pac/) [ Academics ](/pac/academics/) [ Search Programs\n](/pac/academics/search-programs/) [ Career and Technical ]() ...  Logistics\nand Supply Chain Management\n\n[ Academics ](/pac/academics/)\n\n[ Search Programs ](/pac/academics/search-programs/)\n\n[ Career and Technical ]()\n\nProgram Level:\n\nDegrees, Online, Certificates\n\nProgram Type:\n\nFace-to-Face, Fully Online\n\nDepartment:\n\nCareer and Technical\n\nInstitute:\n\nAdvanced Manufacturing & Logistics\n\nCollege:\n\nPAC\n\n##  What is the logistics program?\n\nLogistics is the movement of supplies, materials, and people from one place to\nanother to satisfy corporate and consumer requirements. It includes inventory\nmanagement, transportation, quality control, purchasing, operations\nmanagement, and much more. The supply chain consists of the organizations, raw\nmaterials producers, factories, wholesalers, distributors, and retailers that\nprocess the flow of products to the customer. All companies rely on logistics\nprofessionals to keep their inventory moving.  Logistics is critical to a\nhealthy world economy, even when the world isn't in crisis. It was critical\nfor the world to get through the pandemic. The global logistics sector,\ncurrently valued at over $8.6 trillion, moves hundreds of billions of dollars\nin freight every year. Now, as new technologies evolve and change what\nlogistics work entails, it is more important than ever to develop this\ncritical skill set.  Logistics and Supply Chain Management is one of the most\nexciting career fields, according to the U.S. News and World Report. With Palo\nAlto College's 60-hour degree, certificates, and occupational skills award,\nyou could be well on your way to one of the world's most rewarding and stable\ncareers.  \n---  \n  \n###  Logistics Program Highlights\n\nThe program covers the foundational areas of logistics and supply chain,\ndeveloping students' critical thinking and problem-solving skills. Students\nlearn negotiation tactics and gain exposure to supply chain analytics, both\nhighly sought-after skills by employers.\n\nProgram features:\n\n  * Case Studies \n  * Industry-leading supply chain software \n  * Internship Opportunities \n  * Participation in national case study competitions \n  * Social Responsibility Activities \u2013 Socks and Jackets for the Homeless \n  * Transfer Agreement with Wayland Baptist University \u2013 Transfer 60 hours plus an additional 12 hours earned at Palo Alto College toward a Bachelor of Applied Science in Logistics and Supply Chain. \n\nIn 2022, 2023, and 2024, Palo Alto College\u2019s Logistics and Supply Chain\nManagement program was recognized by Intelligent.com as the third-ranked\nprogram in the nation with a totally online associate degree program. It was\nalso recognized by Supply Chain Edu as one of the best programs in Texas.\n\n###  Logistics Careers & Employment\n\n**Transportation** \u2013 Dispatcher, Traffic or Freight Manager, Dispatch\nSupervisor, or Load Planners, Rail Operations & Planning Specialist Route\nManagers\n\n**Warehousing/Distribution** \u2013 Supervisor Warehouse Combo, Inventory\nSpecialist, Warehouse Supervisor, Dock Coordinator, Materials Manager\n\n**Manufacturing** \u2013 Production Manager, Operations Supervisor, Operations\nManager, Quality Assurance Technician\n\n**Purchasing** \u2013 Buyer Expediter, Customer Service Supervisor, Entry-Level\nBuyer\n\n###  **Why get a degree in Logistics?**\n\nJobs are available at every educational level, and a degree or certificate can\noften make a difference in securing that next great opportunity. Individuals\nwith a college degree can earn over $60,000 annually, and Senior logistics\nmanagers can earn over $700,000 annually.\n\nThe projected growth for logisticians in Texas is 48% through 2032, which is\nmuch faster than the national average for the U.S. at 18%.\n\n(Bureau of Labor Statistics [ 2022-2032 employment projections\n](https://www.bls.gov/emp/) )\n\nDegrees and Certificates Offered\n\n[ Logistics and Supply Chain Management, A.A.S. \u2666 ](https://mypaccatalog.alamo.edu/preview_program.php?catoid=271&poid=50144&returnto=21126) |  [ Logistics Management Level 1 Certificate \u2666 ](https://mypaccatalog.alamo.edu/preview_program.php?catoid=271&poid=50145) [ Supply Chain Management Level 2 Certificate \u2666 ](https://mypaccatalog.alamo.edu/preview_program.php?catoid=271&poid=54127&returnto=21126) [ Transportation Management Occupational Skills Award \u2666 ](https://mypaccatalog.alamo.edu/preview_program.php?catoid=271&poid=50154) [ Warehouse Management Level 1 Certificate \u2666 ](https://mypaccatalog.alamo.edu/preview_program.php?catoid=271&poid=50158)  \n---|---  \n  \n\u2666 This symbol indicates the offering is also [ **available fully online**\n](/link/6e95eaaa3e9640da96e27fb7ea1c8c96.aspx) .\n\nAdvisory Committee Members\n\nErica Borrego, _San Antonio Food Bank_  \nNicholas Wingerter, _Truck Safety #1_  \nPaul Easley, _Southwest Research_  \nLisa Andrade Gonima, _Del Rey Express_  \nRic Coons, _Health Trust_  \nJoe Wright, _Continental Corporation_  \nJohnny Bartelle, _University Health Science Center_  \nDiana Corteras, _Dollar General_  \nAndrea Alfaro, _NuStar Energy_  \nCynthia Johnson, _Wal-Mart Distribution Center_  \nMaria D. Garcia, _CPS Energy_  \nChester Teel, _US Department of the Air Force_  \nRoxana Vargas, _C.H. Robinson_\n\n###  Contact Information\n\nCynthia Galvan  Academic Program Director  |  [ cgalvan110@alamo.edu ](mailto:cgalvan110@alamo.edu) [ 210-486-3920 ](tel:210-486-3920) |   \n---|---|---  \nJuan Flores  Academic Program Lead  |  [ jflores1592@alamo.edu ](mailto:jflores1592@alamo.edu) [ 210-486-3087 ](tel:210-486-3087) |  Rio Grande 181D   \nChristina Barrera  Certified Student Advisor  |  [ cbarrera96@alamo.edu ](mailto:cbarrera96@alamo.edu) [ 210-486-3342 ](tel:210-486-3342) |  Rio Grande 106A   \nNicole Martinez  Administrative Services Specialist  |  [ nmartinez38@alamo.edu ](mailto:nmartinez38@alamo.edu) [ 210-486-3355 ](tel:210-486-3355) |  San Jacinto   \n  \n[ ](/readytowork/) |  [ ](/readytowork/) |  One or more of these programs are approved **_Ready to Work_ ** programs. Find out if you\u2019re eligible to receive free tuition and job placement services that will enable you to secure an in-demand career. [ **Don\u2019t wait; apply today!** ](/readytowork/) [ Click Here for More Information! ](/readytowork/ \"Get More Information about the Ready to Work Program\")  \n---|---|---  \n  \n[ ](/pac/)\n\n1400 W. Villaret Blvd  \nSan Antonio, Texas  78224\n\n[ Contact Us ](/pac/contact-pac/ \"Contact Us\")\n\n###  Campus Resources\n\n  * [ Employees ](/pac/employees/)\n  * [ Contact Us ](/pac/contact-pac/)\n  * [ Online Syllabus ](https://alamo.simplesyllabus.com/)\n  * [ Facility Rentals ](/pac/employees/facility-rentals/)\n\n###  Get Involved\n\n  * [ PAC Cares ](/pac/about-pac/pac-cares/)\n  * [ Mental Health Counseling ](/pac/experience-pac/campus-life/campus-resources/share-center/counseling-services/)\n  * [ Sitemap ](/pac/sitemap/)\n  * [ Visit PAC ](/pac/contact-pac/visit-pac/)\n\n###  Learn More\n\n  * [ Jobs at Palo Alto College ](/pac/employees/employment/)\n\n\u00a9  Copyright 2025 Palo Alto College\n\n  * [ Facebook  ](https://www.facebook.com/paloaltocollege?ref=mf)\n  * [ Twitter  ](https://twitter.com/pacpr)\n  * [ YouTube  ](https://www.youtube.com/channel/UCLbLfHzEoRtvonx3PiRNZlw)\n  * [ Instagram  ](https://www.instagram.com/paloaltocollege/)\n\n",
                "url": "https://www.alamo.edu/pac/academics/search-programs/professional-and-technical/logistics/"
            },
            "reason": "This page describes a logistics program at Alamo Colleges District, which is relevant to understanding educational opportunities in the field. However, it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page describes a logistics program at Alamo Colleges District.",
            "url": "https://www.alamo.edu/pac/academics/search-programs/professional-and-technical/logistics/"
        },
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                    "source": "https://normative.io/insight/upstream-downstream-emissions/"
                },
                "page_content": "Enable JavaScript and cookies to continue\n\n",
                "url": "https://normative.io/insight/upstream-downstream-emissions/"
            },
            "reason": "This page discusses upstream and downstream emissions, which is relevant to understanding environmental impact in a value chain. However, it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page discusses upstream and downstream emissions.",
            "url": "https://normative.io/insight/upstream-downstream-emissions/"
        },
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                    "source": "https://www.sanctions.io/blog/how-to-perform-a-sanctions-check-a-comprehensive-guide"
                },
                "page_content": "[ ](/)\n\n[ Login  ](https://api.sanctions.io/users/login/) [ Book a Call\n](https://calendly.com/sanctions-io/30min)\n\n[ Blog  ](/blog)\n\nSanctions Compliance\n\n#  Performing Sanctions Checks: A Comprehensive Guide\n\nPerforming sanctions checks is crucial for regulatory compliance and risk\nmitigation. This comprehensive guide outlines the process and best practices.\n\nEditorial Team\n\n,\n\nApril 18, 2024\n\nPerforming a sanctions check is a crucial step for businesses and financial\ninstitutions to ensure compliance with global regulations and avoid engaging\nwith sanctioned individuals or entities.\n\nThis comprehensive guide outlines the process and best practices for\nconducting effective sanctions screening.\n\n##  **What Are Sanctions?**\n\nSanctions are a form of punitive measure that are typically imposed by\ngovernments or international organizations on countries, entities, or\nindividuals that have violated certain laws or regulations.\n\nThe nature of sanctions can range from financial restrictions, such as\nfreezing assets or limiting access to financial markets, to trade bans that\nprohibit the import or export of certain goods. In more severe cases,\nsanctions can even include military action.\n\nRegardless of their form, sanctions are a powerful tool used by nations and\ninternational bodies to maintain order and stability in the global arena.\n\n###  **Why Are Sanctions Implemented?**\n\nSanctions are implemented as a strategic tool by governments and international\norganizations to exert pressure on entities that violate international laws or\nregulations. The primary objective of these sanctions is to exert pressure on\nthe offending party, compelling them to comply with the established norms and\nregulations.\n\nThe imposition of sanctions is often driven by political and economic\nconflicts between nations. For instance, a country may impose sanctions on\nanother to express disapproval over political differences and exert diplomatic\npressure.\n\nSanctions can also be used as a response to trade disputes or to prevent the\nflow of financial resources to entities deemed a threat to international\nsecurity or stability.\n\n##  **Types of Sanctions**\n\n###  **Economic Sanctions**\n\n  * **Trade Embargoes** : Restrict or prohibit trade with a specific country or region. This can include limitations on imports, exports, and financial transactions. \n  * **Asset Freezes** : Freeze the assets or financial resources of targeted individuals, entities, or governments, preventing them from accessing funds held in banks or other financial institutions. \n  * **Financial Sanctions** : Restrict access to international financial markets, such as prohibiting transactions involving specific currencies, financial instruments, or banking services. \n\n###  **Military Sanctions**\n\n  * **Arms Embargoes** : Prohibit the sale, transfer, or export of military equipment, weapons, or technology to a specific country or entity. \n  * **Military Intervention** : Use military force or threats of military action to enforce compliance with sanctions or address security threats posed by the targeted party. \n\n###  **Targeted Sanctions**\n\n  * **Individual Sanctions** : Impose travel bans, asset freezes, or other restrictions on specific individuals or entities deemed responsible for human rights abuses, corruption, or other illicit activities. \n  * **Sectoral Sanctions** : Target specific sectors of the economy, such as energy, finance, or technology, with restrictions on trade, investment, or technology transfer. \n\n###  **Diplomatic Sanctions**\n\n  * **Diplomatic Isolation** : Reduce or sever diplomatic relations with a targeted country, including recalling ambassadors, closing embassies, or imposing travel restrictions on diplomats. \n  * **Expulsion of Diplomats** : Expel diplomats or officials from the targeted country's embassy or consulate in response to perceived violations of international norms or agreements. \n\n##  **What Is a Sanctions List?**\n\n[ Sanctions lists ](https://www.sanctions.io/blog/what-is-a-sanctions-list)\nare official compilations of individuals, entities, organizations, and\ncountries identified by governments or international bodies as subject to\nvarious sanctions. These lists are part of regulatory efforts to control the\nbehavior of the listed parties due to their involvement in activities deemed\nunacceptable, such as terrorism, narcotics trafficking, arms proliferation,\nhuman rights abuses, and other threats to international peace and security.\n\n##  **Why Do Companies Need to Screen for Sanctions and Politically Exposed\nPersons (PEPs)?**\n\n###  **Compliance with Regulations**\n\nMany countries have strict regulations in place to prevent [ money laundering\n](https://www.sanctions.io/blog/us-treasury-2024-national-money-laundering-\nrisk-assessment-key-takeaways) , terrorist financing, and corruption.\nScreening for sanctions and PEPs helps companies comply with [ Anti-Money\nLaundering (AML) regulations ](https://www.sanctions.io/blog/anti-money-\nlaundering-aml-procedures-explained) . Non-compliance can result in severe\npenalties, including hefty fines and legal repercussions.\n\nFor instance, the [ Financial Action Task Force ](https://www.fatf-\ngafi.org/en/home.html) (FATF) provides recommendations to combat money\nlaundering and terrorist financing, and screening for PEPs is one of the\nmeasures recommended.\n\n###  **Risk Management**\n\nDealing with sanctioned individuals or entities can expose a company to\nsignificant legal, financial, and reputational risks. Similarly, engaging with\npolitically exposed persons, who may have access to public funds or hold\ninfluential positions, can pose risks related to corruption and bribery.\n\nSanction and PEP screening help mitigate these risks by identifying such\nindividuals before entering into business relationships or transactions with\nthem.\n\n###  **Reputation Protection**\n\nA single association with an individual or entity involved in illicit\nactivities can tarnish a company's reputation, leading to a loss of customer\ntrust and potentially devastating financial consequences. Any negative\npublicity resulting from non-compliance with regulations or involvement with\ndubious entities can harm a company's brand image.\n\nBy conducting thorough sanction and PEP checks, companies can proactively\nsafeguard their reputation.\n\n##  **When Should Companies Conduct Sanctions Screening?**\n\n  * Customer Onboarding \n  * Transaction Screening \n  * Supplier and Vendor Due Diligence \n  * Employee Background Checks \n  * Mergers and Acquisitions (M&A) \n  * Periodic Reviews and Audits \n  * Ad Hoc Screening \n\n##  **How To Perform a Sanctions Check**\n\nHere's a step-by-step guide on how to perform a sanctions check:\n\n  1. Gather relevant information about the individuals, entities, vessels, or countries involved in the transaction or business relationship. \n  2. Obtain access to relevant sanctions lists from government agencies, international organizations, and regulatory authorities. \n  3. Integrate sanctions screening into the company's operational systems, such as customer onboarding processes, transaction monitoring systems, and payment processing platforms. \n  4. Use name-matching algorithms to compare the names of individuals, entities, vessels, and countries against the sanctions lists. \n  5. If a potential match is identified during the screening process, the system generates an alert to notify compliance personnel. \n  6. Compliance personnel review the alerts generated by the screening system to determine whether a true match exists. If a true match is confirmed, take appropriate action in accordance with internal policies and regulatory requirements. \n  7. Maintain detailed records of the screening activities, including the results of screenings, any alerts generated, and the actions taken to address potential matches. \n  8. Generate reports summarizing the screening activities for internal use and to demonstrate compliance with regulations to external stakeholders, such as regulators and auditors. \n  9. Continuously monitor sanctions lists for updates, including new sanctions, modifications to existing sanctions, and delistings. \n\n##  **Challenges in Sanction Checking**\n\n  * **Complexity of Sanctions Lists** : Sanctions lists can be extensive and complex, with multiple jurisdictions imposing sanctions for different reasons. Keeping track of these lists and ensuring they are up-to-date can be challenging, especially for multinational companies operating in multiple jurisdictions. \n  * **Variability in Data Quality** : The quality of data available for screening can vary significantly. Names may be misspelled, aliases may be used, and identifying information may be incomplete or inaccurate. This variability can lead to false positives or false negatives during the screening process.   \n_Recommended reading:_ [ _How to Reduce False Positives in AML Systems_\n](https://www.sanctions.io/blog/how-to-reduce-false-positives-in-aml-systems)\n\n  * **Volume of Transactions** : Companies with high transaction volumes may face challenges in processing sanctions checks efficiently and in a timely manner. Screening every transaction in real time can strain resources and potentially impact operational efficiency. \n  * **Resource Constraints** : Companies may lack the necessary resources, including skilled personnel and advanced technology, to effectively perform sanctions checks. Limited budgets, competing priorities, and resource constraints can hinder the implementation of robust sanctions screening processes. \n  * **Timeliness of Updates** : Sanctions lists are frequently updated to reflect new sanctions, modifications to existing sanctions, and delistings. Ensuring that screening systems are updated promptly to reflect these changes and that screening processes are conducted in real-time can be challenging. \n\n##  **Sanctions Screening Solutions**\n\nSeveral sanctions screening solutions are available to help companies\nefficiently and effectively comply with sanctions regulations and mitigate\nrisks associated with engaging with sanctioned individuals, entities, vessels,\nor countries.\n\n###  **Sanctions Screening Software**\n\nDedicated sanctions screening software solutions are designed to automate the\nscreening process and efficiently identify potential matches against sanctions\nlists. These solutions often utilize advanced name-matching algorithms, real-\ntime screening capabilities, and customizable risk scoring to enhance accuracy\nand reduce false positives.\n\n###  **Compliance Platforms**\n\nComprehensive compliance platforms offer integrated solutions for sanctions\nscreening, anti-money laundering (AML) compliance, [ know your customer (KYC)\n](https://www.sanctions.io/blog/what-is-kyc-and-why-does-it-matter) processes,\nand other regulatory requirements. These platforms typically provide\ncentralized data management, configurable workflows, and reporting\ncapabilities to streamline compliance operations.\n\n###  **Risk-Based Approach**\n\nA risk-based approach to sanction checking involves prioritizing high-risk\ntransactions, customers, and geographic regions. By allocating resources and\napplying enhanced due diligence measures where the risk of sanctions\nviolations is highest, companies can safeguard their operations against\npotential sanctions-related consequences.\n\n##  **How** [ **sanctions.io** ](http://sanctions.io) **Can Help**\n\nThe service offered by [ sanctions.io ](http://sanctions.io) allows clients to\naccess our _sanctions database,_ which pools global sanctions lists together\ninto one digital asset. For example, [ sanctions.io ](http://sanctions.io) 's\ndeveloper-friendly database contains all the significant international\nsanctions lists from countries such as Australia, Canada, Switzerland, France,\nthe UAE, and many more. Additional lists are always available on demand.\u00c2\n\n[ sanctions.io ](http://sanctions.io) is a highly reliable and cost-effective\nsolution for sanction checking. AI-powered and with an enterprise-grade API\nwith 99.99% uptime are reasons why customers globally trust us with their [\nsanctions screening ](https://www.sanctions.io/blog/sanctions-screening-guide)\nneeds.\u00c2\n\nTo learn more about how our sanctions, PEP, and criminal watchlist screening\nservice can support your organization: [ **Book a free Discovery Call**\n](https://calendly.com/sanctions-io/30min?month=2023-11) .\n\nWe also encourage you to **take advantage** of our [ **free 7-day trial**\n](https://api.sanctions.io/users/signup/) (no credit card is required).\n\n\u00e2\u0080\u008d\n\nNew Sanctions Screening Guide\n\nDownload our FREE Sanctions Screening Guide and learn how to set up an\neffective sanctions screening process in your organization.\n\n[ Download Now  ](https://www.sanctions.io/resources/sanctions-screening-\nguide) Download Now\n\nNew Case Study\n\nDiscover how technology companies streamline global sanctions compliance with\nsanctions.io\n\n[ Download Now  ](/resources/data-world-case-study) Download Now\n\nEditorial Team\n\nThis article was put together by the sanctions.io expert editorial team.\n\nTable of contents\n\nExample H2\n\nExample H3\n\nExample H4\n\nExample H5\n\nExample H6\n\nEnjoyed this read?\n\nSubscribe to our Newsletter right now and never miss again any new Articles,\nGuides and more useful content for your AML and Sanctions compilance.\n\nSuccess! Your email has been successfully registered for our newsletter.\n\nOops! Something went wrong while submitting the form.\n\nsanctions.io Inc.\n\n19266 Coastal Hwy, Unit 4-643 Rehoboth Beach, DE 19971 United States\n\n[ (415) 851-6951 ](tel:+14158516951)\n\nSOC2 / GDPR compliant\n\nproduct\n\n[ Sanctions Screening ](/data/sanctions-lists) [ PEP\u00c2 Screening ](/data/pep-\ndata) [ Criminal Watchlists ](/data/criminal-watchlists) [ Adverse Media\n](/solutions/screening-api) [ Automated Screening ](/solutions/screening-api)\n[ Manual Screening ](/solutions/manual-screening) [ SAP\u00c2\u00ae Integration\n](/solutions/sanctions-screening-for-sap) [ BigID\u00c2\u00ae Integration\n](/solutions/sanctions-screening-for-bigid)\n\nIndustry\n\n[ FinTech ](/industries/fintech) [ InsurTech ](/industries/insurtech) [ Crypto\n](/industries/crypto) [ SaaS ](/industries/saas) [ Retail / e-commerce\n](/industries/retail) [ Manufacturing ](/industries/manufacturing) [\nProfessional Services ](/industries/professional-services) [ NGOs\n](/industries/ngo)\n\nCompany\n\n[ About Us ](/about-us) [ Terms & Conditions\n](https://support.sanctions.io/article/27-terms-conditions) [ Privacy Notice\n](https://support.sanctions.io/article/29-privacy-notice) [ Disclaimer\n](https://support.sanctions.io/article/31-disclaimer) [ Trust Center\n](https://app.sprinto.com/trust-\ncenter/view/b4850144-f428-4fe2-8d50-86cfc401e7ba)\n\nRESOURCES\n\n[ Help Center ](https://support.sanctions.io/) [ Implementation Guide\n](https://support.sanctions.io/category/12-implementation) [ Blog ](/blog)\n\n\u00c2\u00a9 2025 sanctions.io / AML Screening. Simple. Reliable. Cost-effective.\n\n[ ](https://www.linkedin.com/company/sanctions-io-llc) [\n](https://twitter.com/sanctions_io)\n\n",
                "url": "https://www.sanctions.io/blog/how-to-perform-a-sanctions-check-a-comprehensive-guide"
            },
            "reason": "This page provides a guide on performing sanctions checks, which is relevant to regulatory compliance. However, it's a blog post from a company offering sanctions screening services, introducing a potential for bias. It does not explicitly mention Trafic.",
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            "search_query": "company 'Trafic' risk regulatory compliance",
            "summary": "This page provides a guide on performing sanctions checks, which is relevant to regulatory compliance. However, it's a blog post from a company offering sanctions screening services, introducing a potential for bias. It does not explicitly mention Trafic.",
            "url": "https://www.sanctions.io/blog/how-to-perform-a-sanctions-check-a-comprehensive-guide"
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                    "resource_type": "webpage",
                    "source": "https://learn.microsoft.com/en-us/dynamics365/supply-chain/transportation/transportation-management-overview"
                },
                "page_content": "Read in English  [ ](https://github.com/MicrosoftDocs/Dynamics-365-Unified-\nOperations-Public/blob/main/articles/supply-\nchain/transportation/transportation-management-overview.md \"Edit This\nDocument\")\n\nRead in English  [ Edit\n](https://github.com/MicrosoftDocs/Dynamics-365-Unified-Operations-\nPublic/blob/main/articles/supply-chain/transportation/transportation-\nmanagement-overview.md \"Edit This Document\")\n\n* * *\n\n####  Share via\n\nFacebook  x.com  LinkedIn  Email\n\n* * *\n\n* * *\n\nNote\n\nAccess to this page requires authorization. You can try  signing in  or\nchanging directories  .\n\nAccess to this page requires authorization. You can try  changing directories\n.\n\n#  Transportation management overview\n\n  * Article \n  * 2024-11-06 \n  * \n\nThis article gives an overview of the transportation management functionality\nin Supply Chain Management.\n\nTransportation management lets you use your company\u00e2\u0080\u0099s transportation, and\nalso lets you identify vendor and routing solutions for inbound and outbound\norders. For example, you can identify the fastest route or the least expensive\nrate for a shipment. The following table describes the main scenarios for\nusing Transportation management.\n\nScenario  |  How Transportation management can help   \n---|---  \nUse external logistics providers for transportation activities.  |  Use Transportation management for inbound and/or outbound transportation.   \nThe company's own fleet is available for delivery/pickup, and delivery charges are passed on to customers.  |  For the outbound processes, you can use Transportation management to determine the transportation charges and pass them on to customers. However, the carrier invoice reconciliation process isn't required.   \nThe company's own fleet is available for delivery/pickup, but delivery charges aren't passed on to customers, because product prices include transportation.  |  Many of the settings and features of Transportation management aren't required. However, you can use Transportation management to determine the transportation rates and adjust the sales price accordingly.   \nLogistics service is provided by another legal entity in the same company.  |  You can use Transportation management by treating the other legal entity like any other shipping carrier. You can't automate the economic transactions between legal entities. Therefore, you must handle these transactions manually (for example, by creating a purchase order).   \n  \nIn the legal entity that provides the logistics services, Transportation\nmanagement can be used to determine transportation rates.  \n  \n##  Planning transportation in Supply Chain Management\n\nIn Transportation management, transportation planning can be based either on\norders or on the shipments that are created based on those orders. The\nshipments always exist at some point in time but aren't required for\ntransportation planning. Transfer orders are part of the outbound scenario and\ncan be planned together with sales orders.\n\n##  Inbound transportation\n\nWhen you order items from a vendor, and the items must be delivered to your\nwarehouse, you might want to arrange the transport of the items yourself. You\ncan use Supply Chain Management to plan the transportation and receipt of the\ninbound load. The following illustration shows the business process flow for\nplanning transportation for an inbound load.\n\n##  Outbound transportation\n\nYou can plan and process an outbound load to ship specific items from a\ncompany\u00e2\u0080\u0099s warehouse to a customer. You can use Supply Chain Management to\nplan the transportation and shipping of an outbound load. The following\nillustration shows the business process flow for planning and processing\noutbound loads for shipping.\n\n##  Load building\n\nSupply Chain Management provides a load building strategy that is named the\nVolume-based load building strategy. This strategy lets you use the maximum\nvalues that are specified for height and weight in the load template, or you\ncan override the settings by entering new values. To use this strategy, select\nit in the **Load building strategy** field on the **Setup** FastTab on the\n**Load building workbench** page. In addition, you can add your own load-\nbuilding strategies by creating a new class in the Application Object Tree\n(AOT).\n\n##  White papers\n\nThe following white papers explore various aspects of transportation\nmanagement in Dynamics 365 Supply Chain Management:\n\n  * [ Transportation management engines ](https://download.microsoft.com/download/e/0/9/e0957665-c12f-43c7-94c0-611cc49d7d61/TransportationManagementEnginesInAX.pdf)\n  * [ Implementing and deploying Transportation management engines ](https://download.microsoft.com/download/b/5/f/b5ff8fef-3918-4c1d-92d5-b67eb0971684/ImplementingAndDeployingTransportationManagementEnginesInAX.pdf)\n\n* * *\n\n##  Feedback\n\nWas this page helpful?\n\n[ Provide product feedback  ](https://ideas.dynamics.com)\n\n* * *\n\n##  Additional resources\n\nen-us\n\n[ Your Privacy Choices  ](https://aka.ms/yourcaliforniaprivacychoices)\n\n  *   *   * \n\n  *   * [ Previous Versions ](https://learn.microsoft.com/en-us/previous-versions/)\n  * [ Blog ](https://techcommunity.microsoft.com/t5/microsoft-learn-blog/bg-p/MicrosoftLearnBlog)\n  * [ Contribute ](https://learn.microsoft.com/en-us/contribute)\n  * [ Privacy ](https://go.microsoft.com/fwlink/?LinkId=521839)\n  * [ Terms of Use ](https://learn.microsoft.com/en-us/legal/termsofuse)\n  * [ Trademarks ](https://www.microsoft.com/legal/intellectualproperty/Trademarks/)\n  * \u00a9 Microsoft 2025 \n\n",
                "url": "https://learn.microsoft.com/en-us/dynamics365/supply-chain/transportation/transportation-management-overview"
            },
            "reason": "This page provides an overview of transportation management in Microsoft Dynamics 365, which is relevant to understanding technology solutions in logistics. However, it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page provides an overview of transportation management in Microsoft Dynamics 365.",
            "url": "https://learn.microsoft.com/en-us/dynamics365/supply-chain/transportation/transportation-management-overview"
        },
        {
            "content": {
                "metadata": {
                    "ext_id": "4a2d227d-5b32-42ac-bac2-bd104aa304c2",
                    "origin": "public",
                    "resource_location": "web",
                    "resource_type": "webpage",
                    "source": "https://catalog.ncsu.edu/undergraduate/management/business/business-administration-bs-operations-supply-chain-management/"
                },
                "page_content": "[ EXPLORE PROGRAMS ](/find-your-program/#filter=.filter_3) [ APPLY\n](https://admissions.ncsu.edu/apply/)\n\n#  Business Administration (BS): Operations/Supply Chain Management\n\nThe field of operations and supply chain management focuses on creating\nefficiencies in an organization\u2019s global \u201csupply chain\u201d \u2013 the network of\ninterconnected businesses and activities involved in getting the\norganization\u2019s products or services to the end users. Supply chain management\nspans the sourcing of raw materials and components, their movements and\nstorage, work-in-process inventory, and finished goods/services from point-of-\norigin to point-of-consumption. The focus is improving the way the\norganization coordinates and integrates these \u201cflows\u201d within and among\norganizations.\n\n##  Curriculum Overview\n\nStudents concentrating in operations and supply chain learn how to develop and\nevaluate business processes, perform strategic and tactical supply chain\nplanning, and manage the activities and resources that transform inputs into\nfinished goods and services.\n\nThe operations and supply chain concentration is designed to prepare students\nin the following areas:\n\n  * Knowledge of how goods, services, finances and information flow through the supply chain \n  * Analysis and resolution of customer and supplier business problems \n  * Analysis and improvement of business processes to improve customer satisfaction and business performance \n  * Understanding of how to link suppliers, internal customers, and external customers to create value \n  * Resolution of real-world supply chain problems through project work with partner companies in the [ Supply Chain Resource Cooperative ](https://scm.ncsu.edu/)\n\n##  Contact\n\n**Business Management**  \nPoole College of Management  \n2300 Nelson Hall  \nRaleigh, NC 27695  \n919.515.5565  \n[ Website ](https://poole.ncsu.edu/business-management/)\n\n[ Jonathan Bohlmann ](https://poole.ncsu.edu/people/jdbohlma/)  \nDepartment Head  \nProfessor of Marketing and Innovation\n\n##  Plan Requirements\n\nOverall GPA _for all courses_ attempted at NC State must be 2.0 or higher; and  \nOverall GPA _for all BUS, MIE, and M courses_ attempted at NC State must be\n2.0 or higher.\n\nCourse List  Code  |  Title  |  Hours  |  Counts towards   \n---|---|---|---  \nHumanities and Social Sciences  |  |   \nAcad Writing Research  1  |  4  |   \nSelect one of the following:  |  3  |   \n[ COM 110 ](/search/?P=COM%20110 \"COM\u00a0110\") |  Public Speaking  |  |   \n[ COM 112 ](/search/?P=COM%20112 \"COM\u00a0112\") |  Interpersonal Communication  |  |   \n[ COM 211 ](/search/?P=COM%20211 \"COM\u00a0211\") |  Argumentation and Advocacy  |  |   \n[ PSY 200 ](/search/?P=PSY%20200 \"PSY\u00a0200\") |  Introduction to Psychology  |  3  |   \nSelect one of the following:  1  |  3  |   \n[ ARE 201 ](/search/?P=ARE%20201 \"ARE\u00a0201\") |  Introduction to Agricultural & Resource Economics  |  |   \n[ ARE 201A ](/search/?P=ARE%20201A \"ARE\u00a0201A\") |  Introduction to Agricultural & Resource Economics  |  |   \n[ EC 201 ](/search/?P=EC%20201 \"EC\u00a0201\") |  Principles of Microeconomics  |  |   \n[ EC 202 ](/search/?P=EC%20202 \"EC\u00a0202\") |  Principles of Macroeconomics  |  3  |   \nSelect one of the following:  |  3  |   \n[ ENG 331 ](/search/?P=ENG%20331 \"ENG\u00a0331\") |  Communication for Engineering and Technology  |  |   \n[ ENG 332 ](/search/?P=ENG%20332 \"ENG\u00a0332\") |  Communication for Business and Management  |  |   \n[ ENG 333 ](/search/?P=ENG%20333 \"ENG\u00a0333\") |  Communication for Science and Research  |  |   \n[ [ GEP Humanities ](/undergraduate/gep-category-requirements/gep-humanities/) ](/undergraduate/academic-degrees-programs/gep-category-requirements/gep-humanities/) |  6  |   \nStudents must also take one course from the Poole College of Management Ethics list (no credit hour requirement); If a student takes a PHI course to satisfy the Ethics requirement, it may double-count as the second humanities course provided the first course was not also a PHI course.  |  |   \n[ GEP Elective ](/undergraduate/gep-category-requirements/) |  3  |   \nSelect one of the following: (verify requirement)  |  |   \n[ MIE 306 ](/search/?P=MIE%20306 \"MIE\u00a0306\") |  Managing Ethics in Organizations  |  |   \n[ PHI 214 ](/search/?P=PHI%20214 \"PHI\u00a0214\") |  Issues in Business Ethics  |  |   \n[ PHI 221 ](/search/?P=PHI%20221 \"PHI\u00a0221\") |  Contemporary Moral Issues  |  |   \n[ PHI 313 ](/search/?P=PHI%20313 \"PHI\u00a0313\") |  Ethical Problems in the Law  |  |   \n[ PHI 375 ](/search/?P=PHI%20375 \"PHI\u00a0375\") |  Ethics  |  |   \n[ World Language Proficiency ](/undergraduate/gep-category-requirements/world-language-proficiency/) (verify requirement)  |  |   \nMathematical and Natural Sciences  |  |   \n[ [ GEP Natural Sciences ](/undergraduate/gep-category-requirements/gep-natural-sciences/) ](/undergraduate/academic-degrees-programs/gep-category-requirements/gep-natural-sciences/) |  7  |   \nSelect one of the following:  1  |  3  |   \n[ MA 131 ](/search/?P=MA%20131 \"MA\u00a0131\") or [ MA 141 ](/search/?P=MA%20141 \"MA\u00a0141\") are encouraged for students who qualify and aspire to take additional calculus. For students completing [ MA 141 ](/search/?P=MA%20141 \"MA\u00a0141\") , one credit of [ MA 141 ](/search/?P=MA%20141 \"MA\u00a0141\") will count as free elective credit.  |  |   \n[ MA 121 ](/search/?P=MA%20121 \"MA\u00a0121\") |  Elements of Calculus  |  |   \n[ MA 131 ](/search/?P=MA%20131 \"MA\u00a0131\") |  Calculus for Life and Management Sciences A  |  |   \n[ MA 141 ](/search/?P=MA%20141 \"MA\u00a0141\") |  Calculus I  |  |   \n[ MA 114 ](/search/?P=MA%20114 \"MA\u00a0114\") |  Introduction to Finite Mathematics with Applications  |  3  |   \nor [ MA 242 ](/search/?P=MA%20242 \"MA\u00a0242\") |  Calculus III  |   \nSelect one of the following:  1  |  3  |   \n[ BUS 350 ](/search/?P=BUS%20350 \"BUS\u00a0350\") |  Economics and Business Statistics  |  |   \n[ ST 350 ](/search/?P=ST%20350 \"ST\u00a0350\") |  Economics and Business Statistics  |  |   \n[ ST 312 ](/search/?P=ST%20312 \"ST\u00a0312\") |  Introduction to Statistics II  |  |   \n[ ST 370 ](/search/?P=ST%20370 \"ST\u00a0370\") |  Probability and Statistics for Engineers  |  |   \n[ ST 372 ](/search/?P=ST%20372 \"ST\u00a0372\") |  Introduction to Statistical Inference and Regression  |  |   \n[ BUS 351 ](/search/?P=BUS%20351 \"BUS\u00a0351\") |  Introduction to Business Analytics  |  3  |   \n[ ST 307 ](/search/?P=ST%20307 \"ST\u00a0307\") |  Introduction to Statistical Programming- SAS  |  1  |   \nor [ ST 308 ](/search/?P=ST%20308 \"ST\u00a0308\") |  Introduction to Statistical Programming - R  |   \nInterdisciplinary Perspectives  |  |   \n[ [ GEP Interdisciplinary Perspectives ](/undergraduate/gep-category-requirements/gep-interdisciplinary-perspectives/) ](/undergraduate/academic-degrees-programs/gep-category-requirements/gep-interdisciplinary-perspectives/) |  2  |   \nPhysical Education  |  |   \n[ [ GEP Health and Exercise Studies ](/undergraduate/gep-category-requirements/gep-health-exercise-studies/) ](/undergraduate/academic-degrees-programs/gep-category-requirements/gep-health-exercise-studies/) |  2  |   \nCorequisites  |  |   \n[ GEP Global Knowledge ](/undergraduate/gep-category-requirements/gep-global-knowledge/) (verify requirement)  |  |   \nMajor Requirements  |  |   \n[ M 100 ](/search/?P=M%20100 \"M\u00a0100\") |  Personal and Professional Identity Development  |  1  |   \n[ MIE 201 ](/search/?P=MIE%20201 \"MIE\u00a0201\") |  Introduction to Business Processes  |  3  |   \n[ ACC 210 ](/search/?P=ACC%20210 \"ACC\u00a0210\") |  Concepts of Financial Reporting  1  |  3  |   \n[ ACC 220 ](/search/?P=ACC%20220 \"ACC\u00a0220\") |  Introduction to Managerial Accounting  1  |  3  |   \n[ MIE 310 ](/search/?P=MIE%20310 \"MIE\u00a0310\") |  Introduction to Entrepreneurship  |  3  |   \n[ BUS 320 ](/search/?P=BUS%20320 \"BUS\u00a0320\") |  Financial Management  |  3  |   \n[ MIE 330 ](/search/?P=MIE%20330 \"MIE\u00a0330\") |  Human Resource Management  |  3  |   \n[ BUS 340 ](/search/?P=BUS%20340 \"BUS\u00a0340\") |  Information Systems Management  |  3  |   \n[ BUS 360 ](/search/?P=BUS%20360 \"BUS\u00a0360\") |  Marketing Methods  |  3  |   \n[ BUS 370 ](/search/?P=BUS%20370 \"BUS\u00a0370\") |  Operations and Supply Chain Management  |  3  |   \n[ MIE 305 ](/search/?P=MIE%20305 \"MIE\u00a0305\") |  Legal and Regulatory Environment  |  3  |   \n[ MIE 480 ](/search/?P=MIE%20480 \"MIE\u00a0480\") |  Business Policy and Strategy  |  3  |   \nConcentration  |  |   \n[ BUS 470 ](/search/?P=BUS%20470 \"BUS\u00a0470\") |  Operations Modeling and Analysis  |  3  |   \nSelect two of the following:  |  6  |   \n[ BUS 472 ](/search/?P=BUS%20472 \"BUS\u00a0472\") |  Operations Planning and Control Systems  |  |   \n[ BUS 474 ](/search/?P=BUS%20474 \"BUS\u00a0474\") |  Logistics Management  |  |   \n[ BUS 475 ](/search/?P=BUS%20475 \"BUS\u00a0475\") |  Purchasing and Supply Management  |  |   \nSelect one of the following:  |  3  |   \n[ ACC 420 ](/search/?P=ACC%20420 \"ACC\u00a0420\") |  Cost Accounting for Effective Management  |  |   \n[ BUS 472 ](/search/?P=BUS%20472 \"BUS\u00a0472\") |  Operations Planning and Control Systems  |  |   \n[ BUS 474 ](/search/?P=BUS%20474 \"BUS\u00a0474\") |  Logistics Management  |  |   \n[ BUS 476 ](/search/?P=BUS%20476 \"BUS\u00a0476\") |  Decision Modeling and Analysis  |  3  |   \n[ BUS 475 ](/search/?P=BUS%20475 \"BUS\u00a0475\") |  Purchasing and Supply Management  |  |   \n[ BUS 479 ](/search/?P=BUS%20479 \"BUS\u00a0479\") |  Supply Chain Management Undergraduate Practicum  |  |   \nFree Electives  |  |   \nFree Electives (12 Hr S/U Lmt)  2,3  |  22  |   \nTotal Hours  |  123  |   \n  \n1\n\n    \n\nC- or better\n\n2\n\n    \n\nStudents should consult their academic advisors to determine which courses\nfill this requirement.\n\n3\n\n    \n\nSome courses will not count as free electives, such as WL 101, or 105 (in the\nlanguage in which proficiency requirement is met), or MA 101, 103, 105. (12\nhours of free electives may be taken for credit only.)\n\n###  Acad Writing Research\n\nCourse List  Code  |  Title  |  Hours  |  Counts towards   \n---|---|---|---  \nAcad Writing Research  |  |   \n[ ENG 101 ](/search/?P=ENG%20101 \"ENG\u00a0101\") |  Academic Writing and Research  |  4  |   \n[ WLEN 101 ](/search/?P=WLEN%20101 \"WLEN\u00a0101\") |  Academic Writing and Research  |  4  |   \nTransfer Sequence  |  |   \n[ ENG 202 ](/search/?P=ENG%20202 \"ENG\u00a0202\") |  Disciplinary Perspectives in Writing  |  3  |   \nENG 1GEP  |  |  3  |   \n  \n##  Semester Sequence\n\nThis is a sample.\n\nPlan of Study Grid  First Year  \n---  \nFall Semester  |  Hours   \n[ M 100 ](/search/?P=M%20100 \"M\u00a0100\") |  Personal and Professional Identity Development  |  1   \n[ ENG 101 ](/search/?P=ENG%20101 \"ENG\u00a0101\") |  Academic Writing and Research (  or [ GEP Natural Sciences ](/undergraduate/gep-category-requirements/gep-natural-sciences/) with Lab  )  1  |  4   \nSelect one of the following:  1  |  3   \n[ MA 121 ](/search/?P=MA%20121 \"MA\u00a0121\") |  Elements of Calculus  |   \n[ MA 131 ](/search/?P=MA%20131 \"MA\u00a0131\") |  Calculus for Life and Management Sciences A  |   \n[ MA 141 ](/search/?P=MA%20141 \"MA\u00a0141\") |  Calculus I  |   \n[ MIE 201 ](/search/?P=MIE%20201 \"MIE\u00a0201\") |  Introduction to Business Processes  |  3   \n[ [ GEP Health and Exercise Studies ](/undergraduate/gep-category-requirements/gep-health-exercise-studies/) ](/undergraduate/academic-degrees-programs/gep-category-requirements/gep-health-exercise-studies/) |  1   \nFree Elective  |  3   \n|  Hours  |  15   \nSpring Semester  \n[ MA 114 ](/search/?P=MA%20114 \"MA\u00a0114\")  \nor [ MA 242 ](/search/?P=MA%20242 \"MA\u00a0242\") |  Introduction to Finite Mathematics with Applications   \nor Calculus III  |  3   \n[ COM 110 ](/search/?P=COM%20110 \"COM\u00a0110\")  \nor [ COM 112 ](/search/?P=COM%20112 \"COM\u00a0112\")  \nor [ COM 211 ](/search/?P=COM%20211 \"COM\u00a0211\") |  Public Speaking   \nor Interpersonal Communication  \nor Argumentation and Advocacy  |  3   \n[ ENG 101 ](/search/?P=ENG%20101 \"ENG\u00a0101\") |  Academic Writing and Research (  or [ GEP Natural Sciences ](/undergraduate/gep-category-requirements/gep-natural-sciences/) with Lab  )  1  |  4   \n[ EC 201 ](/search/?P=EC%20201 \"EC\u00a0201\")  \nor [ ARE 201 ](/search/?P=ARE%20201 \"ARE\u00a0201\") |  Principles of Microeconomics  1    \nor Introduction to Agricultural & Resource Economics  |  3   \n[ ACC 210 ](/search/?P=ACC%20210 \"ACC\u00a0210\") |  Concepts of Financial Reporting  1  |  3   \n|  Hours  |  16   \nSecond Year  \nFall Semester  \n[ ACC 220 ](/search/?P=ACC%20220 \"ACC\u00a0220\") |  Introduction to Managerial Accounting  1  |  3   \n[ [ GEP Humanities ](/undergraduate/gep-category-requirements/gep-humanities/) ](/undergraduate/academic-degrees-programs/gep-category-requirements/gep-humanities/) |  3   \n[ BUS/ST 350 ](/search/?P=BUS%20350 \"BUS/ST 350\") |  Economics and Business Statistics  1  |  3   \n[ [ GEP Natural Sciences ](/undergraduate/gep-category-requirements/gep-natural-sciences/) ](/undergraduate/academic-degrees-programs/gep-category-requirements/gep-natural-sciences/) |  3   \n[ EC 202 ](/search/?P=EC%20202 \"EC\u00a0202\") |  Principles of Macroeconomics  |  3   \n[ [ GEP Health and Exercise Studies ](/undergraduate/gep-category-requirements/gep-health-exercise-studies/) ](/undergraduate/academic-degrees-programs/gep-category-requirements/gep-health-exercise-studies/) |  1   \n|  Hours  |  16   \nSpring Semester  \nSelect three of the following:  |  9   \n[ BUS 320 ](/search/?P=BUS%20320 \"BUS\u00a0320\") |  Financial Management  |   \n[ BUS 340 ](/search/?P=BUS%20340 \"BUS\u00a0340\") |  Information Systems Management  |   \n[ BUS 360 ](/search/?P=BUS%20360 \"BUS\u00a0360\") |  Marketing Methods  |   \n[ BUS 370 ](/search/?P=BUS%20370 \"BUS\u00a0370\") |  Operations and Supply Chain Management  |   \n[ MIE 305 ](/search/?P=MIE%20305 \"MIE\u00a0305\") |  Legal and Regulatory Environment  |   \n[ MIE 310 ](/search/?P=MIE%20310 \"MIE\u00a0310\") |  Introduction to Entrepreneurship  |   \n[ MIE 330 ](/search/?P=MIE%20330 \"MIE\u00a0330\") |  Human Resource Management  |   \n[ PSY 200 ](/search/?P=PSY%20200 \"PSY\u00a0200\") |  Introduction to Psychology  |  3   \n[ GEP Elective ](/undergraduate/gep-category-requirements/) |  3   \n[ ST 307 ](/search/?P=ST%20307 \"ST\u00a0307\")  \nor [ ST 308 ](/search/?P=ST%20308 \"ST\u00a0308\") |  Introduction to Statistical Programming- SAS   \nor Introduction to Statistical Programming - R  |  1   \n|  Hours  |  16   \nThird Year  \nFall Semester  \nSelect two of the following:  |  6   \n[ BUS 320 ](/search/?P=BUS%20320 \"BUS\u00a0320\") |  Financial Management  |   \n[ BUS 340 ](/search/?P=BUS%20340 \"BUS\u00a0340\") |  Information Systems Management  |   \n[ BUS 360 ](/search/?P=BUS%20360 \"BUS\u00a0360\") |  Marketing Methods  |   \n[ BUS 370 ](/search/?P=BUS%20370 \"BUS\u00a0370\") |  Operations and Supply Chain Management  |   \n[ MIE 305 ](/search/?P=MIE%20305 \"MIE\u00a0305\") |  Legal and Regulatory Environment  |   \n[ MIE 310 ](/search/?P=MIE%20310 \"MIE\u00a0310\") |  Introduction to Entrepreneurship  |   \n[ MIE 330 ](/search/?P=MIE%20330 \"MIE\u00a0330\") |  Human Resource Management  |   \nSelect one of the following:  |  3   \n[ ENG 331 ](/search/?P=ENG%20331 \"ENG\u00a0331\") |  Communication for Engineering and Technology  |   \n[ ENG 332 ](/search/?P=ENG%20332 \"ENG\u00a0332\") |  Communication for Business and Management  |   \n[ ENG 333 ](/search/?P=ENG%20333 \"ENG\u00a0333\") |  Communication for Science and Research  |   \nFree Electives  |  6   \n|  Hours  |  15   \nSpring Semester  \nSelect two of the following:  |  6   \n[ BUS 320 ](/search/?P=BUS%20320 \"BUS\u00a0320\") |  Financial Management  |   \n[ BUS 340 ](/search/?P=BUS%20340 \"BUS\u00a0340\") |  Information Systems Management  |   \n[ BUS 360 ](/search/?P=BUS%20360 \"BUS\u00a0360\") |  Marketing Methods  |   \n[ BUS 370 ](/search/?P=BUS%20370 \"BUS\u00a0370\") |  Operations and Supply Chain Management  |   \n[ MIE 305 ](/search/?P=MIE%20305 \"MIE\u00a0305\") |  Legal and Regulatory Environment  |   \n[ MIE 310 ](/search/?P=MIE%20310 \"MIE\u00a0310\") |  Introduction to Entrepreneurship  |   \n[ MIE 330 ](/search/?P=MIE%20330 \"MIE\u00a0330\") |  Human Resource Management  |   \nConcentration course  |  3   \nFree Electives  |  6   \n|  Hours  |  15   \nFourth Year  \nFall Semester  \nSelect two Concentration courses  |  6   \n[ [ GEP Interdisciplinary Perspectives ](/undergraduate/gep-category-requirements/gep-interdisciplinary-perspectives/) ](/undergraduate/academic-degrees-programs/gep-category-requirements/gep-interdisciplinary-perspectives/) |  2   \n[ [ GEP Humanities ](/undergraduate/gep-category-requirements/gep-humanities/) ](/undergraduate/academic-degrees-programs/gep-category-requirements/gep-humanities/) |  3   \nFree Elective  |  4   \n|  Hours  |  15   \nSpring Semester  \n[ MIE 480 ](/search/?P=MIE%20480 \"MIE\u00a0480\") |  Business Policy and Strategy  |  3   \nConcentration course  |  3   \nFree Electives  |  6   \n|  Hours  |  12   \n|  Total Hours  |  120   \n  \n1\n\n    \n\nMust be completed with \u201cC-\u201d or better.\n\n**GPA Graduation Requirements**\n\n  * Overall GPA _for all courses_ attempted at NC State must be 2.0 or higher; and \n  * Overall GPA _for all BUS, MIE, and M courses_ attempted at NC State must be 2.0 or higher. \n\n##  Career Opportunities\n\nGraduates in business administration are prepared for a variety of careers in\nbusiness or industry including new product development, marketing,\nmanufacturing, human resources, IT management, business analysis, banking and\nfinance, consulting, and business development. They have the knowledge and\ntools to launch new business ideas and succeed in management positions.\n\n###  Career Titles\n\n  * Accounting Clerk \n  * Actuary \n  * Administrative Service Manager \n  * Advertising Account Manager \n  * Advertising Agency Coordinator \n  * Advertising Sales Agent \n  * Airline Flight Control Administrator \n  * Airline Flight Operations Administrator \n  * Airline Flight Reservations Administrator \n  * Airport Administrator \n  * Artists Agent (Manager) \n  * Athletes Business Manager \n  * Bank and Branch Managers \n  * Benefits Manager \n  * Biofuels Production Managers \n  * Boat Charter Administrator \n  * Budget Accountant \n  * Budget Analyst \n  * Business Intelligence Analysts \n  * Business Professor \n  * Camp Director \n  * Catering Administrator \n  * Certified Public Accountant (CPA) \n  * Chief Executives \n  * Chief Financial Officer \n  * Child Care Center Administrator \n  * Compensation Administrator \n  * Compensation Specialist \n  * Compliance Managers \n  * Construction Manager \n  * Contract Administrator \n  * Controller \n  * Cost Accountant \n  * County or City Auditor \n  * Credit Analyst \n  * Curriculum and Assessment Director \n  * Customer Service Supervisor \n  * Document Management Specialists \n  * Elementary School Administrator \n  * Employee Benefits Analyst \n  * Employment Administrator \n  * Employment and Placement Specialist \n  * Estimator \n  * Event / Convention Planner \n  * Farm Management Advisor \n  * Financial Aid Counselor \n  * Financial Aid Director \n  * Financial Analyst \n  * Financial Examiner \n  * Financial Manager \n  * Financial Planner \n  * Financial Services Sales Agent \n  * Fish Hatchery Manager \n  * Foreign Exchange Trader \n  * Fund Raiser \n  * Fundraising Manager \n  * Funeral Home Managers \n  * Gaming Manager \n  * General and Operations Managers \n  * Geothermal Production Manager \n  * Golf Course Manager \n  * Government Budget Analyst \n  * Greenhouse and Nursery Manager \n  * High School Administrator \n  * Historic Site Administrator \n  * Hotel Manager \n  * Human Resources Management Advisor \n  * Human Resources Management Consultant \n  * Import/Export Customs Broker \n  * Industrial Relations Specialist \n  * Industrial-Organizational Psychologist \n  * Instructional Coordinators \n  * Insurance Adjuster \n  * Insurance Agent \n  * Insurance Claim Examiner \n  * Internal Auditor \n  * Job Analyst \n  * Job Development Specialist \n  * Labor Relations Specialist \n  * Legislator \n  * Loan Counselor \n  * Loan Officer \n  * Lobbyist \n  * Management Analyst \n  * Market Research Analyst \n  * Marketing Managers \n  * Medical and Health Services Managers \n  * Medical Records Administrator \n  * Middle School Administrator \n  * Non-Retail Sales Supervisor \n  * Occupational Analyst \n  * Office Supervisor \n  * Operations Research Analyst \n  * Patent Agent \n  * Personnel Administrator \n  * Personnel Coordinator \n  * Personnel Recruiter \n  * Preschool Administrator \n  * Production Planner \n  * Project Management Specialists \n  * Property Accountant \n  * Property Managers \n  * Psychometrist \n  * Public Relations Manager \n  * Public Relations Specialist \n  * Purchasing Agent \n  * Purchasing Manager \n  * Radio & TV Station Administrator \n  * Range Manager \n  * Recruiter \n  * Registrar Administrator \n  * Restaurant Manager \n  * Retail Buyer \n  * Retail Sales Department Supervisor \n  * Retail Store Manager \n  * Sales Managers \n  * Sales Representative (Chemicals & Drugs) \n  * Sales Representative (Hotel Furnishings) \n  * Sales Representative (Instruments) \n  * Sales Representative (Psychological Tests) \n  * Securities Broker \n  * Social and Community Service Managers \n  * Social Welfare Administrator \n  * Spa Managers \n  * Special Education Administrator \n  * Sports Events Planner \n  * Storage and Distribution Manager \n  * Student Admissions Administrator \n  * Student Affairs Administrator \n  * Supply Chain Managers \n  * Systems Accountant \n  * Talent Agent \n  * Tax Accountant \n  * Tax Auditor \n  * Tax Examiner \n  * Tax Lawyer \n  * Tax Preparer \n  * Title Examiner \n  * Traffic Administrator (Freight & Passenger) \n  * Transportation Supervisor \n  * Treasurer \n  * Urban and Regional Planner \n  * Wind Energy Project Managers \n\n###  Learn More About Careers\n\n[ NCcareers.org ](https://nccareers.org/)  \nExplore North Carolina\u2019s central online resource for students, parents,\neducators, job seekers and career counselors looking for high quality job and\ncareer information.\n\n[ Occupational Outlook Handbook ](https://www.bls.gov/ooh/)  \nBrowse the Occupational Outlook Handbook published by the Bureau of Labor\nStatistics to view state and area employment and wage statistics. You can also\nidentify and compare similar occupations based on your interests.\n\n[ Career One Stop Videos ](https://www.careeronestop.org/)  \nView videos that provide career details and information on wages, employment\ntrends, skills needed, and more for any occupation. Sponsored by the U.S.\nDepartment of Labor.\n\n[ Focus 2 Career Assessment ](https://careers.dasa.ncsu.edu/explore-\ncareers/career-assessments/) (NC State student email address required)  \nThis career, major and education planning system is available to current NC\nState students to learn about how your values, interests, competencies, and\npersonality fit into the NC State majors and your future career. An NC State\nemail address is required to create an account. Make an appointment with your\n[ career counselor ](https://careers.dasa.ncsu.edu/about/hours-appointments/)\nto discuss the results.\n\n[ Focus 2 Apply Assessment ](\nhttps://www.focus2career.com/Portal/Register.cfm?SID=1929) (Available to\nprospective students)  \nA career assessment tool designed to support prospective students in exploring\nand choosing the right major and career path based on your unique personality,\ninterests, skills and values. Get started with Focus 2 Apply and see how it\ncan guide your journey at NC State.\n\n[ Academic Catalog 2024-2025  Home  ](/)\n\n**Department of Registration and Records**  \n2831 Thurman Drive  \nHarris Hall, Room 1000  \nCampus Box 7313  \nRaleigh, NC 27695\n\n  * [ Campus Resources ](/about/campus-resources/)\n  * [ NC State Policies ](/about/state-policies/)\n  * [ Student Activities ](/about/student-activities/)\n  * [ Student Services ](/about/student-services/)\n  * Print Options \n  * [ Catalog Archives ](/archives/)\n\n\u00a9 2023 NC State University. All rights reserved.\n\n##  Print Options\n\n  * Send Page to Printer \n\nPrint this page.\n\n  * [ Download Page (PDF) ](/undergraduate/management/business/business-administration-bs-operations-supply-chain-management/business-administration-bs-operations-supply-chain-management.pdf)\n\nThe PDF will include all information unique to this page.\n\n  * [ 2024-2025 Undergraduate Catalog ](/pdf/2024-2025 Undergraduate Catalog.pdf)\n\nA PDF of the entire 2024-2025 Undergraduate catalog.\n\n  * [ 2024-2025 Graduate Catalog ](/pdf/2024-2025 Graduate Catalog.pdf)\n\nA PDF of the entire 2024-2025 Graduate catalog.\n\n",
                "url": "https://catalog.ncsu.edu/undergraduate/management/business/business-administration-bs-operations-supply-chain-management/"
            },
            "reason": "This page describes a business administration degree with a focus on operations and supply chain management at NC State University, which is relevant to understanding educational opportunities in the field. However, it does not explicitly mention Trafic, so the reliability is moderate.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' activities value chain",
            "summary": "This page describes a business administration degree with a focus on operations and supply chain management at NC State University.",
            "url": "https://catalog.ncsu.edu/undergraduate/management/business/business-administration-bs-operations-supply-chain-management/"
        },
        {
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                    "ext_id": "ffce029a-78f0-4393-86af-14ffe06c9035",
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                    "source": "https://www.lexisnexis.com/en-au/products/regulatory-compliance"
                },
                "page_content": "#  New Risk Management Digitisation Report from ReadiNow and LexisNexis\nRegulatory Compliance\n\n[ DOWNLOAD NOW\n](https://info.lexisnexis.com.au/LexisNexisRegulatoryComplianceReadiNowRiskLeader)\n\n##  The clear path to compliance\n\nLexisNexis  \u00ae  Regulatory Compliance is a comprehensive risk and compliance\nmanagement solution, consisting of compliance registers, alerts, and\ninformation-driven tools.\n\nWith a foundation built upon a wealth of LexisNexis content expertise,\nLexisNexis Regulatory Compliance simplifies the complex regulatory landscape\nfor Governance, Risk, and Compliance professionals in many industries.\n\nLexisNexis Regulatory Compliance will help enable your business to adhere to\nregulatory and legislative standards.\n\nGain more confidence in your regulatory compliance efforts with the LexisNexis\nRegulatory Compliance solution today.\n\n##  Award-winning solution\n\n### [ ](https://regtechglobal.org/news/13349899)\n\n### [ ](https://fintech.global/regtech100)\n\n### [ ](https://www.lexisnexis.com/community/pressroom/au/b/au-\nnews/posts/lexisnexis-regulatory-compliance-recognized-with-overall-regtech-\nsolution-of-the-year-in-2024-legaltech-breakthrough-awards-program)\n\n##  Core Modules\n\nWe offer eight core modules that cover the baseline compliance requirements\nfor businesses.\n\n[ Learn More ](/en-au/products/regulatory-compliance/modules/core-modules)\n\n##  Industry Modules\n\nNo matter your field, we\u2019ll help you find a clear path to compliance with over\n90 industry modules.\n\n[ Learn More ](/en-au/products/regulatory-compliance/modules/industry-modules)\n\n##  Access Our Free Compliance Registers\n\nLearn more about our free compliance registers that can help you identify your\nbusiness\u2019s specific compliance and legislative needs.\n\n  * [ Modern Slavery Register ](https://info.lexisnexis.com.au/ModernSlaveryRegister2024)\n  * [ Electronic Transactions Register ](https://info.lexisnexis.com.au/RegulatoryComplianceElectronicTransactionsModule)\n  * [ Whistleblowing Register ](https://info.lexisnexis.com.au/whistleblowing-compliance-register-free-demo)\n  * [ Social Media Register ](https://info.lexisnexis.com.au/SocialMediaRegister)\n\n##\n\n###  Stay on the ball\n\nContent is updated regularly, so you can access obligations which reflect the\ncurrent legislative framework\n\n###  Obligations you'll understand\n\nExperts explain your legal responsibilities in easy-to-apply business\nlanguage.\n\n###  Choose your content\n\nCore and specialist modules matched to your industry and location.\n\n###  Be prepared for everything\n\nReceive alerts when regulatory changes approach.\n\n###  Streamline compliance management\n\nChecklists. Decision trees. Policy templates. All the tools you need to\nmanage, monitor and demonstrate your compliance.\n\n###  Turn words into actions\n\nPlain language and practical directions for crystal clear guidance on control\nactions.\n\n##  Whitepapers\n\n### [ NDIS Provider Outlook Report 2025  NDIS providers are facing\nunprecedented financial and regulatory challenges. Success will come to those\nwho prioritize compliance, governance, and financial sustainability. We\u2019ve\ncollaborated with our technology partner Drova on this new report that\nprovides a comprehensive analysis of the biggest risks and opportunities for\nproviders in the year ahead.  ](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/ndis-provider-outlook-report-2025)\n\n### [ Download your free Australia ESG checklist  This checklist can help you\nto deliver on your ESG strategy and reporting requirements in Australia.\n](https://www.lexisnexis.com/community/au-resources/b/whitepapers/posts/free-\naustralia-esg-compliance-checklist)\n\n### [ Download your free Corporations checklist  Authored in partnership with\nDouglas Gration, Barrister at Victoria Bar and Legal Expert for LexisNexis\nRegulatory Compliance, this checklist has been designed to help you navigate\nyour compliance obligations related Corporations. This checklist covers\nCompany Formation, Ongoing Operations & Notification of Changes, Governance &\nMeetings, Financial Records & Financial Reporting and more.\n](https://www.lexisnexis.com/community/au-resources/b/whitepapers/posts/your-\nfree-corporations-checklist)\n\n### [ Free Environment Checklist  Authored in partnership with Dr Rachel\nBaird, Director at Iceberg SRC and Legal Expert for LexisNexis Regulatory\nCompliance, this checklist helps you identify your legislated legal\nobligations related to the environment.\n](https://www.lexisnexis.com/community/au-resources/b/whitepapers/posts/your-\nfree-environment-checklist)\n\n### [ Download your free Global ESG checklist  This checklist helps you\nidentify your obligations related to ESG globally.\n](https://www.lexisnexis.com/community/au-resources/b/whitepapers/posts/your-\nfree-esg-compliance-checklist)\n\n### [ Risk Leaders Digitisation Priorities in 2025  We\u2019ve collaborated with\nour technology partner ReadiNow, who conducted a survey of over 200 risk\nleaders to understand how organizations in Australia are using technology and\ninnovation to address growing risks. 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It has been developed in conjunction with Andrew Ham, Principal,\nHunt & Hunt Lawyers and Legal Expert for LexisNexis  \u00ae  Regulatory Compliance.\n](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/complimentary-sanctions-checklist)\n\n### [ Download your free AI and Recruitment Compliance Checklist  Working in\ncollaboration with the Australian Human Rights Commission, this checklist\nhelps you identify key compliance considerations related to AI and\nRecruitment. 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However, rapid advancement also presents complex challenges\nin regulating AI technologies effectively.  \nTo help you understand the complexities of AI and regulation, download our\nwhitepaper, Navigating the Challenges of AI Regulation. This whitepaper\nprovides an analysis of the current state of AI local and global regulation,\ndiscusses proposed responsible AI frameworks, and outlines what the evolving\nAI regulatory environment will mean for businesses using AI technology.\n](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/navigating-the-challenges-of-ai-regulation)\n\n### [ Download your free Whistleblowing checklist  Authored in partnership\nwith Kate Mills, Partner at Gadens and Legal Expert for LexisNexis Regulatory\nCompliance, this checklist helps you to identify your compliance requirements\nrelated to whistleblowing.  \nThis checklist covers Entities Subject to Whistleblowing Laws, Whistleblower\nPolicies and Procedures , Protections for Whistleblowers and more.\n](https://www.lexisnexis.com/community/au-resources/b/whitepapers/posts/your-\nfree-whistleblowing-checklist)\n\n### [ Operational Resilience Outlook Report 2024  We\u2019ve collaborated with our\ntechnology partner Ansarada to deliver the \"Operational Resilience Outlook\nReport 2024\" \u2013 Your ultimate compass for navigating the intricate landscape of\nbusiness resilience in the upcoming year.\n](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/operational-resilience-outlook-\nreport-2024-ansarada)\n\n### [ Download your free Global Banking checklist  Authored in conjunction\nwith Martin Polaine, Barrister at Brooke Chambers and Legal Expert for\nLexisNexis Regulatory Compliance, this checklist helps banks to identify their\nglobal banking compliance requirements. It covers Banking Governance and\nStandards, Capital Requirements, Leverage and Liquidity Requirements and more.\n](https://www.lexisnexis.com/community/au-resources/b/whitepapers/posts/your-\nfree-global-banking-checklist)\n\n### [ Free Child Safety Checklist  This checklist has been designed to help\norganisations that are engaged in child-related roles or industries in\nAustralia, identify their compliance requirements related to child safety in\nAustralia.  \nIt has been developed in conjunction with LexisNexis Regulatory Compliance\nLegal Expert, Patrice Fitzgerald, Principal Lawyer and Director at Safe Space\nLegal.  ](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/your-free-child-safety-compliance-checklist)\n\n### [ Free Energy \u2013 Wholesale Markets Checklist  This checklist has been\ndesigned to help organisations understand how to navigate and comply with the\nlegislative and compliance requirements related to quality of energy\ngeneration, distribution and transmission in Australia for consumers.  \nIt has been developed in conjunction with LexisNexis Regulatory Compliance\nLegal Experts, Caren Klavsen, Special Counsel at Piper Alderman and Andrew\nRankin, Partner at Piper Alderman.  ](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/your-free-energy-wholesale-markets-compliance-\nchecklist)\n\n### [ Free Telecommunications Checklist  This checklist has been designed to\nhelp organisations identify their compliance requirements related to providing\ntelecommunications services to customers.  \nIt has been developed in conjunction with LexisNexis Regulatory Compliance\nLegal Expert, Robert Feldman, Director at Gadens.\n](https://www.lexisnexis.com/community/au-resources/b/whitepapers/posts/your-\nfree-telecommunications-compliance-checklist)\n\n### [ Download your free Payment Systems checklist  Authored in conjunction\nwith Temogen Hield, Principal at My General Counsel and Legal Expert for\nLexisNexis Regulatory Compliance, this checklist guides you to identify your\ncompliance requirements related to payment systems. It covers Licensing,\nRegistration and Membership, Debit and Credit Cards, Cash and Cheques, Eftpos,\nBuy Now Pay Later Providers, Privacy, Consumer Protection, Reporting\nRequirements and more.  ](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/your-free-payment-system-checklist)\n\n### [ Download your free WA Mining Checklist  Authored in conjunction with\nScott Alden, Partner at HWL Ebsworth and Legal Expert for LexisNexis\nRegulatory Compliance, this checklist has been designed to help you identify\nyour mining related obligations. It covers Aboriginal Heritage, Environmental\nProtections, State Agreements, Underground Mining, Surface Mining and more.\n](https://www.lexisnexis.com/community/au-resources/b/whitepapers/posts/your-\nfree-wa-mining-checklist)\n\n### [ 2023-2024 AML-CFT Compliance Roadmap Leveraging ISO 37301  AML-CFT is\none of the fastest moving spheres in the regulatory world. Regulators react\nquickly to rapidly evolving threats, creating a complicated network of\noverlapping local and global obligations.  \n  \nThis comprehensive, practical guide dissects the key issues and priorities\nboth locally and across the world, to help compliance and risk professionals\nfind greater clarity and certainty in this dynamic landscape.\n](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/2023-2024-aml-cft-compliance-roadmap)\n\n### [ Purpose and Stewardship: Embedding ESG at all levels of the organisation\nIn partnership with the Governance Institute of Australia, LexisNexis has\nprepared a paper that explores the practicalities of purpose and stewardship.\nDiscover what Boards and senior leaders need to do in order to centralise\nstrategy, decentralise ownership, and cascade a robust ESG framework\nthroughout their organisations.  ](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/complimentary-paper-and-checklist-purpose-and-\nstewardship-embedding-esg-at-all-levels-of-the-organisation)\n\n### [ Greenwashing and Sustainable Finance in Australia  This new whitepaper,\nauthored by Dr Rachel Baird, Director at IcebergSRC and Legal Expert for\nLexisNexis Regulatory Compliance, provides clarity on key ESG areas including\ngreenwashing, ESG reporting frameworks and making sustainability count!\n](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/complimentary-whitepaper-greenwashing-and-\nsustainable-finance-in-australia)\n\n### [ Download your free Global Cybersecurity checklist  Authored in\nconjunction with Dudley Kneller, Partner at Gadens and Legal Expert for\nLexisNexis Regulatory Compliance, this checklist guides you to identify your\nglobal cybersecurity compliance requirements. It covers Risk Management\nStrategy, Supply Chain Risk Management, Data Security, Recovery Planning and\nmore.  ](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/your-free-global-cybersecurity-checklist)\n\n### [ Free National Disability Insurance Scheme Checklist  This checklist has\nbeen designed to help you identify and comply with your requirements related\nto the NDIS. It has been developed in conjunction with LexisNexis Regulatory\nCompliance Legal Experts, Jessica Kinny, Solicitor Director at Kinny Legal and\nRodney Lewis A.M., Senior Solicitor at Elderlaw Legal Services.\n](https://www.lexisnexis.com/community/au-resources/b/whitepapers/posts/your-\nfree-national-disability-insurance-scheme-compliance-checklist)\n\n### [ Complimentary Interactive Gambling Checklist  This checklist has been\ndesigned to help you identify and comply with your interactive gambling\nrequirements in Australia. It has been developed in conjunction with\nLexisNexis Regulatory Compliance Legal Experts, Julian Hoskins, Principal \u2013\nLegal at Senet and Paul Newson, Principal \u2013 Advisory at Senet.\n](https://www.lexisnexis.com/community/au-resources/b/whitepapers/posts/your-\nfree-interactive-gambling-compliance-checklist)\n\n### [ Free whitepaper: Security of Critical Infrastructure, Data Security,\nPrivacy and Global Impacts  We cover key privacy and data security challenges\nand present practical solutions that can help you forge your clear path to\ncompliance.  ](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/security-of-critical-infrastructure-data-\nsecurity-privacy-and-global-impacts)\n\n##  Webinars\n\n### [ Risk Leader Digitisation Priorities for 2025: The Year of Mass Adoption\nof AI  In January 2025, we launched a comprehensive report in collaboration\nwith our technology partner, **ReadiNow** , which sheds light on the\nchallenges organisations face in digitising their operations more efficiently\nand cost-effectively while ensuring robust operational resilience. This\nwebinar gathers a panel of experts who delve into the key findings of this\nreport, along with a discussion around the rapidly evolving risk and\ncompliance landscape, offering practical strategies for integrating and\ndigitising risk management processes, controls, and obligations.\n](https://www.lexisnexis.com/community/au-resources/b/webinars/posts/on-\ndemand-webinar-risk-leader-digitisation-priorities-for-2025-the-year-of-mass-\nadoption-of-ai)\n\n### [ On-Demand Webinar: Avoiding Compliance Pitfalls: Lessons from the ME\nBank Case  In this webinar, we\u2019ve teamed-up with Protecht to explore the\nrecent ME Bank case, to analyse what went wrong to get them into hot water,\nthen provide a blueprint to create a robust compliance framework that\nincludes: compliance monitoring, risk management integration and third-party\noversight.  ](https://www.protechtgroup.com/en-au/webinars/avoiding-\ncompliance-pitfalls?utm_campaign=lexis-nexis-mebank-webinar-\nmay&utm_source=lexis%20nexis&utm_medium=em-pd&utm_term=cta-\nwebinarln&utm_content=mecasestudy)\n\n### [ Unlocking Sustainability: A Standards Roadmap for SMEs  For SMEs,\nnavigating the intricate landscape of sustainability can often feel like a\ndaunting task, with a myriad of global standards, metrics, and ESG regulations\nthat can leave them feeling overwhelmed and uncertain. Our esteemed panel from\nDROVA and LexisNexis Regulatory Compliance will unveil how these\nsustainability standards seamlessly align with the four fundamental pillars,\nequipping you with practical insights and actionable strategies to embrace\nsustainability and unlock its transformative benefits for your organisation.\n](https://www.lexisnexis.com/community/au-\nresources/b/webinars/posts/unlocking-sustainability-a-standards-roadmap-for-\nsmes)\n\n### [ Enhancing Operational Durability: Unpacking APRA\u2019s CPS 230 and CPS 234\nRequirements  With APRA's new CPS 230 coming into effect in July 2025,\nfinancial institutions have a great opportunity to review and enhance their\noperational risk management strategies. We\u2019ve teamed up with TMLabs to discuss\nthese challenges and provide practical guidance to help you navigate the new\nstandard, understand the requirements, identify gaps, and establish effective\ncontrols.  ](https://www.lexisnexis.com/community/au-\nresources/b/webinars/posts/tmlabs-enhancing-operational-durability-unpacking-\napra-cps230-cps234-requirements)\n\n### [ ON-DEMAND WEBINAR - FAR and CPS 230 Uncovered: What it is and what\u2019s\nnext?  Join our hosts Kieran Seed and Temogen Hield as they provide you with\nan overview of FAR and CPS 230, outline governance frameworks to meet the\ndemands of the new regimes and identify what\u2019s required from businesses to\ncomply with FAR and CPS 230.  ](https://www.lexisnexis.com/community/au-\nresources/b/webinars/posts/far-and-cps-230-uncovered)\n\n### [ NSW State Government Entities: Decoding the Code of Ethics  The recently\nupdated Code of Ethics and Conduct for NSW Government entities, effective from\nNovember 1st, introduces a revised set of wide-ranging core values and\nexpected standards centred around integrity, trust, accountability, and\nservice. This new webinar with technology partner CGR provides a thorough\nreview of existing organizational policies, procedures, risk assessments, and\ncontrol measures to ensure alignment with the new ethical standards.\n](https://www.lexisnexis.com/community/au-resources/b/webinars/posts/cgr-\ndecoding-the-code-of-ethics-nsw)\n\n### [ SOCI in 2024: Leveraging AI to Streamline Compliance  Organizations\nstruggle to comprehensively identify their critical assets, conduct mandated\nrisk assessments, and implement robust cybersecurity standards. This webinar\nwith technology partner ReadiNow explores the evolution and current impact of\nthe SOCI Act today.  ](https://www.readinow.com/soci-webinar-\nregister?utm_source=lexisnexis&utm_medium=referral&utm_campaign=soci-webinar)\n\n### [ Getting Future Proofed for Operational Risk  We teamed-up with Ansarada\non this webinar to explore the key findings from the Operational Resilience\nOutlook 2024 Report, and provide actionable takeaways for board members,\nc-suite executives and compliance managers to strengthen operational\nresilience, regulatory compliance.  ](https://www.ansarada.com/operational-\nresilience-outlook-lexisnexis-webinar)\n\n### [ Unlocking the Power of Compliance in the Australian Energy Sector  In\nthis webinar, your hosts will explore the complexities of the State and\nFederal legislation, dissect the challenges of operating across State lines\nand demonstrate how you can manage your existing obligations, while tracking\nand responding to regulatory change.\n](https://www.lexisnexis.com/community/au-\nresources/b/webinars/posts/unlocking-the-power-of-compliance-in-the-\naustralian-energy-sector)\n\n### [ Navigating the Future: Achieving Sustainable Operational Resilience  In\nthis webinar, your hosts Michael Nelson from LexisNexis Regulatory Compliance\nand Rachel Riley from Ansarada will unravel the complexities of CPS 230\nregulations and see how ethical practices not only shield your business but\nalso create a positive impact on the environment and society.\n](https://www.lexisnexis.com/community/au-resources/b/webinars/posts/lnrc-\nansarada-achieving-sustainable-operational-resilience)\n\n### [ Breaking the chains: Tracking modern slavery in Australia  In this\nwebinar, your hosts Michael Nelson, Senior Product Specialist with LexisNexis\nRegulatory Compliance, and Leo Arouca, General Manager of CGR will cover\nwhat\u2019s currently before parliament on a state and federal level, and how you\ncan secure your organisation\u2019s risk profile.\n](https://www.lexisnexis.com/community/au-resources/b/webinars/posts/modern-\nslavery-in-australia-cgr)\n\n### [ On-Demand Webinar: Planning for RegChange and the CoFI Regime  In this\nwebinar: your hosts Michael Nelson, Senior Product Specialist, LexisNexis\nRegulatory Compliance and Leo Arouca, General Manager, CGR, will cover what\u2019s\non the legislative horizon for financial service providers, what to be across\nto keep regulators happy and how to report your compliant when they come\ncalling.  ](https://www.lexisnexis.com/community/nz-regulatory-compliance-\nresources/b/webinars/posts/lnrc-cgr-planning-for-the-cofi-regime)\n\n### [ On-Demand Webinar: SOCI, cyber and modern slavery: Navigating vendor\nrisk challenges  Join Michael Nelson, Kieran Seed from LexisNexis Regulatory\nCompliance and Michael Howell from Protecht for this free webinar as they\ndiscuss the signs to look out for when engaging with vendors, and the critical\nprocesses you need to deliver a strong vendor risk framework.\n](https://www.lexisnexis.com/community/nz-regulatory-compliance-\nresources/b/webinars/posts/lnrc-protecht-cyber-threats-and-vendor-risk-\nwebinar)\n\n### [ Galvanising the G in ESG  Join hosts Michael Nelson, Senior Product\nSpecialist at LexisNexis Regulatory Compliance & Gerald Nunez, ESG Specialist,\nAsia-Pac & Japan, as they discuss the ever-changing ESG landscape & the\npotential impacts on your business; greenwashing from a risk standpoint with\nCPG 229 & ASIC INFO 170, with steps to safeguard your organisation with best\npractices.  ](https://www.lexisnexis.com/community/nz-regulatory-compliance-\nresources/b/webinars/posts/on-demand-webinar-galvanising-the-g-in-esg)\n\n### [ Free webinar: Using robust governance practices in ESG  In this webinar,\nwe join Michael Rasmussen (GRC Analyst and Pundit), Michael Nelson (LexisNexis\nRegulatory Compliance) and Warren Green (Cura) to explore how an organisation\ncan maintain its ESG integrity and avoid greenwashing using robust governance\npractices.  ](https://www.lexisnexis.co.uk/event/in-house/regulatory-\ncompliance-uk-cura-webinar.html)\n\n### [ Critical Infrastructure, the SOCI Act and CPS 230: Your paths to\noperational resilience  In this webinar from LexisNexis Regulatory Compliance\nand Protecht, our panel discuss how changes in legislation for critical\ninfrastructure impact the way organisations are conducting themselves,\nevolution of the legal landscape as it relates to the SOCI Act and CPS 230,\nwhy CPS 230 is a relevant standard and how cybersecurity reform rolls-up to\ncritical infrastructure and ultimately operational resilience.\n](https://www.protechtgroup.com/en-au/webinars/critical-infrastructure-soci-\nand-cps-230)\n\n### [ Operational Resilience: The gift of stability & reliability for your\nbusiness  In this webinar, we discuss what the difference is between\n\u2018operational resilience\u2019 and \u2018business continuity\u2019, explore the three main\nbranches of the Risk Management Concept and discover \u2018black swans\u2019 in the\nprocess.\n](https://www.brighttalk.com/webcast/19113/566299?utm_source=ArcherIntegratedRiskManagement&utm_medium=brighttalk&utm_campaign=566299)\n\n### [ Cybersecurity Risk Management: How to tackle current & looming\nchallenges  In this webinar, we\u2019ve partnered with Protecht to explore key\nchanges taking place in Australia for cybersecurity compliance in the context\nof a complex and challenging global regulatory change landscape, and provide\npractical insight into resilience, critical infrastructure security, and how\naccreditation under ISO 27000 can empower your organisation.\n](https://info.protechtgroup.com/cybersecurity-risk-management-lexisnexis-\nprotecht?hs_preview=GunAIVbF-85875878830)\n\n### [ ESG, Operation and Business Resiliency \u2013 An International Viewpoint  In\nthis webinar, Archer and LexisNexis Regulatory Compliance, help you navigate\nwhat \u2018ESG\u2019 is and how it\u2019s influencing the way organisations are developing\ntheir strategies, key factors impacting policymakers here in Australia and\nacross the UK and USA.  ](https://www.lexisnexis.com/community/nz-regulatory-\ncompliance-resources/b/webinars/posts/lnrc-archer-esg-webinar)\n\n### [ Managing Compliance Obligations Under ISO 37301  We\u2019ve collaborated with\nProtecht to demonstrate how Protecht ERM and LexisNexis Regulatory Compliance\ncontent can help you implement a best-practice compliance management system to\nprotect and enhance your organisation\u2019s reputation and credibility.\n](https://www.protechtgroup.com/managing-compliance-obligations-under-\niso-37301-lexisnexis-\nprotecht?utm_campaign=LexisNexis%20webinar%20May%202022&utm_source=LexisNexis%20collaboration&utm_medium=LexisNexis%20collaboration&utm_term=LexisNexis%20collaboration&utm_content=LexisNexis%20collaboration)\n\n##  What our Customers say\n\n###  LexisNexis offers clarity. It\u2019s a very simple and efficient use of\ninformation.\n\nLiza Gubska  Enterprise Risk and Compliance Lead at Brighte\n\n###  LexisNexis has saved us the equivalent of six months\u2019 work for a full-\ntime staff member.\n\nAndrew Webster  Head of Risk and Compliance at Aussie Broadband\n\n##  Customer Testimonials\n\nSee LexisNexis Regulatory Compliance  \u00ae  in action and learn more about the\nimpact it can have on enhancing your business\u2019 compliance efforts.\n\n### [ Customer in Focus: Aussie Broadband  Watch how LexisNexis developed a\ncompliance register that saved Aussie Broadband the equivalent of six months\u2019\nwork for a full-time staff member.  ](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/customer-in-focus-aussie-broadband)\n\n### [ Customer in Focus: Brighte  Watch how LexisNexis and Brighte worked\ntogether to build a tailored compliance content solution to streamline\nBrighte\u2019s compliance attestations and ongoing management, monitoring and\nupdating requirements.  ](https://www.lexisnexis.com/community/au-\nresources/b/whitepapers/posts/customer-in-focus-brighte)\n\n### [ Customer in Focus: Archdiocese of Brisbane  Watch how LexisNexis can\nturn 4 hours of research into 10 minutes of clarity.\n](https://www.lexisnexis.com/community/au-resources/b/podcasts/posts/customer-\nin-focus-archdiocese-of-brisbane)\n\n### [ Your Journey Towards Managing Your Company\u2019s Domestic and International\nRegulatory Risk Starts Here  The business world is getting more regulated and\nfines for non-compliance are getting bigger and bigger. Use LexisNexis\nRegulatory Compliance to help you to stay on top of your domestic and\ninternational compliance obligations.\n](https://www.lexisnexis.com/community/au-resources/b/podcasts/posts/your-\njourney-towards-managing-your-companys-domestic-and-international-regulatory-\nrisk-starts-here)\n\n### [ Check out these tutorial videos\n](https://www.lexisnexis.com/supportandtraining/au/lexisnexis-regulatory-\ncompliance)\n\n### [ Videos  View our collection of short LexisNexis Regulatory Compliance\nvideos to learn more about how our solution can assist your compliance\nefforts.  ](https://www.lexisnexis.com/supportandtraining/au/lexisnexis-\nregulatory-compliance)\n\n### [ Award-winning solution  LexisNexis Regulatory Compliance is the proud\nwinner of the \u201cOverall RegTech Solution of the Year\u201d in the 2021 LegalTech\nBreakthrough Awards.\n](https://www.lexisnexis.com/community/pressroom/au/b/au-\nnews/posts/lexisnexis-regulatory-compliance-recognized-as-overall-regtech-\nsolution-of-the-year-in-2021-legaltech-breakthrough-awards-program)\n\n### [ Flexible technology options  We understand that the path to compliance\nis different for every business, which is why we created a solution that can\nbe tailored to meet your individual requirements. LexisNexis Regulatory\nCompliance  \u00ae  offers flexible technology options to suit any way of working.\n](/en-au/products/regulatory-compliance/partners)\n\n##  Frequently Asked Questions\n\n###  How does LexisNexis support compliance management?\n\nLexisNexis Regulatory Compliance products are designed with Governance, Risk\nand Compliance professionals in mind. We underst andthat while compliance is\ndeeply intertwined with the law, often the people tasked with ensuring it are\nnot legal professionals. We ensure that our information is clear, and makes\nsense in the context of business \u2014 so you know what you need to do fast, and\ndon\u2019t have to spendtime translating.\n\nBy drawing on the knowledge of some of the foremost legal experts in each\ncompliance area, and presenting their interpretations in clear, actionable\nlanguage that makes sense, we help you find clarity on your path to\ncompliance.\n\n###  What industries can Regulatory Compliance\u00ae service?\n\nLexisNexis Regulatory Compliance  \u00ae  is designed to cater to a wide array of\nglobal industries, offering customised solutions for each sector. Industries\nthat Regulatory Compliance is suitable for include:\n\n  * Financial Services \n  * Healthcare \n  * Manufacturing \n  * Telecommunications \n  * Energy \n  * Transport and Logistics \n\n###  How do you remain on top of all the content, given that regulations are\nupdated all the time?\n\nWe have a broad network of content specialists and legal experts who stay\nacross the regulatory changes within their areas of specialisation. When\nthings change, they will break down what the changes are and what they mean\n(or could mean) for businesses. We then send these updates out as alerts to\nensure you\u2019re always aware of changes ahead of time.\n\n###  What kind of training support is available?\n\nOur team of Relationship Managers and Product Specialists will outline the\nregisters in full detail and can provide you with video tutorials, indepth\ncase studies, and whitepapers. They are with you every step of the way.\n\n###  Do you offer trial compliance registers?\n\nWe currently have a collection of free registers consisting of:\n\n  * Modern Slavery Register \n  * Electronic Transactions Register \n  * Whistleblowing Register \n  * Social Media International Biosecurity Register \n\nIf you would like to learn more about our free registers, please contact us by\nsubmitting your details on this website.\n\n###  Contact Us\n\nFill out the form or call 1 800 772 772.\n\nA LexisNexis  \u00ae  expert will reach out to you with more information.\n\n",
                "url": "https://www.lexisnexis.com/en-au/products/regulatory-compliance"
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                    "source": "https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/how-generative-ai-can-help-banks-manage-risk-and-compliance"
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                "page_content": "Skip to main content\n\n#\n\nHow generative AI can help banks manage risk and compliance\n\nMarch 1, 2024  | Article \n\nRahul Agarwal \u00c2  Andreas Kremer \u00c2  [ Ida Kristensen  ](/our-people/ida-\nkristensen) \u00c2  [ Angela Luget  ](/our-people/angela-luget)\n\nIn the next five years, generative AI could fundamentally change financial\ninstitutions\u2019 risk management by automating, accelerating, and enhancing\neverything from compliance to climate risk control.\n\n###\n\n(8 pages)\n\n**[ Generative AI ](/featured-insights/mckinsey-explainers/what-is-generative-\nai) (gen AI) is poised ** to become a catalyst for the [ next wave of\nproductivity gains ](/capabilities/mckinsey-digital/our-insights/the-economic-\npotential-of-generative-ai-the-next-productivity-frontier) \u00c2 across\nindustries, with financial services very much among them. From modeling\nanalytics to automating manual tasks to synthesizing unstructured content, the\ntechnology is already changing how banking functions operate, including how\nfinancial institutions manage risks and stay compliant with regulations.\n\nIt\u00e2\u0080\u0099s imperative for risk and compliance functions to put guardrails around\ngen AI\u00e2\u0080\u0099s use in an organization. However, the tech can help the functions\nthemselves improve efficiency and effectiveness. In this article, we discuss\nhow banks can build a flexible, powerful approach to using gen AI in risk and\ncompliance management and identify some crucial topics that function leaders\nshould consider.\n\n##  Seizing the promise of gen AI\n\nGen AI has the potential to revolutionize the way that banks manage risks over\nthe next three to five years. It could allow functions to move away from task-\noriented activities toward partnering with business lines on strategic risk\nprevention and having controls at the outset in new customer journeys, often\nreferred to as a \u00e2\u0080\u009c [ shift left  \u00e2\u0080\u009d\u00c2  approach ](/capabilities/mckinsey-\ndigital/our-insights/lessons-from-banking-to-improve-risk-and-compliance-and-\nspeed-up-digital-transformations) . That, in turn, would free up risk\nprofessionals to advise businesses on new product development and strategic\nbusiness decisions, explore emerging risk trends and scenarios, strengthen\nresilience, and improve risk and control processes proactively.\n\nThese advances could lead to the creation of AI- and gen-AI-powered risk\nintelligence centers that serve all [ lines of defense ](/capabilities/risk-\nand-resilience/how-we-help-clients/impact-stories/demonstrating-impact-\nthrough-the-three-lines-of-defence) \u00c2 (LODs): business and operations, the\ncompliance and risk functions, and audits. Such a center would provide\nautomated reporting, improved risk transparency, higher efficiency in risk-\nrelated decision making, and partial automation in drafting and updating\npolicies and procedures to reflect changing regulatory requirements. It would\nact as a reliable and efficient source of information, enabling risk managers\nto make informed decisions swiftly and accurately.\n\nFor instance, McKinsey has developed a\u00c2 [ gen AI virtual expert ](/about-\nus/new-at-mckinsey-blog/meet-lilli-our-generative-ai-tool) \u00c2 that can provide\ntailored answers based on the firm\u00e2\u0080\u0099s proprietary information and assets.\nBanks\u00e2\u0080\u0099 risk functions and their stakeholders can develop similar tools that\nscan transactions with other banks, potential red flags, market news, asset\nprices, and more to influence risk decisions. These virtual experts can also\ncollect data and evaluate climate risk assessments to answer counterparty\nquestions.\n\nFinally, gen AI could facilitate better coordination between the first and\nsecond LODs in the organization while maintaining the governance structure\nacross all three. The improved coordination would enable enhanced monitoring\nand control mechanisms, thereby strengthening the organization\u00e2\u0080\u0099s risk\nmanagement framework.\n\n##  Emerging applications of gen AI in risk and compliance\n\nOf the many promising applications of [ gen AI for financial institutions\n](/industries/financial-services/our-insights/scaling-gen-ai-in-banking-\nchoosing-the-best-operating-model) , there\u00e2\u0080\u0099s a set of candidates that banks\nare exploring for a first wave of adoption: regulatory compliance, financial\ncrime, credit risk, modeling and data analytics, cyber risk, and climate risk.\nOverall, we see applications of gen AI across risk and compliance functions\nthrough three use case archetypes.\n\nThrough a _virtual expert_ , a user can ask a question and receive a generated\nsummary answer that\u00e2\u0080\u0099s built from long-form documents and unstructured data.\nWith _manual process automation_ , gen AI performs time-consuming tasks. With\n_code acceleration_ , gen AI updates or translates old code or writes entirely\nnew code. All these archetypes can have roles in the key responsibilities of\nrisk and compliance:\n\n  * _Regulatory compliance_ . Enterprises are using gen AI as a virtual regulatory and policy expert by training it to answer questions about regulations, company policies, and guidelines. The tech can also compare policies, regulations, and operating procedures. As a code accelerator, it can check code for compliance misalignment and gaps. It can automate checking of regulatory compliance and provide alerts for potential breaches. \n  * _Financial crime_ . Gen AI can generate suspicious-activity reports based on customer and transaction information. It can also automate the creation and update of customers\u00e2\u0080\u0099 risk ratings based on changes in know-your-customer attributes. By generating and improving code to detect suspicious activity and analyze transactions, the tech can improve transaction monitoring. \n  * _Credit risk_ . By summarizing customer information (for example, transactions with other banks) to inform credit decisions, gen AI can help accelerate banks\u00e2\u0080\u0099 end-to-end credit process. Following a credit decision, it can draft the credit memo and contract. Financial institutions are using the tech to generate credit risk reports and extract customer insights from credit memos. Gen AI can generate code to source and analyze credit data to gain a view into customers\u00e2\u0080\u0099 risk profiles and generate default and loss probability estimates through models. \n  * _Modeling and data analytics_ . Gen AI can accelerate the migration of legacy programming languages, such as the switch from SAS and COBOL to Python. It can also automate the monitoring of model performance and generate alerts if metrics fall outside tolerance levels. Companies are also using gen AI to draft model documentation and validation reports. \n  * _Cyber risk_ . By checking cybersecurity vulnerabilities, gen AI can use natural language to generate code for detection rules and accelerate secure code development. It can be useful in \u00e2\u0080\u009cred teaming\u00e2\u0080\u009d (simulating adversarial strategies and testing attack scenarios). The tech can also serve as a virtual expert for investigating security data. It can make risk detection smarter by speeding and aggregating security insights and trends from security events and behavior anomalies. \n  * _Climate risk_ . As a code accelerator, gen AI can suggest code snippets, facilitate unit testing, and assist physical-risk visualization with high-resolution maps. It can automate data collection for counterparty transition risk assessments and generate early-warning signals based on trigger events. As a virtual expert, gen AI can automatically generate reports on environmental, social, and governance (ESG) topics and sustainability sections of annual reports (see sidebar, \u00e2\u0080\u009cHow generative AI can speed financial institutions\u00e2\u0080\u0099 climate risk assessments\u00e2\u0080\u009d). \n\n##\n\nHow generative AI can speed financial institutions\u00e2\u0080\u0099 climate risk assessments\n\n**Risk functions** can benefit from generative AI (gen AI) across a variety of\nanalyses. In the case of climate risk assessments, the technology\u00e2\u0080\u0094via tools\nbased on generative pretrained transformers\u00e2\u0080\u0094can instantaneously draw from\nmultiple, lengthy reports and distill answers from source materials (exhibit).\n\nIn addition, gen AI can provide support to relationship managers to accelerate\nthe assessment of climate risk for their counterparties. It can automatically\ngenerate syntheses of counterparty transition plans and compare them against\nactual emissions to evaluate progress toward goals.\n\nBeyond measurement, gen AI can aid climate impact analysis by ultimately\nautomating reporting on environmental, social, and governance topics. It can\naid risk by automating climate risk drafts, and it can spur growth by using\ncustomer data to personalize green financial products.\n\nConsider the benefits of gen AI automation in helping customers move to net\nzero. The tech can identify market trends and environmental impact from years\nof company reports. In turn, financial institutions can use that new\ninformation to find investment opportunities.\n\nOnce companies have embedded gen AI in these roles and functions, they have\nseen a second wave of emerging use cases across other aspects of risk\nmanagement. Gen AI can streamline enterprise risk by synthesizing enterprise-\nrisk-management summaries from existing data and reports. It can help\naccelerate the internal capital adequacy assessment process and model capital\nadequacy by sourcing relevant data. Banks can also use it to summarize risk\npositions and draft risk reports and executive briefings for senior\nmanagement.\n\nAnother area in which gen AI can play an important role is operational risk.\nBanks can use it for operational automation of controls, monitoring, and\nincident detection. It can also automatically draft risk and control self-\nassessments or evaluate existing ones for quality.\n\n##  Key considerations in gen AI adoption\n\nWhile several compelling use cases exist in which gen AI can propel\nproductivity, prioritizing them is critical to realizing value while adopting\nthe tech responsibly and sustainably. We see three critical dimensions that\nrisk leaders can assess to determine prioritization of use cases and maximize\nimpact (exhibit).\n\nChief risk officers can base their decisions on assessments across qualitative\nand quantitative dimensions of impact, risk, and feasibility. This process\nincludes aligning with their banks\u00e2\u0080\u0099 overall visions for gen AI and\nassociated guardrails, understanding relevant regulations (such as the EU AI\nAct), and assessing data sensitivity. All leaders need to be aware of the\nnovel risks associated with this new tech. These risks can be broadly divided\ninto eight categories:\n\n  * impaired fairness, when the output of a gen AI model may be inherently biased against a particular group of users \n  * intellectual property infringement, such as copyright violations and plagiarism incidents, as foundation models typically leverage internet-based data \n  * privacy concerns, such as unauthorized public disclosure of personal or sensitive information \n  * malicious use, such as dissemination of false content and use of gen AI by criminals to create false identities, orchestrate phishing attacks, or scam customers \n  * security threats, when vulnerabilities within gen AI systems can be breached or exploited \n  * performance and \u00e2\u0080\u009cexplainability\u00e2\u0080\u009d risks, such as models providing factually incorrect answers and outdated information \n  * strategic risks through noncompliance with ESG standards or regulations, creating societal or reputational risks \n  * third-party risks, such as leakage of proprietary data to the public realm through the use of third-party tools \n\n##  Winning strategies for planning a gen AI journey\n\nOrganizations that can extract value from gen AI should use a focused, top-\ndown approach to start the journey. Given the scarcity of talent to scale gen\nAI capabilities, organizations should start with three to five high-priority\nrisk and compliance use cases that align with their strategic priorities. They\ncan execute these use cases in three to six months, followed by an estimation\nof business impact. Scaling the applications will require the development of a\ngen AI ecosystem that focuses on seven areas:\n\n  * a catalog of production-ready, reusable gen AI services and solutions (use cases) that can be easily plugged into a range of business scenarios and applications across the banking value chain \n  * a secure, gen-AI-ready tech stack that supports hybrid-cloud deployments to enable support for unstructured data, vector embedding, machine learning training, execution, and pre- and postlaunch processing \n  * integration with enterprise-grade foundation models and tools to enable fit-for-purpose selection and orchestration across open and proprietary models \n  * automation of supporting tools, including MLOps (machine learning operations), data, and processing pipelines, to accelerate the development, release, and maintenance of gen AI solutions \n  * governance and talent models that readily deploy cross-functional expertise empowered to collaborate and exchange knowledge (such as language, natural-language processing, and reinforcement learning from human feedback, prompt engineers, cloud experts, AI product leaders, and legal and regulatory experts) \n  * process alignment for building gen AI to support the rapid and safe end-to-end experimentation, validation, and deployment of solutions \n  * a road map detailing the timeline for when various capabilities and solutions will be launched and scaled that aligns with the organization\u00e2\u0080\u0099s broader business strategy \n\nAt a time when companies in all sectors are experimenting with gen AI,\norganizations that fail to harness the tech\u00e2\u0080\u0099s potential are risking falling\nbehind in efficiency, creativity, and customer engagement. At the outset,\nbanks should keep in mind that the move from pilot to production takes\nsignificantly longer for gen AI than for classical AI and machine learning. In\nselecting use cases, risk and compliance functions may be tempted to use a\nsiloed approach. Instead, they should align with an entire organization\u00e2\u0080\u0099s\ngen AI strategy and goals.\n\nFor gen AI adoption by risk and compliance groups to be effective and\nresponsible, it is critical that these groups understand the need for new risk\nmanagement and controls, the importance of data and tech demands, and the new\ntalent and operating-model requirements.\n\n###  Risk management and controls\n\nWith gen AI, a new level of risk management and control is necessary. Winning\nresponsibly requires both defensive and offensive strategies. All\norganizations face inbound risks from gen AI, in addition to the risks from\ndeveloping gen AI use cases and embedding gen AI into standard workplace\ntools. So banks will need to evolve their risk mitigation capabilities\naccordingly.\n\nThe first wave heavily focuses on human-in-the-loop reviews to ensure the\naccuracy of model responses. Using gen AI to check itself, such as through\nsource citations and risk scores, can make human reviews more efficient. By\nmoving gen AI guardrails to real time and doing away with human-in-the-loop\nreviews, some companies are already putting gen AI directly in front of their\ncustomers. To make this move, risk and compliance professionals can work with\ndevelopment team members to set the guardrails and create controls from the\nstart.\n\nRisk functions need to be vigilant to manage gen AI risks at the enterprise\nlevel. They can fulfill that obligation by taking the following steps:\n\n  1. Ensure that everyone across the organization is aware of the risks inherent in gen AI, publishing dos and don\u00e2\u0080\u0099ts and setting risk guardrails. \n  2. Update model identification criteria and model risk policy (in line with regulations such as the EU AI Act) to enable the identification and classification of gen AI models, and have an appropriate risk assessment and control framework in place. \n  3. Develop gen AI risk and compliance experts who can work directly with frontline development teams on new products and customer journeys. \n  4. Revisit existing know-your-customer, anti\u00e2\u0080\u0093money laundering, fraud, and cyber controls to ensure that they are still effective in a gen-AI-enabled world. \n\n###  Data and tech demands\n\nBanks shouldn\u00e2\u0080\u0099t underestimate the data and tech demands related to a gen AI\nsystem, which requires enormous amounts of both. Why? For one, the process of\ncontext embedding is crucial to ensure the accuracy and relevance of results.\nThat process requires the input of appropriate data and addressing data\nquality issues. Moreover, the data on hand may be insufficient. Organizations\nmay need to build or invest in labeled data sets to quantify, measure, and\ntrack the performance of gen AI applications based on task and use.\n\nData will serve as a competitive advantage in extracting value from gen AI. An\norganization looking to automate customer engagement using gen AI must have\nup-to-date, accurate data. Organizations with advanced data platforms will be\nthe most effective at harnessing gen AI capabilities.\n\n###  Talent and operating-model requirements\n\nSince gen AI is a transformational technology requiring an organizational\nshift, organizations will need to understand the related talent requirements.\nBanks can embed operating-model changes into their culture and business-as-\nusual processes. They can train new users not only on how to use gen AI but\nalso on its limitations and strengths. Assembling a team of \u00e2\u0080\u009cgen AI\nchampions\u00e2\u0080\u009d can help shape, build, and scale adoption of this new tech.\n\n* * *\n\nWe expect gen AI to empower banks\u00e2\u0080\u0099 entire risk and compliance functions in\nthe future. This implies a profound culture change that will require all risk\nprofessionals to be conversant with the new tech, its capabilities, its\nlimitations, and how to mitigate those limitations. Using gen AI will be a\nsignificant shift for all organizations, but those that navigate the delicate\nbalance of harnessing the technology\u00e2\u0080\u0099s powers while managing the risks it\nposes can achieve significant productivity gains.\n\n#####\n\n**Rahul Agarwal** is an associate partner in McKinsey\u2019s New Jersey office,\n**Andreas Kremer** is a partner in the Berlin office, **[ Ida Kristensen\n](/our-people/ida-kristensen) ** is a senior partner in the New York office,\nand **[ Angela Luget ](/our-people/angela-luget) ** is a partner in the London\noffice.\n\nThe authors wish to thank Adrija Banerjee, Stephan Beitz, Adrian Foerster,\nYilin Li, Anke Raufuss, Ibtesam Siddiqui, and Claudia Satr\u00fastegui for their\ncontributions to this article.\n\n* * *\n\nThis article was edited by David Weidner, a senior editor in the Bay Area\noffice.\n\n#####  Explore a career with us\n\n[ ](/careers/search-jobs)\n\n#####  Related Articles\n\n[ ](/featured-insights/mckinsey-live/webinars/the-economic-potential-of-\ngenerative-ai-the-next-productivity-frontier)\n\nWebcast\n\n######  [ The economic potential of generative AI: The next productivity\nfrontier  ](/featured-insights/mckinsey-live/webinars/the-economic-potential-\nof-generative-ai-the-next-productivity-frontier)\n\n[ ](/featured-insights/mckinsey-explainers/what-is-generative-ai)\n\nArticle\n\n######  [ What is generative AI?  ](/featured-insights/mckinsey-\nexplainers/what-is-generative-ai)\n\n[ ](/capabilities/mckinsey-digital/our-insights/lessons-from-banking-to-\nimprove-risk-and-compliance-and-speed-up-digital-transformations)\n\nArticle\n\n######  [ Lessons from banking to improve risk and compliance and speed up\ndigital transformations  ](/capabilities/mckinsey-digital/our-\ninsights/lessons-from-banking-to-improve-risk-and-compliance-and-speed-up-\ndigital-transformations)\n\n",
                "url": "https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/how-generative-ai-can-help-banks-manage-risk-and-compliance"
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            "summary": "This page is from McKinsey, a reputable consulting firm. It discusses the use of AI in risk and compliance, but focuses on banks. It does not explicitly mention Trafic.",
            "url": "https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/how-generative-ai-can-help-banks-manage-risk-and-compliance"
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                    "source": "https://guidehouse.com/services/compliance"
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                "page_content": "####  Maintaining compliance within an organization provides the assurance\nthat an organization is operating in alignment with guidelines created by\nrelevant government legislations and applicable regulatory bodies. And with a\nfrequently changing regulatory environment, many organizations are faced with\ntimely compliance adoption and adherence challenges. Our experts team with\nclients to help identify and prevent compliance problems beforehand so they\ncan have a more complete, accurate, and real-time view of their risks with\nconfidence.\n\n####  Industries Supported\n\n#####  Communities, Energy & Infrastructure\n\nAs regulations evolve, our consultants apply deep industry expertise and\nleading technology solutions to help clients monitor, review, and improve\ntheir compliance programs.\n\n#####  Defense & Security\n\nWe engage in all facets of the compliance cycle, including benchmarking and\nrisk assessment, program design and implementation, and audit preparation and\nremediation.\n\n#####  Financial Services\n\nWe team with clients to create a culture of regulatory compliance enabled by\nthe most effective and efficient framework  s  for their unique business  es\n.\n\n#####  Health\n\nWe combine regulatory expertise with IT-enabled solutions and data analytics\nto address the most complex challenges and high-stakes matters facing\nhealthcare organizations.\n\n####  Our Featured Case Studies\n\n[ See All Case Studies ](/)\n\n[ Financial Services  Maximizing Insights with Continuous Loan Portfolio\nMonitoring  ](/case-studies/financial-services/2024/continuous-asset-\nmonitoring)\n\n[ Health  Palomar Health Granted CMS Acute Hospital Care at Home Approval\n](/case-studies/healthcare/2022/palomar-health)\n\n####  Our Latest Insights\n\n[ See All Insights ](/insights)\n\n[ ](/insights/financial-crimes/2024/trade-finance-risks)\n\n[ ](/insights/financial-services/2024/death-claims-process)\n\n[ ](/insights/financial-services/2024/buy-now-pay-later)\n\n[ See All Insights ](/insights)\n\n####  Our Experts\n\n####  Let us guide you\n\nGuidehouse is a global advisory, technology, and managed services firm\ndelivering value to commercial businesses and federal, state, and local\ngovernments. Serving industries focused on communities, energy,\ninfrastructure, healthcare, financial services, defense, and national\nsecurity, Guidehouse positions clients for AI-led innovation, efficiency, and\nresilience.\n\n####  Stay ahead of the curve with news, insights and updates from Guidehouse\nabout issues relevant to your organization and its work.\n\n[ ](/)\n\n####  outwit complexity\u2122\n\n[ ](/)\n\n####  outwit complexity\u2122\n\n######  Connect with Us\n\n  * [ ](https://www.facebook.com/Guidehouse/)\n  * [ ](https://twitter.com/Guidehouse)\n  * [ ](https://www.linkedin.com/company/guidehouse/)\n  * [ ](https://www.youtube.com/c/guidehouse)\n\n######  Industries  [ Industries ](/industries)\n\n  * [ Communities, Energy & Infrastructure  ](/industries/communities-energy-infrastructure)\n  * [ Defense & Security  ](/industries/defense-and-security)\n  * [ Financial Services  ](/industries/financial-services)\n  * [ Health  ](/industries/health)\n  * [ State & Local Government  ](/industries/state-local-government)\n\n######  Services  [ Services ](/services)\n\n  * [ AI & Data  ](/services/ai-and-data)\n  * [ Finance  ](/services/finance)\n  * [ Growth Acceleration  ](/services/growth-acceleration)\n  * [ Managed Services  ](/services/managed-services)\n  * [ Mission Support  ](/services/mission-support)\n  * [ Operations  ](/services/operations)\n  * [ People & Organization  ](/services/people-organization-and-change)\n  * [ Resilience & Sustainability  ](/services/resilience-and-sustainability)\n  * [ Risk, Regulatory & Compliance  ](/services/risk-regulatory-and-compliance)\n  * [ Technology  ](/services/technology)\n\n######  About  [ About ](/about)\n\n  * [ Alliances  ](/about/alliances)\n  * [ Corporate Citizenship  ](/corporate-citizenship)\n  * [ General Inquiries  ](mailto:inquiries@guidehouse.com?subject=Guidehouse.com Web Inquiries)\n  * [ Government Contract Vehicles  ](/government-contract-vehicles)\n  * [ Legal / Policies  ](/about/legal)\n  * [ Our Leadership  ](/our-leadership-team)\n\n######  [ Insights ](/insights)\n\n######  [ Careers ](/careers)\n\n######  [ News & Events ](/news-and-events)\n\n######  [ Offices ](/locations)\n\n  * GUIDEHOUSE IN \n  * [ Deutschland  ](/regions/deutschland)\n  * [ India  ](/regions/india)\n  * [ Lithuania  ](/regions/lithuania)\n  * [ United Kingdom  ](/regions/united-kingdom)\n\n  * [ Privacy Policy  ](/privacy-policy)\n  * [ California Privacy Notice  ](/california-privacy-notice)\n  * [ Modern Slavery Statement  ](/-/media/new-library/corporate/legal/2024/modern-slavery-statement-2024.pdf)\n  * [ Do Not Sell / Share My Personal Information  ](https://guidehouse.com/privacy-policy#personaldata)\n  * [ Cookie Settings & Do Not Sell My Personal Info  ](javascript:void\\(0\\))\n  * [ Global Human Rights Statement  ](/-/media/new-library/corporate/legal/2024/global-human-rights-statement-2024.pdf)\n\n\u00a9 2025 Guidehouse\n\n",
                "url": "https://guidehouse.com/services/compliance"
            },
            "reason": "This page is from Guidehouse, a consulting firm that offers compliance services. The content is relevant to regulatory compliance, but the source has a commercial interest. It does not explicitly mention Trafic.",
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            "search_query": "company 'Trafic' risk regulatory compliance",
            "summary": "This page is from Guidehouse, a consulting firm that offers compliance services. The content is relevant to regulatory compliance, but the source has a commercial interest. It does not explicitly mention Trafic.",
            "url": "https://guidehouse.com/services/compliance"
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                    "source": "https://www.360factors.com/blog/managing-risk-both-known-and-unknown/"
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                "page_content": "**Complimentary White Paper:[ FRED and Its Utilization in Predictive Risk\nManagement ](https://www.360factors.com/whitepapers/fred-utilization-\npredictive-risk-management/) **\n\n#  Managing Risks \u2013 Both Known and Unknown\n\n**Posted on:** October 18, 2018\n\nNo professional needs to be told the importance of [ risk management\n](https://www.360factors.com/enterprise-risk-management-software/) \u2013 any\nbusiness will have risks that need being managed. Businesses in the financial\nindustry are concerned about risk the most, along with other businesses in\nsimilarly dynamic and highly regulated industries. When it comes to managing\nrisks the leadership of any organization needs to worry about two things \u2013 1.\nHow to manage current risk related issues, and 2. How to prevent similar\nissues from cropping up in the future.\n\nAll businesses encounter risks; everything we do has a risk attached. We\ncannot eliminate risks, but we can mitigate the damage caused by them. We\nleave home earlier than we need to be on time for an important appointment \u2013\nbecause we know there is a risk that traffic may hold us up. We drive slower\nwhen there is fog or snow, because we know we mitigate the risks of an\naccident.  \n  \nOrganizations need a [ risk management system\n](https://www.360factors.com/blog/five-steps-of-risk-management-process/) that\ncan help them tackle the many different types of risks a business faces.\n\n##  The known knowns, known unknowns, and the unknown unknowns\n\nThe concept of known knowns and unknown was made famous by Donald Rumsfeld in\n2002, but it has been used in academic and philosophical circles for a much\nlonger time. The concept comes from the Johari Window, a concept put forward\nby two psychoanalysts in 1955. There is another part of the phrase which\nRumsfeld didn\u2019t mention \u2013 unknown knowns. These four categories are crucial\nfor managers to understand, especially when it comes to risk. While it may\nseem nonsensical at first glance, it is a brilliant way of assessing risks.\n\n##  Known known risks\n\nKnown known risks are the risks we know about and we also know how big they\nare. For example, an organization may know that there is a risk of them losing\nsome of their customers to a new competitor, and that they risk losing 10% of\ntheir customers. The organization knows the risk exists and can quantify it as\nwell. These are the risks that are the easiest to manage because all the\nrequired information is present.  \n  \nTo manage known known risks, the organization simply has to ensure that it is\nready for the expected impact. One feature can be integrating a risk\nmanagement methodology, combined with business process workflows and\nintegrated management change to ensure you watch for those known risks.\n\n##  Known unknowns\n\nKnown unknowns are the risks that the organization is aware of but is unaware\nof the size and effect of the risk. An organization may know that there is a\nrisk that rain may affect business operations, but the lack of knowledge about\nhow much rain there will be makes it hard to make concrete plans. It may be\njust a light shower which will barely affect operations, or it can be a\nrainstorm which can bring business operations to a halt. Planning for and [\nperception of risks ](https://www.360factors.com/blog/enterprise-risk-\nmanagement-technology/) is difficult, but not impossible.  \n  \nTo manage known unknown risks organizations, need to have a plan for the most\nprobable outcomes, and be ready to switch to the right plan of action once we\nhave enough information to convert known unknowns into known knowns. For\ninstance, having access to specific rules and regulations on a particular\ntopic can help identify the level of risk you may be engaging with and allows\nyou to plan for just how much risk is required to run your business\neffectively.\n\nupcoming-webinar\n\n##  Unknown unknowns\n\nUnknown unknowns are the most dangerous types of risks. These are risks which\nthe company doesn\u2019t even know that they don\u2019t know. A company may expand to a\nnew area and not know that the new area experiences extreme weather. The\ndanger here is that since the organization is unaware of the existence of the\nrisk, it cannot manage the risk, which can result in disaster. To mitigate\nthose issues, you can look for a solution that for every risk, control, audit,\ncorrective action and task is mapped back to the requirements that drive the\nactivity, producing a seamless management of change when those requirements\nchange.\n\n##  Unknown knowns\n\nUnknown known risks are very rare \u2013 these are the risks an organization is\naware of but is disregarding them, either intentionally or unintentionally.\nUnknown knowns are not acceptable from a risk management perspective \u2013 if a\nrisk is known, everything must be done to manage it. You should have a\nsolution in place that enables your organization to continuously measure the\neffectiveness of the controls and instigate corrective and preventative\nactions directly from the analysis and results.\n\n##  Tackling risk management in a systematic manner\n\nTrue risk management needs to account for all the different types of risk. The\nleadership should ensure that all the known knowns are being accounted for,\nall the known unknowns are being researched further, and that audits are being\ndone to ensure there are no unknown unknowns. The leadership also needs to\nensure that there are no unknown knowns; a risk that a certain department or\nmanager may be willfully ignoring.  \n  \nEvery industry faces a unique set of risk mandates and compliance challenges\nthat require close coordination and integration with many related [ GRC\n](https://www.360factors.com/grc/) functions including regulatory and\nstandards compliance, incident management, work place investigations, internal\naudit, quality management and others.\n\nThe best way to do this all is to adopt a [ GRC approach\n](https://www.360factors.com/blog/how-grc-systems-make-compliance-better-\nfaster/) . Instead of managing risks through hundreds of documents, there\nneeds to be a proper risk management system which helps monitor known knowns,\nhighlight known unknowns, discover unknown unknowns, and eliminate unknown\nknowns.  \n  \nIf you want to see how a [ GRC solutions ](https://www.360factors.com/grc/)\ncan help your organization accomplish this, get in touch with us to help\nevaluate the risk management solutions you are looking for and then for you to\nview that solution through our demonstration of [ Predict360\n](https://www.360factors.com/request-demo/?utm_source=compliance-management-\nsystem/) , our automation based [ risk management software\n](https://www.360factors.com/enterprise-risk-management-software/) . Now you\nknow!\n\n##  About the company\n\n360factors, Inc. (Austin, TX) helps companies improve business performance by\nreducing risk and ensuring compliance. Predict360, its flagship software\nproduct, vertically integrates regulations and requirements, policies and\nprocedures management, risks and controls, audit management and inspections,\nand on-line training and qualifications, in a single cloud-based platform\nbased on artificial intelligence.\n\nRemain up-to-date on industry news/updates through our [ Twitter\n](https://twitter.com/360factors) & [ Linkedin\n](https://www.linkedin.com/company/360factors-inc) profiles.\n\n[ ](https://www.360factors.com/amp/request-demo/) [\n](https://www.360factors.com/newsletter-reg/)\n\n[ ](https://www.facebook.com/360Factors) [\n](http://www.linkedin.com/company/360factors-inc?trk=prof-following-company-\nlogo) [ ](https://twitter.com/360factors)\n\nCopyright 2025 360factors, Inc. All Rights Reserved.\n\n[ ](https://www.360factors.com)\n\n  * [ 132nd Annual Texas Bankers Association (TBA) Convention ](https://www.360factors.com/events/132nd-annual-texas-bankers-association-tba-convention/)\n  * [ 2016 Annual Texas Commission on Environmental Quality (TCEQ) Trade Fair and Conference in Austin, Texas ](https://www.360factors.com/events/2016-annual-texas-commission-on-environmental-quality-tceq-trade-fair-and-conference-in-austin-texas/)\n  * [ 2017 Annual Texas Commission on Environmental Quality (TCEQ) Trade Fair and Conference in Austin, Texas ](https://www.360factors.com/events/tceq-2017/)\n  * [ 2018 Annual Texas Commission on Environmental Quality (TCEQ) Trade Fair and Conference in Austin ](https://www.360factors.com/events/tceq-2018)\n  * [ 360factors Online Privacy Policy ](https://www.360factors.com/privacy-policy/)\n  * [ 360factors Thought Leadership ](https://www.360factors.com/thankyou/strategic-risk-metrics-board/)\n  * [ 360factors Thought 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Thought Leadership ](https://www.360factors.com/thankyou/7-strategic-moves-conquering-compliance-regulatory-risk/)\n  * [ 360factors Thought Leadership ](https://www.360factors.com/thankyou/how-streamline-compliance-risk-management-avoiding-regulatory-peril/)\n  * [ 360factors Thought Leadership ](https://www.360factors.com/thankyou/how-complaints-drive-innovation/)\n  * [ 360factors Thought Leadership ](https://www.360factors.com/thankyou/how-evaluate-transform-regulatory-change-management-2022/)\n  * [ 360factors Thought Leadership ](https://www.360factors.com/thankyou/how-investing-compliance-innovation-drives-business-value/)\n  * [ 360factors Thought Leadership ](https://www.360factors.com/thankyou/data-products-changing-fintech-world/)\n  * [ 360factors Thought Leadership ](https://www.360factors.com/thankyou/transform-risk-compliance-data-with-predict360-tableau/)\n  * [ 360factors Thought Leadership ](https://www.360factors.com/thankyou/fintech-regulatory-compliance/)\n  * [ 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](https://www.360factors.com/services/aba-risk-library/)\n  * [ ABA Risk Library ](https://www.360factors.com/aba-risk-library-datasheet/)\n  * [ ABA Risk Management Conference 2018 in Orlando, Florida. ](https://www.360factors.com/events/aba-risk-management-conference-florida/)\n  * [ ABA Training and Certifications ](https://www.360factors.com/services/aba-training-certifications/)\n  * [ AI-Powered Share of Wallet Insights ](https://www.360factors.com/increase-share-wallet/)\n  * [ Air Quality Management ](https://www.360factors.com/ehs-regulatory-compliance-software/air-quality-management/)\n  * [ All Blog Post Links ](https://www.360factors.com/blog-all-post/)\n  * [ AMP \u2013 Predict360 Policy & Procedure Management Software Request Demo ](https://www.360factors.com/ap/policy-procedure-management-request-demo/)\n  * [ AMP \u2013 Predict360 Vendor Management Request Demo ](https://www.360factors.com/ap/vendor-risk-management/)\n  * [ AMP \u2013 Regulatory Change Management Software Request Demo ](https://www.360factors.com/ap/regulatory-change-management-software/)\n  * [ AMP \u2013 Request Demo ](https://www.360factors.com/amp/request-demo/)\n  * [ Anti-Bribery & FCPA Compliance ](https://www.360factors.com/anti-bribery-fcpa-compliance/)\n  * [ Assessments ](https://www.360factors.com/upgrade/assessments/)\n  * [ Asset Integrity Management Software ](https://www.360factors.com/oil-and-gas/oil-gas-grc-software/asset-integrity-management/)\n  * [ Audit Management Software ](https://www.360factors.com/audit-management-software/)\n  * [ Audit Management Software Datasheet ](https://www.360factors.com/audit-management-software-datasheet/)\n  * [ Auto Finance Company Not Implementing an Integrated Risk, Information, Compliance and Audit Management System ](https://www.360factors.com/banking-and-financial-software/auto-finance-integrated-risk-information-security-compliance-audit-system/)\n  * [ Auto Finance Company Not Implementing an Integrated Risk, Information, Compliance and Audit Management System ](https://www.360factors.com/enterprise-risk-management-software/auto-finance-integrated-risk-information-security-compliance-audit-system/)\n  * [ Auto Finance Governance, Risk, Compliance Business Intelligence Platform ](https://www.360factors.com/banking-and-financial-software/auto-finance-governance-risk-compliance-business-intelligence-platform/)\n  * [ Automate and Streamline Compliance with Predict360 Compliance Intelligence Suite ](https://www.360factors.com/regulatory-compliance-management/)\n  * [ Automate and Streamline Risk and Compliance Management with Solutions from 360factors and FIS ](https://www.360factors.com/fis/)\n  * [ Automate Mapping of Regulations to Internal Controls and Risk ](https://www.360factors.com/automate-mapping-of-regulations/)\n  * [ Automated Action Plans When Policy & Regulation Changes Using Artificial Intelligence (AI) ](https://www.360factors.com/banking-and-financial-software/how-to-automate-corrective-action-plans-up-on-policy-and-procedure-changes-using-artificial-intelligence/)\n  * [ Bank Enterprise Risk Management Software ](https://www.360factors.com/banking-financial-risk-management-software/)\n  * [ Bank Enterprise Risk Management Solution ](https://www.360factors.com/banking-and-financial-software/)\n  * [ Bank Regulatory Change Management Automation ](https://www.360factors.com/banking-and-financial-software/banking-regulatory-change-management-automation-through-artificial-intelligence/)\n  * [ Bank to Map Operational Risk Data with Financial Risk Data to Get Better Risk Monitoring ](https://www.360factors.com/banking-and-financial-software/bank-integrated-risk-compliance-management-system/)\n  * [ Banking & Financial Services ](https://www.360factors.com/industry-solutions/bank-risk-compliance-management-software/)\n  * [ Banking Governance, Risk, Compliance (GRC) Business Intelligence Platform ](https://www.360factors.com/banking-and-financial-software/banking-governance-risk-compliance-business-intelligence-platform/)\n  * [ Become a Partner ](https://www.360factors.com/become-partner/)\n  * [ Blog ](https://www.360factors.com/blog/)\n  * [ Blog Posts Links ](https://www.360factors.com/blog-posts/)\n  * [ BSA/AML Compliance ](https://www.360factors.com/banking-and-financial-software/bsa-aml-compliance/)\n  * [ Careers ](https://www.360factors.com/careers/)\n    * [ (Senior) Data Scientist ](https://www.360factors.com/careers/senior-data-scientist/)\n    * [ Accounts and Admin Executive ](https://www.360factors.com/careers/accounts-admin-executive/)\n    * [ Accounts Manager ](https://www.360factors.com/careers/accounts-manager/)\n    * [ BI Developer ](https://www.360factors.com/careers/bi-developer/)\n    * [ Business Analyst ](https://www.360factors.com/careers/business-analyst/)\n    * [ Business Development Executive ](https://www.360factors.com/careers/business-development-executive/)\n    * [ Business Development Representative ](https://www.360factors.com/careers/business-development-representative/)\n    * [ Content Specialist ](https://www.360factors.com/careers/content-specialist/)\n    * [ Customer Onboarding Consultant ](https://www.360factors.com/careers/customer-onboarding-consultant/)\n    * [ Customer Success Manager ](https://www.360factors.com/careers/customer-success-manager/)\n    * [ Customer Support Specialist ](https://www.360factors.com/careers/customer-support-specialist/)\n    * [ Data Integration Engineer ](https://www.360factors.com/careers/data-integration-engineer/)\n    * [ Data Scientist ](https://www.360factors.com/careers/data-scientist/)\n    * [ DevOps Engineer ](https://www.360factors.com/careers/devops-engineer/)\n    * [ DevOps Engineer ](https://www.360factors.com/careers/devops-engineer/)\n    * [ Digital Content Specialist ](https://www.360factors.com/careers/digital-content-specialist/)\n    * [ Digital Content Specialist ](https://www.360factors.com/careers/digital-content-specialist/)\n    * [ Director of Accounts & Finance ](https://www.360factors.com/careers/director-accounts-finance/)\n    * [ Enterprise Software Sales Executive ](https://www.360factors.com/careers/enterprise-software-sales-executive/)\n    * [ ETL Developer ](https://www.360factors.com/careers/etl-developer/)\n    * [ Graphic Designer ](https://www.360factors.com/careers/graphic-designer/)\n    * [ HR Generalist ](https://www.360factors.com/careers/hr-generalist/)\n    * [ Implementation Project Manager ](https://www.360factors.com/careers/project-manager/)\n    * [ Implementation Specialist ](https://www.360factors.com/careers/implementation-specialist/)\n    * [ Indirect Channel Account Executive \u2013 Financial Services ](https://www.360factors.com/careers/indirect-channel-account-executive/)\n    * [ Manager Finance & Accounting ](https://www.360factors.com/careers/manager-finance-accounting/)\n    * [ Manager Software Quality Assurance ](https://www.360factors.com/careers/manager-sqa/)\n    * [ Market Research Analyst ](https://www.360factors.com/careers/market-research-analyst/)\n    * [ Marketing & Business Editor ](https://www.360factors.com/careers/marketing-business-editor/)\n    * [ Network & IT Support Engineer ](https://www.360factors.com/careers/network-it-support-engineer/)\n    * [ Principal DWH Engineer ](https://www.360factors.com/careers/principal-bi-dw-engineer/)\n    * [ Principal Test Automation Engineer ](https://www.360factors.com/careers/principal-test-automation-engineer/)\n    * [ Principal UI/UX Designer / Engineer ](https://www.360factors.com/careers/principal-ux-engineer/)\n    * [ Product Manager ](https://www.360factors.com/careers/product-manager/)\n    * [ Product Report Designer ](https://www.360factors.com/careers/product-report-designer/)\n    * [ Project Manager ](https://www.360factors.com/careers/project-manager/)\n    * [ Quality Assurance Engineer \u2013 Data Validation ](https://www.360factors.com/careers/quality-assurance-engineer/)\n    * [ Senior Business Analyst ](https://www.360factors.com/careers/senior-business-analyst/)\n    * [ Senior Data Warehouse Engineer ](https://www.360factors.com/careers/data-warehouse-engineer/)\n    * [ Senior Enterprise Sales Executive ](https://www.360factors.com/careers/senior-enterprise-sales-executive/)\n    * [ Senior Implementation Specialist ](https://www.360factors.com/careers/senior-implementation-specialist/)\n    * [ Senior Implementation Specialist ](https://www.360factors.com/careers/implementation-specialist/)\n    * [ Senior Lead Generation Specialist ](https://www.360factors.com/careers/lead-generation-specialist/)\n    * [ Senior Product Manager ](https://www.360factors.com/careers/senior-product-manager/)\n    * [ Senior Project Manager ](https://www.360factors.com/careers/senior-project-manager/)\n    * [ Senior Project Manager Customer Success ](https://www.360factors.com/careers/senior-project-manager-customer-success/)\n    * [ Senior Software Engineer ](https://www.360factors.com/careers/senior-software-engineer/)\n    * [ Senior SQA Automation Engineer ](https://www.360factors.com/senior-sqa-automation-engineer/)\n    * [ Senior SQA Engineer ](https://www.360factors.com/careers/senior-sqa-engineer/)\n    * [ SEO Specialist ](https://www.360factors.com/careers/seo-specialist/)\n    * [ Software Engineer ](https://www.360factors.com/careers/software-engineer/)\n    * [ Software Engineer (Workflow Automation & Web Development) \u2013 Low-Code ](https://www.360factors.com/careers/software-engineer-workflow-automation/)\n    * [ Software Engineer Java ](https://www.360factors.com/careers/software-engineer-java/)\n    * [ Software Implementation Specialist ](https://www.360factors.com/careers/sr-software-implementation-specialist/)\n    * [ Software Solutions Consultant ](https://www.360factors.com/careers/software-solutions-consultant/)\n    * [ SQA Engineer ](https://www.360factors.com/careers/sqa-engineer/)\n    * [ SQA Engineer \u2013 Manual ](https://www.360factors.com/careers/sqa-engineer/)\n    * [ Sr. Data Analyst ](https://www.360factors.com/careers/data-analyst/)\n    * [ Sr. Data Engineer ](https://www.360factors.com/careers/data-engineer/)\n    * [ Sr. Product Report Designer ](https://www.360factors.com/careers/sr-product-report-designer/)\n    * [ Test Automation Engineer / SQA Engineer ](https://www.360factors.com/careers/automation-engineer/)\n  * [ Case Study: The Journey from Legacy ERM to Real-Time Risk Analytics ](https://www.360factors.com/journey-legacy-erm-real-time-risk-analytics/)\n  * [ Certification & Reporting Software ](https://www.360factors.com/predict360-regulatory-compliance-software/certification-reporting/)\n  * [ Clients Logos Carousel Short Code HTML ](https://www.360factors.com/clients-logos-carousel-short-code-html/)\n  * [ Clients Logos Carousel V2 Short Code HTML ](https://www.360factors.com/clients-logos-carousel-v2-short-code-html/)\n  * [ Clients Testimonials Short Code HTML ](https://www.360factors.com/clients-testimonials-short-code-html/)\n  * [ Come Hear us Speak at the 10th International Conference on Remediation of Chlorinated and Recalcitrant Compounds ](https://www.360factors.com/press-releases/come-hear-us-speak-at-the-10th-international-conference-on-remediation-of-chlorinated-and-recalcitrant-compounds/)\n  * [ Community-Based Libraries and Content ](https://www.360factors.com/services/community-based-libraries-content/)\n  * [ Complaints Management ](https://www.360factors.com/complaints-management/)\n    * [ Complaints Management Datasheet ](https://www.360factors.com/complaints-management/complaints-management-datasheet/)\n  * [ Compliance Management Software ](https://www.360factors.com/compliance-management-software/)\n    * [ SOX Compliance Software ](https://www.360factors.com/sox-compliance-software/)\n  * [ Compliance Management System ](https://www.360factors.com/compliance-management-system/)\n  * [ Compliance Management System Datasheet ](https://www.360factors.com/compliance-management-system-datasheet/)\n  * [ Compliance Monitoring and Testing ](https://www.360factors.com/compliance-monitoring-testing/)\n  * [ Compliance Monitoring Testing Datasheet ](https://www.360factors.com/compliance-monitoring-testing-datasheet/)\n  * [ Comprehensive GRC solution for European Bankers ](https://www.360factors.com/grc-solution-european-bankers/)\n  * [ Contact Us ](https://www.360factors.com/contact-us/)\n  * [ Contract Compliance Management System ](https://www.360factors.com/oil-and-gas/contract-compliance-management-system/)\n  * [ Control Management Software ](https://www.360factors.com/control-management-software/)\n  * [ Crowe ](https://www.360factors.com/services/crowe/)\n  * [ Crowe ](https://www.360factors.com/test/crowe/)\n  * [ Crowe Risk Library ](https://www.360factors.com/crowe-risk-library-datasheet/)\n  * [ Document Management / Policy & Procedure Management ](https://www.360factors.com/upgrade/document_management_policy_procedure/)\n  * [ Driving Compliance & Risk Technology Investment in Your Organization ](https://www.360factors.com/ppc/driving-compliance-risk-technology-investment-in-your-organization/)\n  * [ Efficiently Track, Manage and Resolve Risk Issues ](https://www.360factors.com/issues-incidents-management/)\n  * [ Empowered Systems AutoAudit ](https://www.360factors.com/autoaudit/)\n  * [ Empowered Systems AutoAudit Datasheet ](https://www.360factors.com/autoaudit-datasheet/)\n  * [ Enhance Your Predict360 Data with Powerful Content Plugins ](https://www.360factors.com/services/content-plugin-options/)\n  * [ Enterprise Regulatory Risk Management ](https://www.360factors.com/healthcare-regulatory-compliance-software/)\n  * [ Enterprise Risk and Compliance Management Software ](https://www.360factors.com/predict360-enterprise-risk-compliance-software/)\n  * [ Enterprise Risk Management Suite ](https://www.360factors.com/enterprise-risk-management-datasheet/)\n  * [ Environmental Management System ](https://www.360factors.com/environmental-management-system/)\n  * [ Environmental Site Assessment Lunch and Learn \u201cWhats Lurking in Those Weeds?\u201d ](https://www.360factors.com/events/environmental-site-assessment-lunch-and-learn-whats-lurking-in-those-weeds/)\n  * [ Events and Conferences ](https://www.360factors.com/events/)\n    * [ Operational Risk and Regulatory Change Management ](https://www.360factors.com/events/texas-safety-conference/)\n  * [ Explore Predict360 Benefits for ABA Members ](https://www.360factors.com/explore-predict360-benefits-aba-members/)\n  * [ Fair Lending Risk and Compliance Solutions ](https://www.360factors.com/fair-lending-risk-management-software/)\n  * [ Featured In Logos Short Code HTML ](https://www.360factors.com/featured_in-logos-html/)\n  * [ Fintech Risk + Compliance Starter Kit ](https://www.360factors.com/fintech-risk-compliancer-datasheet/)\n  * [ Fintech Risk Management & Fintech Compliance With Predict360 ](https://www.360factors.com/industry-solutions/fintech-risk-compliance-management-software/)\n  * [ FIS Global: FIS Regulatory University Training Classes ](https://www.360factors.com/services/fis-global/)\n  * [ Generative AI for Risk, Compliance, and Analytics ](https://www.360factors.com/generative-ai-risk-compliance-analytics/)\n  * [ Governance, Risk, and Compliance ](https://www.360factors.com/grc/)\n  * [ Grow Your Share of Wallet with AI-Driven Insights ](https://www.360factors.com/increase-share-wallet-datasheet/)\n  * [ Healthcare ](https://www.360factors.com/healthcare-regulatory-compliance-software/)\n  * [ home ](https://www.360factors.com/)\n  * [ How to Automate Corrective Action Plans When Regulations or Policy Changes Through Artificial Intelligence Technology ](https://www.360factors.com/banking-and-financial-software/cfpb-compliance-corrective-action-plans-automation-when-regulations-or-policy-changes/)\n  * [ Incident Management Software ](https://www.360factors.com/incident-management/)\n  * [ Industrial Hygiene Software ](https://www.360factors.com/environmental-management-system/industrial-hygiene/)\n  * [ Industry Solutions ](https://www.360factors.com/industry-solutions/)\n  * [ Insurance Company Not Implementing an Integrated Risk, Information, Compliance and Audit Management System ](https://www.360factors.com/industry-solutions/insurance-integrated-governance-risk-information-security-compliance-audit-software/)\n  * [ Insurance Regulatory Risk and Compliance Management Software ](https://www.360factors.com/insurance-financial-regulatory-compliance-software/regulatory-risk-compliance-management-software/)\n  * [ Insurance Risk and Compliance Management Software ](https://www.360factors.com/industry-solutions/insurance-risk-compliance-management-software-datasheet/)\n  * [ Integrated GRC Management for Mortgage Lenders ](https://www.360factors.com/enterprise-risk-management-software/mortgage-lender-integrated-governance-risk-information-security-compliance-audit-system/)\n  * [ Investment Risk Management Software & Wealth Management Compliance ](https://www.360factors.com/industry-solutions/investment-wealth-risk-compliance-management-software/)\n  * [ Issues Management ](https://www.360factors.com/issues-incidents-management-datasheet/)\n  * [ IT Risk Assessment Software ](https://www.360factors.com/it-risk-assessment-software-datasheet/)\n  * [ Large Bank to Automate Efficacy of Internal Controls through Artificial Intelligence ](https://www.360factors.com/banking-and-financial-software/automate-banking-risk-compliance-efficacy-of-internal-controls/)\n  * [ Leadership Team ](https://www.360factors.com/executive-team/)\n    * [ Bobby O\u2019Neal ](https://www.360factors.com/executive-team/bobby-neal/)\n    * [ Leadership Team ](https://www.360factors.com/executive-team/carl-mccauley/)\n    * [ Leadership Team ](https://www.360factors.com/executive-team/chris-duden/)\n    * [ Leadership Team ](https://www.360factors.com/executive-team/robert-berger/)\n    * [ Leadership Team ](https://www.360factors.com/executive-team/ed-sattar/)\n    * [ Leadership Team ](https://www.360factors.com/executive-team/megan-ward/)\n    * [ Leadership Team ](https://www.360factors.com/executive-team/faizan-baig/)\n    * [ Leadership Team ](https://www.360factors.com/executive-team/sherjil-siddiqui/)\n    * [ Leadership Team ](https://www.360factors.com/executive-team/janine-kasper/)\n    * [ Leadership Team ](https://www.360factors.com/executive-team/farhan-bhatti/)\n    * [ Leadership Team ](https://www.360factors.com/executive-team/irfan-ahmed/)\n    * [ Leadership Team ](https://www.360factors.com/executive-team/kenneth-proctor/)\n  * [ Learning Management Software Datasheet ](https://www.360factors.com/learning-management-system-datasheet/)\n  * [ Learning Management System ](https://www.360factors.com/learning-management-system/)\n  * [ Looking to Upgrade Your GRC Tech Stack? ](https://www.360factors.com/ppc/upgrade-grc-tech-stack/)\n  * [ lumify360 ](https://www.360factors.com/lumify360/)\n  * [ Manage Exam Processes, Workflows and Findings with Ease ](https://www.360factors.com/regulatory-examination-findings-management/)\n  * [ Mortgage Bankers Datasheet ](https://www.360factors.com/mortgage-bankers-datasheet/)\n  * [ Mortgage Lender Finance Company 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            "url": "https://www.360factors.com/blog/managing-risk-both-known-and-unknown/"
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                    "source": "https://www.thomsonreuters.com/en-us/posts/investigation-fraud-and-risk/esg-regulations-compliance/"
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                "page_content": "Skip to content\n\n[ Ingo Steinhaeuser ](https://www.thomsonreuters.com/en-us/posts/authors/ingo-\nsteinhaeuser/) Senior Risk and Fraud Specialist / Thomson Reuters\n\n5 Aug 2022  \u00b7 6 minute read\n\n  * Facebook \n  * Twitter \n  * Linkedin \n  * [ Email  ](mailto: \"Email\")\n\n[ Ingo Steinhaeuser ](https://www.thomsonreuters.com/en-us/posts/authors/ingo-\nsteinhaeuser/) Senior Risk and Fraud Specialist / Thomson Reuters\n\n5 Aug 2022  \u00b7 6 minute read\n\n  * Facebook \n  * Twitter \n  * Linkedin \n  * [ Email  ](mailto: \"Email\")\n\nNew regulatory rule-making around disclosure could push companies and\nfinancial services firms to move their ESG activities under the oversight of\nrisk and compliance teams\n\nLast March, the Securities and Exchange Commission (SEC) announced new\nenvironmental, social, and governance (ESG) [ disclosure requirements for\ncompanies ](https://www.sec.gov/news/press-release/2022-46) . Under these new\nrules, public companies must enhance and standardize climate-related\ndisclosures. Additional climate risk disclosures, such as the impact of severe\nweather events and the governance of risk management processes, are required\nas well.\n\nSimilarly, in Europe, the Corporate Sustainability Reporting Directive was\nadapted to [ publish regular standardized reports\n](https://ec.europa.eu/info/business-economy-euro/company-reporting-and-\nauditing/company-reporting/corporate-sustainability-reporting_en) on\ncompanies\u2019 environmental and social impact activities from the fiscal year\n2023 onwards.\n\nGiven this current set of regulations, while not yet clearly defined, it is\nclear that ESG issues are moving from a mainly voluntary disclosure-oriented\ndimension to a regulatory one with significant implications for how ESG\ninformation is collected, verified, and acted upon within an organization.\n\nIn recent years, various frameworks have been developed to create\nstandardization in ESG data reporting, often overlapping in their purposes.\nFor example, the newly formed [ International Sustainability Standards Board\n](https://www.ifrs.org/groups/international-sustainability-standards-board/) ,\nseeks to define standards for investors. Prior to that, the leading framework\nand standard-setting organizations \u2014 the Carbon Disclosure Project, the\nClimate Disclosure Standard Board, the Global Reporting Initiative (GRI), and\nthe Value Reporting Foundation (itself formed by the integration of the\nSustainability Accounting Standards Board (SASB) and the International\nIntegrated Reporting Council \u2014 [ provided guidance and rules\n](https://www.sasb.org/about/sasb-and-other-esg-\nframeworks/#:~:text=In%20September%202020%2C%20five%20leading,disclosure%2C%20connected%20via%20integrated%20reporting)\nto develop a comprehensive corporate reporting system with both financial\naccounting and sustainability disclosures.\n\nIt is quite common for large corporations to use a combination of the\nabovementioned frameworks. Coca Cola and 3M, for example, use SASB, GRI, Task\nForce of Financial Disclosures, and the UN Sustainability Goals as reporting\nand guidance frameworks. There are various implications, however, when\ninformation collection becomes part of a _mandated_ requirement rather than a\nvoluntary one.\n\nIn most cases, data collection is the responsibility of Sustainability\nOfficers, who draft and implement sustainable organizational policies that\naddress environmental concerns. These professionals are responsible for a\ncompany\u2019s environmental impact and environmental-related resources. For\nexample, if a company installs solar panels on their factory roofs or buys\nenergy from windfarms, that would be part of the Sustainability Officer\u2019s\nrecommendations on the strategy for the company\u2019s energy mix. Also,\nSustainability Officers will be responsible to frequently communicate these\nplans to the market, often superseding public relations or investor relations\nexecutives. However, when information becomes required by law, these\nresponsibilities likely will change.\n\nThe new responsibilities of sustainability officers likely will include more\ndata delivery and strategic responsibilities, rather than them being seen as\nsolely an agent for change and a communicator. \u201cSustainability is a becoming a\ndelivery role,\u201d says Olivia Whitman, Head of Sustainability at Siemens. \u201cWe\u2019ve\nspent a decade trying to be changemakers, and now suddenly, we\u2019re having to\nimplement processes and think about strategy.\u201d\n\nThe mandatory reporting of Scope 1 and Scope 2 GHG emissions in the recent SEC\nannouncement is not the only example of risk and compliance relevance of ESG\ndata. Other events are also contributing to moving ESG firmly into a\ncompliance-related field, particularly in the _S_ , or _Social_ category. In\nfact, the law with likely the largest impact on the compliance relevance of\nESG might [ the Uyghur Forced Labor Prevention Act\n](https://www.state.gov/implementation-of-the-uyghur-forced-labor-prevention-\nact/) . This law prohibits imports into the United States of products that are\nproduced using forced labor in the Xinjiang region and has placed additional\npressure on global supply chains.\n\nUnder the _Social_ category, the question of forced labor can be addressed by\ncompanies\u2019 disclosures if a prohibition of forced labor applies to their\nsupply chains. If a company follows through on its ESG policies, complying\nwith regulatory requirements should not make a structural difference in its\nbusiness activities and supply chains. For example, portions of the [ United\nStates\u2019 Lacey Act ](https://www.cbp.gov/trade/entry-summary/public-laws-\nimpacting-trade/public-law-110-246/amended-lacey-act/guidance-lacey-act) \u2014\nwhich bans trafficking in fish, wildlife, or plants, including timber that are\nillegally taken, possessed, transported, or sold \u2014 include ESG-related\nregulations. Such measures are addressed both in Social and Governance\ndisclosures but are also part of US anti-money laundering regulations.\n\n##  **Why an ESG box-checking approach is falling short**\n\nIf ESG were driven solely by regulatory requirements, then one could argue\nthat meeting these requirements would only require a simple box-checking\nexercise. Organizations responding in such a manner would be in compliance, of\ncourse, but would miss the overall _strategic implications_ related to ESG.\n\nFirst, ESG information ought to be used in the creation of a risk-based\napproach, ultimately being applied in corporate risk assessments conducted by\na top risk management officer or chief financial officer. For this, ESG data\nmust be used alongside third-party risk data \u2014 for example, information on\npublicly exposed persons, sanctions, or corrupt actors.\n\nSecond, to create an effective ESG strategy beyond compliance requires the\nincorporation of relative ESG performance into long-term business plans with a\nclear understanding of the risk and opportunities. This is especially true in\nan area of change that\u2019s driven by environmental and social factors as well as\na shifting geopolitical environment.\n\nA compliance mentality or box-checking approach towards ESG could well leave\nan organization short of the expectations of its investors and customers and\neven unprepared for future risks. From a reporting perspective, ESG reporting\nwill be part of any new data reporting requirement comparable to SEC\nreporting, related legislation like the Sarbanes Oxley Act, or statutory\nreporting, among other requirements. In addition, these reporting requirements\nneed to be made available for audit management purposes as well.\n\n##  **Creating an effective ESG data strategy**\n\nIn [ a recent Deloitte Survey\n](https://dart.deloitte.com/USDART/home/publications/deloitte/heads-\nup/2022/sec-proposed-rule-climate-disclosure) of 300 finance, accounting,\nsustainability, and legal executives at public companies with more than $500\nmillion in revenue, 57% of respondents indicated that data availability\n(access) and data quality (accuracy or completeness) remain their greatest\nchallenges with respect to ESG data for disclosure.\n\nTo improve data access and quality, organizations need to design and implement\nan effective data collection strategy that combines company disclosures and\nexternal data sources. Such a strategy includes four key elements:\n\n  1.     1.       1. the collection of ESG data; \n      2. the standardization and management of such data (according to various ESG frameworks); \n      3. the routing of ESG data to the right decision makers, including auditors; and \n      4. the analysis and embedding of ESG data into the organization\u2019s risk and strategy decision-making process. \n\nNot all of the collected data points are mandatory by law today. For example,\nenergy efficiency metrics and improvements are included in various reporting\nframeworks but are not yet mandated. Forward-looking organizations need to\ncontinuously assess their ESG risks by combining company-collected information\nwith external data sources.\n\nBecause whether companies and their advisors are ready or not, implementing a\nrisk-based approach with the inclusion of ESG data will become the norm.\n\n  * Facebook \n  * Twitter \n  * Linkedin \n  * [ Email  ](mailto: \"Email\")\n\n  * [ Compliance & Risk ](https://www.thomsonreuters.com/en-us/posts/topic/compliance-risk/)\n  * [ Corporates ](https://www.thomsonreuters.com/en-us/posts/topic/corporates/)\n  * [ ESG ](https://www.thomsonreuters.com/en-us/posts/topic/esg/)\n  * [ Governance ](https://www.thomsonreuters.com/en-us/posts/topic/governance/)\n  * [ Government ](https://www.thomsonreuters.com/en-us/posts/topic/government/)\n  * [ Risk Fraud & Compliance ](https://www.thomsonreuters.com/en-us/posts/topic/risk-fraud-and-compliance/)\n  * [ Risk Management ](https://www.thomsonreuters.com/en-us/posts/topic/risk-management/)\n\n[ \u2190 Back to blog ](https://www.thomsonreuters.com/en-us/posts/)\n\n* * *\n\n###  Solutions\n\n[ ](https://legal.thomsonreuters.com/en/products/regulatory-\nintelligence?utm_source=trblog&utm_medium=referral&utm_content=finreg&utm_campaign=trinstitute)\n\nWith Thomson Reuters Regulatory Intelligence, you can find and get clarity on\nregulatory developments. It is the first step in your regulatory compliance\nprogram because it allows you to track, flag and share regulations.\n\n###  Related posts\n\n[ ](https://www.thomsonreuters.com/en-us/posts/esg/sec-guidance-governance/)\n\n7 Apr 2025  \u00b7 5 minute read\n\n  * Facebook \n  * Twitter \n  * Linkedin \n  * [ Email  ](mailto: \"Email\")\n\n[ ](https://www.thomsonreuters.com/en-us/posts/human-rights-crimes/isotopic-\ntesting-uflpa-compliance/)\n\n26 Mar 2025  \u00b7 5 minute read\n\n  * Facebook \n  * Twitter \n  * Linkedin \n  * [ Email  ](mailto: \"Email\")\n\n[ ](https://www.thomsonreuters.com/en-us/posts/technology/ai-professional-\nservices-sustainability/)\n\n17 Mar 2025  \u00b7 7 minute read\n\n  * Facebook \n  * Twitter \n  * Linkedin \n  * [ Email  ](mailto: \"Email\")\n\n###  More insights\n\n[ ](https://www.thomsonreuters.com/en-us/posts/legal/lffi-q2-analysis-genai-\nproductivity/)\n\n16 Sep 2024  \u00b7 5 minute read\n\n  * Facebook \n  * Twitter \n  * Linkedin \n  * [ Email  ](mailto: \"Email\")\n\n[ ](https://www.thomsonreuters.com/en-us/posts/technology/data-transformation-\nai-adoption/)\n\n4 Dec 2024  \u00b7 7 minute read\n\n  * Facebook \n  * Twitter \n  * Linkedin \n  * [ Email  ](mailto: \"Email\")\n\n[ ](https://www.thomsonreuters.com/en-us/posts/government/government-fraud-\nwaste-abuse-report-2024/)\n\n6 Aug 2024  \u00b7 5 minute read\n\n  * Facebook \n  * Twitter \n  * Linkedin \n  * [ Email  ](mailto: \"Email\")\n\n[ Thomson Reuters  ](https://www.thomsonreuters.com/en.html)\n\n",
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                "page_content": "Risk, fraud, and investigations\n\n#  ** Risk and compliance management tools  **\n\n##  Simplify compliance and risk management across your business operations\nwith a single solution, ensuring seamless regulatory adherence and risk\nmitigation  \n\n##  **Track and manage global regulatory developments with confidence** ****\n\n###  **Access to extensive news and expert analysis with Regulatory\nIntelligence**\n\n**Track and manage the latest regulatory developments aggregated by experts:**\n\n  * Easily understand regulatory and compliance changes with access to 2,500 regulatory and legislative materials across 1,200 global regulatory bodies \n  * Increase efficiency by accessing regulatory changes within your own workflow software or through a desktop platform \n  * Mitigate risk by using horizon scanning to proactively track new regulatory developments \n\n###  ** Regulatory compliance management  **\n\nEnhance and manage regulatory compliance anywhere your company does business\nwith risk and compliance management tools. Ensure efficiency and effectiveness\nin adhering to regulations by optimizing your approach to regulatory\ncompliance globally.\n\n[ Explore solutions  ](/en/risk-fraud-investigations/risk-compliance-\nmanagement/regulatory-compliance-management)\n\n####  Practical Compliance\n\nMeet jurisdictional regulatory requirements and manage organizational risk\nwithin your corporate compliance department. Find clear guidance and resources\nacross right subject areas, including data privacy and cybersecurity.\n\nLearn more about Practical Compliance\n\n##  Discover more about our risk, fraud, and investigations solutions\n\n[ Learn more  ](/en/risk-fraud-investigations)\n\n##  **Whether you are looking for legal research tools, productivity\nsolutions, financial management software, or investigative and compliance\nsolutions, uncover products that will give your organization the boost it\nneeds.**\n\n  * [ Business development ](/en/legal/business-development \"Business development\")\n  * [ Corporate business & organization ](/en/legal/corporate-business-organization \"Corporate business & organization\")\n  * [ Legal data & document management ](/en/legal/data-document-management \"Legal data & document management\")\n  * [ Legal forms ](/en/legal/legal-forms \"Legal forms\")\n  * [ Drafting software, service & guidance ](/en/legal/drafting-software-service-guidance \"Drafting software, service & guidance\")\n  * [ Evidence ](/en/legal/evidence \"Evidence\")\n  * [ Financial management ](/en/legal/financial-management \"Financial management\")\n\n  * [ Law firm marketing ](/en/legal/law-firm-marketing \"Law firm marketing\")   \n\n  * [ Legal research & guidance ](/en/legal/legal-research-guidance \"Legal research & guidance\")\n  * [ Trial readiness, process & case guidance ](/en/legal/trial-readiness-process-case-guidance \"Trial readiness, process & case guidance\")\n  * [ Generative AI ](/en/legal/generative-ai)\n  * [ Fraud prevention, detection & investigations ](/en/risk-fraud-investigations/fraud-prevention-detection-investigations)\n  * [ Risk & compliance management ](/en/risk-fraud-investigations/risk-compliance-management \"Fraud prevention & compliance management\")\n  * [ Risk management & investigations ](/en/risk-fraud-investigations/risk-management-investigations \"Investigation technology\")\n\n##  Questions about our products and services? We\u2019re here to support you.\n\n**888-728-7677**\n\nCall us or submit your email and a sales representative will contact you\nwithin one business day.\n\nContact us\n\n###  Need help?\n\nView account and product support\n\n###  Already a customer?\n\nGo to product logins\n\n[ Thomson Reuters  ](https://www.thomsonreuters.com/en.html)\n\nDo not sell or share my personal information and limit the use of my sensitive\npersonal information  [ ](https://www.thomsonreuters.com/ccpa-dsar)\n\n",
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                    "source": "https://www.protiviti.com/us-en/regulatory-compliance"
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                "page_content": "Skip to main content\n\n#  Regulatory Compliance\n\n##  Regulatory Compliance consulting services help you manage today\u2019s risks to\nbuild future success.\n\nDisruptive technologies, regulatory pressures, evolving customer loyalty, and\npressure to enhance economic returns are just some of the challenges\norganizations need to overcome by innovating and managing their compliance\nrisks to succeed over the next decade.\n\nThe dynamic regulatory landscape and increased emphasis on cost reduction only\nadd to the complexity of organizations achieving profitable growth.\n\nProtiviti\u2019s regulatory compliance team brings a blend of experience and fresh\nthinking through a unique mix of consulting talent combined with former\nindustry professionals, including risk and technology executives, commercial\nand consumer lenders, compliance professionals, and financial regulators.  \n\n##  Research Guide\n\nNovember 25, 2024\n\n###  FAQ Guide on the Use of AI for Financial Crime Compliance\n\nAsk financial crime professionals what the most challenging part of their job\nis, and most will likely say it is the timely identification of suspicious\nactivity. As much as companies have worked to improve their detection\ncapabilities given their compliance obligations, their desire to protect their\nreputations and their understanding, as corporate citizens, of the...\n\n[ Learn More ](/us-en/research-guide/faq-use-of-ai-for-financial-crime-\ncompliance)\n\n##  Our Regulatory Compliance Consulting Services\n\n### [ Compliance Risk Management  Optimize and automate procedures using data\nand analytics for forward-looking, predictive controls, applying regulatory\ncompliance expertize for more efficient responses to enforcement actions or\nissues to allow your business to focus on growth and innovation.  ](/us-\nen/compliance-risk-management)\n\n### [ Consumer Protection  We combine world-class consumer compliance\nexpertize, hands on experience as former chief compliance officers and\nregulators, and proven methodologies to address your consumer compliance needs\nthrough compliance program management, regulatory reviews, consent and\nremediation support, and operations support.  ](/us-en/consumer-protection)\n\n### [ Financial Crime Compliance  Protiviti offers a multi-dimensional set of\nsolutions to help you fight financial crime while staying in sync with\nregulatory changes. We collaborate to promote knowledge and skill transfers so\nyour teams can leverage our delivery model, where impactful solutions can lead\nto lean and efficient operations.  ](/us-en/financial-crime-consulting)\n\n### [ Regulatory Remediation  Aggregate and improve the quality of existing\ntools, technologies, and capabilities to effectively address regulatory\nactions. Our team responds to regulatory requests in an agile and efficient\nway, enabling you to drive business growth and innovation.  ](/us-\nen/regulatory-remediation)\n\n### [ Compliance Transformation  Design a target operating model that brings\ntogether a vision for people, processes, and technology to enable your\nbusiness strategy. We help you build the capacity to transform by establishing\na culture that drives shared responsibility and innovation.  ](/us-\nen/compliance-transformation)\n\n### [ Anti-money laundering (AML) compliance  Protiviti provides a wide\nvariety of consultative services and AML solutions designed to assist\norganizations in all aspects of AML/Combating the Financing of Terrorism (CFT)\ncompliance, in addition to conducting transaction monitoring, and Know Your\nCustomer (KYC) reviews.  ](/us-en/anti-money-laundering-consulting)\n\n* * *\n\n> Manage the risks of today while positioning you to meet the challenges of\n> tomorrow\n\n##  Our Approach\n\n* * *\n\nWe help companies optimize resources and design compliance risk management\nprograms that are efficient, innovative, and tech-enabled so regulatory risk\nis covered across your organisation.\n\nIn a dynamic market, you need a regulatory compliance consulting partner that\ncan manage the risks of today while positioning you to meet the challenges of\ntomorrow.\n\nWe help you:\n\n  * Identify, align, and integrate key risk and performance indicators to business objectives and processes so that you can effectively manage risk \n  * Foster a culture of regulatory compliance so that you can factor in risk throughout your business\u2014from product development, marketing, and sales, to underwriting, pricing, and servicing, as well as third-party risk, complaint, and issues management \n  * Develop effective compliance management systems and solutions grounded in data analytics and built on efficient and agile technology platforms \n  * Establish, evaluate, monitor, and test for fair and responsible financial services \n  * Effectively manage or prepare for regulatory inquiries and exams or related matters requiring attention, and to respond successfully to enforcement actions and consent orders when needed \n  * Determine how to best leverage resources that promote success and enable innovation \n\n##  Technology Modernization: protecting your business, reducing costs and\nremaining compliant\n\n* * *\n\nIn a world marked by unpredictable geopolitical forces, rapid technological\nadvances, shifting employee and customer sentiments and evolving regulations,\nbusinesses face constant disruption. Leaders must modernize while reducing\ncosts, avoiding outages and ensuring compliance with regulations and\nstandards.\n\nOur framework, built on Ardoq technology, helps organizations reimagine their\napproach to understanding the intricate connections between business and\nunderlying technologies. We help you transform your organization by connecting\nbusiness activities to operational processes and databases to drive meaningful\nchange.\n\n##  Perspectives on Global Sanctions Landscape\n\n[ Learn More ](/us-en/perspectives-global-sanctions-landscape)\n\n##  Featured insights\n\n[ INSIGHTS PAPER  ](/us-en/insights-paper/iso-20022-compliance-countdown)\n\n[ PODCAST  ](/us-en/podcast/risky-women-podcast-adoption-ai-support-second-\nline-functions)\n\n[ PODCAST  ](/us-en/podcast/risky-women-top-compliance-priorities-2025)\n\n[ RESOURCE GUIDE  ](/us-en/resource-guide/eu-ai-act-regulations-compliance-\nand-best-practices)\n\n[ WHITEPAPER  ](/us-en/whitepaper/navigating-financial-services-compliance-\npriorities-2025)\n\n[ WHITEPAPER  ](/us-en/whitepaper/top-compliance-priorities-us-healthcare-\norganizations-in-2025)\n\n### [ Quantum computing helps financial services organization improve\nportfolio optimization  A joint team of quantum computing engineers and\nfinancial analysts at this industry leader in digital financial services, led\nby a forward-thinking CIO, knew they wanted to take advantage of quantum\ncomputing to solve unique challenges that could not be handled with classical\ncomputing alone.  [ Read more ](/us-en/client-story/quantum-computing-helps-\nfinancial-services-improve-portfolio) ](/us-en/client-story/quantum-computing-\nhelps-financial-services-improve-portfolio)\n\n##  Leadership\n\n[ Matthew Moore  Matt is a managing director and global leader of Protiviti\u2019s\nRisk & Compliance practice. He has extensive experience advising clients in\nmatters related to risk management, regulatory compliance, corporate\ngovernance and internal controls. Matt helps his ...  Learn More  ](/us-\nen/matthew-moore)\n\n[ __ ](/cdn-cgi/l/email-\nprotection#24494550504c41530a494b4b56416454564b504d524d504d0a474b49) [ __\n](https://www.linkedin.com/in/matthew-moore-9093b629)\n\n[ Thomas Giltrow  Tom Giltrow is a Managing Director and leader of Protiviti\u2019s\nRegulatory Compliance practice, where he specializes in assisting financial\nservice companies in managing all types of compliance risk, from compliance\nprogram and process design to compliance audits and ...  Learn More  ](/us-\nen/thomas-giltrow)\n\n[ __ ](/cdn-cgi/l/email-\nprotection#96e2fef9fbf7e5b8f1fffae2e4f9e1d6e6e4f9e2ffe0ffe2ffb8f5f9fb) [ __\n](https://www.linkedin.com/in/tgiltrow/)\n\n[ ](https://www.protiviti.com/us-en)\n\n  * [ About Us ](/us-en/about-us)\n  * [ Careers ](/us-en/careers)\n  * [ Contact Us ](/us-en/contact-us)\n  * [ Insights ](/us-en/insights)\n  * [ Locations ](/us-en/location)\n  * [ Preference Center ](/us-en/preference-center)\n  * [ Sitemap ](/us-en/sitemap)\n\n  * [ Instagram - US __ ](https://www.instagram.com/protiviti/)\n  * [ US Linkedin __ ](https://www.linkedin.com/company/protiviti/)\n  * [ Twitter __ ](https://twitter.com/protiviti)\n  * [ Facebook __ ](https://www.facebook.com/protiviti)\n  * [ Youtube __ ](https://www.youtube.com/user/protivitiinc)\n  * [ Blogs __ ](https://blog.protiviti.com/)\n\n  * [ Privacy Notice ](/us-en/privacy-policy)\n  * [ Terms of Use ](/us-en/terms-use)\n\n\u00a92025 Protiviti Inc. All Rights Reserved. Protiviti Inc. is an [ Equal\nOpportunity Employer ](https://www.protiviti.com/us-en/equal-opportunity-\nemployer) , M/F/Disability/Veterans\n\n[ ](/us-en/contact-us)\n\n",
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                    "source": "https://hyperproof.io/resource/cybersecurity-risk-management-process/"
                },
                "page_content": "Skip to content\n\n#  Cybersecurity Risk Management: Frameworks, Plans, and Best Practices\n\n[ Mark Knowles  ](https://hyperproof.io/resource/author/mark-knowles/)\n\n**Updated on:** Mar 10, 2025  16 Minute Read\n\n[\n](https://www.linkedin.com/shareArticle?mini=true&url=https://hyperproof.io/resource/cybersecurity-\nrisk-management-process/) [\n](https://www.facebook.com/sharer.php?u=https://hyperproof.io/resource/cybersecurity-\nrisk-management-process/) [\n](https://twitter.com/intent/tweet?url=https://hyperproof.io/resource/cybersecurity-\nrisk-management-\nprocess/&text=Cybersecurity+Risk+Management%3A+Frameworks%2C+Plans%2C+and+Best+Practices)\n\nIn the modern landscape of cybersecurity risk management, one uncomfortable\ntruth is clear \u2014 managing cyber risk across the enterprise is harder than\never. Keeping architectures and systems secure and compliant can seem\noverwhelming even for today\u2019s most skilled teams.\n\nDave Hatter, a cybersecurity consultant at Intrust IT and 30-year veteran of\nthe industry, explains, \u201cAs more of our physical world is connected to and\ncontrolled by the virtual world, and more of our business and personal\ninformation goes digital, the risks become increasingly daunting. While it has\nnever been more important to manage cybersecurity risk, it also has never been\nmore difficult.\u201d\n\nWhy is managing [ cyber risk ](https://hyperproof.io/resource/what-is-cyber-\nrisk/) so much more complex today than ever before?\n\nStart with the explosion of cloud services and third-party vendors contacting\nsensitive data. A Ponemon Institute study estimates the [ average company\nshares confidential information with 583 third parties\n](https://www.businesswire.com/news/home/20181115005665/en/Opus-Ponemon-\nInstitute-Announce-Results-2018-Third-Party) . IT security teams have their\nhands full, managing complex infrastructures full of vendor risk.\n\nMeanwhile, organizations face a growing number of laws and regulations that\ngovern how confidential data must be protected. Today\u2019s enterprises are held\naccountable for third parties processing data on their behalf. As if handling\nyour own risk wasn\u2019t challenging enough, today\u2019s organizations must also\nmanage vendor risk.\n\nDon\u2019t forget to factor in the COVID-19 pandemic with employees working\nremotely on unsecured networks, scrambled security protocols, and recession-\ndriven budget and staffing cuts. Enterprises face more responsibility with\nfewer resources, all under the pressure of mounting regulations that come with\nsteep penalties for non-compliance.\n\nSo, facing this multitude of obstacles, how can your organization hope to\nmanage risk today?\n\n> It starts with building knowledge of the risk management process,\n> identifying the critical action steps, and understanding the essential\n> capabilities your organization will need to conduct assessments and manage\n> risk effectively\n\n##  What is cybersecurity risk management?\n\nCybersecurity risk management is an ongoing process of identifying, analyzing,\nevaluating, and addressing your organization\u2019s cybersecurity threats. Learn\nmore in the [ 2025 IT Risk and Compliance Benchmark Report\n](https://hyperproof.io/it-compliance-benchmarks/) .\n\nCybersecurity risk management isn\u2019t simply the job of the security team;\neveryone in the organization has a role to play. Often siloed, employees and\nbusiness unit leaders view risk management from their business function.\nRegrettably, they lack the holistic perspective necessary to address risk in a\ncomprehensive and consistent manner.\n\nSo, who should own what part of [ security risk\n](https://hyperproof.io/resource/risk-register-key-benefits/) ? The short\nanswer is everyone \u2013 shares full ownership and responsibility. However, it\ngets complicated when four business functions all have a horse in the race.\n\nEach function has its agenda, often with limited understanding and empathy for\nothers. IT leads with fresh ideas and new technologies, often viewing security\nand compliance as annoying roadblocks to progress. Security knows safety but\nis often out of touch with regulations and evolving technologies. The sales\nteam is looking to keep their customers happy, clamoring for an efficient way\nto complete security audits. Compliance wants to keep everyone out of trouble\nwith strict adherence to regulations, often operating without an in-depth\nunderstanding of security.\n\nEffectively managing cybersecurity risk requires all functions to operate with\nclearly defined roles and be tasked with specific responsibilities. The days\nof siloed departments stumbling along in disconnected confusion are over.\nToday\u2019s risk landscape requires a unified, coordinated, disciplined, and\nconsistent management solution. Below are some key risk management action\ncomponents all organizations must keep in mind:\n\n  * Development of robust policies and tools to assess vendor risk \n  * Identification of emergent risks, such as new regulations with business impact \n  * Identification of internal weaknesses, such as lack of two-factor authentication \n  * Mitigation of risks, possibly through training programs or new policies and internal controls \n  * Testing of the overall security posture \n  * Documentation of vendor risk management and security for regulatory examinations or to appease prospective customers \n\n**Featured Cybersecurity Risk Management Framework** : [ **NIST Cybersecurity\nFramework** ](https://hyperproof.io/nist-cybersecurity-framework-solution/)\n\n##  The cybersecurity risk management process\n\nWhen it comes to managing risk, organizations generally follow a four-step\nprocess beginning with identifying risk. Next, [ risk is assessed\n](https://hyperproof.io/resource/information-security-risk-assessment-a-\nprimer/) based on the likelihood of threats exploiting vulnerabilities and the\npotential impact. Risks are prioritized, with organizations choosing from a\nvariety of mitigation strategies. The fourth step, monitoring, is structured\nto risk response and controls current despite a continually shifting\nenvironment.\n\nThe good news for organizations looking to assess their risk level is that\nplenty of help is available. The National Institute of Standards created a\nthird-party risk management framework known as [ NIST Special Publication\n800-30\n](https://nvlpubs.nist.gov/nistpubs/Legacy/SP/nistspecialpublication800-30r1.pdf)\nto guide federal information system\u2019s risk assessments. The 800-30 framework\nexpands on the instruction of Special Publication 800-39.\n\nIt is closely related to Special Publication 800-53, another third-party risk\nmanagement framework that provides a catalog of security and privacy controls\nfor federal information systems. Though NIST SP 800-30 isn\u2019t mandatory in the\nprivate sector, it provides a helpful guide for all organizations assessing\nrisk.\n\n##  Develop a cybersecurity risk management plan\n\nLet\u2019s explore each step of the cybersecurity risk management process in more\ndetail to develop a plan.\n\n###  Identify cybersecurity risks\n\n[ Gartner defines IT risk ](https://www.gartner.com/en/information-\ntechnology/glossary/it-risk) as \u201cthe potential for an unplanned, negative\nbusiness outcome involving the failure or misuse of IT.\u201d In other words, what\nare the odds of an existing threat exploiting a vulnerability, and if so, how\ndire would the consequences be? Risk identification is the first step in the\nmanagement process. Modern security teams have their hands full with the\ngrowth of IT systems, the explosion of regulations, and the complications of\nCOVID, creating potential risks around every corner.\n\nWhen looking to identify risk, you must start by understanding threats,\nvulnerabilities, and the consequences of their convergence. [\n](https://nvlpubs.nist.gov/nistpubs/Legacy/SP/nistspecialpublication800-30r1.pdf)\n\n[ T\n](https://nvlpubs.nist.gov/nistpubs/Legacy/SP/nistspecialpublication800-30r1.pdf)\nhreats are circumstances or events with the potential to negatively affect an\norganization\u2019s operations or assets through unauthorized access of information\nsystems. Threats can manifest everywhere \u2014 in the form of hostile attacks,\nhuman errors, structural or configuration failures, and even natural\ndisasters.\n\n[ Vulnerabilities\n](https://nvlpubs.nist.gov/nistpubs/Legacy/SP/nistspecialpublication800-30r1.pdf)\ncan be defined as weaknesses in an information system, security procedure,\ninternal control, or implementation that a threat source can exploit. Often\ndue to inadequate internal functions like security, vulnerabilities can also\nbe found externally in supply chains or vendor relationships.\n\n[ Consequences\n](https://nvlpubs.nist.gov/nistpubs/Legacy/SP/nistspecialpublication800-30r1.pdf)\ncan best be defined as the adverse results that occur when threats exploit\nvulnerabilities. Their impact measures the severity of consequences, and your\norganization will need to estimate such costs when attempting to assess risk.\nKeep in mind that these costs usually come from lost or destroyed information,\nwhich can be a significant business setback for any organization.\n\n####  How mature are your organization\u2019s cybersecurity risk management\npractices? Find out now.\n\n[ Take the free quiz \u203a ](https://hyperproof.io/evaluate-your-grc-maturity/\n)\n\n###  Assess cybersecurity risks\n\nRisk assessments provide an excellent opportunity to emphasize the importance\nof security across your organization. Assessing risk allows your team to\npractice communication and cooperation to play a critical role in future risk\nmanagement.\n\nWhat is your organization\u2019s level of risk? Assessment is the all-important\nstep when that answer becomes clear. Start by naming all assets and\nprioritizing their importance. Second, identify all possible threats and\nvulnerabilities in your environment. At this point, address all known\nvulnerabilities with appropriate controls. Next, attempt to determine the\nlikelihood of a threat event occurring and conduct an \u201cimpact analysis\u201d to\nestimate its potential consequences and cost impact. Your resulting risk\ndetermination will serve as a guide to inform risk management decisions and\nrisk response measures moving forward.\n\nThe [ NIST Guide ](https://hyperproof.io/resource/a-complete-guide-to-nist-\ncompliance/) for Conducting Risk Assessments discussed in Special Publication\n800-30 can help your team with a four-step progression. Prepare for your\nassessment by clarifying your purpose, scope, constraints, and risk\nmodel/analytics to be used. Conduct your assessment to list risks by\nlikelihood and impact for an overall risk determination. These results will be\nshared and drive your team\u2019s mitigation efforts across the enterprise.\nFinally, this guide directs the maintenance of your assessment by continually\nmonitoring environments.\n\n###  Identify possible cybersecurity risk mitigation measures\n\nIdentifying and assessing risk is just the beginning. What is your\norganization going to do about the risk you find? What will your mitigation\nresponse be for managing risk? How will you manage residual risk? History\ntells us the most successful risk management teams have a well-thought plan in\nplace to guide their risk response strategy.\n\nThe all-important third step of response starts by understanding all your\noptions for risk mitigation \u2014 your team can employ either technological or\nbest practice methods, ideally a combination of both. Technological risk\nmitigation measures include encryption, firewalls, threat-hunting software,\nand engaging automation for increased system efficiency. Best practices for\nrisk mitigation include:\n\n  * Cybersecurity training programs \n  * Updating software \n  * Privileged access management (PAM) solutions \n  * Multi-factor access authentication \n  * Dynamic data backup \n\nSmart organizations know to base their risk response measures and risk\nmanagement posture on real data. They prioritize risks as well as mitigation\nsolutions using concrete data from real-world applications.\n\nThat brings us to residual cybersecurity risk. This is the risk left over\nafter applying all mitigation measures \u2014 the type of unavoidable risk you\ncan\u2019t do much about. You have two choices for residual risk \u2014 learn to live\nwith it or transfer it to an insurance provider who will shoulder it for a\nfee. Cybersecurity insurance provides a last-ditch option for lessening\nresidual risk and stands to become more popular as the damage cost of cyber\nincidents becomes easier to calculate.\n\nIt has become increasingly necessary for organizations to accurately estimate\ndamage costs. When estimating damage costs of cybersecurity risk, you need to\nconsider three types of expenses. Operational costs involve lost time or\nresources and are easy to calculate. Fiscal costs can include fines for non-\ncompliance or lost income when existing clients defect or new opportunities\nare lost. The reputational cost associated with breaches that violate customer\nprivacy and trust is the hardest to calculate.\n\n###  Use ongoing monitoring\n\nYour organization has identified, assessed, and mitigated the risks in your\nenvironment. In a perfect world, that would be enough. But as we know, change\nis a constant, and your team will need to monitor environments to ensure\ninternal controls maintain alignment with risk.\n\nYour organization will want to monitor:\n\n_**Regulatory change** \u2013 _ Staying abreast of all regulations and their shifts\nwill ensure your internal controls align with outside expectations.\n\n_**Vendor risk** \u2013 _ Be sure to assess and document security and compliance\ncontrols as new vendors are on board. Remember, their shortcomings can become\nyour headaches.\n\n_**Internal IT usage** \u2013 _ Know what technology your internal teams use and\nhow they use it to stay ahead of potential gaps.\n\n##  Standards and frameworks that require a cyber risk management approach\n\nOther than NIST SP 800-53, several additional cybersecurity compliance\nstandards/frameworks contain best practices and requirements for managing\ncyber risk. Below are the most well-recognized frameworks:\n\n###  [ ISO/IEC 27001 ](https://hyperproof.io/iso-27001/)\n\nThe international standard for information security management. Clause 6.1.2\nof ISO 27001 states that an information security risk assessment must:\n\n  * Establish and maintain information security risk criteria; \n  * Ensure that repeated risk assessments produce \u201cconsistent, valid and comparable results\u201d; \n  * \u201cidentify risks associated with the loss of confidentiality, integrity, and availability for information within the scope of the information security management system\u201d; \n  * Identify the owners of those risks; and \n  * Analyze and evaluate information security risks according to the criteria established earlier. \n\n###  [ NIST Cybersecurity Framework Version 1.1 ](https://hyperproof.io/nist-\ncybersecurity-framework-solution/)\n\nNIST Cybersecurity Framework (CSF) contains a set of 108 recommended security\nactions across five critical security functions \u2014 identify, protect, detect,\nrespond and recover. It is designed to help organizations better manage and\nreduce cyber risk of all types \u2013 including malware, password theft, phishing\nattacks, DDoS, traffic interception, social engineering, and others.\n\nWithin the document\u2019s first pillar \u2013 Identify -> Risk Assessment -> it states\nthat \u201cthe organization understands the cybersecurity risk to organizational\noperations (including mission, function, image, or reputation), organizational\nassets, and individuals.\u201d Specifically, it recommends organizations take the\nfollowing steps:\n\n  * Identify and document asset vulnerabilities \n  * Tune into the latest cyber threat intelligence from information-sharing forums \n  * Identify and document threats, both internal and external \n  * Identify the potential business impacts and likelihood of risk events \n  * Utilize threats, vulnerabilities, likelihood, and impacts to determine risk \n  * Identify and prioritize risk responses \n\nNIST CSF also has a section detailing what needs to be included within a risk\nmanagement strategy, stating that \u201cthe organization\u2019s priorities, constraints,\nrisk tolerances, and assumptions need to be established to support operational\nrisk decisions.\u201d Further, the framework asks organizations to establish and\nimplement processes to identify, assess and manage supply chain risks.\n\n###  [ NIST Risk Management Framework ](https://csrc.nist.gov/projects/risk-\nmanagement/about-rmf)\n\nThe NIST Risk Management Framework provides a process that integrates\nsecurity, privacy, and cyber supply-chain risk management activities into the\nsystem development life cycle. The RFM approach can be applied to new and\nlegacy systems, any type of system or technology (e.g., IoT, control systems),\nand within any type of organization, regardless of size or sector. The key\nsteps in the framework include the following:\n\nStep  |  Purpose   \n---|---  \nPrepare  |  Essential activities to prepare the organization to manage security and privacy risks.   \nCategorize  |  Inform organizational risk management processes and tasks by determining the adverse impact with respect to the loss of confidentiality, integrity, and availability of systems and the information processed, stored, and transmitted by those systems   \nSelect  |  Select, tailor, and document the controls necessary to protect the system and organization commensurate with risk   \nImplement  |  Implement the controls in the security and privacy plans for the system and organization   \nAssess  |  Determine if the controls are implemented correctly, operating as intended, and producing the desired outcome with respect to meeting the security and privacy requirements for the system and the organization.   \nAuthorize  |  Provide accountability by requiring a senior official to determine if the security and privacy risk based on the system\u2019s operation or the use of common controls is acceptable   \nMonitor  |  Maintain ongoing situational awareness about the security and privacy posture of the system and organization to support risk management decisions.   \n  \nNIST has prepared multiple guides to make it easier for organizations to\nimplement the RMF, which can be accessed on the [ NIST site\n](https://csrc.nist.gov/projects/risk-management/about-rmf) .\n\n####  See how Hyperproof can help you implement a risk management process that\nhelps you maintain a continuously secure posture.\n\n[ Explore our Risk Management Solution \u203a ](https://hyperproof.io/request-a-\ndemo/        )\n\n##  The roles internal compliance and audit teams play in risk management\n\nRisk management is a continual process that should always include re-\nassessment, new testing, and ongoing mitigation. Keep in mind that internal\ncompliance and audit teams can significantly control risk moving forward.\nBelow are nine ways they can help:\n\n##  Critical capabilities for managing risk\n\nAssessing risk has never been easy, and thanks to COVID-19 and the economic\nrecession, conducting risk assessments is more challenging than ever. What\ncapabilities will your team need to navigate these current challenges?\n\nGlad you asked. Below, we leave you with some critical capabilities your\norganization will need to conduct assessments and effectively manage risk\ntoday.\n\n###  Collaboration and communication tools\n\nAs teams across the enterprise participate in risk assessment and mitigation\nphases, they will need the tools for effective communication. These tools\nshould provide a clear conversation record for team members in different\nlocations, time zones, or countries.\n\n###  Risk management frameworks\n\nBe sure your team takes full advantage of third-party [ risk management\nframeworks ](https://hyperproof.io/supported-frameworks/) like NIST Special\nPublication 800-30 to guide risk assessment and management. These third-party\nframeworks can help audit teams perform a swifter, more precise gap analysis\nbetween compliance requirements and current operations.\n\n###  Analytics\n\nThis versatile tool can help with root cause analysis and the predictive\nanalysis of emerging risks.\n\n###  [ Single data repository ](https://hyperproof.io/product/)\n\nHere, risk, compliance, and security professionals can store risk assessments,\ntest results, documentation, and other relevant information.\n\n###  Issues management tools\n\nThese instruments organize assignments of specific mitigation steps and\nautomate reminders to complete tasks promptly. They also notify senior\nexecutives if tasks don\u2019t complete.\n\n###  Versatile reporting\n\nThe flexibility to present [ IT risk management\n](https://hyperproof.io/resource/it-risk-assessment/) reports to business unit\nleaders and senior executives in the most desired and usable format.\n\n##  Navigating the complexities of cybersecurity risk management in the modern\nlandscape\n\nManaging risk across the enterprise is harder than ever today. Modern security\nlandscapes change frequently, and the explosion of third-party vendors,\nevolving technologies, and a continually expanding mine-field of regulations\nchallenge organizations. The COVID-19 pandemic and recession have further\nraised the bar for security and compliance teams by creating more\nresponsibility while diminishing resources.\n\nWith this backdrop, it\u2019s become critical for your organization to employ a\nRisk Management Process. Identify and assess to create your risk\ndetermination, then choose a mitigation strategy and continually monitor your\ninternal controls to align with risk. Keep in mind that re-assessment, new\ntesting, and ongoing mitigation should always play a prominent role in any\nrisk management initiative.\n\nIn the final analysis, there\u2019s no rest in the modern pursuit of risk\nmanagement. It hardly seems fair in a climate of continuous and unparalleled\nchange, with threats and vulnerabilities multiplying by the minute. However,\nwith the help of analytics, collaboration/communication/issue management\ntools, and third-party risk management frameworks, smart and successful\norganizations will continue to hold their own in the battle to manage IT risk\nand maintain security across the enterprise.\n\n####  See Hyperproof in Action\n\n[ Request Demo  ](/request-a-demo/)\n\n#####  Related Resources\n\n  * [ ](https://www.brighttalk.com/webcast/18576/448069?utm_source=Hyperproof&utm_medium=brighttalk&utm_campaign=448069)\n\n[ Webinar | How To Use Risk Management To Elevate Your Cybersecurity Program ](https://www.brighttalk.com/webcast/18576/448069?utm_source=Hyperproof&utm_medium=brighttalk&utm_campaign=448069)\n\n  * [ ](https://learn.hyperproof.io/vendor-risk-management-product-factsheet-download)\n\n[ Hyperproof's Vendor Risk Management Product Factsheet\n](https://learn.hyperproof.io/vendor-risk-management-product-factsheet-\ndownload)\n\n  * [ ](https://learn.hyperproof.io/risk-management-prod-factsheet-download)\n\n[ Overview of Hyperproof\u2019s Risk Management Software Solution\n](https://learn.hyperproof.io/risk-management-prod-factsheet-download)\n\n##  Ready to see  \nHyperproof in action?\n\n600 1st Ave Ste 330 PMB 78059,  \nSeattle, WA, 98104-2246\n\n[ 833 497 7663 ](tel:+18334977663) ** //  ** [ [email protected]  ](/cdn-\ncgi/l/email-protection#533a3d353c133b2a23362123213c3c357d3a3c)\n\n[ ](https://www.facebook.com/hyperproof)\n\n[ ](https://www.linkedin.com/company/hyperproof)\n\n[ ](https://twitter.com/Hyperproof)\n\n[ ](https://www.youtube.com/@hyperproof)\n\nSolutions\n\n[ Product ](https://hyperproof.io/product/)  \n[ Integrations ](https://hyperproof.io/integrations/)  \n[ Frameworks ](https://hyperproof.io/supported-frameworks/)\n\nResources\n\n[ Blog ](https://hyperproof.io/blog-home/)  \n[ Resource Library ](https://hyperproof.io/resource-library/)  \n[ Glossary ](https://hyperproof.io/glossary/)\n\nHyperproof\n\n[ About ](https://hyperproof.io/about-hyperproof/)  \n[ Careers ](https://hyperproof.io/working-at-hyperproof/)  \n[ Press ](https://hyperproof.io/press/)  \n[ Security and Trust ](/security-trust/)  \n[ Trust Center ](https://trust.hyperproof.io/)  \n[ Main Subscription Agreement ](/msa/)  \n[ Partner Program Benefits ](https://hyperproof.io/partner-benefits/)  \n[ Contact ](https://hyperproof.io/contact-us/)\n\nCurrent Customers\n\n[ Log Into Hyperproof ](https://hyperproof.app/?utm_source=website)  \n[ Support ](https://community.hyperproof.io/)  \n[ Help Center ](https://docs.hyperproof.io/)  \n[ Developer Portal ](https://developer.hyperproof.app/)  \n[ Status Page ](https://hyperproof.io/status/)\n\n[ ](https://www.g2.com/products/hyperproof/reviews?utm_source=review-widget)\n\n[ ](https://www.gartner.com/reviews/market/audit-management-\nsolutions/vendor/hyperproof/product/hyperproof/reviews?marketSeoName=audit-\nmanagement-solutions&vendorSeoName=hyperproof&productSeoName=hyperproof)\n\n[\n](https://www.capterra.com/reviews/202536/Hyperproof?utm_source=vendor&utm_medium=badge&utm_campaign=capterra_reviews_badge)\n\n[ ](https://app.vendr.com/create-\naccount?utm_source=hyperproof&utm_campaign=affiliate_program&utm_medium=affiliate)\n\n\u00a9 2025 Copyright All Rights Reserved Hyperproof\n\n[ Privacy ](https://hyperproof.io/privacy-policy/) | [ Cookies ](https://hyperproof.io/cookie-policy/) | [ Terms of Use ](https://hyperproof.io/terms-of-use/) | [ Approved Subprocessors ](https://hyperproof.io/approvedsubprocessors/)\n\n[ Get a Demo ](/request-a-demo/)\n\n",
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                "page_content": "#  Managing the risk of regulatory changes\n\n##  **Today\u2019s reality and concerns**\n\nToday's changing business landscape brings with it a myriad of regulatory\nchallenges, including large volume and pace of changes to laws and regulations\nacross jurisdictions, states, and countries. The regulatory landscape is\nconstantly evolving, and understanding it demands a deep knowledge of the\norganization's operations, past, present, and future.\n\nIn fact, a recent KPMG study[1][2] found that 43% of chief ethics and\ncompliance officers (CCOs) believe that new regulatory requirements pose the\ngreatest challenge to their compliance efforts. To manage this challenge, 45%\nof CCOs say they are targeting compliance around industry-specific regulations\nas the most critical area to improve, where regulatory mapping and change\nmanagement are prioritized for automation over the next two years. 73% of the\nparticipants predict that the level of focus on compliance, particularly in\nrelation to regulatory expectations and scrutiny, will rise.\n\nMoreover, the Public Company Accounting Oversight Board (PCAOB) has proposed\nsubstantive changes to auditing responsibilities regarding a company\u2019s\nnoncompliance with laws and regulations (NOCLAR). These changes if finalized\nwould have significant impacts on companies, including an uptick in the cost\nof audits due to the increased amount of laws and regulations the auditor will\nneed to consider. Further, company management would need to dedicate an\nincreased number of resources toward identifying relevant laws and regulations\nand the identification and investigation of NOCLAR. For more information read\nthe \u201cPCAOB proposal would expand auditors' responsibilities\u201d[3] analysis of\nthe potential impacts of the PCAOB proposal. This is just one example of the\nincreasing focus on regulatory compliance.\n\nAdditionally, highly regulated industries such as the healthcare industry is\nexperiencing an influx of new players, including technology companies, private\nequity companies, and other non-traditional service providers. Many of these\nnew players lack familiarity with the unique regulations in the healthcare\nsector, as well as the various Federal and State government agencies (e.g.,\nDepartment of Justice, Department of Health and Human Services Office of\nInspector General (OIG)) that oversee the industry and enforce fraud and abuse\nlaws. Recently, the OIG published the \u201cGeneral Compliance Program\nGuidance[4],\u201d which emphasizes the need for existing players and new entrants\nto develop a solid understanding of applicable rules, laws, and regulations.\n\n###\n\n###  \u201cFailure to comply with regulations can result in a range of\nconsequences, from fines, penalties, legal actions, damage to the company\u2019s\nreputation and consumer trust, and/or a negative impact to the bottom line.\nThe most severe infractions can lead to complete cessation of operations until\nregulatory compliance is achieved.\u201d\n\n###  Monitoring regulatory changes and new legislation poses several\nchallenges to companies, including but not limited to:\n\n1\n\n**Tedious efforts to parse data and determine applicability:** With the\nplethora of regulations and legislation, it can be burdensome for companies to\nstay up-to date with the changes. Not every legislative change is relevant to\nevery business, necessitating the sorting of information to only act upon the\nrelevant updates.\n\n2\n\n**Interpretation:** Understanding the full implications of new laws or\nregulations can be challenging. Language barriers pose another challenge.\nTranslations may not be converted accurately, resulting in misinterpretations\nand/or application issues.\n\n3\n\n**Timeliness** : Regulations relevant to the company can change rapidly, and\ncompanies may be unaware when new regulation comes into effect. Sorting\nthrough the abundance of information also requires ample time, which may\nresult in delayed corrective action. There is also typically an insufficient\namount of time spent on tracking and analyzing regulatory changes during the\nproposal stage of rulemaking.\n\n4\n\n**Cost:** Companies may incur significant costs when dedicating company\nresources, or hiring legal experts and other professionals, to monitor\nlegislative changes.\n\n##  What can companies do?\n\nGiven the aforementioned factors, it is important for companies to have\neffective methods to monitor and evaluate regulatory changes in real time.\n\nThe following are some of the methods our clients use to of mitigate the risk\nassociated with regulatory changes:\n\n  * **Regulatory news sources and alerts through in-house staff** : Companies can access regulatory news sources, which report on legislative changes and analyze their impacts. Further, companies can subscribe to and set up alerts for regulatory changes based on their industry, regions, or specific topics such as money laundering, cyber security, or data privacy, to receive real-time updates. These alerts are email notifications sent by regulatory news sources, government agencies, industry associations, legal firms, among others that provide updates on legislative changes. **__ **\n    * **_Benefits_ : ** Alerts can be partially customized to provide relevant regulatory updates, reducing the volume of new legislation that in-house staff must read. The updates are also more relevant to the company\u2019s industry and jurisdiction. Additionally, in-house compliance or legal staff have relevant expertise to assist with regulatory tracking. \n    * **_Drawbacks_ : ** If alerts are not set-up correctly, or if regulatory news sources are not robust enough and/or regularly and thoroughly read, it can be easy to overlook new or changed legislation. Additionally, there is a risk of error in judgement by in-house staff, which may lead to noncompliance. This method also requires a significant amount of time for users to read all potentially relevant legislation, which can be time-consuming, especially for heavily regulated industries like financial services and healthcare. \n  * **Legal advisors:** Companies can hire law firms and regulatory consultants to receive personalized advice on legislative changes and navigate complex regulatory compliance requirements. \n    * **_Benefits_ : ** Legal advisors possess extensive knowledgeable in regulatory compliance and can be an asset in understanding newly released legislation and its applicability for a particular company. For example, a legal advisor can track regulatory changes taking a company\u2019s specific operations into account. Furthermore, advisors can provide interpretation and recommend compliance measures for the company to follow. \n    * \u00ad **_Drawbacks_ : ** The cost of hiring legal advisors is a significant factor to consider, as it may not be feasible for many companies to retain legal advisors for long-term periods, specifically to aid in regulatory compliance. Additionally, there is a risk of human error with legal advisors, as with any human-executed task. \n  * **Regulatory tracking software** : Companies can use regulatory tracking software that offer real-time, automated updates on new regulations and changes to existing ones. These tools can be customized based on specific regulatory bodies and/or topics and often utilize machine learning to scan regulatory databases and news sources for pertinent information. \n    * **_Benefits_ : ** The automation of this typically tedious task saves a significant amount of user time. The tools are customizable, allowing users to filter through the vast influx of data to only legislation that is truly relevant to their operations. Additionally, the centralized nature of regulatory tracking software allows users to view updates from multiple regulators in one centralized location. \n    * \u00ad **_Drawbacks_ : ** Some regulatory tracking software may not be user-friendly, leading to difficulties in navigation. Additionally, relevant regulatory data sources may not be integrated into the tool, which leads companies to miss pertinent updates. Unexpected outages can also pose problems. In such cases, companies without proper procedures in place to continue tracking updates may miss pertinent regulatory updates. \n\nThese tools help companies to stay up to date, prepare for changes, and ensure\ncompliance with ever-changing regulatory requirements. As presented above,\neach method has its strengths and weaknesses.\n\n##  The rise of technology in tracking changing regulations\n\nHistorically, CCOs were estimated to spend approximately one third of their\ntime tracking legislative changes.[1] However, due to a lack of sufficient\nqualified in-house compliance professionals, many companies have chosen to\noutsource their compliance function and regulatory tracking, which is\ntypically a short-term solution due to cost pressures. Consequently, companies\nare seeking cost-effective, long-term solutions to assist with regulatory\ncompliance.\n\nWith the increased need for fast, reliable monitoring of regulatory changes,\nautomation tools have emerged to address this challenge. Companies now widely\nuse automated tools to identify, analyze, monitor, mitigate, and report\nexternal noncompliance risks. By automating their monitoring of external data\nsources, companies can comply with regulatory requirements, monitor\nwrongdoing, develop a more comprehensive approach to data management, and\nimprove overall efficiency.\n\nMoreover, companies can now access the relevant data related to their industry\nquickly and without adding hours of manual effort to their staff workload. The\nmost effective software solution can crawl the web, collect appropriate data,\nstructure it into a unified data feed, and enable filtering and searching by\nspecific attributes for more granular data analysis.\n\nThe advantages of using automated tools for regulatory monitoring and tracking\nare manifold. First, automating the monitoring process saves time, boosting\noverall efficiency and productivity. Second, automated tools enable companies\nto identify and mitigate potential risks quickly, reducing the likelihood of\nnoncompliance violations.\n\nAutomation can accelerate the inventorying of regulations, laws, and\nobligations from global regulatory sources; provide real-time notification of\nnew rules, proposed rule changes, and guidance; track regulation lifecycles;\nand enable a quicker impact analysis when such obligations change (through a\nmapping of the regulations to applicable controls).\n\n##  Consider a new solution (or approach)\n\nKPMG has developed a proprietary regulatory tracking tool that streamlines the\nregulatory tracking process and addresses the underlying challenges. This tool\nallows regulatory changes to flow from the initial tracking in the inventory\nof obligations, through mapping, and to compliance testing and reporting. Like\nother regulatory tracking software, the KPMG regulatory tracking tool collects\nregulatory data in real-time and parses the relevant information. However, the\nKPMG tool provides an end-to-end solution with several additional potential\nbenefits, including:\n\n  * **Monitor, Prioritize, and Action Dashboard** : The dashboard includes an automatic categorization feature that classifies regulatory updates into buckets based on the nature of the content. Additionally, users can then create and assign tasks for the next steps that need to be taken. \n  * **Obligation and Risk Mapping** : The tool reads laws, rules, and regulations maintaining an inventory of regulatory obligations and mapping them to an individual company\u2019s risk taxonomy. \n  * **Curated Ingestion** : Filters data for identified relevant laws, rules, and regulations reducing the time spent managing regulatory changes. \n  * **Translation** : Enhanced translation capabilities that are able to read and translate laws, rules, and regulations in both single-and multi-byte language characters (i.e., ability to translate Roman character-based languages as well as Asian, Hebrew, Arabic, etc. languages), resulting in the elimination of language barriers that impede the adherence of new regulatory changes. \n  * **Red-line parsing** : One-of-a-kind logic to track regulatory change by producing a red-line comparison between laws, rules, and regulations currently in effect and those being proposed and/or finalized thus streamlining the regulatory change management process and the identification of those changes. \n  * **Workflow** : The tool provides embedded workflow technology to route regulatory notifications to the most appropriate party/parties for review, making it easier and faster to identify changes that may require action. \n  * **Tool integration** : The tool has the ability to sync with any existing governance, risk, and compliance tools that are already being used by a company. This allows clients to have a holistic view of any regulatory changes and be able to obtain a greater understanding of any potential impacts to the organization. \n\nEach of these features facilitates prompt identification and comprehension of\nnew or changed legislation and establishes actionable steps towards complying\nwith regulatory requirements. In addition, within the customizable workflow\ntechnology embedded in the tool, KPMG uses AI and Gen AI to tag laws and rules\nto topic categories, extract regulatory obligations, provide legislative\nsummaries, as well as map laws and rules to compliance documents.\n\nIn conclusion, the use of automated tools for regulatory monitoring and\ntracking is a necessity, not a luxury for businesses operating in a constantly\nevolving business environment. Companies considering adopting technology to\nstay ahead on compliance requirements can gain competitive advantages in their\nrespective industries.\n\n##  A plan for moving forward\n\nDetermining appropriate follow-up actions and having a documented procedure in\nplace is as important as promptly identifying legislative changes. To ensure\neffective compliance and management, companies can establish a **policy\ngovernance procedure** that outlines clear and actionable steps for updating\ncurrent policies and procedures in line with the applicable regulatory\nchanges. The typical policy governance procedures include the following:\n\n####  Assessing the impact\n\nCompanies need to evaluate the impact of the regulatory change on their\nbusiness and assess if a policy update is required.\n\n####  Updating policies and procedures\n\nCompanies must update their impacted policies and procedures to reflect the\nnew or changed legislation and implement version controls. It may also be\nnecessary to develop new policies to maintain compliance and cover areas and\nrisks not previously addressed. Additionally, companies must determine if new\ninternal controls are necessary, and if their current controls need to be\nmodified so the company stays protected. By following the policy governance\nprocedures, companies can achieve effective compliance management, mitigate\nrisks, and maintain operational integrity while navigating regulatory changes.\n\n####  Employee training\n\nEmployees need to be trained on the newly implemented policies and procedures.\nTraining may take various forms (e.g., in-person training, virtual training,\nemail blasts), but consistent communication across all levels is key to ensure\ncompliance with the updated policies and procedures.\n\n####  Maintenance and Update\n\nOnce new policies and/or procedures are implemented, companies should conduct\nongoing monitoring to assess compliance with the new or changed regulation to\navoid non-compliance and potential penalties. Additionally, the company should\nconduct continuous maintenance of IT systems to ensure they are running\nproperly.\n\n##  Conclusion\n\nCompanies with effective compliance programs can demonstrate to regulators,\nauditors, and internal stakeholders their ability to regularly amend policies\nand procedures to align with regulatory changes. Having clear processes in\nplace that can manage any applicable and relevant regulatory change, gives\ncompanies confidence that their key risks are mitigated.  \n\nThis, in turn, allows senior leadership time to focus on developing business\nacross the world. With proper policies and procedures in place to address new\nand changing legislation, companies can safely do business in any market in\nthe world.\n\n##  Explore more insights and opportunities:\n\nInsight\n\nWebcast  Replay  Webcast  Upcoming  Listen  Now\n\nMastering compound volatility\n\nHow companies can get through the next quarter\u2014and the next five years\n\n[ Read more ](/us/en/articles/2023/mastering-compound-volatility.html)\n\nInsight\n\nWebcast  Replay  Webcast  Upcoming  Listen  Now\n\n2023 KPMG Generative AI Survey\n\nAn exclusive KPMG survey shows how top leaders are approaching Generative AI\n\n[ Read more ](https://advisory-marketing.us.kpmg.com/speed/genai2023.html)\n\nInsight\n\nWebcast  Replay  Webcast  Upcoming  Listen  Now\n\nThe art of continuous transformation\n\nLearn how to orchestrate an ever-evolving set of initiatives to quantify,\narticulate and deliver value.\n\n[ Read more ](https://kpmg.com/us/en/articles/2025/art-continuous-\ntransformation.html)\n\n####  Footnote\n\n  1. Source: KPMG LLP, \u201cImplementing tech and data-driven compliance\u201d (July 2023). \n  2. [ Source: KPMG LLP, \u201c2023 KPMG Chief Ethics & Compliance Officer Survey\u201d (2023). ](https://kpmg.com/us/en/articles/2023/cco-survey-2023-gated.html)\n  3. [ Source: KPMG LLP, \u201cPCAOB proposal would expand auditors\u2019 responsibilities\u201d (July 2023). ](https://frv.kpmg.us/reference-library/2023/pcaob-proposal-would-expand-auditor-responsibilities.html)\n  4. [ Source: HHS Office of Inspector General, \u201cGeneral Compliance Program Guidance\u201d (November 2023). ](https://oig.hhs.gov/compliance/general-compliance-program-guidance/)\n  5. [ Source: Thomson Reuters, \u201cThe cost of compliance in the changing world of regulation\u201d ](https://legal.thomsonreuters.com/en/insights/articles/cost-compliance-changing-world-regulation)\n\n##  Meet our team\n\n###\n\nContact Us\n\nJaime Pego\n\nPrincipal, Forensic, KPMG US\n\n[ ](https://www.linkedin.com/in/jaime-pego-5a664b7) [ Read bio ](/us/en/how-\nwe-work/people/p/pego-jaime.html)\n\nChris Schneider\n\nManaging Director, Forensic Dispute Advisory Services, KPMG LLP\n\n[ Read bio ](/us/en/how-we-work/people/s/schneider-chris.html)\n\nMonica Young\n\nDirector Advisory, Forensic, KPMG LLP\n\n[ ](https://www.linkedin.com/in/monicanitoiu/) [ Read bio ](/us/en/how-we-\nwork/people/y/young-monica.html)\n\nMarissa Fremont\n\nDirector Advisory, Forensic, KPMG US\n\n[ Read bio ](/us/en/how-we-work/people/f/fremont-marissa.html)\n\nJaime Pego\n\nPrincipal, Forensic, KPMG US\n\n[ ](https://www.linkedin.com/in/jaime-pego-5a664b7) [ Read bio ](/us/en/how-\nwe-work/people/p/pego-jaime.html)\n\nChris Schneider\n\nManaging Director, Forensic Dispute Advisory Services, KPMG LLP\n\n[ Read bio ](/us/en/how-we-work/people/s/schneider-chris.html)\n\nMonica Young\n\nDirector Advisory, Forensic, KPMG LLP\n\n[ ](https://www.linkedin.com/in/monicanitoiu/) [ Read bio ](/us/en/how-we-\nwork/people/y/young-monica.html)\n\nMarissa Fremont\n\nDirector Advisory, Forensic, KPMG US\n\n[ Read bio ](/us/en/how-we-work/people/f/fremont-marissa.html)\n\n##  Subscribe to receive the KPMG Opportunity (In)sight Newsletter\n\nTurn insight into opportunity with unique perspectives and actionable insights\naddressing the burning issues atop the C-suite agenda. 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                "page_content": "Skip to content\n\n[ Home ](https://www.kiteworks.com/) > [ Security and Compliance Blog\n](https://www.kiteworks.com/security-compliance-blog/) > [ Regulatory\nCompliance ](https://www.kiteworks.com/regulatory-compliance/) > Introduction\nto Email Compliance for Business Communications\n\n#  Introduction to Email Compliance for Business Communications\n\nby [ Bob Ertl ](https://www.kiteworks.com/author/bob-ertl/) updated August 5,\n2022  Regulatory Compliance\n\nReading Time:  9  minutes\n\nLooking for email compliance requirements for business emails? With violations\ncosting thousands, understanding the compliance requirements can only help in\nthe long run.\n\nOrganizations demonstrate email compliance when their emails meet specific\nregulations and requirements set by governments and industries that protect\nthe privacy and data of individuals.\n\nTable of Contents\n\nToggle\n\n##  What Is Email Compliance?\n\nEmail compliance pertains to the ways a business adheres to the laws and\nguidelines related to email communications. It involves following various data\nprotection and anti-spam standards to ensure the safety, security, and privacy\nof emails sent and received. Email compliance ensures that a business is\nmeeting the requirements set in place by relevant regulations such as CAN-\nSPAM, GDPR, HIPAA, and many other data privacy regulations.\n\n##  What Is Security and Privacy Compliance for Email?\n\nEmail is, by far, the most common form of communication for businesses. It\u2019s\nfast, convenient, and essentially free. Email is efficient, which fuels\nproductivity and, ideally, company growth. Email, despite these attributes,\ndoes have a key limitation. First and foremost, email is not secure. Anyone\ncan read it, not just the intended recipient. IT departments, law enforcement\nagencies, hackers, and even someone who finds a phone in the back of a cab can\nread messages not intended for them.\n\nData privacy regulations like GDPR and HIPAA, designed to protect Personally\nIdentifiable Information (PII) or Personal Health Information (PHI), typically\nprohibit companies from using mail to share someone\u2019s personal data without\nproper encryption or other protections in place, like access controls, data\nretention, auditable log files, and reporting features.\n\nIf you don\u2019t have these technologies (and/or processes for using these\ntechnologies), you are most likely noncompliant. This is especially\nproblematic when you\u2019re handling and sharing data belonging to EU residents.\nGDPR fines can be extremely costly to your business and your reputation.\nUltimately, you are 100% responsible for compliance when using email; ignore\nthese requirements at your own peril.\n\n##  Email Compliance Challenges\n\nOrganizations face multiple challenges when it comes to email compliance. One\nof the biggest challenges is the sheer volume of emails that employees send\nand receive every day. With so many emails being exchanged, it becomes\ndifficult for organizations to keep track of every message, including any file\nattachment(s), and ensure that they are all compliant with the relevant\nregulations.\n\nAs a result, businesses are also challenged with ensuring adequate employee\neducation and training. Many employees might not be aware of email compliance\nrequirements and may inadvertently expose the organization to data leaks,\nwhich can expose the business to legal and financial risks. Additionally, the\never-evolving regulations and laws regarding email compliance make it\nchallenging for organizations and their employees to stay up to date to ensure\ncompliance.\n\nThe rise of [ remote work ](/secure-email/working-from-home-now-heres-how-to-\ndo-it-securely/) and the use of [ personal devices ](/hipaa-compliance/lost-\nstolen-mobile-devices-leading-cause-of-healthcare-data-breaches/) adds another\nlayer of complexity to email compliance, as organizations struggle to control\nand secure the flow of data.\n\n##  Email as the Cause of Potential Compliance Issues\n\nEmail has been an amazing communication tool for businesses for decades, but\nit can also create serious compliance issues. While email can be used to\neasily communicate confidential or sensitive information, it can cause issues\nif the senders do not comply with applicable laws, regulations, or industry\nstandards. For example, improper use of email, such as failing to encrypt\nsensitive content, can be seen as a violation of compliance laws. Email can\nlead to other issues too, like sending inappropriate content or messages, or\nusing it to harass employees. All of these types of activities can lead to\ncompliance-related issues and potential penalties. Therefore, it is important\nfor businesses to be aware of the potential compliance issues and take the\nnecessary steps to ensure that emails are used correctly.\n\n##  Email Compliance: A Moving Target\n\nEmail compliance is a moving target because email laws, regulations, and best\npractices are constantly evolving, as new technologies emerge and new threats\nto data privacy and security are identified. For example, [ compliance\nregulations ](/risk-compliance-glossary/regulatory-compliance-definition/)\nlike the European Union\u2019s General Data Protection Regulation ( [ GDPR ](/risk-\ncompliance-glossary/gdpr/) ) and the United States\u2019 California Consumer\nPrivacy Act ( [ CCPA ](/risk-compliance-glossary/ccpa/) ) have introduced new\nrequirements for email communication, such as obtaining explicit consent from\nusers before collecting and using their data for marketing purposes. In\naddition, new threats such as phishing attacks, ransomware, and other forms of\ncybercrime require organizations to constantly update their email security\nmeasures and compliance policies. As a result, staying compliant with email\nregulations requires ongoing vigilance and adaptation to changing\ncircumstances.\n\n##  Who Is Responsible for Email Security Compliance in Your Business?\n\nEmail security compliance is the responsibility of everyone in the business,\nfrom the CEO to the IT team to the new events coordinator. It\u2019s the\nresponsibility of those in charge of the business to ensure that email\nsecurity is properly managed and adequate measures are taken to protect\nagainst misuse or unauthorized access.\n\nThe IT team is responsible for maintaining and managing the servers, emails,\nand other software used to send and receive emails. They should install and\nregularly update antivirus, anti-malware, and email filters and other security\nmeasures. They should also ensure that users take proper precautions when\nsending and receiving emails, such as using two-step authentication and other\nforms of encryption.\n\nThe legal department is responsible for ensuring that the use of emails\ncomplies with both internal and external regulations and laws in their region.\nThis includes ensuring that emails are not used for inappropriate purposes\nsuch as discrimination or harassment, or for sending confidential information.\n\nFinally, it\u2019s the responsibility of all employees to be aware of the risks of\nemail security and to ensure that they take proper precautions when sending or\nreceiving emails. They should make sure that they only send and receive emails\nfrom trusted sources and to never open emails with suspicious links or\nattachments. Employees should also use two-step authentication and other forms\nof encryption to ensure that their emails are kept secure.\n\n##  Email Compliance Laws and Regulatory Bodies\n\nDifferent data privacy regulations focus on different aspects of\ncommunication:\n\n  * **HIPAA/SOC 2/FedRAMP/PCI DSS:** If you operate in or serve an industry that handles either [ PII ](/gdpr-compliance/email-pii/) or PHI, your regulatory obligations are centered on protecting private data and maintaining confidentiality. This includes a variety of security and reporting controls to maintain email privacy laws. In areas like healthcare ( [ HIPAA ](/risk-compliance-glossary/hipaa/) ), payment processing ( [ PCI DSS ](/risk-compliance-glossary/pci-dss-2/) ), or federal government or government contracting work ( [ FedRAMP ](/risk-compliance-glossary/fedramp/) ), the data security requirements are so rigorous that it typically isn\u2019t worthwhile to send information via email unless you are doing it through links to secure servers. \n  * **[ GDPR ](/risk-compliance-glossary/gdpr/) : ** The European Union\u2019s information security framework is rather onerous and includes additional rules for email marketing and spam. GDPR designates EU residents as owners of their data, not the companies that hold their data. As a result, companies must obtain opt-in consent from a data owner before engaging in marketing activities and must keep records of that consent. Companies must also hand over or delete an EU resident\u2019s data from their system upon the data owner\u2019s request. Finally, a company must maintain a high level of IT security and employ confidentiality safeguards across all communications, audit logs, and reports. \n  * **CAN-SPAM:** The Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act is similar to GDPR in that it sets the guidelines by which businesses can engage in email marketing. There are, however, important differences. Unlike GDPR\u2019s opt-in consent requirement, businesses don\u2019t require consent before sending a message. Recipients must opt out. Penalties enforced by the FTC can be up to $16,000 per mail with no cap on the number of infractions. Additionally, it doesn\u2019t include the same level of security requirements about deleting consumer data. Businesses sending marketing emails, however, still must protect a recipient\u2019s private data. \n  * **Canada\u2019s Anti-Spam Legislation (CASL)** was created in 2014 to \u201c [ reinforce best practices in email marketing and combat spam and related issues ](https://fightspam.gc.ca/eic/site/030.nsf/eng/home) .\u201d The legislation regulates the abuse of spam similar to GDPR and CAN-SPAM, but implements much more specific and stringent requirements for marketing. Individuals must, for example, consent to receive marketing emails. \u201cConsent\u201d is differentiated as either implied or explicit, and marketers must send a one-time double opt-in request to subscribers whose consent has not been explicitly granted. A single CASL violation can cost a business CA$10 million per violation and can also cost an individual up to CA$1 million per violation. \n  * **[ The California Consumer Privacy Act (CCPA) ](/risk-compliance-glossary/ccpa/) ** is a marketing and privacy law for companies doing business in California. It contains many of the same features as GDPR, including the right to delete personal information and the right to know what customer information a company has. Unlike GDPR, CCPA includes an opt-out clause rather than an opt-in. Penalties extend from unintentional breaches ($2,500 per unintentional violation) and intentional violations ($7,500 per intentional violation). \n\n##  Get the Basics of Email Compliance Right\n\nThere are several layers of responsibility and accountability, as these\nregulations illustrate, and they vary on how an email is used. Generally, your\nobligations for compliance\u2014whether for direct contact or marketing\npurposes\u2014will span several conditions. You must do the following:\n\n  * **Protect Private Information:** PII or PHI is, in most data privacy regulations, protected data. The data must therefore remain secure and confidential whether at rest or in transit. All email messages containing PII or PHI should be encrypted or include a secure link that requires recipient authentication to access. \n  * **Document and Report Interactions:** Most, if not all, data privacy regulations require some sort of documentation and auditing if for no other reason than to show that you are meeting consumer data privacy obligations. Once again, for GDPR, you must also demonstrate that you have gained consent for marketing and have complied with any request to delete consumer information. \n  * **Properly Disclose Data:** You must protect customers but also maintain control over how that information is disclosed to others. It\u2019s impossible, for example, to send clear text messages or emails through public providers and keep data private (even with encryption in place). This is why some platforms include another mechanism alongside mail to provide control over potential unauthorized disclosure. \n  * **Retain Documents:** Some regulations, like HIPAA, require you to retain certain documents for certain periods of time (dictated by individual states and type of document). If you communicate with patients, you may need to retain those communications, which means your server should have that capability. \n\nThis requirement isn\u2019t exclusive to HIPAA. Different industries call for\ndifferent lengths of retention for important documents:\n\nTypes of Records  |  Years Required to Retain Documents   \n---|---  \nTaxes  |  7 Years   \nPublicly-traded Companies  |  7 Years   \nEducation  |  5 Years   \nFinance (Banking)  |  5 Years   \nInvestment and Brokerage  |  7 Years   \nHealthcare  |  7 Years   \nDrugs and Pharmaceuticals  |  2 Years   \nDepartment of Defense  |  3 Years   \nCredit Card Providers  |  1 Year   \nTelecommunications  |  2 Years   \n  \nWho you send emails to and what content they contain will determine the level\nof compliance you must achieve. Compliance, as you have seen, can get complex\nand requires a comprehensive and secure solution.\n\n##  Email Archiving for Compliance: Why It Matters\n\nEmail archiving is the process of preserving and storing emails and electronic\ncommunications in a secure and easily retrievable format. This involves\ncreating a backup of all incoming, outgoing, and internal emails sent and\nreceived by an organization, and then storing them in a secure location for\nfuture reference or legal compliance.\n\nThe archiving process involves capturing email traffic as it flows through an\nemail system and storing it in a searchable database. Archiving solutions can\nbe either hardware-based or software-based and can be deployed on-premises or\nin the cloud.\n\nEmail archiving serves several purposes. It helps organizations maintain\ncompliance with regulations that require the preservation of electronic\ncommunications. It also provides a way to recover lost or deleted emails,\nprotect against data loss, and support eDiscovery requests in legal cases. In\naddition, email archiving can help organizations manage the volume of emails\nstored on their email servers and improve mailbox performance.\n\nEmail archiving for compliance is important for several reasons, including:\n\n  1. **Regulatory Compliance:** Many industries are subject to strict regulations that require organizations to retain and archive certain types of communication, including email. Failure to comply with these regulations can result in penalties, fines, and legal consequences. \n  2. **Litigation:** In the event of a legal dispute or investigation, email can be used as evidence. Archiving email ensures that all relevant communication is preserved and readily accessible for legal purposes. \n  3. **Business Continuity:** Archiving email ensures that critical information is preserved in the event of an outage or disaster. By having a centralized archive, organizations can quickly restore email and resume operations. \n  4. **Knowledge Management:** Archived email can be used for knowledge management purposes, allowing organizations to track communication and identify trends, patterns, and opportunities for improvement. \n\nOverall, archiving email for compliance is essential for maintaining the\nintegrity of communication, protecting against legal and regulatory risks, and\nensuring business continuity.\n\n##  Achieve Email Compliance With Kiteworks\n\nThe [ Kiteworks Private Content Network ](/platform/private-content-network/)\nprovides organizations operating in highly regulated industries a [ secure\nemail ](/platform/simple/secure-email/) solution that adheres to most data\nprivacy requirements. We do so with a focus on the following:\n\n  * **Secure Email Links:** The Kiteworks platform uses AES-256 encryption at rest and TLS 1.2 in transit, with [ FIPS 140-2 validated ](/platform/compliance/fips-compliance/) and [ FedRAMP Authorized ](/platform/compliance/fedramp-authorization/) options to ensure confidential information stays private. Rather than sending an email and file attachment, recipients receive a secure link to the content so organizations can be assured only authenticated users can read the message, and controls prevent forwarding to unauthorized parties. \n  * **Regulatory Compliance:** Emails and their file attachments are encrypted and secured, and document folders are protected with granular policy controls, meaning that we can help you meet your regulatory obligations, like the Payment Card Industry Data Security Standard ( [ PCI DSS ](/risk-compliance-glossary/pci-dss-2/) ), [ GDPR ](/risk-compliance-glossary/gdpr/) , the Federal Risk and Authorization Management Program ( [ FedRAMP ](/secure-email/email-fedramp/) ), System Organization Control ( [ SOC 2 ](/risk-compliance-glossary/soc-2/) ), the Cybersecurity Maturity Model Certification ( [ CMMC ](/platform/compliance/cmmc-compliance/) ), the National Institute of Standards and Technology ( [ NIST 800-171 ](/risk-compliance-glossary/protect-cui-with-nist-800-171-compliance/) ), the Health Insurance Portability and Accountability Act ( [ HIPAA ](/risk-compliance-glossary/hipaa/) ), or frameworks like the NIST Cybersecurity Framework ( [ NIST CSF ](/regulatory-compliance/nist-cybersecurity-framework/) ) and International Organization for Standardization ( [ ISO 27001 ](/company/press-releases/kiteworks-achieves-iso-27001-iso-27017-and-iso-27018-certifications-in-near-record-time/) ). \n  * **Immutable Audit Trails:** [ Audit logs ](/regulatory-compliance/audit-log/) prove that you trace all file activity and catalog security events and other items (like users providing consent for marketing), so you demonstrate compliance with regulators. Audit trails also assist law enforcement in the event of a security incident or comply with a legal hold for eDiscovery activities. Our immutable trails ensure that you\u2019re always getting a complete picture. \n  * **CISO Dashboard:** The [ CISO Dashboard ](/platform/visibility/ciso-dashboard/) helps you monitor and trace your data as it enters, traverses, and exits your organization. You can see who sent what to whom, when, and where\u2014and prove it to auditors and regulators. With visibility down to the file level, you can drill down to the actionable details, including users, timestamps, and IP addresses, to spot anomalies and respond to threats in real time. \n  * **Private Cloud:** Our cloud services are hosted on dedicated private, hybrid, or FedRAMP cloud environments. [ Deployment flexibility ](/platform/security/hybrid-cloud-deployment/) maximizes the security and compliance of your data and operations. \n\nTo learn how your business can ensure email compliance, schedule a [ custom\ndemo ](https://info.kiteworks.com/demo-request) of Kiteworks today.\n\n**Additional Resources**\n\n  * Brief  [ Top 6 Reasons to Add Email Protection Gateway (EPG) to Your Kiteworks Deployment ](/brief-top-6-reasons-to-add-email-encryption-with-the-email-protection-gateway-epg-to-kiteworks/)\n  * Video  [ Kiteworks Snackable Bytes: Secure Email ](/video-kiteworks-snackable-bytes-secure-email/)\n  * Blog Post  [ How to Email PHI and Stay HIPAA Compliant ](/hipaa-compliance/email-phi/)\n  * Blog Post  [ Sending PII Over Email: Security & Compliance Considerations ](/gdpr-compliance/email-pii/)\n  * Blog Post  [ Send HIPAA-compliant Email ](/secure-email/hipaa-compliant-email/)\n\nTags:  [ Cyber Security on Security Boulevard ](https://www.kiteworks.com/tag/security-boulevard/) | \n\n**Related Links**\n\n  * [ Prevent Costly Violations with Email PCI Compliance ](/pci-compliance/email-pci-compliance/)\n  * [ How to Safeguard PII in Email ](/gdpr-compliance/email-pii/)\n  * [ Is It Safe to Email Pay Stubs? ](/kitetoons/rick-payroll-pii/)\n\n##  Get started.\n\nIt\u2019s easy to start ensuring regulatory compliance and effectively managing\nrisk with Kiteworks. Join the thousands of organizations who are confident in\nhow they exchange private data between people, machines, and systems. Get\nstarted today.\n\n[ Schedule a Demo ](https://info.kiteworks.com/demo-request)\n\n##  Lancez-vous.\n\nIl est facile de commencer \u00e0 garantir la conformit\u00e9 r\u00e9glementaire et \u00e0 g\u00e9rer\nefficacement les risques avec Kiteworks. Rejoignez les milliers\nd'organisations qui ont confiance dans la mani\u00e8re dont elles \u00e9changent des\ndonn\u00e9es priv\u00e9es entre personnes, machines et syst\u00e8mes. Commencez d\u00e8s\naujourd'hui.\n\n[ VOIR LA D\u00c9MO ](https://info.kiteworks.com/fr/obtenez-une-demo-enterprise)\n\n##  Jetzt loslegen.\n\nEs ist einfach, mit Kiteworks die gesetzliche Vorgaben einzuhalten und Risiken\neffektiv zu managen. Schlie\u00dfen Sie sich den Tausenden von Unternehmen an, die\nsicher sind, wie sie vertrauliche Daten zwischen Personen, Maschinen und\nSystemen austauschen. Beginnen Sie noch heute.\n\n[ DEMO ANSCHAUEN ](https://info.kiteworks.com/de/demo-request)\n\n##  Comienza ahora.\n\nEs f\u00e1cil comenzar a asegurar el cumplimiento normativo y gestionar eficazmente\nlos riesgos con Kiteworks. \u00danete a las miles de organizaciones que conf\u00edan en\nc\u00f3mo intercambian datos confidenciales entre personas, m\u00e1quinas y sistemas.\nEmpieza hoy mismo.\n\n[ Agenda una Demo ](https://info.kiteworks.com/es/solicitar-una-demo)\n\n##  \u307e\u305a\u306f\u8a66\u3057\u3066\u307f\u307e\u305b\u3093\u304b\uff1f\n\nKiteworks\u3092\u4f7f\u7528\u3059\u308c\u3070\u3001\u898f\u5236\u30b3\u30f3\u30d7\u30e9\u30a4\u30a2\u30f3\u30b9\u306e\u78ba\u4fdd\u3068\u30ea\u30b9\u30af\u7ba1\u7406\u3092\u7c21\u5358\u306b\u59cb\u3081\u308b\u3053\u3068\u304c\u3067\u304d\u307e\u3059\u3002\u4eba\u3001\u6a5f\u68b0\u3001\u30b7\u30b9\u30c6\u30e0\u9593\u3067\u306e\u30d7\u30e9\u30a4\u30d9\u30fc\u30c8\u30c7\u30fc\u30bf\u306e\u4ea4\u63db\u306b\u81ea\u4fe1\u3092\u6301\u3064\u6570\u5343\u306e\u7d44\u7e54\u306b\u53c2\u52a0\u3057\u307e\u3057\u3087\u3046\u3002\u4eca\u3059\u3050\u59cb\u3081\u307e\u3057\u3087\u3046\u3002\n\n[ \u30c7\u30e2\u3092\u4e88\u7d04 ](https://info.kiteworks.com/ja/demo-request)\n\n##  Contact Us\n\n\u00a9 2025\n\nKiteworks. All rights reserved.\n\n  * [ Platform ](https://www.kiteworks.com/platform/private-data-network/)\n  * [ Solution ](https://www.kiteworks.com/solutions/)\n  * [ Resources ](/resources/)\n  * [ Partners ](https://www.kiteworks.com/partners/)\n  * [ Company ](/company/)\n  * [ Privacy Policy ](https://www.kiteworks.com/privacy-policy/)\n  * [ Legal ](https://www.kiteworks.com/legal/)\n\nTable of Contents\n\n\u00d7\n\n\u2192  Table of Content\n\n[ __ Share\n](https://www.linkedin.com/cws/share?url=https%3A%2F%2Fwww.kiteworks.com%2Fregulatory-\ncompliance%2Femail-compliance%2F)\n\n[ __ Tweet\n](https://twitter.com/intent/tweet?text=Introduction+to+Email+Compliance+for+Business+Communications&url=https%3A%2F%2Fwww.kiteworks.com%2Fregulatory-\ncompliance%2Femail-compliance%2F)\n\n[ __ Share\n](https://www.facebook.com/share.php?u=https%3A%2F%2Fwww.kiteworks.com%2Fregulatory-\ncompliance%2Femail-compliance%2F)\n\n[ Explore Kiteworks ](https://info.kiteworks.com/demo-request)\n\n",
                "url": "https://www.kiteworks.com/regulatory-compliance/email-compliance/"
            },
            "reason": "This page is from Kiteworks, a company offering secure communication solutions. It discusses email compliance, but the source has a commercial interest. It does not explicitly mention Trafic.",
            "reliability_score": 0.6,
            "search_query": "company 'Trafic' risk regulatory compliance",
            "summary": "This page is from Kiteworks, a company offering secure communication solutions. It discusses email compliance, but the source has a commercial interest. It does not explicitly mention Trafic.",
            "url": "https://www.kiteworks.com/regulatory-compliance/email-compliance/"
        },
        {
            "content": {
                "metadata": {
                    "ext_id": "278968d2-ba46-4228-a1a7-0a9b4da44e92",
                    "origin": "public",
                    "resource_location": "web",
                    "resource_type": "webpage",
                    "source": "https://www.purdue.edu/newsroom/2023/Q1/talking-concrete-could-help-prevent-traffic-jams-and-cut-carbon-emissions"
                },
                "page_content": "Skip to content\n\n#  \u2018Talking\u2019 concrete could help prevent traffic jams and cut carbon emissions\n\nInterstates throughout U.S. consider Purdue invention to reduce road repairs\n\nMarch 13, 2023  [ Kayla Wiles ](https://www.purdue.edu/newsroom/author/kayla-\nwiles/ \"posts by Kayla Wiles\")\n\nShare  [ Facebook\n](https://www.facebook.com/sharer/sharer.php?u=https://www.purdue.edu/newsroom/2023/Q1/talking-\nconcrete-could-help-prevent-traffic-jams-and-cut-carbon-emissions) [ Twitter\n](https://twitter.com/intent/tweet?url=https://www.purdue.edu/newsroom/2023/Q1/talking-\nconcrete-could-help-prevent-traffic-jams-and-cut-carbon-emissions) [ LinkedIn\n](https://www.linkedin.com/shareArticle?mini=true&url=https://www.purdue.edu/newsroom/2023/Q1/talking-\nconcrete-could-help-prevent-traffic-jams-and-cut-carbon-emissions) [ Email\n](mailto:placeholder@placeholder.com?body=https://www.purdue.edu/newsroom/2023/Q1/talking-\nconcrete-could-help-prevent-traffic-jams-and-cut-carbon-emissions) Print\n\n  * Info for journalists \n\nWEST LAFAYETTE, Ind. \u2014\n\nAn increasing number of U.S. interstates are set to try out a Purdue\nUniversity invention that could save millions of taxpayer dollars and\nsignificantly reduce traffic delays.\n\nThe invention, a sensor that allows concrete to \u201ctalk,\u201d decreases construction\ntime and how often concrete pavement needs repairs while also improving the\nroad\u2019s sustainability and cutting its carbon footprint.\n\nEmbedded directly into a concrete pour, the sensor sends engineers more\nprecise and consistent data about the concrete\u2019s strength and need for repair\nthan is possible with currently used tools and methods.\n\n\u201cTraffic jams caused by infrastructure repairs have wasted 4 billion hours and\n3 billion gallons of gas on a yearly basis. This is primarily due to\ninsufficient knowledge and understanding of concrete\u2019s strength levels,\u201d said\n[ Luna Lu\n](https://engineering.purdue.edu/CE/People/ptProfile?resource_id=128278) , the\nReilly Professor and acting head of Purdue\u2019s [ Lyles School of Civil\nEngineering ](https://engineering.purdue.edu/CE) , who has been leading\ndevelopment of the sensors since 2017. \u201cFor instance, we don\u2019t know when\nconcrete will reach the right strength needed to accommodate traffic loads\njust after construction. The concrete may go through premature failure,\nleading to frequent repairing.\u201d\n\nAccording to [ data from the Federal Highway Administration\n](https://www.fhwa.dot.gov/policyinformation/statistics/2016/hm12.cfm) ,\nconcrete pavement makes up less than 2% of U.S. roads but approximately 20% of\nthe U.S. interstate system. Lu\u2019s research has focused on improving the\nconditions of concrete pavement first because it is the most challenging road\nmaterial to repair. Concrete interstate pavement also must reliably support a\nlarge proportion of the nation\u2019s traffic.\n\nMore than half of U.S. states with concrete interstate pavement have signed up\nto participate in a Federal Highway Administration pooled fund study to\nimplement the sensors. The participating states are Indiana, Missouri, North\nDakota, Kansas, California, Texas, Tennessee, Colorado and Utah.\n\nAdditional states are expected to join as the study kicks off in the coming\nmonths. Two states \u2013 Indiana and Texas \u2013 have already begun trying out the\nsensors in highway paving projects.\n\nThe technology also is on track to hit the market later this year as the [\nREBEL Concrete Strength Sensing System ](https://wavelogix.tech/products/) , a\nproduct of [ WaveLogix ](https://wavelogix.tech/) . Lu founded WaveLogix in\n2021 to manufacture the technology on a larger scale. The company licenses the\ntechnology from the [ Purdue Research Foundation Office of Technology\nCommercialization ](https://www.prf.org/otc/) , which has applied for patent\nprotection on the intellectual property.\n\nFast Company magazine [ named this invention\n](https://www.fastcompany.com/90804444/transportation-robotics-and-automation-\nthe-9-next-big-things-from-delivery-drones-to-warehouse-\nbots?_ga=2.256660751.581574254.1675089722-1903393249.1569853467) one of its [\nNext Big Things in Tech for 2022 ](https://www.fastcompany.com/next-big-\nthings-in-tech/list) , which recognizes projects already making an impact on a\nreal-world problem while also showing promise to make a greater impact in the\nyears to come. The American Society of Civil Engineers\u2019 [ 2021 Report Card for\nAmerica\u2019s Infrastructure ](https://infrastructurereportcard.org/gamechanger-\nitem/sensors-tell-construction-crews-exactly-how-long-to-let-concrete-cure/)\nalso selected the technology as one of its \u201cGamechangers\u201d for the year. Other\norganizations, such as the [ American Association of State Highway and\nTransportation Officials ](https://www.transportation.org/) , have followed\nthe [ technology\u2019s developments ](https://aashtojournal.org/2020/06/12/purdue-\nresearchers-seek-to-create-smart-concrete/) since its [ initial introduction\n](https://aashtojournal.org/2019/09/06/pilot-project-uses-highway-sensors-to-\ntrack-lifecycle-of-concrete/) in 2019.\n\n##  Replacing century-old industry standards to make roads last longer\n\nThe Purdue invention is gradually rising as a better alternative to tests that\nhave been the industry\u2019s standard since the early 1900s.\n\nLu and her lab started developing the technology in 2017, when the Indiana\nDepartment of Transportation requested help in eliminating premature failure\nof newly repaired concrete pavement by more accurately determining when the\npavement is ready to be opened to traffic.\n\nAfter embedding an [ early prototype of the sensor\n](https://www.purdue.edu/newsroom/releases/2019/Q3/science-to-reveal-how-long-\nhighway-construction-should-actually-take.html) into sections of various\nIndiana highways, INDOT [ added the sensor technology\n](https://www.in.gov/indot/doing-business-with-indot/files/408_testing.pdf) to\nits [ Indiana Test Methods Index ](https://www.in.gov/indot/doing-business-\nwith-indot/contractorsconstruction/division-of-materials-and-tests/indiana-\ntest-methods-index/) . This index lists tests for contractors and construction\nworkers to use to ensure road pavement quality.\n\nMethods that the industry has used for more than a century call for testing\nlarge samples of concrete at a lab or onsite facility. Using that data,\nengineers estimate the strength level that a particular concrete mix will\nreach after it\u2019s been poured and left to mature at a construction site. Even\nthough these tests are well understood by the industry, discrepancies between\nlab and outdoor conditions can lead to inaccurate estimates of the concrete\u2019s\nstrength due to the different cement compositions and temperatures of the\nsurrounding area.\n\nWith the technology Lu and her team invented, engineers no longer have to rely\non concrete samples to estimate when fresh concrete is mature enough. Instead,\nthey can directly monitor the fresh concrete and accurately measure many of\nits properties at once.\n\nThe sensor communicates to engineers via a smartphone app exactly when the\npavement is strong enough to handle heavy traffic. The stronger the pavement\nis before being used by vehicles, the less often it will need to be repaired.\nThe ability to instantly receive information about the concrete\u2019s strength\nlevels also allows roads to open to traffic on time or sooner following a\nfresh pour.\n\nConstruction workers can install the sensors simply by tossing them onto the\nground of the concrete formwork and covering them with concrete. Next, they\nplug the sensor cable into a reusable handheld device that automatically\nstarts logging data. Using the app, workers can receive information on real-\ntime changes in the concrete strength for as long as the strength data is\nrequired.\n\n##  Cutting carbon emissions by cutting down on traffic and cement\n\nBy decreasing road repairs and construction timelines, this technology could\nreduce carbon dioxide that vehicles would have emitted while waiting in\ntraffic to get around a construction site.\n\nLu\u2019s startup, WaveLogix, also is developing a way to curb carbon emissions by\ncutting the amount of cement needed in concrete mixes. The manufacturing of\ncement is responsible for [ 8% of the world\u2019s carbon footprint\n](https://www.nature.com/articles/d41586-021-02612-5) . WaveLogix has made\nprogress on a solution that uses artificial intelligence to optimize the\ndesign of concrete mixes based on data that the sensors would collect from\nhighways across the country.\n\n[ Construction codes\n](https://www.concrete.org/topicsinconcrete/topicdetail/318%20Building%20Code?search=318%20Building%20Code)\ncall for a higher cement content in concrete mixes to ensure that concrete\nsample testing meets required strength thresholds. Excess cement can lead to\npremature cracks in pavement. Based on these code requirements and data from\nthe [ Global Cement and Concrete Association\n](https://gccassociation.org/concretefuture/wp-content/uploads/2021/10/GCCA-\nConcrete-Future-Roadmap-Document-AW.pdf) , Lu estimates that concrete mix\noverdesign causes more than 1 billion tons of carbon emissions per year.\n\n\u201cThe biggest problem with concrete mixes is that we use more cement to\nincrease the concrete\u2019s strength. That won\u2019t help open the road to traffic any\nsooner,\u201d Lu said.\n\nThese codes are based on how concrete mixes were made in the early 1900s,\nwhich was before equipment that could grind cement into finer powder was\ndeveloped in the 1950s. Since concrete mixes use that finer powder today, they\nshould have different water-cement ratios than a hundred years ago. The codes\nalso don\u2019t take into consideration how weather in different states impacts a\nconcrete mix. A concrete pour in the middle of Indiana\u2019s winter, for example,\nrequires different concrete mixes to reach the right strength level than if\nthe concrete were poured during California\u2019s winter.\n\nLu believes that this new method using artificial intelligence could\npotentially reduce by 20% to 25% the amount of the cement used in concrete\nmixes \u2013 and simultaneously make pavement more durable and less expensive.\n\n\u201cI feel a strong sense of responsibility to make an impact on our\ninfrastructure through developing new types of technology. In the field of\ncivil engineering, if we don\u2019t make an impact on the world, there won\u2019t be a\nworld to worry about,\u201d Lu said.\n\n##  About Purdue University\n\nPurdue University is a top public research institution developing practical\nsolutions to today\u2019s toughest challenges. Ranked in each of the last five\nyears as one of the 10 Most Innovative universities in the United States by\nU.S. News & World Report, Purdue delivers world-changing research and out-of-\nthis-world discovery. Committed to hands-on and online, real-world learning,\nPurdue offers a transformative education to all. Committed to affordability\nand accessibility, Purdue has frozen tuition and most fees at 2012-13 levels,\nenabling more students than ever to graduate debt-free. See how Purdue never\nstops in the persistent pursuit of the next giant leap at [\nhttps://stories.purdue.edu ](https://stories.purdue.edu/) .\n\n**Writer/Media contact:** Kayla Wiles, 765-494-2432, [ wiles5@purdue.edu\n](mailto:wiles5@purdue.edu)  \n**Source:** Luna Lu, [ luna@purdue.edu ](mailto:luna@purdue.edu)\n\nNote to journalists:\n\n[ Photos and video\n](https://drive.google.com/drive/folders/1cFJkSuFh4PyoSRlwTvrqdbFWIhBvSAuZ?usp=share_link)\nof Luna Lu\u2019s concrete sensor research and [ b-roll of Purdue University\u2019s\ncampus\n](https://drive.google.com/drive/folders/1ei7vIyN2yZEWYqrfCQCU7VHcz2vAwy2J)\nare available via Google Drive. In addition, [ sound bites\n](https://apvideohub.ap.org/detail/Statesusetalkingconcretetostoptrafficjams/8fb16265729b4191ad0944b61d32596e/video?hpSectionId=2293806a10614a0e876a24f1bb66e24a&st=hpsection&mediaType=video&sortBy=arrivaldatetime:desc&dateRange=Anytime&totalCount=67&currentItemNo=0)\nof Lu discussing her work and expertise are available to media who have an\nAssociated Press subscription.\n\n##  Research News\n\n[ Discovery reveals how a specialized structure in plant cells helps regulate\nphotosynthesis  March 26, 2025\n](https://www.purdue.edu/newsroom/2025/Q1/discovery-reveals-how-a-specialized-\nstructure-in-plant-cells-helps-regulate-photosynthesis) [ Unburied treasure:\nRover researchers find unexpected minerals on Mars  March 5, 2025\n](https://www.purdue.edu/newsroom/2025/Q1/unburied-treasure-rover-researchers-\nfind-unexpected-minerals-on-mars) [ Small modular reactors could help Indiana\nshift to 24/7 carbon-free electricity with economic benefits, study says\nFebruary 20, 2025  ](https://www.purdue.edu/newsroom/2025/Q1/small-modular-\nreactors-could-help-indiana-shift-to-24-7-carbon-free-electricity-with-\neconomic-benefits-study-says) [ Air inside your home may be more polluted than\noutside due to everyday chemical products  February 13, 2025\n](https://www.purdue.edu/newsroom/2025/Q1/air-inside-your-home-may-be-more-\npolluted-than-outside-due-to-everyday-chemical-products)\n\n[ ](https://www.purdue.edu/)\n\n[ Purdue University  \n610 Purdue Mall  \nWest Lafayette, IN 47906\n](https://www.google.com/maps/search/?api=1&query=Purdue+University%2C610+Purdue+Mall%2CWest+Lafayette%2CIN)\n\n[ 765-494-4600 ](tel://7654944600)\n\n[ Systemwide options ](https://www.purdue.edu/home/about/systemwide-campuses/)\n\n##  Follow Us\n\n  * [ Facebook  ](https://www.facebook.com/PurdueUniversity/ \"Facebook\")\n  * [ Twitter  ](https://www.twitter.com/LifeAtPurdue \"Twitter\")\n  * [ LinkedIn  ](https://www.linkedin.com/edu/purdue-university-18357 \"LinkedIN\")\n  * [ Instagram  ](https://www.instagram.com/lifeatpurdue/ \"Instagram\")\n  * [ Youtube  ](https://www.youtube.com/purdueuniversity \"YouTube\")\n  * [ snapchat  ](https://www.snapchat.com/add/lifeatpurdue \"SnapChat\")\n\n[ Systemwide options ](https://www.purdue.edu/home/about/systemwide-campuses/)\n\n##\n\n  * [ West Lafayette Map ](https://www.purdue.edu/campus-map/)\n  * [ Careers ](https://www.purdue.edu/purdue/careers/index.php)\n  * [ Center for Healthy Living ](https://www.purdue.edu/hr/CHL/)\n  * [ Colleges and Schools ](https://www.purdue.edu/home/colleges_schools/)\n  * [ Directory ](https://www.purdue.edu/directory/)\n  * [ Entrepreneurship and Commercialization ](https://www.purdue.edu/purdue/commercialization/index.php)\n  * [ Human Resources ](https://www.purdue.edu/hr/)\n  * [ Libraries ](https://www.lib.purdue.edu/)\n\n##\n\n  * [ Ethics and Compliance ](https://www.purdue.edu/ethics/)\n  * [ Events ](https://events.purdue.edu/)\n  * [ Give ](https://giving.purdue.edu/west-lafayette/?appealcode=21008)\n  * [ Lost and Found ](https://www.purdue.edu/surplus/lost-and-found/Index.html)\n  * [ Office of Engagement ](https://www.purdue.edu/engagement/)\n  * [ President ](https://www.purdue.edu/president/)\n  * [ Tuition Calculator ](https://www.purdue.edu/treasurer/finance/bursar-office/tuition/tuition-calculator/)\n\n##\n\n  * [ BoilerConnect ](https://www.purdue.edu/boilerconnect/)\n  * [ Brightspace ](https://purdue.brightspace.com/)\n  * [ Current Students ](https://www.purdue.edu/purdue/current_students/index.php)\n  * [ Faculty and Staff ](https://www.purdue.edu/purdue/faculty_staff/index.php)\n  * [ myPurdue ](https://mypurdue.purdue.edu/)\n  * [ Office 365 ](https://portal.office.com/)\n  * [ OneCampus Portal ](https://one.purdue.edu/)\n  * [ Outlook ](https://outlook.office.com/)\n\n##\n\n  * [ Annual Security Report ](https://www.purdue.edu/ehps/police/statistics-policies/security-reports.php)\n  * [ Construction ](https://www.purdue.edu/physicalfacilities/construction/)\n  * [ Emergency ](https://www.purdue.edu/emergency/)\n  * [ Information Technology ](https://www.it.purdue.edu/)\n  * [ Marketing and Communications ](https://marcom.purdue.edu/)\n  * [ Purdue News ](https://www.purdue.edu/newsroom/)\n  * [ Purdue Hotline ](https://www.purdue.edu/hotline/)\n  * [ Timely Warnings ](https://www.purdue.edu/ehps/police/timely-warnings/)\n\n_Last modified:_ June 10, 2024\n\n[ Copyright ](https://www.purdue.edu/securepurdue/security-programs/copyright-\npolicies/reporting-alleged-copyright-infringement.php) \u00a9 2025 Purdue\nUniversity. All Rights Reserved. [ Trademark Statement\n](https://www.purdue.edu/trademarks-licensing/about/policy/trademark-\nstatement.php) .  \n[ Accessibility ](https://www.purdue.edu/accessibilityresources/) | [ EA/EO University ](https://www.purdue.edu/purdue/ea_eou_statement.php) | [ Integrity Statement ](https://www.purdue.edu/purdue/about/integrity_statement.php) | [ Free Expression ](https://www.purdue.edu/home/free-speech/) | [ College Scorecard (ed.gov) ](https://collegescorecard.ed.gov/school/?243780-Purdue-University-Main-Campus) | [ Privacy Policy ](https://www.purdue.edu/purdue/about/privacy-notice.php) | [ Contact Us ](https://www.purdue.edu/purdue/contact-us/index.php)\n\n",
                "url": "https://www.purdue.edu/newsroom/2023/Q1/talking-concrete-could-help-prevent-traffic-jams-and-cut-carbon-emissions"
            },
            "reason": "This article from Purdue University discusses how a new type of concrete could help prevent traffic jams and cut carbon emissions. While it doesn't focus specifically on the company 'Trafic', it does relate to the search query about environmental impact and carbon footprint in the context of traffic, which is the company's name. Purdue University is a reputable source, but the connection to the company is indirect.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' environmental impact carbon footprint",
            "summary": "Purdue University discusses how a new type of concrete could help prevent traffic jams and cut carbon emissions.",
            "url": "https://www.purdue.edu/newsroom/2023/Q1/talking-concrete-could-help-prevent-traffic-jams-and-cut-carbon-emissions"
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                    "source": "https://www.jupiterintel.com/"
                },
                "page_content": "By clicking **\u00e2\u0080\u009cAccept All Cookies\u00e2\u0080\u009d** , you agree to the storing of cookies\non your device to enhance site navigation, analyze site usage, and assist in\nour marketing efforts. View our  Privacy Policy  for more information.\n\nPreferences\n\nAccept  Deny\n\nJupiter Wins CleanTech Analytics Company of the Year Award 2025\n\n[ READ MORE  ](https://www.jupiterintel.com/blog/jupiter-wins-cleantech-\nanalytics-company-of-the-year-award)\n\n[ home  ](/)\n\n[ request demo ](/request-demo)\n\n#  The Gold Standard In  \nClimate Risk Analytics\n\nPredicting risk in a changing climate with best-in-science, decision-ready\nclimate analytics.\n\n[ view more ](/company)\n\n#  Built For Trust:  \nGold-Standard Climate Risk Intelligence For Banks\n\nScience-led, risk management-aligned climate data from Jupiter\n\n[ view more ](/industry/banking)\n\n#  Jupiter ClimateScore\u00e2\u0084\u00a2 Global\n\nThe gold standard in portfolio & asset level physical climate risk analysis\n\n[ book a demo ](/request-demo)\n\n#  Navigate Climate Risk Regulations With Confidence\n\nLeading companies worldwide use Jupiter\u00e2\u0080\u0099s forward-focused physical risk data\nin their reporting and disclosures.\n\n[ get started today ](https://www.jupiterintel.com/solutions/climate-risk-\ndisclosure)\n\n#  Built By Scientists.  \nTrusted By Leaders.\n\nAt the core of Jupiter\u00e2\u0080\u0099s analytics is a team of trusted scientists  \ndelivering actionable data and insights with clarity and confidence.\n\n[ Discover More ](/science)\n\n20%\n\nof the Global 100 are Jupiter customers\n\n15,000+\n\nperil metrics per location\n\n25%\n\nof the largest financial institutions in the world\n\n40%\n\nof the largest energy & power producers in the U.S.\n\n3 of 5\n\nlargest banks in the U.S. are Jupiter customers\n\n50%\n\nof the largest lenders in the U.S\n\nDECISION-READY CLIMATE ANALYTICS\n\n##  ClimateScore Global\n\nSee your exposure. Price your risk. Improve your resilience. More efficiently\nthan ever.\n\nClimateScore Global delivers decision-useful risk analysis\u00e2\u0080\u0094quickly,\nflexibly, intuitively\u00e2\u0080\u0094that sustains your day-to-day operations anywhere on\nthe planet and protects your financial future.\n\nUnderstand climate risk with scores\n\nReveal your immediate and long-term financial exposure to global events\n\nDecision-ready conversational climate analysis\n\nSee your global risk from all perils\n\n[ see climatescore global ](/climatescore-global)\n\n##  Jupiter AI: Instant Insight. Infinite Impact.\n\nClimateScore Global's artificial intelligence agent\u00e2\u0080\u0094Jupiter\nAI\u00e2\u0084\u00a2\u00e2\u0080\u0094represents a quantum leap in understanding physical climate risk,\nbringing speed and simplicity to how you access, analyze, and act on complex\nclimate data.\n\n[ more on jupiter ai ](/climatescore-global#jupiter-ai)\n\n##  See and Assess Your Total Risk\n\nClimateScore Global is the most complete physical climate risk solution\navailable. With access to over 22,000 peril and loss metrics, you can run\nmultiple scenario analyses of any peril worldwide, in 5-year increments from\nnow to the year 2100. Access to the best metric for your specific need (not\nthe \u00e2\u0080\u009cnext best\u00e2\u0080\u009d) eliminates unnecessary uncertainty in your projections\nand reporting.\n\n[ request a demo ](/request-demo)\n\n##  Streamlines Physical Climate Risk Reporting\n\nJurisdictions are demanding that key players within their financial\nsystems\u00e2\u0080\u0094from banks, insurance firms, and asset managers to publicly listed\ncorporations\u00e2\u0080\u0094assess and account for future physical and transition climate\nrisk.\n\nAs regulations and their add-on phases come into force, the number of\ncompanies who must comply multiplies\u00e2\u0080\u0094even large organizations based outside\njurisdictional borders. If you do business in these regulated markets, you\nmust prepare for climate risk disclosure.\n\nIntegrated within the Compliance Hub of ClimateScore Global, the CSRD Module\nprovides a comprehensive and intuitive workflow to help companies navigate\nCSRD's stringent requirements. It empowers organizations to achieve compliance\nefficiently while strengthening business resilience.\n\n[ get started today ](/csrd-module)\n\n##  Understanding  \nEconomic Impact\n\nQuantify the economic impact from climate change risk on your business\n\nClimateScore Global provides a comprehensive assessment of the direct\nfinancial impact of physical climate change on your operational, market and\ncredit risk. By identifying and quantifying the financial impact of climate-\nrelated damage and its downstream effects, you can be better equipped to\nidentify areas that are most vulnerable to climate risks and build climate\nresilience into your business.\n\n[ price your climate risk ](/climatescore-global#economic-impact)\n\n##  What Sets Jupiter Apart\n\nWith forward-focused, rigorous methodologies and analytics delivered by some\nof the best scientist in the industry, Jupiter turns gold standard climate\nscience into actionable data.\n\n###  Gold Standard Climate Science\n\n\u00e2\u0080\u00a2 Broadest sets of leading-edge data\n\n\u00e2\u0080\u00a2 Award-winning climate scientists\n\n\u00e2\u0080\u00a2 Scientifically rigorous\n\n###  Trusted Industry Leader\n\n\u00e2\u0080\u00a2 Trusted by customers and partners\n\n\u00e2\u0080\u00a2 Proven global and enterprise scale\n\n###  Climate Risk Translator\n\n\u00e2\u0080\u00a2 Flexible and relevant data\n\n\u00e2\u0080\u00a2 Award-winning climate scientists\n\n[ about jupiter ](/company)\n\n##  Testimonials\n\n\"Jupiter is one of the leading corporate players working to help reduce the\nclimate risks to the public and private sectors.\"\n\nAxios\n\n\"The weather and climate risk industry has not seen a company enter the space\nwith this mix of financial backing, technology, and intellectual heft in\nyears, if ever.\"\n\nThe Washington Post\n\n\"Jupiter allows us to identify, mitigate, and manage our clients\u00e2\u0080\u0099 climate-\nrelated risks with new products and services.\"\n\nBrendan Smyth\n\nSenior Vice President, Global Risk Solutions, Liberty Mutual\n\n\"We\u00e2\u0080\u0099re looking to Jupiter and ClimateScore Global to help us model probable\nimpacts of perils from extreme weather at hyperlocal resolution, based on\ndifferent emissions scenarios.\u00e2\u0080\u008d\"\n\nTerumi Nakamura\n\nCEO, MS&AD InterRisk Research & Consulting\n\n\"By adding Jupiter\u00e2\u0080\u0099s climate risk analytics into our integrated grid\nplanning process, we are significantly advancing our ability to make better\ndecisions about the need, location, and timing of investment to cost\neffectively provide the level of electric system resilience our customers\nexpect.\"\n\nColton Ching\n\nSenior Vice President of Planning and Technology, Hawaiian Electric\n\nslider arrow - prevois slide  NEXT\n\nSort by Date  Sort by Date\n\nSee what Jupiter can do for your business.\n\nPaired with a Jupiter expert that specializes in your industry, we will work\ntogether to assess your needs and determine the best-in-science physical\nclimate risk analytics approach for your organization.\n\n[ talk to an expert ](/contact)\n\n##  Latest News\n\n[ Jupiter Wins CleanTech Analytics Company of the Year Award  ](/blog/jupiter-\nwins-cleantech-analytics-company-of-the-year-award) Jupiter Wins CleanTech\nAnalytics Company of the Year Award  [ Jupiter Wins CleanTech Analytics\nCompany of the Year Award  ](/blog/jupiter-wins-cleantech-analytics-company-\nof-the-year-award) Jupiter Wins CleanTech Analytics Company of the Year Award\n\nApril 10, 2025\n\n###  Jupiter Wins CleanTech Analytics Company of the Year Award\n\nLorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius\nenim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros\ndolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh\net justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique\nposuere.\n\nLearn more\n\n1\n\n[ US Megaprojects: Climate Change Threatens America's Manufacturing Boom\n](/blog/us-megaprojects-climate-change-threatens-americas-manufacturing-boom)\nUS Megaprojects: Climate Change Threatens America's Manufacturing Boom  [ US\nMegaprojects: Climate Change Threatens America's Manufacturing Boom\n](/blog/us-megaprojects-climate-change-threatens-americas-manufacturing-boom)\nUS Megaprojects: Climate Change Threatens America's Manufacturing Boom\n\nMarch 31, 2025\n\n###  US Megaprojects: Climate Change Threatens America's Manufacturing Boom\n\nLorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius\nenim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros\ndolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh\net justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique\nposuere.\n\nLearn more\n\n2\n\n[ Jupiter AI Recognized for Social Impact with 2025 Artificial Intelligence\nExcellence Award  ](/blog/jupiter-ai-recognized-for-social-impact-\nwith-2025-artificial-intelligence-excellence-award) Jupiter AI Recognized for\nSocial Impact with 2025 Artificial Intelligence Excellence Award  [ Jupiter AI\nRecognized for Social Impact with 2025 Artificial Intelligence Excellence\nAward  ](/blog/jupiter-ai-recognized-for-social-impact-with-2025-artificial-\nintelligence-excellence-award) Jupiter AI Recognized for Social Impact with\n2025 Artificial Intelligence Excellence Award\n\nMarch 25, 2025\n\n###  Jupiter AI Recognized for Social Impact with 2025 Artificial Intelligence\nExcellence Award\n\nLorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius\nenim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros\ndolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh\net justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique\nposuere.\n\nLearn more\n\n3\n\n[ Building Resilience by Integrating Climate Risk Into Investment Planning\n](/blog/building-resilience-by-integrating-climate-risk-into-investment-\nplanning) [ Building Resilience by Integrating Climate Risk Into Investment\nPlanning  ](https://guidehouse.com/insights/energy/2025/building-resilience-\nby-integrating-climate-risk-into-investment-planning) [ Building Resilience by\nIntegrating Climate Risk Into Investment Planning  ](/blog/building-\nresilience-by-integrating-climate-risk-into-investment-planning) Building\nResilience by Integrating Climate Risk Into Investment Planning\n\nFebruary 24, 2025\n\n###  Building Resilience by Integrating Climate Risk Into Investment Planning\n\nLorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius\nenim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros\ndolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh\net justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique\nposuere.\n\nLearn more\n\n4\n\n[ Navigating Wildfire Risk: Lessons from the LA Wildfires  ](/blog/navigating-\nwildfire-risk-lessons-from-the-la-wildfires-2) Navigating Wildfire Risk:\nLessons from the LA Wildfires  [ Navigating Wildfire Risk: Lessons from the LA\nWildfires  ](/blog/navigating-wildfire-risk-lessons-from-the-la-wildfires-2)\nNavigating Wildfire Risk: Lessons from the LA Wildfires\n\nFebruary 13, 2025\n\n###  Navigating Wildfire Risk: Lessons from the LA Wildfires\n\nLorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius\nenim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros\ndolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh\net justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique\nposuere.\n\nLearn more\n\n5\n\n[ Jupiter Wins SEAL Sustainability Award for Breakthrough Climate Analytics\n](/blog/jupiter-wins-seal-sustainability-award-for-breakthrough-climate-\nanalytics) Jupiter Wins SEAL Sustainability Award for Breakthrough Climate\nAnalytics  [ Jupiter Wins SEAL Sustainability Award for Breakthrough Climate\nAnalytics  ](/blog/jupiter-wins-seal-sustainability-award-for-breakthrough-\nclimate-analytics) Jupiter Wins SEAL Sustainability Award for Breakthrough\nClimate Analytics\n\nJanuary 28, 2025\n\n###  Jupiter Wins SEAL Sustainability Award for Breakthrough Climate Analytics\n\nLorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius\nenim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros\ndolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh\net justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique\nposuere.\n\nLearn more\n\n6\n\nNo items found.\n\nslider arrow - prevois slide  NEXT\n\nSort by Date  Sort by Date\n\n[ See All blogs ](/blog)\n\n[ ](/)\n\nClimate Score Global\n\nJupiter AI  [ Portfolio & Asset-Level Physical Risk Analysis ](/climatescore-\nglobal#portfolio-asset-level) [ Jupiter AI ](/climatescore-global#jupiter-ai)\n[ Economic Impact ](/climatescore-global#economic-impact) [ Advanced Flood\nModel ](/climatescore-global#global-flood) [ ClimateScore Global Wildfire\n](/climatescore-global#wildfire)\n\nSolutions\n\nUse Cases\n\n[ Climate Risk Disclosure ](/solutions/climate-risk-disclosure)\n\n[ Portfolio & Asset Management ](/solutions/portfolio-asset-management)\n\n[ Resilience Planning and Engineering ](/solutions/resilience-planning-and-\nengineering)\n\n[ Risk Management ](/solutions/risk-management)\n\n[ Supply Chain Risk Assessment ](/solutions/supply-chain-risk-assessment)\n\nIndustries\n\n[ Asset Management ](/industry/asset-management)\n\n[ Banking ](/industry/banking)\n\n[ Energy ](/industry/energy)\n\n[ Industrial ](/industry/industrial)\n\n[ Insurance ](/industry/insurance)\n\n[ Manufacturing ](/industry/manufacturing)\n\n[ Real Estate ](/industry/real-estate)\n\n[ Retail ](/industry/retail)\n\nCompany\n\n[ About Us ](/company) [ In The News ](/press-release) [ The Jupiter Promise\n](/promise) [ Careers ](/careers) [ Events ](/events) [ Contact Us ](/contact)\n[ Blog ](/blog)\n\nResources\n\n[ Resource Overview ](/resources#resources-hero) [ Overviews\n](/resources#overviews) [ Use Cases ](/resources#use-cases) [ Publication\n](/resources#publications) [ Webinars ](/resources#webinars) [ Videos\n](/resources#videos)\n\n\u00c2\u00a9 2024 Jupiter. All Rights Reserved.\n\n[ Privacy Notice ](/legal/privacy-policy) [ Security ](/security) [ Terms and\nConditions ](/terms-and-conditions)\n\n[ ](https://www.linkedin.com/company/27218084/)\n\n[ ](https://twitter.com/jupiterintel)\n\n[ ](https://www.facebook.com/Jupiter-Intelligence-821712921334070/)\n\n",
                "url": "https://www.jupiterintel.com/"
            },
            "reason": "This website provides climate risk data and analytics. While it's a commercial site, the information can be valuable, but requires cross-verification due to potential marketing bias. It does not explicitly mention the target company.",
            "reliability_score": 0.6,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "This website provides climate risk data and analytics.",
            "url": "https://www.jupiterintel.com/"
        },
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                    "source": "https://www.sciencedirect.com/science/article/abs/pii/S0360544224027427"
                },
                "page_content": "Skip to main content\n\n#  Are you a robot?\n\nPlease confirm you are a human by completing the captcha challenge below.\n\nEnable JavaScript and cookies to continue\n\n  * **Reference number:** 9355f4732ffc00b1 \n  * **IP Address:** 34.96.35.73 \n  *   * \n\n[ ](https://www.elsevier.com/)\n\n  * [ About ScienceDirect  ](https://www.elsevier.com/solutions/sciencedirect)\n  * [ Remote access  ](/user/institution/login?targetURL=%2F)\n  * [ Shopping cart  ](https://science-direct-checkout.staging.ecommerce.elsevier.com/?)\n  * [ Advertise  ](https://www.elsmediakits.com)\n  * [ Contact and support  ](https://service.elsevier.com/app/contact/supporthub/sciencedirect/)\n  * [ Terms and conditions  ](https://www.elsevier.com/legal/elsevier-website-terms-and-conditions)\n  * [ Privacy policy  ](https://www.elsevier.com/legal/privacy-policy)\n\nCookies are used by this site.\n\nAll content on this site: Copyright \u00a9 2024 Elsevier B.V., its licensors, and\ncontributors. All rights are reserved, including those for text and data\nmining, AI training, and similar technologies. For all open access content,\nthe relevant licensing terms apply.\n\n[ ](https://www.relx.com/)\n\n",
                "url": "https://www.sciencedirect.com/science/article/abs/pii/S0360544224027427"
            },
            "reason": "ScienceDirect hosts academic articles. This specific article may be relevant to climate risk and energy usage, but the reliability depends on the article's peer review and citations. It does not explicitly mention the target company.",
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                    "source": "https://www.erm.com/about/news/erm-to-acquire-climate-risk-and-energy-transition-consultancy-energetics/"
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                "page_content": "[ ](/ \"ERM Logo\")\n\n[ View all ](/about/news/)\n\n#  ERM to acquire climate risk and energy transition consultancy Energetics\n\n05 June 2024\n\nShare this page:  [ __\n](https://www.linkedin.com/shareArticle?mini=true&url=https://www.erm.com/about/news/erm-\nto-acquire-climate-risk-and-energy-transition-consultancy-\nenergetics/&title=ERM to acquire climate risk and energy transition\nconsultancy Energetics) [ __ ](mailto:?body=\nhttps://www.erm.com/about/news/erm-to-acquire-climate-risk-and-energy-\ntransition-consultancy-energetics/)\n\nERM, the world\u2019s largest specialist sustainability consultancy, has announced\nthe signing of a deal to acquire* Energetics, Australia\u2019s leading climate risk\nand energy transition consultancy.\n\nThe acquisition will enhance ERM\u2019s ability to support clients with strategic\nadvice and practical on-the-ground implementation across Australia and the\nbroader Asia Pacific region.\n\nEnergetics will join ERM\u2019s climate change and corporate sustainability\npractice and add significant strength and depth to its services in\ndecarbonization strategy and reporting, climate risk assessment and adaptation\nplanning. It also brings specific capabilities in energy markets and services\nto help de-risk businesses and investors engaging in Australia\u2019s energy\ntransition.\n\nAnnouncement of the deal follows the acquisition of Point Advisory in 2022,\nwhich expanded ERM\u2019s capabilities in Australia in sustainability economics,\nenergy, procurement, strategy and human rights.\n\nMatt Klein, Global Co-Head Corporate Sustainability and Climate Change, said,\n\u201cBringing together Energetics and ERM creates Australia's most comprehensive\nsustainability and climate change advisory firm. This acquisition is critical\nto the growth of ERM in the region and is in direct response to Australia\u2019s\nplan to achieve net zero carbon emissions by 2050.\n\n\u201cIn addition to the services already offered by ERM, the acquisition of\nEnergetics enables us to offer a broader suite of services to our clients, and\nmore expertise to address key sustainability challenges. For the people at\nEnergetics, becoming part of ERM means they can access and become part of our\nunparalleled network of sustainability experts worldwide.\u201d\n\nDr Mary Stewart, Energetics\u2019 CEO, said, \u201cEnergetics first opened its doors for\nbusiness 40 years ago. Since then, we\u2019ve worked across every sector of\nAustralia\u2019s economy and developed long-standing relationships advising some of\nthe country\u2019s largest businesses. Energetics\u2019 alumni can be found leading\nsustainability, climate and energy risk management teams here and overseas.\n\n\u201cWe are proud of what we have achieved, and today, we are ready to scale our\nwork.\n\n\u201cThroughout this sale process, we were determined to find a buyer whose\nambitions for sustainability, addressing climate risks and supporting the\nclean energy transition align with our own.\n\n\u201cIn ERM, we have a great match.\u201d\n\n*subject to FIRB approval \n\n* * *\n\n**About ERM**\n\nSustainability is our business.\n\nAs the world\u2019s largest specialist sustainability consultancy, ERM partners\nwith clients to operationalize sustainability at pace and scale, deploying a\nunique combination of strategic transformation and technical delivery\ncapabilities. This approach helps clients to accelerate the integration of\nsustainability at every level of their business.\n\nWith more than 50 years of experience, ERM\u2019s diverse team of 8000+ experts in\n40 countries and territories helps clients create innovative solutions to\ntheir sustainability challenges, unlocking commercial opportunities that meet\nthe needs of today while preserving opportunity for future generations.\n\nLearn more [ here ](/about/news/wbcsd-and-erm-set-out-a-sustainability-\ntransformation-framework-to-help-companies-seize-historic-commercial-\nopportunities/) .\n\n**About Energetics**\n\nEnergetics is a leading climate risk and energy transition consulting firm. We\npartner with Australia's largest businesses, investors, and governments to\nhelp them respond to some of the biggest issues of our time: the impacts of\nour destabilising climate, our economy\u2019s transformation to achieve net zero\nemissions and the realisation of Australia\u2019s huge clean energy potential.\n\nFounded in 1984, Energetics has grown to around 100 people across four states.\nWith decades of experience and an abundance of insight, we\u2019re committed to\npowering the transformation to a climate-resilient, decarbonising world.\n\n###  Media contacts\n\nMeryl Hanlon\n\nPR and Brand Communications, ERM\n\n+44 ( 0)7385 971303\n\n[ meryl.hanlon@erm.com ](mailto:meryl.hanlon@erm.com)\n\nJudith Bence\n\nDirector, Sandpiper\n\n+61 415 903849\n\n* * *\n\nShare this page:  [ __\n](https://www.linkedin.com/shareArticle?mini=true&url=https://www.erm.com/about/news/erm-\nto-acquire-climate-risk-and-energy-transition-consultancy-\nenergetics/&title=ERM to acquire climate risk and energy transition\nconsultancy Energetics) [ __ ](mailto:?body=\nhttps://www.erm.com/about/news/erm-to-acquire-climate-risk-and-energy-\ntransition-consultancy-energetics/)\n\n## [ How can we help?  How can we help you? Contact us to discuss how we can\nhelp your organization.  Contact us now  ](/contact-us/)\n\n[ ](/ \"ERM Logo\")\n\n  * [ Sustainability Report ](/sustainability-report/)\n  * [ Modern Slavery Act Statement ](/about/company/business-conduct-ethics/human-rights-and-modern-slavery-act-statement/)\n  * [ Terms and Conditions ](/terms-and-conditions/)\n  * [ Privacy Notice ](/privacy/)\n  * [ Cookie notice ](/cookies/)\n  * [ Sitemap ](/sitemap/)\n\nCopyright \u00a9 2000 - 2024 The ERM International Group Limited, All rights\nreserved\n\n  * [ ](https://x.com/GlobalERM)\n  * [ ](https://www.facebook.com/ERMGlobal)\n  * [ ](https://www.linkedin.com/company/erm)\n  * [ ](https://www.youtube.com/@ERMGlobal)\n\n",
                "url": "https://www.erm.com/about/news/erm-to-acquire-climate-risk-and-energy-transition-consultancy-energetics/"
            },
            "reason": "This is a press release about ERM acquiring a climate risk consultancy. It's a reliable source for this specific information, but it doesn't explicitly mention the target company.",
            "reliability_score": 0.6,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "This is a press release about ERM acquiring a climate risk consultancy.",
            "url": "https://www.erm.com/about/news/erm-to-acquire-climate-risk-and-energy-transition-consultancy-energetics/"
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                    "source": "https://www.unilever.com/sustainability/climate/"
                },
                "page_content": "Skip to content\n\n#  Our ambition is to deliver net zero emissions across our value chain\n\nThis page provides an overview of the actions we're taking on **climate** ,\nwith more in-depth news and information elsewhere on our website. Keep\nscrolling to learn more or navigate the page using the links below.\n\n  * Advocating  for widescale change \n\n  * Helping our  suppliers  take climate action \n\n  * Maintaining  deforestation-free  supply chains \n\n  * A  regenerative  approach to farming \n\n  * Rethinking our  products and ingredients \n\n  * Acting on  packaging \n\n  * Cutting  transport  emissions \n\n  * Tackling ice cream  freezer  emissions \n\n  * Cleaner, smarter energy in  our operations \n\n##  Climate reality \u2013 it\u2019s time to deliver\n\nTo move our business towards net zero, our immediate priority is clear: to\nmake **deep cuts** in absolute Scope 3 greenhouse gas emissions by 2030,\nguided by our Climate Transition Action Plan.\n\nIt won\u2019t be easy, and progress won\u2019t be linear. But we have a **clear plan**\nto tackle our biggest emissions sources while **continuing to grow** our\nbusiness.\n\nThis includes pushing **governments, regulators and industry** to go further\nand faster in tackling climate change and create the enabling environments\nneeded for us to meet our climate targets.\n\n##  Building supplier climate capability\n\nOver half of the emissions in scope of our net zero ambition come from **raw\nmaterials and ingredients** .  \n  \nOur **Supplier Climate Programme** enables key suppliers to move towards\nclimate leadership.  \n  \nThis includes sharing carbon footprint **data** for the materials we buy and\nworking with us on decarbonisation opportunities.\n\n181  suppliers participated in our Supplier Climate Programme in 2024\n\n##  Protecting forests\n\nAround a quarter of our emissions in scope of our net zero ambition come from\n**forests, land and agriculture** .\n\nIn 2024, 97% of our supply chains for palm oil, paper and board, tea, soy and\ncocoa were **deforestation-free** .\n\nWe\u2019re using **infrastructure and technology** and working with suppliers and\nsmallholder farmers to maintain our deforestation-free sourcing.\n\nAnd we\u2019re pushing for policies and regulations that **conserve and restore**\nforests.\n\n\u20ac218 million  investment since 2021 to directly source deforestation-free palm\noil\n\n##  Scaling regenerative agriculture\n\nWe\u2019re investing in **regenerative agriculture practices** \u2013 a way of farming\nthat can help reduce emissions, build resilience, and regenerate nature.  \n  \nTo help farmers adopt them more easily, we\u2019re running capability building\nprogrammes, while calling for **supportive regulations** and financial\nincentives.  \n  \nWe also want to see an **industry-wide** approach to data handling and\nreporting on regenerative agriculture projects.\n\n130,000  hectares of land covered by our regenerative agriculture projects\n\n##  Where climate meets science\n\nUsing our expertise in **science and innovation** , we\u2019re working with\npartners to reformulate products using lower-emission ingredients, without\ncompromising on product performance.  \n  \nOne of our biggest priorities is developing alternatives to fossil-fuel-based\n**chemical ingredients** in our laundry and cleaning products.  \n  \nThis is **our biggest challenge** in reaching our net zero ambition, and we\ncan\u2019t do it alone. We\u2019re working with suppliers to pilot solutions like\nsynthetic soda ash.\n\nWe\u2019re also pushing the chemicals industry to transform, supported by\ngovernment policies that would unlock a transition to **renewable and recycled\nfeedstocks** .\n\n$120 million  joint investment in biotechnology to develop an alternative\nplant-based ingredient to lather and lift dirt\n\n##  Decarbonising our operations\n\nOur deep cuts in Scope 1 and 2 emissions show what we can achieve with\n**focus** and **urgency** .\n\nWe\u2019ve **reduced Scope 1 & 2 emissions by 72% ** since 2015 by prioritising\nrenewable electricity and energy efficiency.\n\nNow, we\u2019re moving to **renewable heat** sources \u2013 guided by our pioneering\n\u2018WEF lighthouse\u2019 factories.  \n  \nAnd we\u2019re part of a business movement calling on governments to accelerate the\n**clean energy transition** globally.\n\n##  A business imperative\n\nClimate change is a significant threat to people and our planet. And it\u2019s a\nmaterial risk to our business. We\u2019ve set more ambitious climate targets and\nidentified clearer actions to respond to this challenge.\n\nThere are no quick fixes, especially given the nature of our business and\nvalue chain. But we firmly believe that doing more, faster, will strengthen\nour business.\n\n###  Our targets\n\nWe have three near-term science-based targets to reduce our emissions:\n\n  * **Our value chain** : reduce absolute Scope 3 forest, land and agriculture (FLAG) GHG emissions  [a]  by 30.3% by 2030 from a 2021 baseline \n\n  * **Our value chain** : reduce absolute Scope 3 energy and industrial GHG emissions  [b]  by 42% by 2030 from a 2021 baseline \n\n  * **Our operations** : reduce absolute operational GHG emissions (Scope 1 & 2) by 100% by 2030 from a 2015 baseline \n\nThese targets are set out in our updated [ Climate Transition Action Plan\n(PDF 7.98 MB)  ](/files/ctap.pdf) , which was supported by over 97% of\nshareholder votes cast at our 2024 AGM.\n\n[ Read more about our progress in our Annual Report and Accounts (PDF 14.76\nMB)\n](https://unilever.com/files/66bc4aea-608f-46ee-8da3-cde0ec8ebe90/unilever-\nannual-report-and-accounts-2023.pdf#page=46)\n\n  * More ambitious near-term Scope 3 targets \n\nWith 99% of the emissions in scope of our net zero ambition arising outside\nour operations, we\u2019re shifting our focus to our wider value chain. We\u2019re\nengaging with suppliers and partners to encourage climate action.\n\nWe know climate action this decade is critical. These two Scope 3 science-\nbased targets, approved by the Science Based Targets initiative, will guide us\nto reduce absolute emissions along our value chain over the next few years.\n\nThey distinguish between energy and industrial emissions and ones linked to\nforest, land and agriculture, which need different approaches. Together they\nrepresent a 39% absolute reduction in total targeted Scope 3 emissions.\n\n##  We\u2019re taking action to lower our Scope 3 emissions\n\nWe know we need to decouple our emissions from business growth to meet our\nScope 3 emission reduction targets. This won\u2019t be easy. Over the next few\nyears, we\u2019re focusing on where our emissions are biggest and where we can\ncreate the most change.\n\nAgainst our 2021 baseline, we\u2019ve reduced our absolute Scope 3 Forest, Land and\nAgriculture (FLAG) GHG emissions by 14%, and by 8% for energy and industrial\nemissions.\n\n###  Helping our suppliers take climate action\n\nThe lion\u2019s share of our emissions comes from our raw materials and\ningredients. Through our global Supplier Climate Programme, we\u2019re working\nclosely with our suppliers to bring these down.\n\n##  Our Supplier Climate Programme\n\nThis programme brings tools and expert support to key suppliers of raw\nmaterials, ingredients and packaging, to accelerate their climate journeys.\nWe\u2019re focusing on suppliers whose materials contribute most to our climate\nimpact \u2013 from chemicals and packaging to third-party manufacturers.\n\n[ Find out more about our Supplier Climate Programme  ](/suppliers/supplier-\nclimate-programme/)\n\n##  Progress through data\n\nWe\u2019re working alongside other businesses in the [ Partnership for Carbon\nTransparency  ](https://www.carbon-transparency.org) to standardise the\ncollection of supplier data. This gives us a more accurate understanding of\nour combined impact. We\u2019ll use the data to jointly track emissions reduction,\nand to develop additional decarbonisation partnerships.\n\n##  Pushing for wider change\n\nTo help our suppliers reduce their emissions, we\u2019re also pushing for a faster\nglobal transition to renewable energy, working with others through [ RE100\n](https://www.there100.org) and [ Fossil to Clean\n](https://www.wemeanbusinesscoalition.org/fossil-to-clean/) .\n\n[ Find out more about how we\u2019re scaling up our climate collaboration with\nsuppliers  ](/news/news-search/2023/scaling-up-our-climate-collaboration-with-\nsuppliers/)\n\n##  Empowering, innovating, investing\n\nWe\u2019re empowering suppliers and smallholder farmers to embrace deforestation-\nfree practices. We\u2019re using cutting-edge technology to increase traceability\nand transparency. And since 2021 we\u2018ve invested \u20ac218 million in our\noleochemicals plant in Indonesia to help us source palm oil more directly.\n\n[ Find out how we\u2019re directly sourcing palm oil from local producers\n](/news/news-search/2023/building-inclusive-deforestation-free-palm-oil-\nsupply-chains/)\n\n##  Pushing for wider change\n\nWe\u2019re also working with governments to create fairer market conditions for\nbuying certified commodities from accredited sources. And we\u2019re calling for\nconsensus around forest-risk commodity management.\n\n##  Find out more\n\n###  A regenerative approach to farming\n\nWe\u2019re advocating for the implementation of regenerative agriculture practices\nto keep the soils that grow our ingredients healthy and help to sequester\ncarbon dioxide, while making our supply chains more resilient.\n\n##  Scaling our projects\n\nWe\u2019re aiming to implement regenerative agriculture projects on 1 million\nhectares of agricultural land by 2030. To date, we have 23 active regenerative\nagriculture projects that collectively cover almost 130,000 hectares. And\nwe\u2019re already seeing the climate impact of some of these:\n\n  * 37% drop in greenhouse gas emissions in Spain \n  * 76% drop in methane and 48% less greenhouse gas emissions in Arkansas, USA \n  * 6% drop in greenhouse gas emissions in Iowa, USA \n\n[ Read more about the impact results from our first set of regenerative\nagriculture projects  ](/news/news-search/2023/impact-results-from-unilevers-\nfirst-set-of-regenerative-agriculture-projects/)\n\n##  More action on the ground\n\nWe\u2019re helping farmers build their capabilities, and pooling resources with\nother businesses who share our supply chains. We\u2019re collecting data on soil\ncarbon and farming practices to better manage our projects. And we\u2019re calling\non governments to support farmers through better access to finance, while [\nworking with others to grow the regenerative agriculture movement\n](https://www.wbcsd.org/cop28-action-agenda-on-regenerative-landscapes/) .\n\n[ Find out more about how we\u2019re working with farmers to roll out regenerative\nagriculture  ](/news/news-search/2024/how-unilevers-implementing-regenerative-\nagriculture-practices-across-1-million-hectares/)\n\n##  Find out more\n\n###  Reformulating our products and ingredients\n\nMoving to lower-emission ingredients in our products is a critical and\nchallenging aspect of reducing our Scope 3 emissions. We\u2019re working to develop\nnew, commercially viable ingredients for a range of different products.\n\n##  Innovating at scale\n\nWe\u2019re partnering with innovators and suppliers to find alternatives to fossil-\nfuel-based chemicals in our laundry and cleaning products.\n\n  * We\u2019re using biotechnology to develop [ plant-based ingredients  ](/news/news-search/2024/how-sunlight-is-premiumising-dishwashing-with-100-plantbased-technology/)\n  * We\u2019re partnering with a tech start-up to explore [ renewable carbon  ](/news/news-search/2024/could-co2-be-a-viable-material-for-making-cleaning-products/)\n  * We\u2019re working with chemical suppliers to [ produce and scale synthetic soda ash  ](/news/news-search/2023/worldfirst-partnership-to-pilot-nearzero-emissions-laundry-ingredient/)\n\n[ Our latest investment in alternative cleaning ingredients  ](/news/news-\nsearch/2024/unilever-invests-in-biotech-partnership-to-identify-alternative-\ncleaning-ingredients/)\n\n##  Collaborating for change\n\nSo that we can move faster on alternatives to chemical ingredients, we\u2019re\npushing governments for more integrated national policies that support\nclimate-focused solutions, such as surfactants made from renewable feedstocks.\nAt the same time, synthetic soda ash can only be produced with cooperation\nbetween end-users, manufacturers and the fertiliser industry. That\u2019s why, in\nIndia, we\u2019re leading a working group aiming to move the chemical industry\ntowards net zero.\n\n###  Action on packaging\n\nTackling the plastic challenge is a priority for Unilever. While plastic is\noften the lowest carbon footprint packaging option compared to other\nmaterials, there are ways we can reduce its climate impact.\n\n##  Changing throughout our value chain\n\nWe\u2019re taking steps to reduce the emissions created both when plastic is made\nand when it goes to landfills and incinerators.\n\n  * We're finding ways to remove plastic from our packaging by designing new product formats \n  * We're moving from virgin, fossil-fuel-derived materials to recycled and renewable feedstocks \n  * We're working with others to push for better recycling and collection infrastructure \n\n[ More on our ambitions, actions and progress on plastic\n](/sustainability/plastics/)\n\n##  Advocating for a Global Plastics Treaty\n\nWe need the rest of industry to move with us on this. That\u2019s why we\u2019re working\nto shape much-needed policies and regulations, and we're a leading voice in\nthe Business Coalition for a Global Plastics Treaty, which will change the\nworld\u2019s relationship with plastic.\n\n[ Read about our CEO\u2019s reflections on the coalition\u2019s progress  ](/news/news-\nsearch/2024/un-plastics-treaty-reasons-to-be-optimistic/)\n\n  \n\n###  Cutting transport emissions\n\nWithout transportation, we simply can\u2019t bring our products to consumers around\nthe world. And with most of our logistics emissions linked to our global road\ntransportation, we\u2019re working to get this number down.\n\n##  The start of our journey\n\nOver the long term, we\u2019ll be moving to electric or hydrogen-fuelled trucks.\nWe\u2019re already using electric vans in some places, but vehicles and charging\ninfrastructure aren\u2019t yet available at scale. That\u2019s why we\u2019ve focused our\nefforts on maximising efficiency, filling containers and reducing journeys\ntravelled.\n\n##  Alternative fuels\n\nWe\u2019ve started transitioning some of our fleets to sustainable biofuels in some\nof our biggest markets, including the US, UK and Netherlands. This can create\na 70% reduction in carbon dioxide emissions compared to fossil fuels. At some\nsites, we\u2019ve also been testing hydrogenated vegetable oil derived from cooking\nwaste.\n\n##  Find out more\n\n##  Cleaner energy in our operations\n\nHow we power and heat our business is in our direct control. We\u2019ve\nsuccessfully transitioned to renewable sources for much of the electricity\nused at our sites. Alongside our transition to biofuels and energy efficiency,\nthis has been our biggest driver in reducing our Scope 1 and 2 emissions by\n72% since 2015.\n\nAs we work towards our near-term Scope 1 and 2 target, our focus is to\neliminate the fossil fuels burned to generate heat and electricity at our\nsites.\n\n##  Transitioning to renewable thermal energy\n\nTo continue to transition to renewable energy sources, we\u2019re focusing on the\nheat used in our production processes. Given the scale and diversity of our\nmanufacturing network and various market complexities, this isn\u2019t an easy\ntask.\n\nWe\u2019re continuing to drive energy efficiency, for example by using heat\nexchangers to recover heat. And we're electrifying some of our thermal\nprocesses using equipment such as heat pumps and electric boilers.\n\nWe're also using biofuels at some of our sites, where this is the case we\nsource in line with our [ position on sourcing sustainable biofuels.  (PDF\n110.51 KB)  ](/files/a0c7d86c-5361-46c3-80ee-26ce51e3889b/sustainable-\nsourcing-of-biofuels.pdf)\n\n[ How we\u2019re meeting the challenge of 100% renewable thermal energy\n](/news/news-search/2023/how-were-meeting-the-challenge-of-100-renewable-\nthermal-energy/)\n\n##  Powering our factories with renewable electricity\n\nIn 2024, 85% of the electricity in our offices, factories, R&D centres, and\nwarehouses was renewable. To reach 100%, we\u2019re focusing our efforts where\nrenewable electricity isn\u2019t yet available from local suppliers. In these\nlocations we\u2019re buying certificates for renewable electricity generated in\nneighbouring countries.\n\nAnother one of our biggest challenges is finding alternatives to the combined\nheat and power units \u2013 which generate electrical and thermal energy \u2013 in our\nfactories that run on natural gas. For these we\u2019re starting to use more\nrenewable sources of energy such as biomethane and continue to drive energy\nefficiency and electrification.\n\n##  Working together to speed the transition\n\nAs an early mover on renewable energy, we were one of the first companies to\njoin [ RE100  ](https://www.there100.org) and signal our commitment to 100%\nrenewable electricity. Now, at international climate negotiations, and as part\nof We Mean Business\u2019 [ Fossil to Clean\n](https://www.wemeanbusinesscoalition.org/fossil-to-clean/) campaign, we\u2019re\ncalling on governments to speed up the clean energy transition and to phase\nout fossil fuels globally.\n\n[ Five ways we're working towards 100% renewable energy  ](/news/news-\nsearch/2022/five-ways-were-working-towards-100-renewable-energy-by-2030/)\n\nSkip this section\n\n##  Our other sustainability priorities\n\nThe world \u2013 and our business \u2013 needs resilient natural and agricultural\necosystems to thrive. We\u2019re committed to contributing to the protection and\nregeneration of nature, within and beyond our value chain.\n\nWe\u2019ve been working hard to create a circular economy for plastic packaging for\na number of years. We\u2019ve learnt that transformation takes time. Given the size\nof this challenge, we\u2019re using our innovation capabilities to find new,\nscalable solutions.\n\nThe impacts of inequality go far beyond income \u2013 to health, human rights and\neconomic growth. So we\u2019re working to improve the livelihoods of people in our\nglobal value chain.\n\n[a]\n\nFLAG emissions from purchased goods and services (associated with\ningredients).\n\n[b]\n\nEnergy and industrial emissions from purchased goods and services (associated\nwith ingredients, packaging), upstream transport and distribution, energy and\nfuel-related activities, direct emissions from use of sold products\n(associated with HFC propellants), end-of-life treatment of sold products, and\ndownstream leased assets (associated with ice cream retail cabinets).\n\nBack to top\n\n##  Connect with us\n\nWe're always looking to connect with those who share an interest in a\nsustainable future.\n\n  * [ Connect with us on Facebook  ](https://www.facebook.com/unilever)\n  * [ Connect with us on X  ](http://www.x.com/Unilever)\n  * [ Connect with us on LinkedIn  ](https://www.linkedin.com/company/unilever)\n  * [ Connect with us on Instagram  ](https://www.instagram.com/unilever/?hl=en)\n\n##  Contact us\n\nGet in touch with Unilever PLC and specialist teams in our headquarters, or\nfind contacts around the world.\n\n[ Contact us  ](/contact/)\n\nThis is Unilever's global company website\n\n\u00a9 Unilever 2025\n\n[ AbilityNet  ](https://abilitynet.org.uk/accreditation/unilever-website-\naccreditation-plus-certificate)\n\nHave you got a few minutes to complete a survey? We would love to hear about\nyour experience using Unilever.com.\n\n",
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                "page_content": "######  Moody's and MSCI to Launch Independent Risk Assessments for Private\nCredit Investments\n\nMoody\u2019s and MSCI will jointly create a first-of-its-kind solution to provide\nindependent risk assessments for private credit investments at scale.\n\n[ Read more ](https://ir.moodys.com/press-releases/news-details/2025/MSCI-and-\nMoodys-to-Launch-Independent-Risk-Assessments-for-Private-Credit-\nInvestments/default.aspx) [ Learn more\n](https://www.moodys.com/web/en/us/insights/credit-risk/private-credit.html)\n\n######  Tariffs will likely persist despite market upheaval, slowing GDP\ngrowth toward recession\n\nDespite a temporary reprieve on most tariffs, uncertainty over their scope\nwill curb business planning, investment and consumer confidence. Nonfinancial\ncorporate sectors are most at risk.\n\n[ Read the report ](https://www.moodys.com/research/doc--PBC_1444969) [ Learn\nmore ](https://www.moodys.com/web/en/us/insights/tariffs.html)\n\n######  Moody's trailblazing role in AI technology\n\nMoody's is leading the way in the adoption of advanced technologies, as\nfeatured in a recent Harvard Business Review article. See how we're leveraging\nover a century of expertise to drive innovation.\n\n[ Read more ](https://www.moodys.com/web/en/us/creditview/blog/moodys-as-a-\ntechnology-innovator.html)\n\n######  Sweeping US trade tariffs will spark broad negative impact on credit\n\nThe tariffs are the largest increase since the 1930s and will likely upend\nglobal trade dynamics. Credit effects will depend upon their scope, duration\nand retaliatory responses.\n\n[ Learn more ](https://www.moodys.com/research/Tariffs-Cross-Region-Sweeping-\nUS-trade-tariffs-will-spark-broad-Sector-Comment--PBC_1444447)\n\n######  Top of Mind: FAQ on how macro trends are affecting global corporate\nsectors\n\nFrom heightened competition in China's AI industry to next-generation obesity\ndrugs, our industry experts tackle the most pressing issues facing global\ncompanies today.\n\n[ Learn more ](https://www.moodys.com/research/doc--PBC_1443042)\n\n  1. 1 \n  2. 2 \n  3. 3 \n  4. 4 \n  5. 5 \n\n#####  Featured insights\n\n* * *\n\n[ See all insights  ](/web/en/us/insights.html)\n\nApr 23, 2025  Moody's Ratings\n\n###  [ Tit-for-tat tariffs will slow China's growth and raise corporate costs\n](https://www.moodys.com/research/doc--PBC_1445269)\n\n  * Research \n\nApr 21, 2025  Moody's Ratings\n\n###  [ US companies\u2019 cash pile rises to $2.2 trillion on lower M&A spending,\nhealthy cash flow ](https://www.moodys.com/research/Corporates-US-Cash-pile-\nrises-slightly-to-217-trillion-on-Sector-In-Depth--PBC_1445380)\n\n  * Research \n\nApr 17, 2025  Moody's Ratings\n\n###  [ Private credit set to grow as volatility roils markets\n](https://www.moodys.com/research/doc--PBC_1439022)\n\n  * Research \n\nApr 17, 2025  Moody's Ratings\n\n###  [ US tariffs and foreign-policy shifts will reshape relationship with\nAsia-Pacific ](https://www.moodys.com/web/resources/en/us/insights/data-\nstories/apac-geopolitics-2025.html)\n\n* * *\n\n####  Explore the latest thought leadership from Moody's Ratings\n\n[ Read more  ](https://www.moodys.com/web/en/us/insights/ratings.html)\n\n* * *\n\n* * *\n\n* * *\n\n* * *\n\n##  Tariff impact on trade and economic growth\n\nThe ripple effects from tariffs can have devastating consequences, from\nincreased costs for businesses, to higher prices for consumers, to growing\nfinancial distress across markets. Through these complex times, Moody\u2019s will\ncontinue to monitor the ongoing impact of tariffs.\n\n* * *\n\n[ Learn more  ](/web/en/us/insights/tariffs.html)\n\n* * *\n\n* * *\n\n* * *\n\n######  Credit risk\n\nGet insights into current events and trends affecting global credit markets.\n\n[ Learn more ](https://www.moodys.com/web/en/us/insights/credit-risk.html)\n\n######  Compliance\n\nLearn how Moody\u2019s compliance & third-party risk management capabilities can\noptimize and automate entity verification, onboarding, monitoring, and more.\n\n[ Learn more ](https://www.moodys.com/web/en/us/kyc.html)\n\n######  Private credit\n\nElevate your understanding of the risks and opportunities in private markets.  \n\n[ Learn more ](/web/en/us/private-credit)\n\n######  Data\n\nTap into our perspectives on the power of data to support your risk management\nprocesses and propel your growth.\n\n[ Learn more ](https://www.moodys.com/web/en/us/capabilities/company-\nreference-data/data-applications.html)\n\n######  Sustainable finance\n\nAccess views on varying risks associated to environmental, social, and\ngovernance factors.\n\n[ Learn more ](https://www.moodys.com/web/en/us/insights/credit-risk/esg-\ncredit.html)\n\n######  Climate\n\nPerspectives on critical dimensions of climate risk covering financial\nquantification, credit impacts, macroeconomic outlooks, and more.\n\n[ Learn more ](https://www.moodys.com/web/en/us/capabilities/climate-\nrisk.html)\n\n  1. Credit risk \n  2. Compliance \n  3. Private credit \n  4. Data \n  5. Sustainable finance \n  6. Climate \n\n* * *\n\n##  Discover more\n\n######  Moody's RMS\u2122 Global Event Response\n\nDeep insights for real-time event preparation and response, parametric\ninsurance contracts triggers, validation against experience, and research.\n\n[ Read more ](https://www.moodys.com/web/en/us/insights/catastrophe-risk-\ninsights/event-response.html)\n\nresearch\n\nApr 17, 2025\n\nMoody's Ratings\n\n#####  Metals & Mining outlook moves negative on trade tensions and likely\neconomic slowdown\n\nWe forecast that aggregate EBITDA for the broad sector will contract over the\nnext 12-18 months, with business conditions deteriorating especially for iron\nore and met coal, both used in steelmaking.\n\n[ Read more ](https://www.moodys.com/research/Metals-Mining-Global-Outlook-\nupdate-Moves-to-negative-Outlook--PBC_1445469)\n\nresearch\n\nApr 16, 2025\n\nMoody's Ratings\n\n#####  Tariff turbulence will test emerging market resilience\n\nOur latest EM Credit Conditions Monitor looks at the factors supporting EM\nbond demand, even as default risk rises and credit spreads widen in the wake\nof US tariff announcements.\n\n[ Read more ](https://www.moodys.com/research/Credit-Conditions-Monitor-\nEmerging-Markets-Tariff-turbulence-will-test-EM-Sector-In-Depth--PBC_1438122)\n\npodcast\n\nApr 16, 2025\n\nMoody's Ratings\n\n#####  An eye to future performance is key for spotting disrupter companies\n\nWe explain how to identify disrupter companies and how their credit quality\nevolves, then explore the pharmaceutical and technology sectors where\ndisrupters are shaking things up.\n\n[ Listen now\n](https://www.moodys.com/web/en/us/about/insights/podcasts/moodys-talks-\nbehind-the-bonds/how-disrupters-transform-credit-quality-and-sectors.html)\n\nresearch\n\nApr 16, 2025\n\nMoody's Ratings\n\n#####  Global transportation sector faces significant drop in goods from\ntariff upheaval\n\nWe expect the volume of goods handled by rated transportation and logistics\ncompanies will decrease and that freight rates will fall.\n\n[ Read more ](https://www.moodys.com/research/Tariffs-Global-Transportation-\nsector-faces-significant-drop-in-goods-volumes-Sector-Comment--PBC_1444696)\n\nresearch\n\nApr 14, 2025\n\nMoody's Ratings\n\n#####  China\u2019s role in global clean energy manufacturing remains strong\ndespite trade upheaval\n\nProduct and price competitiveness, a large domestic market, diverse export\ndestinations, and significant expected demand will support China\u2019s clean\nenergy manufacturing.\n\n[ Read more ](https://www.moodys.com/research/doc--PBC_1440557)\n\nresearch\n\nApr 15, 2025\n\nMoody's Ratings\n\n#####  Europe\u2019s geopolitical risks rise as US backs away from security\nguarantor role\n\nEuropean sovereigns are pressed to rapidly expand defence spending as US\ndisengagement from region raises geopolitical and fiscal risks.\n\n[ Read more ](https://www.moodys.com/research/Sovereign-Supranational-Europe-\nGeopolitical-risks-rise-for-Europe-as-Sector-In-Depth--PBC_1440601)\n\nresearch\n\nApr 14, 2025\n\nMoody's Ratings\n\n#####  Global retail outlook goes negative as tariff threat aggravates shaky\nconsumer sentiment\n\nWe changed our outlook to negative from stable after the US imposed sweeping\ntariffs that will hurt profitability for companies and raise prices for\nconsumers, with a risk of more tariffs to come.\n\n[ Read more ](https://www.moodys.com/research/Retail-Apparel-Global-Outlook-\nturns-negative-as-companies-and-Outlook--PBC_1442168)\n\n##  Maxsight\u2122 for unified risk management\n\n#####  Moody\u2019s Maxsight\u2122 unified risk platform brings together thousands of\ndata points to deliver a holistic picture of risk that can be viewed through\ndifferent lenses.\n\n[ Learn more ](https://www.moodys.com/web/en/us/solutions/compliance-third-\nparty-risk/maxsight.html?cid=web-ntrnlbnnr-18478)\n\n* * *\n\n###  Moody's\n\nA bold evolution of the Moody's brand for a new era of risk.\n\n[ Learn more  ](https://www.moodys.com/web/en/us/about-us.html)\n\n* * *\n\n* * *\n\n###  Innovating with purpose\n\nDiscover how Moody\u2019s combines cutting-edge technology and world-class talent\nto drive innovation.\n\n[ Learn more  ](/web/en/us/about-us/innovation-technology.html)\n\n* * *\n\n* * *\n\n###  Work with brilliant minds\n\nExplore career opportunities at Moody\u2019s.\n\n[ Join us  ](https://careers.moodys.com/)\n\n* * *\n\n* * *\n\n##  GET IN TOUCH\n\n###  Speak to our team\n\nInterested in learning more about our offerings? Our solutions specialists are\nready to help.\n\n* * *\n\n##  Connect with our solutions specialists\n\nAll fields are required\n\n##  Thank you\n\nA member of our team will reach out to you shortly.\n\n* * *\n\n* * *\n\n* * *\n\nNote: Moody\u2019s Corporation is comprised of separate divisions. Moody's Ratings\npublishes credit ratings and provides assessment services on a wide range of\ndebt obligations, programs and facilities, and the entities that issue such\nobligations in markets worldwide, including various corporate, financial\ninstitution and governmental obligations, and structured finance securities.\nMoody's Ratings products are set out [ _here_\n](https://ratings.moodys.io/products) . All other products and solutions\ndescribed on this site are provided by Moody's, a global provider of data and\ninformation, research and insights, and decision solutions.\n\n* * *\n\n######  Who We Serve\n\n[ Banking ](/web/en/us/who-we-serve/banking.html)  \n[ Buy-side ](/web/en/us/who-we-serve/asset-management/buy-side.html)  \n[ Insurance ](/web/en/us/who-we-serve/insurance.html)  \n[ Corporations ](/web/en/us/who-we-serve/corporations.html)  \n[ Public Sector ](/web/en/us/who-we-serve/public-sector.html)  \n\n* * *\n\n######  Solutions\n\n[ Ratings ](/web/en/us/solutions/ratings.html)  \n[ Investment Research ](/web/en/us/solutions/investment-research.html)  \n[ Third-Party Risk ](/web/en/us/solutions/compliance-third-party-risk.html)  \n[ Lending ](/web/en/us/solutions/lending.html)  \n[ Financial and Regulatory Reporting ](/web/en/us/solutions/regulatory-\ncalculation-reporting.html)  \n[ Balance Sheet Management ](/web/en/us/solutions/balance-sheet-\nmanagement.html)  \n[ Insurance Underwriting ](/web/en/us/solutions/underwriting.html)  \n[ Portfolio Management ](/web/en/us/solutions/portfolio-management.html)  \n[ Model Risk and Governance ](/web/en/us/solutions/model-risk-governance.html)\n\n* * *\n\n######  Capabilities\n\n[ Catastrophe Modeling ](/web/en/us/capabilities/catastrophe-modeling.html)  \n[ Credit Risk ](/web/en/us/capabilities/credit-risk.html)  \n[ Climate Risk ](/web/en/us/capabilities/climate-risk.html)  \n[ ESG Risk ](/web/en/us/capabilities/esg-risk.html)  \n[ Cyber Risk ](/web/en/us/capabilities/cyber-risk.html)  \n[ Company Reference Data ](/web/en/us/capabilities/company-reference-\ndata.html)  \n[ Economic Data ](/web/en/us/capabilities/economic-data.html)  \n[ Commercial Properties ](/web/en/us/capabilities/commercial-properties.html)  \n[ Structured Finance ](/web/en/us/capabilities/structured-finance.html)  \n[ AI and GenAI ](/web/en/us/capabilities/gen-ai.html)\n\n* * *\n\n######  Contact Us\n\n[ Careers ](https://careers.moodys.com/)  \n[ Moodys.com Support ](https://www.moodys.com/web/en/us/help-support.html)  \n[ Insurance Solutions Support\n](https://support.rms.com/web/guest/home?p_p_state=maximized&p_p_mode=view&refererPlid=12011&saveLastPath=false&_com_liferay_login_web_portlet_LoginPortlet_mvcRenderCommandName=%2Flogin%2Flogin&p_p_id=com_liferay_login_web_portlet_LoginPortlet&p_p_lifecycle=0&_com_liferay_login_web_portlet_LoginPortlet_redirect=%2F)  \n[ Contact Us ](https://www.moodys.com/contact-us)  \n[ FAQs ](https://www.moodys.com/web/en/us/help-support/faq.html)  \n[ Submit a Complaint ](https://ratings.moodys.com/complaint)\n\n######  Moody's Integrity Hotline\n\n**Via the Internet:  \n** [ moodys.ethicspoint.com ](https://moodys.ethicspoint.com/)\n\n**By telephone from the United States:  \n** [ Dial 1-866-330-MDYS (1-866-330-6397) ](tel:1-866-330-6397)\n\n**By telephone from outside the United States:  \n** [ Dial the AT&T Direct Dial Access* code for your location. Then at the\nprompt, dial 866-330-MDYS (866-330-6397) ](tel:866-330-6397)\n\n* * *\n\n######  Company Information\n\n[ About Moody's ](/web/en/us/about-us.html)  \n[ Trust Center ](/web/en/us/about-us/trust-center.html)  \n[ Legal ](https://www.moodys.com/web/en/us/legal.html)  \n[ Moody's Code of Business Conduct ](https://ir.moodys.com/corporate-\ngovernance/translated-code-of-business-conduct/default.aspx)  \n[ Modern Slavery and Human Trafficking Statement\n](https://www.moodys.com/Pages/ModernSlavery.aspx)  \n[ Gender Pay Gap Reports\n](https://www.moodys.com/Pages/GenderPayGapReports.aspx)\n\n* * *\n\n######  Regulatory\n\n[ ratings.moodys.com  ](https://ratings.moodys.com/ratings-news)\n\n[ Terms of Use ](https://www.moodys.com/termsofuseinfo.aspx?lang=en&cy=global)\n[ Privacy Policy\n](https://www.moodys.com/privatepolicy.aspx?lang=en&cy=global) [ Do Not Sell\nMy Personal Information ](https://survey.alchemer.com/s3/8249180/Do-Not-Sell-\nRequest) Cookie Settings\n\n\u00a9 2025 Moody\u2019s Corporation, Moody\u2019s Investors Service, Inc., Moody\u2019s\nAnalytics, Inc. and/or their licensors and affiliates (collectively,\n\u201cMOODY\u2019S\u201d). All rights reserved.\n\n[ ](https://www.linkedin.com/authwall?trk=bf&trkInfo=AQHc-\nLTGcWiTdAAAAYttrRqYfSpoajOEkOn-\ngKmZJ9fo5x9k6KDxhp1mpOTfEOJhvdYzVjG2qd7qnFjw5AUeiO1-26ESGv6ZQZZOGDJtDYvuiPYVmiwvlPgUiqZkrr0PdPc6E4c=&original_referer=&sessionRedirect=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fmoodys-\ncorporation) [ ](https://www.youtube.com/channel/UCyWqT8lrGbRqWa30c_l5iSw) [\n](https://twitter.com/Moodys) [\n](https://www.instagram.com/moodyscorporation/?hl=en)\n\nNote: Moody's does not post ratings to its social media accounts\n\n",
                "url": "https://www.moodys.com/"
            },
            "reason": "Moody's is a financial services company that provides ratings and risk analysis. Their insights on climate risk can be valuable, but should be considered in the context of their business objectives. It does not explicitly mention the target company.",
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            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "Moody's is a financial services company that provides ratings and risk analysis.",
            "url": "https://www.moodys.com/"
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                    "source": "https://www.dovercorporation.com/sustainability/environmental/climate-change-risks-and-opportunities"
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                "url": "https://www.dovercorporation.com/sustainability/environmental/climate-change-risks-and-opportunities"
            },
            "reason": "This is Dover Corporation's page on climate change risks and opportunities. It's a primary source for their own approach, but may present a biased view. It does not explicitly mention the target company.",
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            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "This is Dover Corporation's page on climate change risks and opportunities.",
            "url": "https://www.dovercorporation.com/sustainability/environmental/climate-change-risks-and-opportunities"
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                "page_content": "[ Home ](/en) [ Our Impact ](/en/our-impact) [ Sustainability ](/en/our-\nimpact/sustainability) Climate and Environment\n\nClimate and Environment\n\n  * [ Climate and Environment  ](/en/our-impact/sustainability/climate-and-environment)\n  * [ Responsible Sourcing  ](/en/our-impact/sustainability/responsible-sourcing)\n  * [ Product Responsibility  ](/en/our-impact/sustainability/product-responsibility)\n  * [ Working With Our Suppliers  ](/en/our-impact/sustainability/working-with-our-suppliers)\n\n#  Climate and Environment\n\nOur deep commitment to environmental sustainability is one way we demonstrate\nour focus on long-term sustainable growth. Our company aims to minimize\nenvironmental impacts by setting targets to reduce direct and indirect\nemissions, creating more sustainable building practices, sending nearly zero\nwaste to landfill at our facilities and improving water efficiency. Our\nenvironmental targets position us well to succeed in a changing global economy\nwhile advancing the health and beauty of the planet. We will continue to\napproach environmental management with a spirit of agility and collaboration\nand plan to further expand on initiatives in this space.\n\n##  Climate Action\n\nAt The Est\u00e9e Lauder Companies, our climate work focuses on driving impactful\nchange throughout our value chain. We are leveraging our position as a global\ncompany, as well as our strong relationships with industry peers and partners,\nto implement steps that we believe will drive lasting transformations.  \n\nIn fiscal year 2020, we established Science Based Targets (SBTs) to reduce\ngreenhouse gases (GHGs), which were validated by the Science Based Targets\nInitiative (SBTi) in 2020. SBTs are GHG emissions reduction targets adopted by\ncompanies and developed using the latest climate science. SBTs must be in line\nwith the scale of reductions required to limit global warming to well-below\ntwo degrees Celsius above pre-industrial levels. Our SBTs are aligned with the\n1.5 degrees pathway as classified by the SBTi.  1  These new targets reflect\nour commitment to reducing our carbon footprint, holding us accountable to\nexternal standards, corporate peers and government partners. They are to:\n\n  * Reduce absolute Scope 1 and 2 GHG emissions 50% by 2030 from a 2018 base year. \n  * Reduce Scope 3 GHG emissions from purchased goods and services, upstream transportation and distribution and business travel by 60% per unit revenue over the same timeframe. \n\nIn fiscal 2022, we announced a new goal to transition 100% of our global\ncorporate vehicle fleet to electric by the end of calendar year 2030. Setting\nthis goal allowed us to become the first company in prestige beauty to join\nthe Climate Group\u2019s EV100 initiative, which brings together companies who are\ncommitted to accelerating the transition to electric vehicles.\n\n1  Our Scope 1 and 2 targets are aligned with a 1.5\u00b0C pathway, the most\nambitious goal of the Paris Agreement. As of the publication of this report,\nthe SBTi does not classify Scope 3 target ambition. That said, our Scope 3\ntarget, for emissions from our value chain, meets the SBTi\u2019s criteria for\nambitious value chain goals and is in line with current best practice.\n\n###  Strategy\n\nThe leading component of our climate-related strategy is the pursuit of energy\nefficiency and on-site/off-site renewable energy. These initiatives can reduce\nthe risks associated with regulations that increase the cost of energy and can\ndrive strategic advantage by reducing operating costs.\n\nWe have adopted a portfolio approach to reducing GHGs, which includes the use\nof on-site renewables, a Virtual Power Purchase Agreement (VPPA) for wind\nenergy, energy efficiency projects, green utility contracts and renewable\nenergy credits. In support of our 2020 carbon neutrality goal, we established\nan annual dedicated capital fund to support low-carbon sustainability\ninitiatives. We strive to invest in technologies that have the potential to\npositively impact the planet while meeting our business objectives.\n\nTo read more about our climate action strategy, download our [ Climate\nTransition Plan 2024 Progress Update.\n](https://media.elcompanies.com/files/e/estee-lauder-companies/universal/our-\nimpact/si-s24/ctp-2024.pdf)\n\n###  Our Climate Action Portfolio\n\nWe have adopted a portfolio approach for meeting our carbon neutrality goal,\nwhich includes on-site renewables, a virtual power purchase agreement and\nhigh-quality offsets. Pursuant to California\u2019s act on Voluntary Carbon Market\nDisclosures (Cal. Health & Saf. Code \u00a7 44475.1), we have published further\ndetails of our fiscal 2024 offset purchases in our [ Social Impact &\nSustainability Report ](/en/our-impact/social-impact-and-sustainability-\nreport) . Highlights of our climate action portfolio are below.\n\n  \n\n##  Melville, New York\n\nELC constructed a 1.45 MW ground-mounted solar array at its Melville, New\nYork, site. The six-acre site has been seeded with a wildflower pollinator\nmix. The project also includes the installation of 12 electric vehicle\ncharging units, capable of charging 20 electric vehicles.\n\n##  Markham, Ontario\n\nELC constructed a rooftop solar array at its state-of-the-art fill and\nassembly manufacturing facility in Markham, Ontario. The rooftop array is one\nof the many sustainability features incorporated into the site and makes this\nELC\u2019s first Canadian facility to use on-site solar power, bringing the\ncompany\u2019s total solar capacity to 5.7 MW worldwide in fiscal year 2021.\n\n##  Petersfield, United Kingdom\n\nELC installed a 1 MW on-site solar system at its Petersfield manufacturing\nplant, Whitman Laboratories. This system should provide 12-14% of the\nmanufacturing site\u2019s annual electricity and up to a peak of about 95% during\nsunny days in the summer months.\n\n##  Beaver County, Oklahoma\n\nELC became the first prestige beauty company to execute a VPPA with the\nPonderosa wind farm in Oklahoma. Under the VPPA, ELC will purchase the energy\nproduced by 22 MW of the Ponderosa wind farm, representing its largest\nrenewable energy deal to date.\n\n##  Galgenen, Switzerland\n\nELC installed a rooftop photovoltaic solar array on the main structure of a\nnew distribution center the company built in Galgenen, Switzerland. The 1.52\nMW system is expected to generate more than 1600 MWh of solar power.\n\n##  Blaine, Minnesota\n\nAveda installed a 3.6-acre solar photovoltaic array on its campus, which is\nexpected to provide 50% of its manufacturing facility\u2019s annual demand. The\nsolar array is wildlife friendly and accented by several acres of new\nlandscaping to create a natural pollinator habitat underneath the panels.\n\n##  Holyoke, West Springfield and Westfield, Massachussets\n\nELC supports the Massachusetts Tri-City Improved Forest Management Project\nwhich protects 6,500 acres of public forestland from significant commercial\ntimber harvesting and ensures long-term sustainable management of the forest.\n\n##\n\nEnergy Efficiency\n\nWe track environmental performance at our facilities and have processes in\nplace to collect energy metrics. We use this data to measure the effectiveness\nof energy-saving activities, which include energy-reduction projects such as\nlighting retrofits, air flow and temperature management systems, occupancy\nsensors and equipment upgrades to decrease overall energy use and carbon\nemissions.\n\nIn fiscal 2020, we joined the U.S. Department of Energy\u2019s Better Plants\nprogram, a voluntary partnership meant to improve energy efficiency across\nindustrial companies. The Better Plants program provides technical assistance,\nin-plant and online training, and energy-saving resources such as energy\naudits and diagnostic equipment lending programs.\n\nGovernance\n\nOur climate-related initiatives are governed by our Climate Action Steering\nCommittee, which is composed of senior leaders who are members of our\nexecutive team. Established in 2021, the Climate Action Steering Committee\ndrives our emissions-reduction strategy and governs financial decision-making\nrelated to achieving our Science Based Targets, as well as maintaining our Net\nZero and RE100 goals. This governance body is an evolution of our Net Zero\nSteering Committee, which was established in 2017 to achieve Net Zero carbon\nemissions by 2020.\n\nRisk Management\n\nEnterprise Risk Management (ERM) is a structured and dynamic  process to\nunderstand interrelated risks and to drive proactive risk mitigation. Our\ncompany\u2019s ERM process leverages internal and external partnerships to help\nidentify leading practices and validate emerging and other risks, including\nsustainability and social impact-related risks.\n\nCDP Climate Change Response\n\nFor more than 10 years, we have responded to the annual CDP Climate\nQuestionnaire. We achieved a score of A for our 2023 climate change\ndisclosure. To read more about how we are combating climate change, please\ndownload our [ 2024 CDP Response\n](https://media.elcompanies.com/files/e/estee-lauder-companies/universal/our-\nimpact/si-s24/cdp-2024.pdf) .\n\n##  Sustainable Building Operations\n\nWe are optimizing our office buildings and retail stores in order to reduce\ntheir environmental impact. Although many of these facilities are leased, we\nare committed to working with our landlords and internal teams to drive\nsustainability practices in green buildings.\n\nIn fiscal year 2020, we finalized our Green Building Standards for New\nConstruction and Major Renovations. These standards set the baseline for the\nsustainability practices for our spaces, covering impact areas including\nenergy, water, waste and indoor air quality. We have also developed\nsustainability best practices for our existing and retail spaces, which are\nfocused on driving sustainable behaviors and choices in these spaces. Our\nstrategy also involves pursuing LEED and WELL certification at key sites\nacross our portfolio.\n\n##  Waste\n\nWe achieved zero industrial waste-to-landfill for 100% of our global\nmanufacturing, distribution and innovation sites. In fiscal year 2020, we\nfocused on working with our global sites to identify sustainable waste\nsolutions and ensure procedures and documentation for our zero industrial\nwaste-to-landfill commitment are in place. Going forward, we will continue to\nmaintain this commitment status and onboard new facilities.\n\nSince fiscal 2003, we have had a zero-waste-to-landfill commitment for our\nmanufacturing and distribution sites in the United States, Canada, United\nKingdom, Belgium and Switzerland. If waste cannot be reused or recycled, it is\nconverted to energy by licensed power plants or by co-processing at cement\nkilns.\n\nOur facilities follow the waste-minimization hierarchy\u2014reduce, reuse and\nrecycle\u2014and look for opportunities to share best practices. We are also\nworking with a waste management services company in North America to help us\noptimize waste streams and find new opportunities for recycling and waste\nreduction within our supply chain and retail stores. We plan to utilize this\napproach to continuously improve our waste management practices around the\nworld.\n\n##  Water\n\nWe use water as an ingredient to make our products, as well as for cleaning\nand cooling manufacturing equipment. In addition, our Research and Development\nand Quality teams rely on water to perform testing, analysis and to develop\nnew products. Our new green building standards have water requirement\nstandards that all new facilities must meet, such as the installation of low-\nflow fixtures. In addition, for our sites pursuing LEED certification, indoor\nand outdoor water use reduction is required.\n\nWe have water-savings initiatives in place, where possible. We pay close\nattention to facilities in water-stressed areas, implementing additional\nmeasures to ensure we manage our supply and water use responsibly.\n\nWe also look to improve existing systems throughout our organization in order\nto increase water efficiency. For example, in fiscal 2020, we upgraded the\nwater softening system at our Blaine, Minnesota, facility, which is expected\nto result in a reduction of more than 600,000 gallons of water used each year.\n\n###  CDP Water Security Response\n\nWe recognize that the solutions and risks around climate change and water\nsecurity are inextricably linked and interdependent. We are proud to respond\nto the annual CDP Water Security questionnaire and achieved a score of A- for\nour 2023 Water Security disclosure. To read more about how we are taking steps\nto improve our water stewardship practices, please download our [ 2024 CDP\nResponse ](https://media.elcompanies.com/files/e/estee-lauder-\ncompanies/universal/our-impact/si-s24/cdp-2024.pdf) .\n\n###  Partnerships and Recognition\n\n##  CDP Climate A List\n\nThe Est\u00e9e Lauder Companies (ELC) has been recognized for its leadership in\ncorporate transparency and performance on climate security by global\nenvironmental non-profit CDP, securing a place on its annual \u2018A List\u2019. ELC is\none of a small number of companies that achieved an \u2018A\u2019 on its Climate\ndisclosures, out of over 21,000 companies scored.\n\n##  3BL Media's 100 Best Corporate Citizens of 2023\n\nELC was named to 3BL Media's 100 Best Corporate Citizens list for the fourth\nconsecutive year. We achieved a rank of #5 overall, and ranked #1 within our\nindustry, Household & Personal Products. The 100 Best Corporate Citizens is an\nannual ranking of the 1000 largest publicly traded companies in the United\nStates based on environmental, social, and governance (ESG) factors.\n\n##  CDP\u2019s 2022 Supplier Engagement Leaderboard\n\nWe earned a place on CDP\u2019s 2022 Supplier Engagement Leaderboard, in\nrecognition of its efforts to measure and reduce climate risk within its\nsupply chain. The company's commitment to tackling its environmental impact\nthroughout the extended value chain placed ELC among the top 8% of companies\nassessed by CDP for supplier engagement on climate change.\n\n##  EPA Green Power Partnership\n\nThe U.S. Environmental Protection Agency (EPA) recognizes U.S. companies and\ninstitutions that use green power through its Green Power Partnership. We\nranked 15th among the Top 30 Retailers in the 2023 rankings.\n\n##  CDP Supply Chain\n\nIn 2021, we became members of CDP Supply Chain, deepening our collaboration\nwith CDP and enabling us to measure our supply chain impacts. \u201cWith ambitious\nscience-based targets for Scope 3 emissions at the forefront of our climate\nagenda, the CDP Supply Chain program will support the implementation of\nintegrated solutions for emissions reduction across the company\u2019s supply\nchain, and foster joint value creation with supply chain partners and third-\nparty manufacturers.\u201d \u2013 Gregory F. Polcer, Executive Vice President, Global\nSupply Chain, The Est\u00e9e Lauder Companies\n\n##  Supplier Leadership on Climate Transition\n\nIn fiscal 2022, we were the first beauty company to join Supplier Leadership\non Climate Transition (Supplier LoCT), a brand consortium created to\naccelerate action throughout the supply chain towards Net Zero GHG emissions.\nThe consortium provides an online climate training program to suppliers to\nsupport them in their journey of developing a GHG footprint, setting an SBT,\nadopting GHG-abatement measures, and disclosing progress. We invited more than\n40 of our suppliers to this program and others have joined through\nrelationships with other companies. Overall, the Supplier LoCT has seen more\nthan 400 suppliers participate.\n\n##  Science Based Targets Initiative\n\nIn 2020, we announced new science-based emissions targets covering our direct\noperations and value chain. Our new climate targets reinforce a legacy of\nmanaging the company with a lens for the long-term and focusing on the needs\nof future generations. The targets address Scopes 1, 2, and 3 emissions and\nare independently validated and approved by the Science Based Target\ninitiative (SBTi).\n\n##  RE100\n\nIn 2017, we further enhanced our corporate commitment to clean energy by\njoining RE100 and committing to source 100% of our global electricity from\nrenewable energy technologies by 2020. In 2020, we reached the target we set\non joining RE100  1  , sourcing 100% renewable electricity globally for our\ndirect operations. RE100 is the global corporate renewable energy initiative\nbringing together hundreds of large and ambitious businesses committed to 100%\nrenewable electricity. It is led by the Climate Group in partnership with CDP.  \n\n1  ELC joined the RE100 campaign in 2017. Please see www.there100.org for more\ninformation.\n\n##  RE100 Enterprising Leader Award\n\nELC was recognized with the RE100 Enterprising Leader Award in 2021,\nacknowledging the company\u2019s ambition and leadership in the global transition\nto 100% renewable electricity.\n\n##  Climate Week\n\nWe were proud to be a Platinum Partner at Climate Week NYC in 2023.\n\n##  You May Also Like\n\n[ Product Responsibility  ELC embeds responsibility into the full lifecycle of\nour products, from formulation to packaging  Read More  ](/en/our-\nimpact/sustainability/product-responsibility \"Product Responsibility\")\n\n[ Responsible Sourcing  We aim to continuously enhance our responsible and\nethical sourcing practices  Read more  ](/en/our-\nimpact/sustainability/responsible-sourcing \"Responsible Sourcing\")\n\n[ Employee Engagement  Our company\u2019s long-term success is tied to the vitality\nof our communities  Read more  ](/en/our-impact/social/employee-engagement\n\"Employee Engagement\")\n\n[ Cautionary Note Regarding Social Impact and Sustainability Information.\n](https://media.elcompanies.com/files/e/estee-lauder-companies/universal/our-\nimpact/si-s24/elc-cautionary-note-regarding-social-impact-and-\nsustainability.pdf \"Opens in a new window\")\n\n  * [ Who We Are  ](/en/who-we-are)\n  * [ Our Brands  ](/en/our-brands)\n  * [ Our Impact  ](/en/our-impact)\n  * [ Careers  ](/en/careers)\n  * [ News & Media  ](/en/news-and-media)\n  * [ Investors  ](/en/investors)\n\nConnect With Us:\n\n  * [ Facebook ](https://www.facebook.com/esteelaudercompanies \"Facebook \u2013 link to website \\(opens in a new window\\)\")\n  * [ Instagram ](https://www.instagram.com/esteelaudercompanies \"Instagram \u2013 link to website \\(opens in a new window\\)\")\n  * [ LinkedIn ](http://www.linkedin.com/company/the-estee-lauder-companies-inc- \"LinkedIn - link to website \\(opens in a new window\\)\")\n  * [ ](https://www.tiktok.com/@esteelaudercompanies?lang=en \"Tiktok - link to website \\(opens in a new window\\)\")\n\n[ Email Alerts ](/en/news-and-media/contact-us/email-alerts)\n\n[ Contact Us ](/en/news-and-media/contact-us)\n\n  * [ Cookie Management ](javascript:;)\n  * [ Privacy ](/en/privacy)\n  * [ Site Map ](/en/site-map)\n  * [ Terms and Conditions ](/en/terms-and-conditions)\n\nCopyright \u00a9 2025\n\n[ Share  ](javascript:;)\n\nShare this article:\n\nThe Est\u00e9e Lauder Companies' Climate and Environment\n\n[ Email to your friend  ](/cdn-cgi/l/email-\nprotection#142b6761767e71776029407c7134516760d7bd713458756170716634577b7964757a7d7167345d7a773a34393457787d7975607134557a7034517a627d667b7a79717a6032767b706d295d34607c7b61737c6034607c7d67346475737134797d737c60347d7a607166716760346d7b612e347c606064672e3b3b6363633a7178777b7964757a7d71673a777b793b717a3b7b6166397d79647577603b67616760757d7a75767d787d606d3b77787d7975607139757a7039717a627d667b7a79717a60\n\"Email\") [ Share on Facebook\n](http://www.facebook.com/sharer.php?u=https://www.elcompanies.com/en/our-\nimpact/sustainability/climate-and-environment \"Share on Facebook - opens in a\nnew window\") [ Share on Linkedin\n](http://www.linkedin.com/shareArticle?mini=true&url=https://www.elcompanies.com/en/our-\nimpact/sustainability/climate-and-environment \"Share on LinkedIn - opens in a\nnew window\") [ Share on Twitter\n](http://twitter.com/home/?status=https://www.elcompanies.com/en/our-\nimpact/sustainability/climate-and-environment \"Share on Twitter - opens in a\nnew window\")\n\nBack to top  Top of the page\n\nblackOut\n\nWe use cookies to ensure our website works properly, and to collect statistics\nto provide you with the best experience. 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            },
            "reason": "This is The Est\u00e9e Lauder Companies' sustainability page. It's a primary source for their own activities, but may present a biased view. It does not explicitly mention the target company.",
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                    "source": "https://usa.streetsblog.org/2017/07/06/urban-myth-busting-congestion-idling-and-carbon-emissions"
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                "page_content": "[ Skip to Content ](/2017/07/06/urban-myth-busting-congestion-idling-and-\ncarbon-emissions#main)\n\n[ Air Quality  ](/category/air-quality)\n\n#  Urban Myth Busting: Congestion, Idling, and Carbon Emissions\n\n[ ](/author/joecortco)\n\nBy  [ Joe Cortright ](/author/joecortco)\n\n4:23 PM EDT on July 6, 2017\n\n  * [ Share on Facebook  ](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fusa.streetsblog.org%2F2017%2F07%2F06%2Furban-myth-busting-congestion-idling-and-carbon-emissions)\n  * [ Share on X (formerly Twitter)  ](https://x.com/intent/tweet?text=Urban%20Myth%20Busting%3A%20Congestion%2C%20Idling%2C%20and%20Carbon%20Emissions&url=https%3A%2F%2Fusa.streetsblog.org%2F2017%2F07%2F06%2Furban-myth-busting-congestion-idling-and-carbon-emissions)\n  * [ Share on Email  ](mailto:?body=https%3A%2F%2Fusa.streetsblog.org%2F2017%2F07%2F06%2Furban-myth-busting-congestion-idling-and-carbon-emissions&subject=Urban%20Myth%20Busting%3A%20Congestion%2C%20Idling%2C%20and%20Carbon%20Emissions)\n  * [ Share on Reddit  ](http://www.reddit.com/submit/?title=Urban%20Myth%20Busting%3A%20Congestion%2C%20Idling%2C%20and%20Carbon%20Emissions&url=https%3A%2F%2Fusa.streetsblog.org%2F2017%2F07%2F06%2Furban-myth-busting-congestion-idling-and-carbon-emissions)\n  * [ Share on LinkedIn  ](https://www.linkedin.com/shareArticle/?summary=Increasing%20road%20capacity%20to%20reduce%20greenhouse%20gas%20emissions%20will%20backfire.%0A&title=Urban%20Myth%20Busting%3A%20Congestion%2C%20Idling%2C%20and%20Carbon%20Emissions&url=https%3A%2F%2Fusa.streetsblog.org%2F2017%2F07%2F06%2Furban-myth-busting-congestion-idling-and-carbon-emissions)\n  * [ Share on Bluesky  ](https://bsky.app/intent/compose?text=Urban%20Myth%20Busting%3A%20Congestion%2C%20Idling%2C%20and%20Carbon%20Emissions%20-%20https%3A%2F%2Fusa.streetsblog.org%2F2017%2F07%2F06%2Furban-myth-busting-congestion-idling-and-carbon-emissions)\n\n_Crossposted from[ City Observatory. ](http://cityobservatory.org/urban-myth-\nbusting_idling_carbon/) _\n\nTime for another episode of City Observatory\u2019s Urban Myth Busters, which\nitself is an homage to the long-running Discovery Channel series [\n\u201cMythbusters\u201d ](http://variety.com/2015/tv/news/mythbusters-discovery-\nending-1201623363/) that featured co-hosts Adam Savage and Jamie Hyneman using\nsomething called \u201cscience\u201d to test whether commonly believed tropes were\nreally true. In each episode, they would construct elaborate (often explosive)\nexperiments to test whether something you see on television or in the movies\ncould actually happen in real life. (Sadly, you can\u2019t make a [ bullet curve\n](http://mythresults.com/curving-bullets) no matter how fast you flick your\narm.)\n\nIn our first installment, we took on the oft-repeated claim that somehow\nbuilding more housing for middle and upper income people made housing less\naffordable for lower income households. (It doesn\u2019t).\n\nToday\u2019s claim comes from the world of transportation. As we all know,\ntransportation is now the single largest source of greenhouse gas emissions.\nHere, when confronted with the need to do something to address climate change,\nthe highway lobby likes to point out that cars emit carbon, and when they\u2019re\nidling or driving in stop and go traffic, they may emit more carbon per mile\nthan when they travel at a nice steady speed. And of course, they have a\nsolution for that: spend more money expanding capacity so cars don\u2019t have to\nslow down so much. That\u2019ll be great for the environment, or so the argument\ngoes.\n\nThis claim has been invoked by highway advocates everywhere. Most recently,\nits been raised by officials speaking in favor of spending upwards of a\nbillion dollars on three freeway widening projects in the Portland area. Sate\nSenator Lee Beyer argued that truck idling due to congestion was contributing\nto global warming. Here\u2019s what Beyer told Oregon Public Broadcasting\u2019s [ Think\nOut Loud ](http://www.opb.org/radio/programs/thinkoutloud/segment/represented-\nfixing-and-funding-oregons-roads/) program on April 18, 2017:\n\n> To the extent that we have congestion, in Portland for example, or anywhere\n> else, but there particularly, if you look at the amount of exhaust those\n> trucks are spewing into the air during that 52 hours while they sit in\n> traffic, that may have more of a negative impact on the environment and more\n> carbon release than we would gain solely through the low carbon fuels piece\n> as its currently structured.\n\nHis argument was echoed by City Commissioner [ Amanda Fritz\n](http://www.wweek.com/news/city/2017/06/14/we-ask-city-officials-how-can-\nportland-square-its-climate-goals-with-adding-lanes-to-i-5/) :\n\n> It seems likely the emissions from vehicles crawling in this section are\n> worse than those at normal speed.\n\nSo is there any truth to the idea that reducing traffic congestion will lower\nvehicle emissions?\n\nIn place of the now retired duo of Adam and Jamie, we\u2019ll turn this question\nover to Alex and Miguel\u2013Alex Bigazzi and Miguel Figliozzi, two transportation\nresearchers at Portland State University. Their [ researc\n](http://www.sciencedirect.com/science/article/pii/S1361920912000727) h shows\nthat savings in emissions from idling can be more than offset by increased\ndriving prompted by lower levels of congestion. The underlying problem is our\nold friend, induced demand: when you reduce congestion, people drive more, and\nthe \u201cmore driving\u201d more than cancels out any savings from reduced idling. As\nthey conclude:\n\n> Induced or suppressed travel demand . . . are critical considerations when\n> assessing the emissions effects of capacity-based congestion mitigation\n> strategies. Capacity expansions that reduce marginal emissions rates by\n> increasing travel speeds are likely to increase total emissions in the long\n> run through induced demand.\n\nIn a companion paper, they look at a variety of data, including variations\namong metropolitan areas, changes over time in congestion and emissions, and\ncorridor level estimates of traffic and emissions. In each case, they find\nthat carbon emissions are strongly correlated with the length of travel and\nweakly correlated (or uncorrelated) with levels of congestion.\n\nSpecifically, metropolitan areas with high levels of congestion do not have\nhigher levels of CO2 emissions per capita than ones with low congestion. They\nconclude their is \u201cno relation.\u201d But vehicle miles traveled is a strong\ncorrelate. Here\u2019s a chart showing daily peak period hours of vehicle travel\nper peak period travel (on the horizontal axis) and CO2 emissions per peak\nperiod traveler per day. More driving is correlated with more carbon\nemissions.\n\n[ ](https://lede-admin.usa.streetsblog.org/wp-\ncontent/uploads/sites/46/2017/07/co-emissions-graph.png) Graph: [ Portland\nState University\n](http://web.cecs.pdx.edu/~maf/Conference_Proceedings/2012_Do_Mobility_Based_Performance_Measures_Reflect_Emissions_Trends.pdf)\nGraph: [ Portland State University\n](http://web.cecs.pdx.edu/~maf/Conference_Proceedings/2012_Do_Mobility_Based_Performance_Measures_Reflect_Emissions_Trends.pdf)\n\nSimilarly, metro areas that had an increase in congestion (as measured by the\nTexas Transportation Institute\u2019s Travel Time Index), didn\u2019t see proportionate\nincreases in CO2 emissions. The following panel shows how the change in\nemissions per traveler between 2000 and 2010 for an array of 101 metropolitan\nareas related to changes in congestion (left hand chart), changes in hours\ntraveled per person (center chart) and vehicle miles traveled (right hand\nchart). There\u2019s essentially no relation between increases in congestion and\nper traveler emissions; but more hours of travel and greater distances\ntraveled translate very directly into more carbon emissions.\n\n[ ](https://lede-admin.usa.streetsblog.org/wp-\ncontent/uploads/sites/46/2017/07/Bigazzi_Change.png) Graph: [ Portland State\nUniversity\n](http://web.cecs.pdx.edu/~maf/Conference_Proceedings/2012_Do_Mobility_Based_Performance_Measures_Reflect_Emissions_Trends.pdf)\nGraph: [ Portland State University\n](http://web.cecs.pdx.edu/~maf/Conference_Proceedings/2012_Do_Mobility_Based_Performance_Measures_Reflect_Emissions_Trends.pdf)\n\nThere\u2019s also another kicker to the speed/emissions relationship that you\u2019ll\nnever hear highway advocates mention. While its true that cars emit more\ncarbon per mile while idling and in stop and go traffic than they do when\ncruising at 30 to 45 miles per hour, traveling at higher speeds is actually\nless fuel efficient and produces more CO2 per mile driven. Hence one of the\nstrategies that we ought to employ is imposing stricter speed limits (say 55\nmiles per hour). This also means that the more we build roads that let people\ndrive at higher speeds (60 to 70 miles per hour) the more we\u2019re increasing\nglobal warming.\n\nThis myth is busted: adding more capacity might reduce idling a bit, but it\nwill actually induce more driving, which will lead to higher, not lower carbon\nemissions.\n\nAnd, a technological post-script: Automakers are now increasingly equipping\ntheir vehicles with [ stop-start technology\n](https://www.nytimes.com/2016/04/08/automobiles/wheels/start-stop-technology-\nis-coming-to-cars-like-it-or-not.html?_r=0) , which automatically turns the\nengine off when the car stops moving, and then re-starts the engine when the\ndriver takes her foot of the brake. This virtually eliminates idling\nemissions, not just in traffic, but at red lights too. Some 15 million\nEuropean cars already have stop-start, a majority of cars sold in North\nAmerica are predicted to have in the next few years. In addition, electric\nvehicles don\u2019t idle when they\u2019re stopped. So in the long run, if we want to\nreduce emissions from idling, a technical fix is in the works\u2013no need to widen\nroads to address this source of pollution.\n\n  * [ Share on Facebook  ](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fusa.streetsblog.org%2F2017%2F07%2F06%2Furban-myth-busting-congestion-idling-and-carbon-emissions)\n  * [ Share on X (formerly Twitter)  ](https://x.com/intent/tweet?text=Urban%20Myth%20Busting%3A%20Congestion%2C%20Idling%2C%20and%20Carbon%20Emissions&url=https%3A%2F%2Fusa.streetsblog.org%2F2017%2F07%2F06%2Furban-myth-busting-congestion-idling-and-carbon-emissions)\n  * [ Share on Email  ](mailto:?body=https%3A%2F%2Fusa.streetsblog.org%2F2017%2F07%2F06%2Furban-myth-busting-congestion-idling-and-carbon-emissions&subject=Urban%20Myth%20Busting%3A%20Congestion%2C%20Idling%2C%20and%20Carbon%20Emissions)\n  * [ Share on Reddit  ](http://www.reddit.com/submit/?title=Urban%20Myth%20Busting%3A%20Congestion%2C%20Idling%2C%20and%20Carbon%20Emissions&url=https%3A%2F%2Fusa.streetsblog.org%2F2017%2F07%2F06%2Furban-myth-busting-congestion-idling-and-carbon-emissions)\n  * [ Share on LinkedIn  ](https://www.linkedin.com/shareArticle/?summary=Increasing%20road%20capacity%20to%20reduce%20greenhouse%20gas%20emissions%20will%20backfire.%0A&title=Urban%20Myth%20Busting%3A%20Congestion%2C%20Idling%2C%20and%20Carbon%20Emissions&url=https%3A%2F%2Fusa.streetsblog.org%2F2017%2F07%2F06%2Furban-myth-busting-congestion-idling-and-carbon-emissions)\n  * [ Share on Bluesky  ](https://bsky.app/intent/compose?text=Urban%20Myth%20Busting%3A%20Congestion%2C%20Idling%2C%20and%20Carbon%20Emissions%20-%20https%3A%2F%2Fusa.streetsblog.org%2F2017%2F07%2F06%2Furban-myth-busting-congestion-idling-and-carbon-emissions)\n\n[ ](/author/joecortco)\n\n[ Joe Cortright ](/author/joecortco)\n\n##  Stay in touch\n\nSign up for our free newsletter\n\n##  More from Streetsblog USA\n\n[ Today's Headlines  ](/category/special-features/todays-headlines)\n\n### [ Thursday\u2019s Headlines, Big and Small  ](/2025/04/24/thursdays-headlines-\nbig-and-small)\n\nSmaller cities should try congestion pricing, too. Plus, the latest in the\ntiff between Sean Duffy and Kathy Hochul.\n\n[ ](/author/baued)\n\n[ Blake Aued ](/author/baued)\n\nApril 24, 2025\n\n[ ](/2025/04/24/thursdays-headlines-big-and-small)\n\n[ Promoted Archives  ](https://nyc.streetsblog.org/tag/promoted) [ U.S. DOT\n](/category/government-organizations/us-dot)\n\n### [ Disorder in the Court: U.S. DOT Lawyers Upload Memo Admitting Their\nCongestion Pricing Case is Weak\n](https://nyc.streetsblog.org/2025/04/24/disorder-in-the-court-u-s-dot-\nlawyers-upload-memo-admitting-their-congestion-pricing-case-is-weak)\n\nLawyers advising U.S. DOT Secretary Sean Duffy make it clear: His case to end\ncongestion pricing is weak.\n\nApril 24, 2025\n\n[ ](https://nyc.streetsblog.org/2025/04/24/disorder-in-the-court-u-s-dot-\nlawyers-upload-memo-admitting-their-congestion-pricing-case-is-weak)\n\n[ President Trump's Second Term  ](/category/special-features/president-\ntrumps-second-term)\n\n### [ Why Are Many States Trying to Ban Cities From Slowing Down Drivers?\n](/2025/04/24/why-are-many-states-trying-to-ban-cities-from-slowing-down-\ndrivers)\n\nTexas could soon become the latest state to ban its cities from reclaiming\nlane space from drivers \u2014 and now that Trump is in office, some fear that more\nwill follow.\n\n[ ](/author/keawilson)\n\n[ Kea Wilson ](/author/keawilson)\n\nApril 24, 2025\n\n[ ](/2025/04/24/why-are-many-states-trying-to-ban-cities-from-slowing-down-\ndrivers)\n\n[ Micromobility  ](/category/micromobility)\n\n### [ Op-Ed: What Cities Can Do as Micromobility Tariffs Loom\n](/2025/04/24/op-ed-what-cities-can-do-as-micromobility-tariffs-loom)\n\n\"Let\u2019s treat micromobility like the essential service it is, so that we\u2019re\nready for whatever comes next.\"\n\n[ ](/author/alex-keating)\n\n[ Alex Keating ](/author/alex-keating)\n\nApril 24, 2025\n\n[ ](/2025/04/24/op-ed-what-cities-can-do-as-micromobility-tariffs-loom)\n\n[ Free Transit  ](/category/free-transit)\n\n### [ This Philadelphia Council Member Wants To Stand Up to Trump By Investing\nin Mobility For the Poorest  ](/2025/04/23/this-philadelphia-council-member-\nwants-to-stand-up-to-trump-by-investing-in-mobility-for-the-poorest)\n\nWe sat down with Council Member Nicolas O'Rourke to talk about how he wants to\nbuild on the city's Zero Fare pilot \u2014 and why prioritizing the poor is more\nessential now than ever.\n\n[ ](/author/keawilson)\n\n[ Kea Wilson ](/author/keawilson)\n\nApril 23, 2025\n\n[ ](/2025/04/23/this-philadelphia-council-member-wants-to-stand-up-to-trump-\nby-investing-in-mobility-for-the-poorest)\n\n[ See all posts ](/all)\n\n[ ](/)\n\n[ ](/)\n\nCovering the movement to end car dependency and improve biking, walking and\ntransit in America.\n\n##  Stay in touch\n\nSign up for our free newsletter\n\n  * [ Streetsblog USA Facebook  ](https://facebook.com/Streetsblog-USA-158901714195305)\n  * [ Streetsblog USA X (formerly Twitter)  ](https://x.com/StreetsblogUSA)\n  * [ Streetsblog USA Instagram  ](https://instagram.com/Streetsblog)\n  * [ Streetsblog USA LinkedIn  ](https://www.linkedin.com/company/streetsblogusa)\n  * [ Streetsblog USA Bluesky  ](https://bsky.app/profile/streetsblogusa.bsky.social)\n\n\u00a9 Copyright 2025\n\nMade in partnership with [ Lede ](https://joinlede.com)\n\n",
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                    "source": "https://sasb.ifrs.org/standards/materiality-finder/"
                },
                "page_content": "[ IFRS Foundation ](https://www.ifrs.org/)\n\n##  The Materiality Finder makes it easy to both look up companies or\nindustries and compare industries side-by-side. It offers:\n\n  * An overview of the SASB Standards \n  * A fast way to search the topics in an industry and the ability to search by company \n  * The ability to compare up to four industries side-by-side \n\nAs of August 2022, the International Sustainability Standards Board (ISSB) of\nthe IFRS Foundation assumed responsibility for the SASB Standards. [ The ISSB\nhas committed ](https://www.ifrs.org/news-and-events/news/2022/03/issb-\ncommunicates-plans-to-build-on-sasbs-industry-based-standards/) to maintain,\nenhance and evolve the SASB Standards and encourages preparers and investors\nto continue to use the SASB Standards.\n\n##  SASB Standards are industry based\n\nThe sustainability-related risks and opportunities that are most likely to\naffect cash flows, access to finance and cost of capital vary by industry.\nIndustry-based disclosure reduces costs and minimizes noise by surfacing the\nmost relevant information for investors. The Sustainable Industry\nClassification System\u00ae (SICS\u00ae) was designed to group companies based on shared\nsustainability-related risks and opportunities to enhance comparability for\ninvestor decision-making. As a result, the number of relevant sustainability-\nrelated risks and opportunities vary by industry.\n\nBelow is an example of how six industries have different sustainability risks\nand opportunities.\n\n|  |  6 of SASB's 77 industries   \n---|---|---  \nDimension  |  General Issue Category  |  Health Care Delivery  |  Non- Alcoholic   \nBeverages  |  Electric Utilities & Power Generators  |  Advertising & Marketing  |  Auto Parts  |  Metals & Mining   \nEnvironment  |  GHG Emissions  |  |  |  |  |  |   \nAir Quality  |  |  |  |  |  |   \nEnergy Management  |  |  |  |  |  |   \nWater & Wastewater Management  |  |  |  |  |  |   \nWaste & Hazardous Materials Management  |  |  |  |  |  |   \nEcological Impacts  |  |  |  |  |  |   \nSocial Capital  |  Human Rights & Community Relations  |  |  |  |  |  |   \nCustomer Privacy  |  |  |  |  |  |   \nData Security  |  |  |  |  |  |   \nAccess & Affordability  |  |  |  |  |  |   \nProduct Quality & Safety  |  |  |  |  |  |   \nCustomer Welfare  |  |  |  |  |  |   \nSelling Practices & Product Labeling  |  |  |  |  |  |   \nHuman Capital  |  Labor Practices  |  |  |  |  |  |   \nEmployee Health & Safety  |  |  |  |  |  |   \nEmployee Engagement, Diversity & Inclusion  |  |  |  |  |  |   \nBusiness Model & Innovation  |  Product Design & Lifecycle Management  |  |  |  |  |  |   \nBusiness Model Resllience  |  |  |  |  |  |   \nSupply Chain Management  |  |  |  |  |  |   \nMaterials Sourcing & Efficiency  |  |  |  |  |  |   \nPhysical Impacts of Climate Change  |  |  |  |  |  |   \nLeadership & Governance  |  Business Ethics  |  |  |  |  |  |   \nCompetitive Behaviour  |  |  |  |  |  |   \nManagement of the Legal & Regulatory Environment  |  |  |  |  |  |   \nCritical Incident Risk Management  |  |  |  |  |  |   \nSystemic Risk Management  |  |  |  |  |  |   \n  \n##  Disclosure Topics are industry-based versions of sustainability-related\nrisks and opportunities\n\nIn the image above, there are 26 rows, one for each General Issue Category.\nThe General Issue Category is an industry-agnostic version of the Disclosure\nTopics that appear in each SASB Standard. The industry-based Disclosure Topics\nensure each SASB Standard is tailored to the industry, while the General Issue\nCategories enable comparability across industries.\n\nGeneral Issue Category  \n(industry Agnostic)  |  Disclosure Topics for   \n(industry Specific):  \n---|---  \n|  Health Care Delivery Industry  |  Non-Alcoholic Beverages Industry   \nProduct Quality &  \nSafety  |  Quality of Care & Patient Satisfaction  |  This box is blank because the SASB Standard for this industry does not include a topic related to Product Quality & Safety, whereas there is a topic in the Health Care Delivery industry.   \nCustomer Welfare  |  Management of Controlled Substances  |  Health & Nutrition   \nSelling Practices &  \nProduct Labeling  |  Pricing & Billing Transparency  |  Product Labeling & Marketing   \n  \n##  The research scope of SASB Standards encompasses a range of\nsustainability-related risks and opportunities\n\nSASB Standards encompass a broad range of sustainability-related risks and\nopportunities, including environmental and social information as well as\noperational governance such as Supply Chain Management, Systemic Risk\nManagement, and Business Ethics, among others.\n\nEnvironment\n\n####  GHG Emissions\n\nThe category addresses direct (Scope 1) greenhouse gas (GHG) emissions that a\ncompany generates through its operations. This includes GHG emissions from\nstationary (e.g., factories, power plants) and mobile sources (e.g., trucks,\ndelivery vehicles, planes), whether a result of combustion of fuel or non-\ncombusted direct releases during activities such as natural resource\nextraction, power generation, land use, or biogenic processes. The category\nfurther includes management of regulatory risks, environmental compliance, and\nreputational risks and opportunities, as they related to direct GHG emissions.\nThe seven GHGs covered under the Kyoto Protocol are included within the\ncategory\u2014carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O),\nhydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6),\nand nitrogen trifluoride (NF3).\n\n####  Air Quality\n\nThe category addresses management of air quality impacts resulting from\nstationary (e.g., factories, power plants) and mobile sources (e.g., trucks,\ndelivery vehicles, planes) as well as industrial emissions. Relevant airborne\npollutants include, but are not limited to, oxides of nitrogen (NOx), oxides\nof sulfur (SOx), volatile organic compounds (VOCs), heavy metals, particulate\nmatter, and chlorofluorocarbons. The category does not include GHG emissions,\nwhich are addressed in a separate category.\n\n####  Energy Management\n\nThe category addresses environmental impacts associated with energy\nconsumption. It addresses the company\u2019s management of energy in manufacturing\nand/or for provision of products and services derived from utility providers\n(grid energy) not owned or controlled by the company. More specifically, it\nincludes management of energy efficiency and intensity, energy mix, as well as\ngrid reliance. Upstream (e.g., suppliers) and downstream (e.g., product use)\nenergy use is not included in the scope.\n\n####  Water & Wastewater Management\n\nThe category addresses a company\u2019s water use, water consumption, wastewater\ngeneration, and other impacts of operations on water resources, which may be\ninfluenced by regional differences in the availability and quality of and\ncompetition for water resources. More specifically, it addresses management\nstrategies including, but not limited to, water efficiency, intensity, and\nrecycling. Lastly, the category also addresses management of wastewater\ntreatment and discharge, including groundwater and aquifer pollution.\n\n####  Waste & Hazardous Materials Management\n\nThe category addresses environmental issues associated with hazardous and non-\nhazardous waste generated by companies. It addresses a company\u2019s management of\nsolid wastes in manufacturing, agriculture, and other industrial processes. It\ncovers treatment, handling, storage, disposal, and regulatory compliance. The\ncategory does not cover emissions to air or wastewater nor does it cover waste\nfrom end-of-life of products, which are addressed in separate categories.\n\n####  Ecological Impacts\n\nThe category addresses management of the company\u2019s impacts on ecosystems and\nbiodiversity through activities including, but not limited to, land use for\nexploration, natural resource extraction, and cultivation, as well as project\ndevelopment, construction, and siting. The impacts include, but are not\nlimited to, biodiversity loss, habitat destruction, and deforestation at all\nstages \u2013 planning, land acquisition, permitting, development, operations, and\nsite remediation. The category does not cover impacts of climate change on\necosystems and biodiversity.\n\nSocial Capital\n\n####  Human Rights & Community Relations\n\nThe category addresses management of the relationship between businesses and\nthe communities in which they operate, including, but not limited to,\nmanagement of direct and indirect impacts on core human rights and the\ntreatment of indigenous peoples. More specifically, such management may cover\nsocio-economic community impacts, community engagement, environmental justice,\ncultivation of local workforces, impact on local businesses, license to\noperate, and environmental/social impact assessments. The category does not\ninclude environmental impacts such as air pollution or waste which, although\nthey may impact the health and safety of members of local communities, are\naddressed in separate categories.\n\n####  Customer Privacy\n\nThe category addresses management of risks related to the use of personally\nidentifiable information (PII) and other customer or user data for secondary\npurposes including but not limited to marketing through affiliates and non-\naffiliates. The scope of the category includes social issues that may arise\nfrom a company\u2019s approach to collecting data, obtaining consent (e.g., opt-in\npolicies), managing user and customer expectations regarding how their data is\nused, and managing evolving regulation. It excludes social issues arising from\ncybersecurity risks, which are covered in a separate category.\n\n####  Data Security\n\nThe category addresses management of risks related to collection, retention,\nand use of sensitive, confidential, and/or proprietary customer or user data.\nIt includes social issues that may arise from incidents such as data breaches\nin which personally identifiable information (PII) and other user or customer\ndata may be exposed. It addresses a company\u2019s strategy, policies, and\npractices related to IT infrastructure, staff training, record keeping,\ncooperation with law enforcement, and other mechanisms used to ensure security\nof customer or user data.\n\n####  Access & Affordability\n\nThe category addresses a company\u2019s ability to ensure broad access to its\nproducts and services, specifically in the context of underserved markets\nand/or population groups. It includes the management of issues related to\nuniversal needs, such as the accessibility and affordability of health care,\nfinancial services, utilities, education, and telecommunications.\n\n####  Product Quality & Safety\n\nThe category addresses issues involving unintended characteristics of products\nsold or services provided that may create health or safety risks to end-users.\nIt addresses a company\u2019s ability to offer manufactured products and/or\nservices that meet customer expectations with respect to their health and\nsafety characteristics. It includes, but is not limited to, issues involving\nliability, management of recalls and market withdrawals, product testing, and\nchemicals/content/ingredient management in products.\n\n####  Customer Welfare\n\nThe category addresses customer welfare concerns over issues including, but\nnot limited to, health and nutrition of foods and beverages, antibiotic use in\nanimal production, and management of controlled substances. The category\naddresses the company\u2019s ability to provide consumers with manufactured\nproducts and services that are aligned with societal expectations. It does not\ninclude issues directly related to quality and safety malfunctions of\nmanufactured products and services, but instead addresses qualities inherent\nto the design and delivery of products and services where customer welfare may\nbe in question. The scope of the category also captures companies\u2019 ability to\nprevent counterfeit products.\n\n####  Selling Practices & Product Labeling\n\nThe category addresses social issues that may arise from a failure to manage\nthe transparency, accuracy, and comprehensibility of marketing statements,\nadvertising, and labeling of products and services. It includes, but is not\nlimited to, advertising standards and regulations, ethical and responsible\nmarketing practices, misleading or deceptive labeling, as well as\ndiscriminatory or predatory selling and lending practices. This may include\ndeceptive or aggressive selling practices in which incentive structures for\nemployees could encourage the sale of products or services that are not in the\nbest interest of customers or clients.\n\nHuman Capital\n\n####  Labour Practices\n\nThe category addresses the company\u2019s ability to uphold commonly accepted\nlabour standards in the workplace, including compliance with labour laws and\ninternationally accepted norms and standards. This includes, but is not\nlimited to, ensuring basic human rights related to child labour, forced or\nbonded labour, exploitative labour, fair wages and overtime pay, and other\nbasic workers\u2019 rights. It also includes minimum wage policies and provision of\nbenefits, which may influence how a workforce is attracted, retained, and\nmotivated. The category further addresses a company\u2019s relationship with\norganized labour and freedom of association.\n\n####  Employee Health & Safety\n\nThe category addresses a company\u2019s ability to create and maintain a safe and\nhealthy workplace environment that is free of injuries, fatalities, and\nillness (both chronic and acute). It is traditionally accomplished through\nimplementing safety management plans, developing training requirements for\nemployees and contractors, and conducting regular audits of their own\npractices as well as those of their subcontractors. The category further\ncaptures how companies ensure physical and mental health of workforce through\ntechnology, training, corporate culture, regulatory compliance, monitoring and\ntesting, and personal protective equipment.\n\n####  Employee Engagement, Diversity & Inclusion\n\nThe category addresses a company\u2019s ability to ensure that its culture and\nhiring and promotion practices embrace the building of a diverse and inclusive\nworkforce that reflects the makeup of local talent pools and its customer\nbase. It addresses the issues of discriminatory practices on the bases of\nrace, gender, ethnicity, religion, sexual orientation, and other factors.\n\nBusiness Model and Innovation\n\n####  Product Design & Lifecycle Management\n\nThe category addresses incorporation of environmental, social, and governance\n(ESG) considerations in characteristics of products and services provided or\nsold by the company. It includes, but is not limited to, managing the\nlifecycle impacts of products and services, such as those related to\npackaging, distribution, use-phase resource intensity, and other environmental\nand social externalities that may occur during their use-phase or at the end\nof life. The category captures a company\u2019s ability to address customer and\nsocietal demand for more sustainable products and services as well as to meet\nevolving environmental and social regulation. It does not address direct\nenvironmental or social impacts of the company\u2019s operations nor does it\naddress health and safety risks to consumers from product use, which are\ncovered in other categories.\n\n####  Business Model Resilience\n\nThe category addresses an industry\u2019s capacity to manage risks and\nopportunities associated with incorporating social, environmental, and\npolitical transitions into long-term business model planning. This includes\nresponsiveness to the transition to a low-carbon and climate-constrained\neconomy, as well as growth and creation of new markets among unserved and\nunderserved socio-economic populations. The category highlights industries in\nwhich evolving environmental and social realities may challenge companies to\nfundamentally adapt or may put their business models at risk.\n\n####  Supply Chain Management\n\nThe category addresses management of environmental, social, and governance\n(ESG) risks within a company\u2019s supply chain. It addresses issues associated\nwith environmental and social externalities created by suppliers through their\noperational activities. Such issues include, but are not limited to,\nenvironmental responsibility, human rights, labour practices, and ethics and\ncorruption. Management may involve screening, selection, monitoring, and\nengagement with suppliers on their environmental and social impacts. The\ncategory does not address the impacts of external factors \u2013 such as climate\nchange and other environmental and social factors \u2013 on suppliers\u2019 operations\nand/or on the availability and pricing of key resources, which is covered in a\nseparate category.\n\n####  Materials Sourcing & Efficiency\n\nThe category addresses issues related to the resilience of materials supply\nchains to impacts of climate change and other external environmental and\nsocial factors. It captures the impacts of such external factors on\noperational activity of suppliers, which can further affect availability and\npricing of key resources. It addresses a company\u2019s ability to manage these\nrisks through product design, manufacturing, and end-of-life management, such\nas by using of recycled and renewable materials, reducing the use of key\nmaterials (dematerialization), maximizing resource efficiency in\nmanufacturing, and making R&D investments in substitute materials.\nAdditionally, companies can manage these issues by screening, selection,\nmonitoring, and engagement with suppliers to ensure their resilience to\nexternal risks. It does not address issues associated with environmental and\nsocial externalities created by operational activity of individual suppliers,\nwhich is covered in a separate category.\n\n####  Physical Impacts of Climate Change\n\nThe category addresses the company\u2019s ability to manage risks and opportunities\nassociated with direct exposure of its owned or controlled assets and\noperations to actual or potential physical impacts of climate change. It\ncaptures environmental and social issues that may arise from operational\ndisruptions due to physical impacts of climate change. It further captures\nsocio-economic issues resulting from companies failing to incorporate climate\nchange consideration in products and services sold, such as insurance policies\nand mortgages. The category relates to the company\u2019s ability to adapt to\nincreased frequency and severity of extreme weather, shifting climate, sea\nlevel risk, and other expected physical impacts of climate change. Management\nmay involve enhancing resiliency of physical assets and/or surrounding\ninfrastructure as well as incorporation of climate change-related\nconsiderations into key business activities (e.g., mortgage and insurance\nunderwriting, planning and development of real estate projects).\n\nLeadership and Governance\n\n####  Business Ethics\n\nThe category addresses the company\u2019s approach to managing risks and\nopportunities surrounding ethical conduct of business, including fraud,\ncorruption, bribery and facilitation payments, fiduciary responsibilities, and\nother behaviour that may have an ethical component. This includes sensitivity\nto business norms and standards as they shift over time, jurisdiction, and\nculture. It addresses the company\u2019s ability to provide services that satisfy\nthe highest professional and ethical standards of the industry, which means to\navoid conflicts of interest, misrepresentation, bias, and negligence through\ntraining employees adequately and implementing policies and procedures to\nensure employees provide services free from bias and error.\n\n####  Competitive Behaviour\n\nThe category covers social issues associated with existence of monopolies,\nwhich may include, but are not limited to, excessive prices, poor quality of\nservice, and inefficiencies. It addresses a company\u2019s management of legal and\nsocial expectation around monopolistic and anti-competitive practices,\nincluding issues related to bargaining power, collusion, price fixing or\nmanipulation, and protection of patents and intellectual property (IP).\n\n####  Management of the Legal & Regulatory Environment\n\nThe category addresses a company\u2019s approach to engaging with regulators in\ncases where conflicting corporate and public interests may have the potential\nfor long-term adverse direct or indirect environmental and social impacts. The\ncategory addresses a company\u2019s level of reliance upon regulatory policy or\nmonetary incentives (such as subsidies and taxes), actions to influence\nindustry policy (such as through lobbying), overall reliance on a favorable\nregulatory environment for business competitiveness, and ability to comply\nwith relevant regulations. It may relate to the alignment of management and\ninvestor views of regulatory engagement and compliance at large.\n\n####  Critical Incident Risk Management\n\nThe category addresses the company\u2019s use of management systems and scenario\nplanning to identify, understand, and prevent or minimize the occurrence of\nlow-probability, high-impact accidents and emergencies with significant\npotential environmental and social externalities. It relates to the culture of\nsafety at a company, its relevant safety management systems and technological\ncontrols, the potential human, environmental, and social implications of such\nevents occurring, and the long-term effects to an organization, its workers,\nand society should these events occur.\n\n####  Systemic Risk Management\n\nThe category addresses the company\u2019s contributions to or management of\nsystemic risks resulting from large-scale weakening or collapse of systems\nupon which the economy and society depend. This includes financial systems,\nnatural resource systems, and technological systems. It addresses the\nmechanisms a company has in place to reduce its contributions to systemic\nrisks and to improve safeguards that may mitigate the impacts of systemic\nfailure. For financial institutions, the category also captures the company\u2019s\nability to absorb shocks arising from financial and economic stress and meet\nstricter regulatory requirements related to the complexity and\ninterconnectedness of companies in the industry.\n\n##  Connect with SASB\n\n  * FOLLOW US \n    * [ ](https://twitter.com/SASB \"Follow us on X \\(Twitter\\)\")\n    * [ ](https://www.linkedin.com/company/2464787?trk=tyah \"Follow us on LinkedIn\")\n    * [ ](https://www.youtube.com/@IFRSFoundation \"Follow us on YouTube\")\n  * STAY UP TO DATE \n    * [ Subscribe ](/contact/#subscribe)\n\n* * *\n\n##  Additional links\n\n* About \n\n  * [ About us ](/about/)\n  * [ Governance archive ](https://sasb.org/about/governance-archive/)\n  * [ Blog ](/blog)\n  * [ News ](https://sasb.ifrs.org/about/news/)\n  * [ FAQs ](https://help.sasb.org)\n  * [ SASB Standards and other ESG frameworks ](https://sasb.ifrs.org/about/sasb-and-other-esg-frameworks/)\n  * [ Donors ](https://sasb.org/our-donors/)\n  * [ Contact us ](https://sasb.org/contact/)\n\n* SASB Standards \n\n  * [ Overview ](https://sasb.org/standards/)\n  * [ Access Standards ](https://navigator.sasb.ifrs.org/)\n  * [ Materiality Finder ](https://sasb.org/standards/materiality-finder/find/)\n  * [ Materiality Map ](https://sasb.ifrs.org/standards/materiality-map/)\n  * [ Process ](/standards/process)\n  * [ Projects ](https://sasb.org/standards/process/active-projects/)\n  * [ Global use of SASB Standards ](https://sasb.org/about/global-use/)\n  * [ SASB standard-setting archive ](https://sasb.ifrs.org/standards/archive/)\n  * [ Provide feedback ](https://sasb.org/standards/feedback/)\n\n* Using SASB Standards \n\n  * [ Company use ](https://sasb.org/company-use/)\n  * [ Investor use ](https://sasb.org/investor-use/)\n  * [ Licensing use ](https://sasb.org/licensing-use/)\n  * [ Pathway to ISSB ](https://sasb.ifrs.org/sasb-your-pathway-to-issb/)\n  * [ ISSB updates to SASB Standards ](https://sasb.ifrs.org/issb-updates-to-sasb-standards/)\n\n* Education \n\n  * [ FSA Credential ](https://www.ifrs.org/products-and-services/sustainability-products-and-services/fsa-credential/)\n  * [ FSA City Groups ](https://sasb.org/fsa/credential-holders/#join-the-community)\n  * [ Knowledge hub ](/knowledge-hub)\n\n* Membership \n\n  * [ IFRS Sustainability Alliance ](https://www.ifrssustainabilityalliance.org/)\n  * [ Consultant Content Programme ](https://sasb.org/consultant-content-program/)\n  * [ FSA City Groups ](https://sasb.org/fsa/credential-holders/#join-the-community)\n\n  * About \n    * [ About us ](/about/)\n    * [ Governance archive ](https://sasb.org/about/governance-archive/)\n    * [ Blog ](/blog)\n    * [ News ](https://sasb.ifrs.org/about/news/)\n    * [ FAQs ](https://help.sasb.org)\n    * [ SASB Standards and other ESG frameworks ](https://sasb.ifrs.org/about/sasb-and-other-esg-frameworks/)\n    * [ Donors ](https://sasb.org/our-donors/)\n    * [ Contact us ](https://sasb.org/contact/)\n  * SASB Standards \n    * [ Overview ](https://sasb.org/standards/)\n    * [ Access Standards ](https://navigator.sasb.ifrs.org/)\n    * [ Materiality Finder ](https://sasb.org/standards/materiality-finder/find/)\n    * [ Materiality Map ](https://sasb.ifrs.org/standards/materiality-map/)\n    * [ Process ](/standards/process)\n    * [ Projects ](https://sasb.org/standards/process/active-projects/)\n    * [ Global use of SASB Standards ](https://sasb.org/about/global-use/)\n    * [ SASB standard-setting archive ](https://sasb.ifrs.org/standards/archive/)\n    * [ Provide feedback ](https://sasb.org/standards/feedback/)\n  * Using SASB Standards \n    * [ Company use ](https://sasb.org/company-use/)\n    * [ Investor use ](https://sasb.org/investor-use/)\n    * [ Licensing use ](https://sasb.org/licensing-use/)\n    * [ Pathway to ISSB ](https://sasb.ifrs.org/sasb-your-pathway-to-issb/)\n    * [ ISSB updates to SASB Standards ](https://sasb.ifrs.org/issb-updates-to-sasb-standards/)\n  * Education \n    * [ FSA Credential ](https://www.ifrs.org/products-and-services/sustainability-products-and-services/fsa-credential/)\n    * [ FSA City Groups ](https://sasb.org/fsa/credential-holders/#join-the-community)\n    * [ Knowledge hub ](/knowledge-hub)\n  * Membership \n    * [ IFRS Sustainability Alliance ](https://www.ifrssustainabilityalliance.org/)\n    * [ Consultant Content Programme ](https://sasb.org/consultant-content-program/)\n    * [ FSA City Groups ](https://sasb.org/fsa/credential-holders/#join-the-community)\n\n* * *\n\nCopyright \u00a9 2025 The IFRS Foundation / All Rights Reserved / [ Terms &\nConditions ](https://www.ifrs.org/legal/terms-and-conditions/) / [ Privacy\nPolicy ](https://www.ifrs.org/legal/privacy/) / [ Accessibility\n](https://sasb.ifrs.org/accessibility/) /  Consent Preferences\n\n",
                "url": "https://sasb.ifrs.org/standards/materiality-finder/"
            },
            "reason": "SASB (Sustainability Accounting Standards Board) provides standards for sustainability reporting. This is a reliable source for understanding materiality in ESG reporting. It does not explicitly mention the target company.",
            "reliability_score": 0.8,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "SASB (Sustainability Accounting Standards Board) provides standards for sustainability reporting.",
            "url": "https://sasb.ifrs.org/standards/materiality-finder/"
        },
        {
            "content": {
                "metadata": {
                    "ext_id": "9f541843-5924-41e9-9e4a-d8bbbee513f3",
                    "origin": "public",
                    "resource_location": "web",
                    "resource_type": "webpage",
                    "source": "https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2023.1177927/full"
                },
                "page_content": "ORIGINAL RESEARCH article\n\nFront. Energy Res.  , 05 June 2023\n\nSec. Sustainable Energy Systems\n\nVolume 11 - 2023 |  [ https://doi.org/10.3389/fenrg.2023.1177927 ](https://doi.org/10.3389/fenrg.2023.1177927)\n\nThis article is part of the Research Topic  Enabling technologies and business\nmodels for energy communities  [ View all 15 articles\n](https://www.frontiersin.org/research-topics/30776/enabling-technologies-and-\nbusiness-models-for-energy-communities/magazine)\n\n#  How does climate risk matter for corporate green innovation? Empirical\nevidence from heavy-polluting listed companies in China\n\n[ Shixian Ling ](https://loop.frontiersin.org/people/2146548) 1  [ Hongfu Gao\n](https://loop.frontiersin.org/people/2148547) 2  *\n\n  * 1  Business School, Shandong University, Weihai, China \n  * 2  School of Economics and Finance, Xi\u2019an Jiaotong University, Xi\u2019an, Shaanxi, China \n\nChinese heavy-polluting companies have been facing enormous challenges in\nresponding to climate risk and energy transformation. This paper uses panel\nregression model and investigates the impact of climate risk on corporate\ngreen innovation in Chinese heavy-polluting listed companies from 2011 to\n2020. The empirical results show that climate risk adversely affects green\ninnovation in heavy-polluting companies, and this effect persists throughout a\nseries of robustness and endogeneity tests. Climate risk may affect corporate\ngreen innovation through decreasing R&D investment, lowing resource allocation\nefficiency and increasing company risk. Climate risk has a greater negative\nimpact on mid-western, state-owned and large-size heavy-polluting companies,\nbut can be mitigated by the development of green finance, digital finance and\nmarketization. These findings may help heavy-polluting companies fully utilize\nexisting resources, policies, and channels for green innovation and mitigate\nclimate risks.\n\n##  1 Introduction\n\nClimate risk is becoming an unprecedented threat that has a pronounced impact\non the sustainability of human lives, natural resources and economic\ndevelopment (  Eckstein et al., 2021  ;  Ren et al., 2022  ;  Venturini, 2022\n;  Wagner, 2022  ;  Estrada et al., 2023  ). According to the China Social\nStatistical Yearbook 2022 released by the National Bureau of Statistics of\nChina, in 2021, over 107.31 million people are affected by climate events, and\ndirect economic losses totaled around USD 48.28 billion due to extreme weather\nevents in China. The previous researches note that climate risk is becoming an\nunprecedented threat to Chinese corporate behavior, such as sales and\noperating revenue (  Lin and Sheng, 2022  ;  Chen et al., 2023  ), investment\n(  Rao et al., 2022a  ), financing cost (  Shih et al., 2021  ;  Huang et al.,\n2022  ;  Zhou et al., 2022  ) and environmental strategic decision (  Ren et\nal., 2022  ).\n\nIn Chinese heavy-polluting companies, green innovation is an important\ncomponent of corporate behavior, especially in the face of severe climate\nrisks and strict climate policies (  Rao et al., 2022b  ;  Khalfaoui et al.,\n2022  ;  Li and Gao, 2022  ). It is widely known that, in 2020, Chinese\nPresident Xi Jinping announced that China would strive to peak its carbon\nemissions by 2030 and achieve carbon neutrality by 2060. This is the first\ntime that China has announced a definite timeline for carbon neutrality to the\nrest of the world, and it is also the largest climate pledge made by all\ncountries to date. As important key sources and stakeholders in the conflict\nbetween environmental protection and economic interest, heavy-polluting\ncompanies must find a way to assume a high degree of environmental\nresponsibility for their polluting activities (  Walter and Chang, 2020  ). In\nthis context, many heavy-polluting companies are forced to transform and\nupgrade with the help of green innovation, which is innovative activity to\nimprove resource utilization efficiency and reduce energy consumption and is\nusually characterized by high risk, high cost and high return (  Schiederig et\nal., 2012  ;  Rao et al., 2022a  ;  Li and Gao, 2022  ).\n\nAlthough there are numerous studies about the impact of climate risk on\ncorporate behavior (  Shih et al., 2021  ;  Yu et al., 2022a  ;  Rao et al.,\n2022b  ;  Huang et al., 2022  ;  Lin and Sheng, 2022  ;  Zhou et al., 2022  ;\nAhmad et al., 2023  ;  Lee et al., 2023  ;  Ozkan et al., 2023  ), research on\nthe impact of climate risk on corporate green innovation is very limited and\ncontroversial. On the other hand, climate risk will inevitably bring varying\ndegrees of damage to corporations, thereby directly or indirectly affecting\ngreen innovation. For example, climate risk can directly destroy corporate\nequipment or fixed assets (  Rao et al., 2022a  ;  Xu et al., 2022  ) and\nblock the supply channel (  Godde et al., 2021  ;  Pankratz and Schiller, 2021\n), which hinders corporate green innovation. Climate risk can also prompt the\ngovernment to tighten environmental laws, forcing heavy-polluting companies to\nincrease production and financing costs (  Shih et al., 2021  ;  Dong et al.,\n2022  ;  Zhou et al., 2022  ), and indirectly affecting their investment in\ngreen innovation. On the other hand, the strategic growth options model\nindicates uncertainty such as climate risk may breed potential growth\nopportunities, prompting corporations to increase investment to obtain greater\nmarket competition (  Kulatilaka and Perotti, 1998  ). Green innovation, as an\nimportant means of gaining greater market competition, will also attract more\ninvestment. It appears that climate risk may also have some indirect and\npotential promoting effects on green innovation, although there is a lack of\ndirect evidence. Therefore, it is necessary to conduct in-depth research on\nthe impact of climate risk on corporate green innovation.\n\nThis paper tries to extend the existing research by investigating the impact\nof climate risk on green innovation in Chinese heavy-polluting listed\ncompanies. To examine how climate risk affects green innovation, mediating\neffect models are proposed. Empirical findings show extreme climate events\nsignificantly hinder green innovation in heavy-polluting companies, and this\nnegative effect persists throughout a series of robustness tests. The\nmechanism analysis reveals that research and development (R&D) investment,\nresource allocation efficiency and company risk are three potential mediating\nvariables. The heterogeneity analysis demonstrates climate risk has a greater\nnegative impact on midwestern, state-owned, and large companies. However, it\nis noteworthy that, the development of green finance, digital finance, and\nmarketization can further promote heavy-polluting companies to actively\nexplore green innovation and reduce the negative impact of climate risk.\n\nThis paper contributes to the literature in three aspects. First, the existing\nliterature primarily focuses on the impact of a single index like temperature\nwhen evaluating the micro-level consequence of climate change. But the\nmanifestations of different types of climate risk are different, not only in\nthe form of temperatures (  Lin and Sheng, 2022  ). This research studies the\ninfluencing factors of corporate green innovation in heavy-polluting companies\nfrom the perspective of extreme climate events and provides new theoretical\nand empirical evidence of corporate responses to climate risk. This will aid\nheavy-polluting companies in emerging markets like China to recognize the\nimpact of climate risk on green innovation and take action. Second, this paper\nperforms heterogeneity analyses on the influence of climate risk on the green\ninnovation of different heavy-polluting companies. It will help the state and\nlocal governments provide targeted policy support for heavy-polluting\ncompanies in different regions, company ownership and size, to encourage\ncorporate green innovation and resist climate risks. Third, it identifies the\npotential mechanism behind the negative impact of climate risk on corporate\ngreen innovation. Empirical findings may help heavy-polluting companies make\nfull use of available resources, policies and channels to carry out green\ninnovation, thus reducing the premium of green products and the cost of coping\nwith climate risk.\n\nThe remainder of this paper is organized as follows. Section 2 develops the\nhypothesis based on the literature review. Section 3 describes the sample and\nresearch methods. Section 4 discusses the empirical results. Section 5\nexamines the influence mechanism, and Section 6 further analyses the\nheterogeneity and moderating effects. The final part concludes and provides\npolicy implications.\n\n##  2 Theoretical foundation and hypotheses development\n\n###  2.1 Climate risk and corporate green innovation\n\nNumerous studies have shown the significant impact of climate risk on\ncorporate behavior, such as corporate profitability (  Hugon and Law, 2019  ;\nAddoum et al., 2020  ;  Anton, 2021  ;  Chen et al., 2023  ), investment (\nRao et al., 2022b  ), financing management (  Huang et al., 2022  ),\nenvironmental performance (  Ren et al., 2022  ;  Sautner et al., 2023  ), but\nresearch on the impact of climate risk on corporate green innovation is very\nlimited and controversial.\n\nOn the other hand, climate risk will inevitably bring varying degrees of\ndamage to corporations, thereby directly or indirectly affecting green\ninnovation. From the perspective of direct effect, climate risk is generally\nassociated with the full or partial destruction of equipment or fixed assets\nof corporates (  Rao et al., 2022a  ;  Xu et al., 2022  ) and block of the\nsupply channel (  Godde et al., 2021  ;  Pankratz and Schiller, 2021  ), which\nwill abate the efficiency and ability of corporate green innovation.\nCorporations have to adjust the original resource allocation planning to\nmaintain their operation. From the perspective of indirect effect, climate\nrisk has compelled the government to take further measures to combat\nenvironmental pollution, resulting in stronger and improved environmental\npolicies. These policies will prohibit firms from using low-cost but high-\npolluting energy sources (  Dong et al., 2022  ) and restrict the availability\nof traditional credit to polluting companies. (  Shih et al., 2021  ;  Zhou et\nal., 2022  ). This will lead to an increase in financing costs (  Shih et al.,\n2021  ;  Zhou et al., 2022  ) and a decrease in available funds, thereby\naffecting corporate investment in green innovation. Besides, climate risk will\nalso urge companies to change their strategies, making them more inclined to\nhold high liquidity assets such as cash to insist on potential climate risk\nand reduce available resources for corporate green innovation.  Huang et al.\n(2022)  demonstrate that corporates characterized by several climate risks\nprefer to hold more cash rather than high-risk investment and thereby increase\ncorporate resilience to climate risk.\n\nOn the one hand, the strategic growth options model indicates that uncertainty\nsuch as climate risk may breed potential growth opportunities, prompting\ncorporations to increase investment to obtain greater market competition (\nKulatilaka and Perotti, 1998  ). Green innovation, as an important means of\ngaining greater market competition, will also attract more investment. For\nexample, Hugon and Law (2019) show that some corporates will benefit from\nunusually warm climate because of diversified operation strategy and climate\nlobby.  Sautner et al. (2023)  demonstrate that climate risk provides\nopportunities for renewable energy, electric cars, or energy storage\ncorporates.  Rao et al., 2022b  find some corporates will stimulate investment\nafter the experience of excess rainfall to regain market competition.  Yu et\nal. (2022b)  illustrate that climate risk can significantly improve the\ninvestment efficiency of renewable energy firms. It appears that climate risk\nmay also have some indirect and potential promoting effects on green\ninnovation, although there is a lack of direct evidence.\n\nGiven the majority of research findings, we propose a hypothesis that needs to\nbe tested for heavily polluting enterprises in China.\n\n**H1:.** Climate risk has a negative impact on corporate green innovation of\nheavy-polluting companies.\n\n###  2.2 Impact mechanism of climate risk on corporate green innovation\n\nPrevious studies have shown that climate risk can affect corporate green\ninnovation through three channels, including R&D investment, resource\nallocation efficiency, and company risk.\n\nFirst, climate risk could reduce corporate profits (  Lin and Sheng, 2022  ;\nPankratz et al., 2023  ), impair the supply chain (  Godde et al., 2021  ;\nPankratz and Schiller, 2021  ), increase operation cost (  Hugon and Law, 2019\n) and harm corporate credit reputation (  Capasso et al., 2020  ), thereby\ndecreasing available funds for high-risk green innovation R&D investments.\nSecond, climate risk will have a direct impact on corporate allocative\nefficiency of resources. Extreme climate events have a direct impact on\ncorporate tangible assets (  Ding et al., 2021  ) and may damage the equipment\nand environment required for R&D activities. Unlike traditional economic\nrisks, climate risk will harm human health (  McMichael et al., 2006  ) and\nattenuate labor supply and production efficiency (  Dasgupta et al., 2021  ;\nZhang et al., 2023  ). The decline in labor supply and productivity will abate\nthe efficiency and ability of corporate green innovation. Third, climate risk\nalso results in a change in corporate strategy (  Huang et al., 2022  ) and\nforces corporates to postpone high-risk green innovation R&D investment.\nPrevious research has shown that managers are typically risk averse because\nthey are prepared to implement more robust operating strategies to avoid the\npotential adverse impact of high risks on their careers and salaries (  Amihud\nand Lev, 1981  ;  Gormley and Matsa, 2016  ). When the potential company risk\nis very high, its management may take low-risk operating activities rather\nthan high-risk innovations to hedge risk. Climate risk will cause an increase\nin company risk, which will make a company tend to hold more cash (  Huang et\nal., 2022  ) and reduce high-risk R&D investments to improve its climate\nresilience. Based on these previous research findings, this paper proposes the\nsecond hypothesis to be tested.\n\n**H2:.** Climate risk negatively impacts corporate green innovation of heavy-\npolluting companies through decreasing R&D investment, lowing resource\nallocation efficiency, and increasing company risk.\n\n###  2.3 Heterogeneity impact of climate risk on corporate green innovation\n\nAccording to previous research, the impact of climate risk on different\ncompanies is heterogeneous and mainly depends on company-specific factors such\nas location, ownership and size (  Ren et al., 2022  ).\n\nFirst, the natural environment, economic development and environmental\npolicies in different regions of China vary significantly. The central and\nwestern regions are more susceptible to extreme climate events such as\ndroughts, sandstorms and landslides (  Ren et al., 2022  ), which could result\nin a more severe impact on corporate operating activities and assets.  Du et\nal. (2021)  note that when the economic development level is low,\nenvironmental regulation inhibits the development of green innovation, while\nthe contrary is true when the level of economic development is high.\nMeanwhile, the eastern region\u2019s financial market, infrastructure and\nenvironmental policies are superior to those of the central and western\nregions (  Rao et al., 2022a  ), which could help companies mitigate the\nnegative effect of climate risk.\n\nSecond, company ownership is one of the crucial factors affecting corporate\nstrategy for resisting risk and improving environmental performance. Managers\nof state-owned companies prefer to avoid risk and select conservative\noperating activities to preserve their current position (  Gao-Zeller et al.,\n2019  ;  Gao et al., 2022  ). Meanwhile, state-owned companies need to assume\nmore social and environmental protection responsibility, that is, pay higher\ncosts for their pollution activities, thereby reducing their available\nresources.\n\nThird, companies of different sizes may adopt different strategies to fend\nagainst external hazards. Prior research has shown that mid- and small-size\ncompanies are more flexible and adventurous than large-size companies under\nidiosyncratic risk, and are more willing to pursue high-risk, high-reward\nactivities (  Xu et al., 2022  ).  Lin et al. (2019)  find that small-size\ncompanies are more inclined to seek and access resources for green innovation\nbecause the return on green innovation investments for small-size companies is\nsignificantly higher than for larger-size companies. Therefore, non-state-\nowned and small-size companies may be more flexible to deal with climate risk\nand have a more proactive operating strategy, which decreases the negative\nimpact of climate risk on corporate green innovation. Based on the above\nanalysis, this paper proposes the third hypothesis.\n\n**H3:.** Climate risk has a greater influence on mid-western, state-owned, and\nlarge-size heavy-polluting companies.\n\n##  3 Empirical framework\n\n###  3.1 Definition and description of main variables\n\nAccording to the industry classification list of listed companies in\nenvironmental verification issued by the former Ministry of Environmental\nProtection of China in 2008, we select the listed heavy-polluting companies in\nChina  1  . The patent and green patent data are collected from the Chinese\nResearch Data Services Platform ( _CNRDS_ ). The financial data of the sampled\ncompanies comes from China Stock Market & Accounting Research Database (\n_CSMAR_ ). The sample interval is set between 2011 and 2020, as the fintech\nindex has been available since 2011, while the climate risk index is usually\nreleased 2 years later. For example, the Global Climate Risk Index 2021\nanalyses what extent to countries and regions have been affected by the\nimpacts of weather-related loss events in 2019. And Global Climate Risk Index\n2022 is delayed due to a temporary lack of data and is expected to be\npublished in 2023. The data are preprocessed as outlined below: 1) deleting ST\nand *ST companies; 2) erasing observations with incomplete data for critical\nvariables. Additionally, to reduce the interference of outliers, we apply the\nWinsorize treatment of 1% and 99% quantiles for continuous financial\nindicators. Finally, 783 companies and 4,417 firm-year observations are taken\nas the final sample.\n\n####  3.1.1 Measurement of the explained variable\n\nThe explained variable is corporate green innovation, which is proxied by the\nnumber of green patent applications, following  Tang et al. (2021)  ,  Rao et\nal., 2022b  and  Zhong and Peng (2022)  . Green patent applications that\nreflect the R&D investment in green innovation and emphasize the application\nof green innovation can more accurately represent a company\u2019s green innovation\ncapacity. Meanwhile, owing to the shorter time between the start of R&D and\nthe filing of a patent application, the number of patent applications is\ntimelier and more sensitive to innovation than the number of patent\nauthorizations, and can better reflect the innovation intention and responses\nof companies. The number of green patent authorizations is adopted in the\nrobustness analysis instead of green patent applications. We identify\ncorporate green innovation by referring to the research of  Wurlod and Noailly\n(2018)  . First, we begin by querying the corresponding intellectual property\nclassification number (IPC) of each patent through SIPO based on all patents\nof the CSMAR and CNRDS databases. Second, the patents belonging to green\npatents are selected according to the IPC number in the green patent\nclassification database published by the World Intellectual Property\nOrganization (WIPO). Third, green patents are separated into green invention\npatents and green utility model patents according to the green patent\nclassification database released by WIPO. Finally, we sum up the number of\ngreen invention patent applications and green utility model patent\napplications to present corporate green innovation. It is measured by taking\nthe natural logarithm of the sum of the number of green patent applications.\n\n####  3.1.2 Measurement of the key explanatory variable\n\nThe explanatory variable in this study is climate risk, proxied by the\nGermanwatch Climate Risk Index (CRI), which measures climate risk in terms of\noverall mortality from extreme climate events as well as relative and absolute\neconomic damages  2  . It is constructed based on data from _Munich Re\nNatCatSERVICE_ , which is one of the most reliable and complete databases\nabout climate loss (  Eckstein et al., 2021  ). The CRI is a score measured\ncomprehensively by four indicators: fatalities, deaths per 100,000\ninhabitants, losses on purchasing power parity, and loss per unit of GDP. A\nlower CRI score indicates that a region experiences more frequent and abnormal\nclimate catastrophes. The CRI has been employed extensively in previous\nresearch, such as by  Ding et al. (2021)  ,  Huang et al. (2018)  ,  Ren et\nal. (2022)  , and  Xu et al. (2022)  , which use it to investigate the impact\nof climate risk on corporate revenue management, financial performance, carbon\nemissions, and risk-taking, respectively.\n\n####  3.1.3 Measurement of moderating variables\n\nAccording to  Huang et al. (2022)  , this paper develops a comprehensive index\nto measure provincial green finance by composing green credit (interest\nexpense of six high heavy-polluting industries/total industrial interest\nexpense), green investment (investment in environmental pollution\ncontrol/GDP), green insurance (Agricultural insurance/gross agricultural\noutput value) and government support (financial environmental protection\nexpenditure/financial general budget expenditure). The weight of each index is\nestimated using the entropy weight approach. All the data are obtained from\nChina Statistical Yearbooks, each province\u2019s Statistical Yearbooks, and the\nChina Insurance Yearbooks. Some missing data is substituted by the average\nvalue of the data from the previous 5 years.\n\nThe digital financial inclusion index released jointly by the Institute of\nDigital Finance at Peking University and the Ant Financial Services Group is\nchosen as a proxy for digital finance in this paper. It assesses the degree of\ndigital finance in different regions of China from three perspectives: breadth\nof coverage, depth of usage, and level of digitization. The index can be used\nto quantify corporate capacity to access low-cost financial services and to\nrepresent the economic impact of China\u2019s digital finance (  Guo et al., 2020\n;  Rao et al., 2022a  ).\n\nWe select the marketization index proposed by  Fan et al. (2011)  to evaluate\nthe degree of marketization in various regions and to analyze the moderating\neffect of marketization on the association between climate risk and corporate\ngreen innovation. This index can reflect the market efficiency of resource\nallocation and the degree of government intervention to some extent.\n\n####  3.1.4 Measurement of control variables\n\nNumerous other elements also have an impact on corporate green innovation.\nReferring to previous studies (  Anton, 2021  ;  Ren et al., 2022  ;  Zhong\nand Peng, 2022  ), we select the company size (  S  i  z  e  ), returns of\nassets (  R  o  a  ), current ratio (  C  u  r  ), Tobin Q value (  Q  ),\ntotal assets turnover (  T  a  t  ) and company age (  A  g  e  ) as control\nvariables. They are collected from the _CSMAR_ database.\n\n#####  3.1.4.1 Size of assets ( _Size_ )\n\nSome empirical findings have shown that the efficiency of small-size companies\nis higher than that of large-size companies (  Lin et al., 2019  ). To control\nthe impact of the company size, this research uses the natural logarithm of\nthe company\u2019s total assets at the end of each year as a control variable.\n\n#####  3.1.4.2 Returns of assets ( _Roa_ )\n\nSince the R&D investment of a company is highly correlated to its\nprofitability, the corporate profit is considered and is calculated as the\nratio of the net profit to the total assets.\n\n#####  3.1.4.3 Current ratio ( _Cur_ )\n\nPrior research has divided corporate slack resources into absorbed and\nunabsorbed ones. Unabsorbed slack resources have high liquidity and\nflexibility and can be leveraged to lessen the effect of external risk on\ncorporate operation activities. A higher unabsorbed slack resource has been\ndemonstrated to enhance the development and implementation of corporate green\ninnovation (  Wu and Hu, 2020  ). Following  Iyer and Miller (2008)  , the\ncurrent ratio calculated as current assets divided by current liabilities is\nemployed to control the impact of slack resources.\n\n#####  3.1.4.4 Tobin Q value ( _Q_ )\n\nThe better the development prospects of a company, the higher its R&D\nwillingness. Tobin Q value is often used to represent corporate development\nprospects (  Anton, 2021  ). This paper selects the Tobin Q value to control\nthe impact of development prospects.\n\n#####  3.1.4.5 Total assets turnover _(Tat)_\n\nThere is a close relationship between a company\u2019s operating ability and its\nR&D decision-making (  Anton, 2021  ). This paper considers the corporate\noperating ability measured by total assets turnover, which is dividing\noperating revenue by total assets.\n\n#####  3.1.4.6 Company age ( _Age_ )\n\nCompanies in different life cycles often make different innovation decisions.\nFor example, companies at the mature stage invest less in innovation than\nthose at the start-up and growth stage under specific risk (  Shahzad et al.,\n2022  ). Therefore, this paper takes company age to control the impact of life\ncycle.\n\n###  3.2 Descriptive statistics\n\nTable 1  shows the definition and description of the main variables, and\nTable 2  reports the descriptive statistics. The average value of  G  i  n  n\ni  ,  t  is 0.903, and the min and max values are 0.000 and 5.737,\nrespectively, indicating that the green innovation gap between heavy-polluting\ncompanies is quite obvious. The min and max climate risk expressed in the\nnatural logarithm are 3.171 and 3.810, respectively, and the standard\ndeviation is 0.230, suggesting that climate risk has relatively changed from\n2011 to 2020. The numerical size difference between key control variables is\nslight, preventing errors caused by the significant variation among control\nvariables.\n\nTABLE 1\n\n[\n](https://www.frontiersin.org/files/Articles/1177927/fenrg-11-1177927-HTML/image_m/fenrg-11-1177927-t001.jpg)\n\n**TABLE 1** . Definition and description of main variables.\n\nTABLE 2\n\n[\n](https://www.frontiersin.org/files/Articles/1177927/fenrg-11-1177927-HTML/image_m/fenrg-11-1177927-t002.jpg)\n\n**TABLE 2** . Descriptive analysis.\n\n###  3.3 Correlation analysis of main variables\n\nTable 3  displays the Pearson correlation coefficients of the main variables.\nThe results suggest a significant positive relationship between the climate\nrisk index and the number of corporate green patent applications, implying\nthat corporate green innovation may be negatively influenced by climate risk\nand providing preliminary support for [ H1 ](statement-H1) . There seems no\nserious multicollinearity since the correlation coefficient of each pair of\nexplanatory variables is less than 0.50.\n\nTABLE 3\n\n[\n](https://www.frontiersin.org/files/Articles/1177927/fenrg-11-1177927-HTML/image_m/fenrg-11-1177927-t003.jpg)\n\n**TABLE 3** . Main variable correlation analysis.\n\n###  3.4 Models setting\n\nThis research begins by constructing the panel regression model (1) to test [\nH1 ](statement-H1) that climate risk will decrease green innovation in heavy-\npolluting companies.\n\nR  G  i  n  n  i  ,  t  |  L  n  c  r  i  i  ,  t  ,  e  t  .  a  l  .  =  \u03b1  0  \\+  \u03b1  1  L  n  c  r  i  i  ,  t  \\+  \u2211  j  =  2  \u03b1  n  C  o  n  t  r  o  l  j  \u2212  1  ,  t  \\+  Y  e  a  r  E  f  f  e  c  t  \\+  I  n  d  E  f  f  e  c  t  \\+  \u03b5  i  ,  t  (  1  ) \n\nwhere  G  i  n  n  i  ,  t  is the green innovation of company _i_ at time _t_\n, and is computed as the natural logarithm of the sum of the number of the\ngreen patent applications  P  i  ,  t  and 1.  L  n  c  r  i  i  ,  t\nrepresents the natural logarithm of the climate risk index.  C  o  n  t  r  o\nl  i  ,  t  represents control variables.  Y  e  a  r  E  f  f  e  c  t  and\nI  n  d  E  f  f  e  c  t  are a series of dummy variables for the year and\nindustry effects, respectively.\n\nReferring to  Baron and Kenny (1986)  , we use the following models to test\nthe mediating effect:\n\nR  (  M  i  ,  t  |  L  n  c  r  i  i  ,  t  ,  e  t  .  a  l  .  )  =  \u03b2  0  \\+  \u03b2  1  L  n  c  r  i  i  ,  t  \\+  \u2211  j  =  2  \u03b2  n  C  o  n  t  r  o  l  j  ,  t  \\+  Y  e  a  r  E  f  f  e  c  t  \\+  I  n  d  E  f  f  e  c  t  \\+  \u03b5  i  ,  t  (  2  ) \n\nR  G  i  n  n  i  ,  t  |  L  n  c  r  i  i  ,  t  ,  M  i  ,  t  ,  e  t  .  a  l  .  =  \u03b3  \\+  \u03b3  1  L  n  c  r  i  i  ,  t  \\+  \u03b3  2  M  i  ,  t  \\+  \u2211  j  =  2  \u03b3  n  \u03c4  C  o  n  t  r  o  l  j  \u2212  1  ,  t  \\+  Y  e  a  r  E  f  f  e  c  t  \\+  I  n  d  E  f  f  e  c  t  \\+  \u03b5  i  ,  t  (  3  ) \n\nwhere  M  i  ,  t  represents the mediating variable. There will be a complete\nmediating effect if  \u03b2  1  is significant, but  \u03b3  1  is not while  \u03b3  2  is\nsignificant. While it will have an incomplete mediating effect if  \u03b3  1  is\nalso significant. In other cases, no mediating effect exists. If  \u03b2  1  and  \u03b3\n2  have the same sign, a positive mediating effect is identified, otherwise, a\nnegative mediating effect is detected.\n\nTo test the moderating effect of green finance, digital finance and\nmarketization, we develop the following models:\n\nR  G  i  n  n  i  ,  t  |  L  n  c  r  i  i  ,  t  ,  e  t  .  a  l  .  =  \u03b8  \\+  \u03b8  1  L  n  c  r  i  i  ,  t  \\+  \u03b8  2  N  i  ,  t  \\+  \u03b8  3  N  i  ,  t  \u00d7  L  n  c  r  i  i  ,  t  \\+  \u2211  j  =  2  \u03b8  j  C  o  n  t  r  o  l  j  \u2212  1  ,  t  \\+  Y  e  a  r  E  f  f  e  c  t  \\+  I  n  d  E  f  f  e  c  t  \\+  \u03b5  i  ,  t  (  4  ) \n\nwhere  N  i  ,  t  represents the moderating variable.  N  i  ,  t  will have\na moderating effect if  \u03b8  2  is significant and not equal to 0. If  \u03b8  1  and\n\u03b8  2  have opposite signs, the moderating effect is negative, otherwise, it is\npositive.\n\n##  4 Empirical results and analysis\n\n###  4.1 Benchmark regression results\n\nThe results of the benchmark regression are presented in  Table 4  . Column\n(1) shows there is a statistically significant negative impact of climate risk\non corporate green innovation at the 1% level when controlling for year and\nindustry-fixed effects. When all control variables are included in column (2),\nthe coefficient of climate risk (  L  n  c  r  i  ) is significantly positive\nat the 1% significant level, indicating that a rise in extreme climate events\nand loss may impede corporate green innovation. These results seem to support\n[ H1 ](statement-H1) . Some studies (  Li and Lu, 2022  ) also find a\ncorrelation between temperature fluctuates and green innovation but this\nfinding extends climate risk from a single index like temperature or\nprecipitation to a complicated climate phenomenon. The reason may be that\nclimate risk can deter corporate green innovation by decreasing R&D\ninvestment, lowering resource allocation efficiency, and increasing company\nrisk. These mechanisms will be verified in further detail in the following\nsections. The benchmark regression results in column (2) reveal that company\nsize, Tobin Q value and total assets turnover are positively correlated with\ncorporate green innovation but company age has a significantly negative impact\non corporate green innovation.\n\nTABLE 4\n\n[\n](https://www.frontiersin.org/files/Articles/1177927/fenrg-11-1177927-HTML/image_m/fenrg-11-1177927-t004.jpg)\n\n**TABLE 4** . Benchmark regression results.\n\n###  4.2 Robustness tests\n\n####  4.2.1 Alternative measurement of the explained variable\n\nThis paper employs the number of green invention patent applications (  G  i\nn  n  1  ) and green patent authorizations with the first-order lag term (  G\ni  n  n  2  ) to replace the previous dependent variable, respectively.  G  i\nn  n  1  and  G  i  n  n  2  are calculated by the natural logarithm of the\nnumber of green invention patent applications and green patent authorizations\nplus 1, respectively. According to columns (1) and (2) in  Table 5  , there\nare negative correlations between climate risk and corporate green innovation,\nindicating the robustness of the previous regression results.\n\nTABLE 5\n\n[\n](https://www.frontiersin.org/files/Articles/1177927/fenrg-11-1177927-HTML/image_m/fenrg-11-1177927-t005.jpg)\n\n**TABLE 5** . Robustness tests results.\n\n####  4.2.2 Alternative measurement of the explanatory variable\n\nFollowing  Alstadt et al. (2022)  ,  Hoeppe (2016)  and  Neumayer and Barthel.\n(2011)  , to further prove the relationship between climate risk and corporate\ngreen innovation, we use the proportion of economic losses of climate risk to\ncurrent GDP as an alternative measure of climate risk to test the robustness\nof the empirical results. The greater the proportion of direct economic losses\nto GDP, the worse the climate risk. The sample interval is set between 2011\nand 2021 because the green innovation data is available until 2021. The\neconomic losses of climate risk data are from the China Social Statistical\nYearbook compiled by the National Bureau of Statistics of China. The results\nof column (3) in  Table 5  confirm that when the direct economic loss of\nclimate disasters/current GDP is used as an alternative variable in the\nanalysis, the correlation between climate risk and corporate green innovation\nis robust.\n\n####  4.2.3 An alternative model\n\nIt is challenging for OLS estimation to obtain a consistent estimate for\nregression models where the dependent variable has a partial value of 0 (\nDavidson and MacKinnon, 2004  ). In our sample, the number of green patent\napplications exhibits a pattern of zero and positive values coexisting.\nFollowing  Rao et al., 2022b  and  Tang et al. (2021)  , we employ the Tobit\nmodel in place of the original model for further robustness tests in order to\nmore accurately identify the impact of climate risk on corporate green\ninnovation. The results of column (4) in  Table 5  demonstrate that the sign,\nmagnitude and significance of the coefficient of climate risk are essentially\nconsistent with those in the benchmark regression, demonstrating that climate\nrisk severely inhibits corporate green innovation in heavy-polluting\ncompanies.\n\n###  4.3 Endogeneity tests\n\n####  4.3.1 Alternative measurement of the key control variable\n\nCompany size has been proven to be a substantial contributor to the\nheterogeneity in company finance (  Dang et al., 2018  ), that is, the sign,\nmagnitude and significance of the coefficients of explanatory variables may\nvary when different company size measures are used. Referring to  Anton (2021)\n, we conduct the robustness tests by using the natural logarithm of market\ncapitalization as an alternative measure of company size. The empirical\nresults in column (1) of  Table 6  indicate that the previous regression\nresults are robust when market capitalization is employed as a substitute\nproxy for company size.\n\nTABLE 6\n\n[\n](https://www.frontiersin.org/files/Articles/1177927/fenrg-11-1177927-HTML/image_m/fenrg-11-1177927-t006.jpg)\n\n**TABLE 6** . Endogeneity tests results.\n\n####  4.3.2 Controlling for province fixed effect\n\nIn benchmark regression, year and industry fixed effects are controlled for,\nbut unobserved regional characteristics could lead to estimation bias. For\ninstance, company location may be accompanied by different resource endowments\nand regional economic policies, which may result in estimation bias. After\ncontrolling for province fixed effect, column (2) of  Table 6  shows that the\ncoefficient of climate risk is still significantly positive at the 1% level,\nsuggesting that the impact of climate risk on corporate green innovation seems\nnot to be affected by unobservable regional factors.\n\n####  4.3.3 IV estimation\n\nThis research adopts instrumental variable (IV) estimation as a robustness\ntest to further address the endogeneity issue that may be caused by the two-\nway causal relationship between climate risk and corporate green innovation.\nFollowing  Liu et al. (2021)  , the normalized differential vegetation index (\nN  d  v  i  ) is selected as an instrumental variable of the climatic risk\nindex. On the one hand,  N  d  v  i  is closely related to climate risk,\nbecause it can represent the health and density of vegetation and is often\nused for climate monitoring (  Drisya and Roshni, 2018  ;  M\u00f6llmann et al.,\n2020  ). On the other hand, as a natural geographic variable,  N  d  v  i  is\nnot correlated with the regression residuals based on the sampled companies.\nTherefore,  N  d  v  i  as an instrumental variable satisfies both the\nrelevance and exogeneity conditions.  N  d  v  i  data comes from _Moderate\nResolution Imaging Spectroradiometer(MODIS)._\n\nColumns (2) in  Table 6  reports that there is a significantly positive\ncorrelation between  L  n  c  r  i  and  N  d  v  i  , suggesting that an\nincrease in extreme climate events or damage may be related to a deterioration\nin vegetation health and density. We then substitute  L  n  c  r  i  with the\nvalue of  N  d  v  i  . Columns (3) illustrates that the coefficient of  N  d\nv  i  is positive and significant at the 1% level, implying that after\ncontrolling for endogeneity, the results still support [ H1 ](statement-H1)\nthat climate risk harms corporate green innovation in heavy-polluting\ncompanies.\n\n###  4.4 Mechanism analysis\n\nThe above results indicate that climate risk has a significantly detrimental\neffect on corporate green innovation. In this section, we examine the\nfollowing three potential channels through which climate risk decreases\ncorporate green innovation: R&D investment, resource allocation efficiency and\ncompany risk.\n\n####  4.4.1 Climate risk, R&D investment and corporate green innovation\n\nCorporate innovation, especially corporate green innovation, is a high-risk,\nhigh-reward activity requiring large investments. However, climate risk\nendangers the creditworthiness of loans and bonds issued by heavy-polluting\ncompanies, increases financing costs and reduces available funds for corporate\ngreen innovation. Due to limited capital, companies that are susceptible to\nserious climate risks may choose to hold cash rather than invest in green\ninnovation to resist climate risk. Therefore, this research investigates\nwhether the climate risk inhabits corporate green innovation by decreasing R&D\ninvestment. A company\u2019s R&D investment (  R  D  ) is defined by the ratio of\nR&D investment to operational revenue. As shown in columns (1) and (2) of\nTable 7  , the coefficient of climate risk on R&D investment in Eq.  2  is\nsignificantly positive, and the coefficient of R&D investment on corporate\ngreen innovation is also significantly positive. It demonstrates that when the\nrisk of extreme climate increases, companies may choose to forego high-risk\nR&D investment and \u201csave\u201d assets, followed by decreases in corporate green\ninnovation. It also proves the existence of the mediating effect of R&D\ninvestment on the impact of climate risk on corporate green innovation.\n\nTABLE 7\n\n[\n](https://www.frontiersin.org/files/Articles/1177927/fenrg-11-1177927-HTML/image_m/fenrg-11-1177927-t007.jpg)\n\n**TABLE 7** . Mechanism analysis results.\n\n####  4.4.2 Climate risk, resource allocation efficiency and corporate green\ninnovation\n\nExtreme climate events can cause direct physical damage to corporate tangible\nassets, and may even damage the R&D equipment and environment at the crucial\nmoment of core technology innovation, hence decreasing corporate R&D\nefficiency. Secondly, the existing research has discovered that climate risk\nmight be anticipated to decrease both labor supply and productivity (\nDasgupta et al., 2021  ). Insufficient scientific research supply and\nineffective labor productivity will prevent companies from implementing green\ninnovation. Thirdly, climate risk will increase the uncertainty of corporate\noperation position, making it more difficult for financial institutions to\nestimate corporate operating status and reducing the efficiency of the\navailable resources provided by financial institutions for corporate green\ninnovation. We measure the resource allocation efficiency (  I  n  e  f  f  )\nas  Ln  p  a  t  e  n  t  a  p  p  l  i  c  a  t  i  o  n  \\+  1  /  Ln  1  \\+\nR  & D  i  n  v  e  s  t  m  e  n  t  . The lower the value of  I  n  e  f  f\nis, the more seriously inefficient the resource allocation is. In Columns (3)\nand (4) of  Table 7  , resource allocation efficiency is shown to have\nmediating effects of climate risk on corporate green innovation, indicating\nthat climate risk reduces corporate resource allocation efficiency and then\ndecreases corporate green innovation in heavy-polluting companies. This result\nis consistent with  Lin and Sheng (2022)  , who found that drought\nsignificantly reduces lower investment efficiency.\n\n####  4.4.3 Climate risk, company risk and corporate green innovation\n\nGreen innovation has a larger initial uncertainty risk than other operating\nactivities. Climate risk may affect asset safety and trigger stricter\nenvironmental regulation, thus aggravating the operational and regulatory\nrisks of heavy-polluting companies. Heavy-polluting companies may prefer to\nlower risk via low-risk operational activities rather than high-risk green\ninnovation. Therefore, this paper examines if climate risk can prevent\ncorporate green innovation in heavy-polluting companies by increasing company\nrisk. Following  Zhou et al. (2022)  , company risk can be calculated as\n\nA  d  j  R  O  A  i  ,  t  =  E  B  I  T  i  ,  t  A  S  S  E  T  i  ,  t  \u2212\n1  X  \u2211  K  =  1  X  E  B  I  T  i  ,  t  A  S  S  E  T  i  ,  t  (  5  )\n\nR  I  S  K  i  ,  t  =  1  T  \u2212  1  \u2211  t  =  1  T  A  d  j  R  O  A  i  ,  t\n\u2212  1  T  \u2211  t  =  1  T  A  d  j  R  O  A  i  ,  t  (  6  )\n\nThe larger the value of  R  I  S  K  i  ,  t  , the greater the company\u2019s\nexposure to risk. The rolling period is set as 3-year. In  Table 7  , columns\n(5) and (6) show that climate risk can significantly increase company risk and\nthus hinder corporate green innovation, which demonstrates that company risk\nplays a mediating role. Our empirical result also concurs with  Yan et al.\n(2021)  , who points out that company risk-taking negatively affects the green\ninnovation level of Chinese heavy-polluted listed companies.\n\nIn summary, the above results support [ H2 ](statement-H2) , that is, Climate\nrisk negatively impacts corporate green innovation through decreasing R&D\ninvestment, lowing resource allocation efficiency, and increasing company\nrisk.\n\n###  4.5 Heterogeneity analysis\n\nIn this section, we further study the heterogeneous impact of climate risk on\ncorporate green innovation in different heavy-polluting companies. According\nto the analysis in Section 2, the negative impact of climate risk on corporate\ngreen innovation may vary with region, company ownership and size.\n\n####  4.5.1 Heterogeneity analysis on regions\n\nIn order to investigate whether the impact of climate risk on corporate green\ninnovation varies significantly across regions, the original sample is split\ninto two sub-samples according to the provinces where the sample companies are\nregistered, namely, the eastern ( _Eastern_ ) and the central and western (\n_Mid-Western_ ) provinces  3  . Columns (1) and (2) of  Table 8  report the\ncoefficients of _Eastern_ and _Mid-Western_ are significant at the 1% level,\nwhich are 1.154 and 3.501 _,_ respectively. The empirical _p_ -value is\nsignificantly less than 0.01, indicating a statistically significant\ndifference between the two coefficients at the 1% level. These findings show\nthat companies in the central and western regions are more significantly and\nseverely impacted by climate risk. This may be because central and western\nregions of China are more inclined to mitigate climate risk through mandatory\nregulations such as emission permits, but eastern regions are more likely to\nimplement market regulations such as R&D subsidies. Mandatory regulations will\nlimit corporate operations, exacerbating the negative effects of climate risk.\nWhile market regulations could compensate for the extra costs associated with\nstrict mandatory regulations, thus alleviating the strain of extreme climate\nevents and environmental regulations. Additionally, the eastern region has a\nhigher-quality financial and market environment than the central and western\nregions, which may make it easier for heavy-polluting companies in the eastern\nregion to access more resources for conducting green innovation.\n\nTABLE 8\n\n[\n](https://www.frontiersin.org/files/Articles/1177927/fenrg-11-1177927-HTML/image_m/fenrg-11-1177927-t008.jpg)\n\n**TABLE 8** . Heterogeneity analysis results.\n\n####  4.5.2 Heterogeneity analysis on company ownership\n\nColumns (3) and (4) of  Table 8  present the estimated results for state-owned\ncompanies ( _PR_ = 1) and non-state-owned companies ( _PR_ = 0), respectively.\nThe coefficient of climate risk for state-owned is higher than that of non-\nstate-owned companies. Therefore, we could believe that the impact of climate\nrisk on corporate green innovation in state-owned heavy-polluting companies\nmay be stronger than that of non-state-owned heavy-polluting companies. One\npossible reason is that state-owned heavy-polluting companies are subject to\nharsher environmental regulations and are expected to assume more social\nresponsibilities because of the characteristics of China\u2019s political system.\nThey are more vulnerable to climate risk and incur higher costs due to climate\nrisk than other types of companies, hence reducing the funds available for\ngreen innovation. Secondly, compared with state-owned companies, privately-\nowned companies are usually more prone to seek diversity and flexibility in\nresource allocation and corporate strategy than state-owned companies to\nalleviate the negative impact of climate risk.\n\n####  4.5.3 Heterogeneity analysis on company size\n\nWe define the company whose total assets exceed the average value of the\nheavily polluting companies\u2019 total assets as a large company (large) and\nassign it a value of 1; otherwise, we assign it a value of 0 in order to\ncompare the impact of climate risk on corporate green innovation across\ncompany sizes. The empirical results in columns (5) and (6) of  Table 8\nindicate that the coefficient of climate risk of large-size companies is\ngreater than that of small-size companies, which shows that climate risk has a\ngreater impact on corporate green innovation of large-size companies. This may\nbe because large-size companies have to consider more aspects of\nresponsibility such as shareholder responsibility and employ more robust\noperating strategies than those of small-size companies. This result is\nconsistent with  Lin et al. (2019)  , who find that small-size companies which\nare more maneuverable and variated are more inclined to pursue green\ninnovation than large-size companies.\n\nTo sum up, we conclude that climate risk has a greater negative impact on mid-\nwestern, state-owned, and large-size heavy-polluting companies, which supports\n[ H3 ](statement-H3) .\n\n###  4.6 Moderating effect analysis\n\n####  4.6.1 Moderating effect of green finance\n\nGreen finance has been proven to play an important and positive role in\npromoting green innovation through radiation and trickle-down functions (\nHuang et al., 2022  ), which motivates us to examine the moderating of green\nfinance. Column (1) in  Table 9  reports that the coefficient of  L  n  c  r\ni  is positive but the coefficient of  Ln  c  r  i  *  G  f  i  n  is\nnegative, demonstrating that green finance has a significantly negative\nmoderating effect and could attenuate the negative effect of climate risk.\nGreen finance is a kind of financial innovation that provides financing,\ninvestment and other financial services for environment-friendly projects (\nHuang et al., 2022  ). On the one hand, green finance can broaden the\nfinancing channels for green innovation by promoting the issuance of green\ncredit, green bonds and other financial instruments. On the other hand, it can\nencourage the government to reform the existing fiscal policies and alleviate\nthe financing-policed pressure of green innovation. Besides, green insurance\ncan decrease the losses of heavy-polluting companies and enhance the risk\nmanagement ability when conducting corporate green innovation.\n\nTABLE 9\n\n[\n](https://www.frontiersin.org/files/Articles/1177927/fenrg-11-1177927-HTML/image_m/fenrg-11-1177927-t009.jpg)\n\n**TABLE 9** . The moderating effect analysis results.\n\n####  4.6.2 Moderating effect of digital finance\n\nThe existing research finds that digital finance can improve factor\nproductivity (  Chen et al., 2022  ), and independent innovation (  Li and\nLiu, 2022  ) and negatively impact companies\u2019 default and bankruptcy risk (\nJi et al., 2022  ). The results in column (2) of  Table 9  show that the\ncoefficient of  D  e  *  L  n  c  r  i  is opposite to the positive\ncoefficient of  L  n  c  r  i  , indicating that digital finance has a\nsignificantly negative moderating effect on the impact of climate risk on\ncorporate green innovation. That is, digital finance will increasingly\nmitigate the negative impact of climate risk on green innovation in heavy-\npolluting companies. Digital finance makes it easier for financial\ninstitutions to evaluate company information, identify those who exhibit green\nbehavior and more effectively transfer funds to companies that carry out green\ninnovation. Digital finance also provides diversified financial service modes,\nwhich could reduce the cost of corporate green innovation in heavy-polluting\ncompanies.\n\n####  4.6.3 Moderating effect of marketization\n\nAccording to  Feng et al. (2022)  and  Sha et al. (2022)  , marketization\ncontributes to corporate green innovation by alleviating financing\nconstraints, reducing information asymmetry, and enhancing environmental\nconsciousness. Column (3) of  Table 9  demonstrates that the coefficient of  L\nn  c  r  i  is positive but that of  M  a  r  k  e  t  *  L  n  c  r  i  is\nnegative at the 1% and 5% significance level, indicating that the development\nof marketization alleviates the negative impact of climate risk on heavy-\npolluting companies\u2019 green innovation. On the one hand, marketization can\noptimize the relationship between the market and the government, and enhance\nthe effectiveness of government decision-making and awareness of environmental\nprotection, hence lowering the pressure on companies in terms of regulation\nand financing. On the other hand, marketization can strengthen the information\ntransmission between the market and heavy-polluting companies. It could\nimprove the quality of corporate information disclosure, reduce the asymmetry\nof information obtained by financial institutions, and weaken financing\nconstraints for green innovation in heavy-polluting companies.\n\n##  5 Conclusion and policy implications\n\nThis paper investigates the impact of climate risk on corporate green\ninnovation in Chinese heavy-polluting listed companies from 2011 to 2020. The\nempirical results show that climate risk adversely affects corporate green\ninnovation of heavy-polluting companies, and this effect persists throughout a\nseries of robustness and endogeneity tests. Climate risk may affect corporate\ngreen innovation through decreasing R&D investment, lowing resource allocation\nefficiency, and increasing company risk. Climate risk has a greater negative\nimpact on mid-western, state-owned, and large-size heavy-polluting companies,\nbut can be mitigated by the development of green finance, digital finance, and\nmarketization.\n\nThe findings in this paper are particularly helpful for governments and\ncompanies. First, although climate risk has a negative impact on the corporate\ngreen innovation of heavy-polluting companies, corporate green innovation is\nstill a favorable means for heavy-polluting companies to cope with climate\nrisk. Compared with defensive and adaptive responses such as industrial\nrestructuring and withdrawal, green innovation is an aggressive response to\nclimate risk, which can better balance the two goals of economic development\nand energy transformation. The government should provide policy support for\nheavy-polluting companies to encourage green technology innovation, especially\nfor mid-western, state-owned, and large-size heavy-polluting companies.\nSecond, local governments, particularly those in central and western regions,\nare suggested to promote the development of green finance such as green credit\nand green insurance and help heavy-polluting companies mitigate the negative\nimpact of climate risk. Third, the state and local governments need to\ncontinue to promote the development of digital finance, especially those in\nemerging economies, and encourage heavy-polluting companies to use digital\nfinancial services to reduce information asymmetry between the market and\ncompanies. This can ease the financing constraints and reduce the financing\ncosts, thus promoting corporate green innovation. Forth, in addition to the\nmandatory provisions on energy conservation and emission reduction, the\ngovernment should give full play to its \u201cguiding\u201d role, and employ flexible\npolicy tools in combination with the market mechanism to further promote\nmarketization and enhance the green innovation willingness of heavy-polluting\ncompanies. Finally, it is suggested that heavy-polluting companies actively\nstrive for national industrial transformation and upgrading funds, green\ncredit and other relevant policy support, and make full use of green finance\nand digital financial services, so as to actively carry out green technology\ninnovation, reduce the premium of green products and reduce the cost of coping\nwith climate risk.\n\n##  Data availability statement\n\nThe raw data supporting the conclusion of this article will be made available\nby the authors, without undue reservation.\n\n##  Author contributions\n\nHG: Writing\u2014original draft, data curation, software, and writing\u2014review and\nediting; SL: Conceptualization, writing\u2014original draft, methodology, funding\nacquisition, supervision, and writing\u2014review and editing. All authors\ncontributed to the article and approved the submitted version.\n\n##  Funding\n\nThe authors gratefully acknowledges the financial support from the National\nSocial Science Foundation of China under Grant No. 21BJY146.\n\n##  Conflict of interest\n\nThe authors declare that the research was conducted in the absence of any\ncommercial or financial relationships that could be construed as a potential\nconflict of interest.\n\n##  Publisher\u2019s note\n\nAll claims expressed in this article are solely those of the authors and do\nnot necessarily represent those of their affiliated organizations, or those of\nthe publisher, the editors and the reviewers. Any product that may be\nevaluated in this article, or claim that may be made by its manufacturer, is\nnot guaranteed or endorsed by the publisher.\n\n##  Footnotes\n\n1  The paper selects coal mining (B06), gas exploration (B07), ferrous mining\n(B08), nonferrous mining (B09), nonmetal mining (B10), wine, beverage and\nrefined tea manufacturing (C15), textile (C17,C18,C19), paper (C22), coking\nand nuclear fuel (C25), chemical raw materials and chemical manufacturing\n(C26), chemical fiber manufacturing (C28), rubber and plastic products (C29),\nnonmetallic mineral products (C30), ferrous metal smelting and rolling\nprocessing (C31), nonferrous metals smelting and rolling processing (C32),\nferrous metals smelting and rolling processing (C33), and electricity, thermal\nproduction, and supply (D44) industries as sample.\n\n2  Extreme climate events include climatological events such as droughts,\nwildfires and freezing; meteorological events such as tornados, storms and\nextreme weather; hydrological events such as floods and landslide.\n\n3  The eastern regions include Beijing, Tianjin, Shanghai, Hebei, Shandong,\nJiangsu, Zhejiang, Fujian, Guangdong and Hainan, other regions are mid-western\nregions.\n\n##  References\n\nAddoum, J. 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Energy Res._ 11:1177927. doi: 10.3389/fenrg.2023.1177927\n\nReceived:  02 March 2023;  Accepted:  25 May 2023;  \nPublished:  05 June 2023.\n\nEdited by:\n\n[ Michal Jasinski ](https://loop.frontiersin.org/people/1596960/overview) ,\nWroc\u0142aw University of Science and Technology, Poland\n\nReviewed by:\n\n[ Nallapaneni Manoj Kumar\n](https://loop.frontiersin.org/people/1031506/overview) , City University of\nHong Kong, Hong Kong SAR, China  \n[ Sufang Li ](https://loop.frontiersin.org/people/2286666/overview) , Zhongnan\nUniversity of Economics and Law, China\n\nCopyright  \u00a9 2023 Ling and Gao. 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                "url": "https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2023.1177927/full"
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            "search_query": "company 'Trafic' climate risk energy usage",
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            "url": "https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2023.1177927/full"
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                    "source": "https://www.whitecase.com/insight-alert/sec-adopts-climate-change-disclosure-rules-court-imposes-temporary-stay"
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                "page_content": "Skip to main content\n\n  *   *   * [ Subscribe  ](https://news.whitecase.com/5/38/forms/subscribe.asp \"Subscribe\")\n\nSEC%20Adopts%20Climate%20Change%20Disclosure%20Rules%3B%20%20Court%20Imposes%20Temporary%20Stay  \nhttps://www.whitecase.com/insight-alert/sec-adopts-climate-change-disclosure-\nrules-court-imposes-temporary-stay  \n  \nhttps://news.whitecase.com/5/38/forms/subscribe.asp\n\nmailto:?subject=SEC%20Adopts%20Climate%20Change%20Disclosure%20Rules%3B%20%20Court%20Imposes%20Temporary%20Stay&body=https://www.whitecase.com/insight-\nalert/sec-adopts-climate-change-disclosure-rules-court-imposes-temporary-stay\n\nhttps://www.linkedin.com/shareArticle?mini=true&url=https://www.whitecase.com/insight-\nalert/sec-adopts-climate-change-disclosure-rules-court-imposes-temporary-\nstay&title=SEC%20Adopts%20Climate%20Change%20Disclosure%20Rules%3B%20%20Court%20Imposes%20Temporary%20Stay&source=www.whitecase.com\n\nhttps://twitter.com/intent/tweet?text=SEC%20Adopts%20Climate%20Change%20Disclosure%20Rules%3B%20%20Court%20Imposes%20Temporary%20Stay&url=https://www.whitecase.com/insight-\nalert/sec-adopts-climate-change-disclosure-rules-court-imposes-temporary-\nstay&via=WhiteCase\n\nhttps://www.facebook.com/share.php?u=https://www.whitecase.com/insight-\nalert/sec-adopts-climate-change-disclosure-rules-court-imposes-temporary-\nstay&t=SEC%20Adopts%20Climate%20Change%20Disclosure%20Rules%3B%20%20Court%20Imposes%20Temporary%20Stay\n\nhttps://news.whitecase.com/5/38/forms/subscribe.asp\n\n#  SEC Adopts Climate Change Disclosure Rules; Court Imposes Temporary Stay\n\nAlert\n\n21 March 2024\n\n|\n\n* * *\n\n38 min read\n\n* * *\n\n**On March 6, 2024, in a 3 to 2 vote of the Commissioners, the US Securities\nand Exchange Commission (the \"SEC\") adopted rules that will require public\ncompanies to disclose extensive climate change-related information in their\nSEC filings. 1  On March 15, 2024, a federal appellate court imposed a\ntemporary stay pending judicial review of the new rules. **\n\n[ **Download the PDF**  \nSEC Adopts Climate Change Disclosure Rules; Court Imposes Temporary Stay\n](/sites/default/files/2024-03/sec-adopts-climate-change-disclosure-rules.pdf)  \n\nThe final rules have been pared down from what the SEC originally proposed two\nyears ago following its receipt of more than 24,000 comments.  2  As further\ndescribed below, key changes from the proposed rules include the elimination\nof proposed requirements to disclose Scope 3 greenhouse gas (\"GHG\") emissions,\nlimiting Scope 1 and 2 GHG emissions disclosure for larger public companies\n(and only if such emissions are material), and eliminating proposed\nrequirements to disclose climate-related board of directors expertise.\nHowever, the final rules, if implemented, still require significant new\ndisclosures for both domestic and foreign private issuers that file annual\nreports and registration statements with the SEC. The new rules apply to\ncompanies on a phased-in basis, with the first compliance deadline for large\naccelerated filers  3  required for fiscal year 2025 annual reports filed in\n2026.\n\nSpecifically, the final rules add new Subpart 1500 (Items 1500 to 1508) of\nRegulation S-K and new Article 14 to Regulation S-X to require disclosure of,\namong other things, climate-related risks that have had or are reasonably\nlikely to have a material impact on business strategy, results of operations\nor financial condition; assessment, management, board oversight and mitigation\nof these risks; Scope 1 and 2 GHG emissions for large accelerated filers and\naccelerated filers if those emissions are material, including an independent\nattestation report; and financial statement disclosures, such as costs and\nlosses, related to the effects of severe weather events and other natural\nconditions as well as those associated with carbon offsets and renewable\nenergy credits if material to a company's plans to achieve climate-related\ntargets or goals. See  **Appendix A** for definitions of the terms used in the\nrule.\n\nThe SEC eliminated some of the more burdensome requirements in the proposed\nrules. In response to public comments to the proposed rules, the SEC\nemphasized that its focus is on investor protection and providing investors\nwith access to comparable and consistent climate-related disclosure, rather\nthan on influencing registrants' decisions as to how to manage climate risks.\nThe two dissenting Commissioners, Hester M. Peirce and Mark T. Uyeda, noted\nthat the rules are overly prescriptive and may result in immaterial and overly\nbroad disclosures, and will likely require companies to incur excessive,\nunnecessary costs.  4\n\n**Legal Challenges and Current Status of the Rules**\n\nOn March 15, the U.S. Fifth Circuit Court of Appeals granted a temporary stay\nof the rules pending judicial review, in response to a petition arguing, among\nother things, that the rules would cause irreparable harm and exceed the SEC's\nauthority.  5  To date, litigation challenging the rules has been filed in\nseveral federal courts, including the U.S. Courts of Appeals for the D.C.  6\n, Second  7  , Fifth, Sixth  8  , Eighth  9  and Eleventh  10  Circuits, and\nadditional lawsuits are expected. On March 19, the SEC requested that the\nlitigation challenging the rules be consolidated in a single court of appeals,\nwhich will determine whether the stay will remain in place.  11  In addition,\nRepublican members of Congress have been preparing a resolution to repeal the\nrules under the Congressional Review Act.  12\n\n##  Highlights of the New Rules\n\nThe new rules require disclosure in annual reports and registration statements\nof:\n\n  * **Climate-related goals and targets and material climate-related risks** that have had or are reasonably likely to have a material impact on the company's business strategy, results of operations or financial condition, and the actual and potential material impacts of any identified climate-related risks on the company's strategy, business model and outlook; \n  * **Activities to mitigate or adapt to a material climate-related risk** , including quantitative and qualitative descriptions of material expenditures incurred and material impacts on financial estimates directly resulting from such activities, as well as the use of any transition plans, scenario analysis or internal carbon prices; \n  * **Board oversight of climate-related risks** and any role management plays in assessing and managing material climate-related risks; any processes for identifying, assessing and managing material climate-related risks and whether and how any such processes are integrated into the company's overall risk management system; \n  * **Material Scope 1 and 2 GHG emissions disclosure** for large accelerated filers and accelerated filers (that are not otherwise exempted), including an independent assurance report at the limited assurance level which, for large accelerated filers only, will increase to a reasonable assurance level following a transition period; and \n  * **Financial statement disclosure** regarding the effects of severe weather events and other natural conditions, including, for example, the following: costs and losses; similar disclosure as to costs and losses related to carbon offsets and renewable energy credits if material to plans to achieve climate-related targets or goals; and a description of how estimates and assumptions used in the financial statements were materially impacted by severe weather events and other material conditions. \n\nFor a detailed description of these requirements, see \"  **Content of the New\nDisclosures** \" below.\n\n##  Most Significant Differences from the Proposed Rules\n\nThe adopted rules differ from the proposed rules in some important respects.\nKey differences include:\n\n**Addition of materiality qualifiers:** In the final rules, the SEC added a\nmateriality qualifier to most of the disclosure requirements, including those\nregarding Scope 1 and 2 greenhouse gas emissions, impacts of climate-related\nrisks, use of scenario analysis, and a maintained internal carbon price.\n\n**Reduced requirements for GHG emissions disclosure and attestation reports:**\n(i) Smaller reporting companies (\"SRCs\"), emerging growth companies (\"EGCs\")\nand non-accelerated filers are exempt from the GHG disclosure and associated\nattestation requirements; (ii) Scope 1 and Scope 2 GHG emissions are required\nonly if material and only for large accelerated filers and accelerated filers;\n(iii) Scope 3 GHG emissions disclosure requirements were eliminated for all\nissuers; (iv) attestation report requirements only apply to accelerated filers\nand large accelerated filers; and (v) the form and content of the attestation\nreports were reduced and do not need to follow prescriptive content\nrequirements.\n\n**Delayed requirements for disclosure of Scope 1 and 2 emissions after fiscal\nyear end:** The final rules also include an accommodation that allows Scope 1\nand/or Scope 2 emissions disclosure, if required, to be filed on a delayed\nbasis following the fiscal year end, as further described below in \"  **Phase-\nIn Periods and Accommodations** .\"\n\n**Governance:** The proposed requirement to disclose board of director\nexpertise on climate was eliminated, but disclosure on board and management\noversight of climate related risks remained.\n\n**Financial statement disclosures:** The scope of financial statement\ndisclosure in the final rules is significantly narrower than the proposal and\nfocused on requiring the disclosure of a discrete set of actual expenses that\nregistrants incur and can attribute to severe weather events and other natural\nconditions. Instead of requiring individual financial statement line item\ndisclosure of impacts from severe weather events and other natural conditions,\nthere will be new financial footnote disclosure requirements for such\nfinancial impacts, as well as for disclosure of certain costs, expenditures\nand losses related to carbon offsets and renewable energy credits or\ncertificates.\n\n**Expanded private liability safe harbor:** The safe harbor for forward-\nlooking climate-related disclosures was expanded in order to also extend the\nprotections to disclosures (other than historical facts) regarding transition\nplans, scenario analysis, internal carbon pricing, and targets and goals,\nwhich can include a complex mixture of both forward-looking and factual\ninformation.\n\n**Lengthened timeline for required disclosures:** The final rules provide for\nextended phase-in periods compared to the proposed rules, with large\naccelerated filers being first required to comply for fiscal year 2025 in\nfilings made in 2026, as further described below under \"  **Phase-In Periods\nand Accommodations** .\"\n\n##  Content of the New Disclosures\n\nThe rules are modeled in part on the framework and recommendations from the\nTask Force for Climate-Related Financial Disclosures and draw upon the\nGreenhouse Gas Protocol.  13  The rules apply to both domestic registrants and\nforeign private issuers (\"FPIs\") and to all types of registrants (large\naccelerated filers, accelerated filers, SRCs and EGCs, except as noted below)\nand, if implemented, will require the registrant to disclose, in either a\nseparately captioned section of its registration statement or annual report\n(or in another appropriate section) information about:\n\n  * **Material climate-related risks:** climate-related risks that have had or are reasonably likely to have a material impact on a registrant, including on its strategy, results of operations or financial condition in the short-term (i.e., the next 12 months) or long term (i.e., beyond the next 12 months);  14 \n    * \"Climate-related risks\" are defined as the actual or potential negative impacts of climate-related conditions and events on the registrant's business, results of operations or financial condition, and includes both physical and transition risks: \n      * Acute physical risk and chronic physical risk should be disclosed, along with information regarding properties, processes or operations subject to the risk. \"Acute risks\" are defined as event-driven risks related to shorter-term extreme weather events and \"chronic risks\" are defined as those that a company may face as a result of longer-term weather patterns and related effects. \n      * The nature of transition risk (e.g., regulatory, technological, market or other factors) should be disclosed, along with related impacts to the registrant. \n  * **Impacts of climate-related risks on strategy, business model and outlook:** The actual and potential material impacts of any identified climate-related risks on the registrant's strategy, business model and outlook  15  and whether the impacts of these climate-related risks have been integrated into their business model or strategy, including whether and how resources are being used to mitigate climate-related risks.  16 \n    * **Mitigation Activities:** If, as part of its strategy, a registrant has undertaken activities to mitigate or adapt to a material climate-related risk, it must provide a quantitative and qualitative description of material expenditures incurred and material impacts on financial estimates and assumptions that directly result from such activities;  17 \n    * **Transition Plans:** If a registrant has adopted a transition plan to manage a material transition risk, the rules call for a description of that plan and quantitative and qualitative disclosure of material expenditures and material impacts on financial estimates and assumptions as a direct result of the disclosed actions:  18 \n      * The description must be updated in subsequent years to describe actions taken under the plan and their impacts on the registrant's business, results of operations, or financial condition. \n      * Transition plan disclosure will be subject to the expanded PLSRA safe harbor, as further described under \"  **Accommodations and Safe Harbor** \" below. \n\nThe final rules do not mandate that registrants adopt a transition plan; if a\nregistrant does not have a plan, no disclosure is required.\n\n    * **Scenario Analysis:** If a registrant uses scenario analysis and, in doing so, determines that a climate-related risk is reasonably likely to have a material impact on its business, results of operations or financial condition, it must make certain disclosures regarding such use of scenario analysis, including assumptions, parameters and expected material financial and other impacts:  19 \n      * If a registrant conducts scenario analysis and determines that it is not likely to be materially impacted by a climate-related risk, no disclosure about the scenario analysis is required. \n      * Any scenario analysis disclosure will be subject to the expanded PSLRA safe harbor. \n\nThe final rules do not mandate that any registrant conduct a scenario\nanalysis; if a registrant does not conduct such an analysis, no such\ndisclosure is required.\n\n    * **Internal Carbon Price:** If a registrant's use of an internal carbon price is material to how it evaluates and manages a material climate-related risk, the rules require registrants to provide specified disclosures about that price, including: (i) the price per metric ton of CO2e; and (ii) the total price, including how the total price is estimated to change over the time periods referenced in Item 1502(a), as applicable.  20 \n  * **GHG Emissions Metrics and Attestations:** 21 \n    * **Scopes 1 and 2 GHG emissions metrics:** Only larger SEC registrants\u2014meaning large accelerated filers and accelerated filers that are not smaller reporting companies or emerging growth companies\u2014will be required to disclose their Scope 1 and 2 GHG emissions,  22  expressed in the aggregate in terms of CO2e,  23  if such emissions are material. GHG emissions data in gross terms, excluding any use of purchased or generated offsets, must be disclosed. \n      * The adopting release emphasizes that \"traditional notions of materiality under the Federal securities laws\" apply when making this determination and that the materiality analysis should be made using the \"reasonable investor\" standard. The release specifically notes that materiality is not determined just by the amount of emissions and provides examples of when emissions might be considered material, such as where foreign laws might subject the company to additional regulatory burdens or penalties based on its emissions, or where the emissions calculations and disclosure are necessary to enable investors to understand whether the company has made progress toward achieving a target, goal or a transition plan.  24 \n      * The disclosure is required to include a description of the methodology, significant inputs and significant assumptions used to calculate the GHG emissions metrics, including the organization boundaries used, how emissions and emissions sources are categorized, and which protocol or standard is used (as well as the type and source of any emissions factors used). \n    * **Attestation for Scope 1 and Scope 2 Emissions Disclosure:** 25  A registrant, including an FPI, that is required to provide Scope 1 and/or Scope 2 emissions disclosure, must include an attestation report from a \"GHG emissions attestation provider\"  26  covering the disclosure of its Scope 1 and/or Scope 2 emissions in the relevant filing.  27 \n      * Both accelerated filers and large accelerated filers are required to obtain limited assurance beginning with the fourth fiscal year of disclosure; however, only large accelerated filers are required to obtain an attestation report at a \"reasonable assurance level\" starting with the eighth fiscal year of disclosure. As the release explains, the primary difference between the two assurance levels relates to \"the nature, timing, and extent of procedures required to obtain sufficient, appropriate evidence to support the limited assurance conclusion or reasonable assurance opinion.\"  28 \n      * The attestation report must be provided pursuant to standards that are established by a body or group that has followed due process procedures, including the broad distribution of the framework for public comment.  29  The standards must be either (i) publicly available at no cost or (ii) widely used for GHG emissions assurance.  30  In addition, the form and content of the GHG emissions attestation report must follow the requirements set forth by the attestation standard or standards used; however, the final rules do not prescribe minimum report requirements. \n      * The new rules provide that GHG emissions attestation providers that perform limited assurance engagements are exempt from Section 11 liability and the consent requirements associated with expertized reports.  31 32  However, providers whose reports are at the reasonable assurance level are not exempt from this liability, as the \"heightened level of review associated with reasonable assurance makes it appropriate for the report to be expertized.\"  33 \n      * The rules do not require a registrant to obtain an attestation report specifically covering the effectiveness of internal control over GHG emissions disclosure. \n  * **Governance Disclosure:** The oversight and governance of climate-related risks by the board and management, including:  34 \n    * Board oversight disclosure  35  : (i) board committees or subcommittees responsible for the oversight of climate-related risks; (ii) the processes by which the board or committee is informed about climate-related risks; and (iii) if applicable, whether and how the board oversees progress against climate-related targets or goals or transition plans;  36 \n    * Management oversight disclosure: (i) whether and which management positions or committees are responsible for assessing and managing climate-related risks and, if so, the relevant expertise of the position holders or members (relevant expertise of management may include, for example: prior work experience in climate-related matters; any relevant degrees or certifications; any knowledge, skills or other background in climate-related matters); (ii) the processes by which the responsible managers or committees assess and manage climate-related risks; and (iii) whether such positions or committees report information about such risks to the board of directors (or a committee or subcommittee thereof). \n  * **Risk Management Disclosure:** The registrant's processes for identifying, assessing and managing material climate-related risks and whether and how any such processes are integrated into the registrant's overall risk management system or processes.  37 \n    * Disclosure should address, as applicable, how the registrant: (i) identifies whether it has incurred or is reasonably likely to incur a material physical or transition risk; (ii) decides whether to mitigate, accept or adapt to the particular risk; and (iii) prioritizes whether to address the climate-related risk. \n  * **Targets and Goals Disclosure:** 38  Any climate-related target or goal if such target or goal has materially affected or is reasonably likely to materially affect the registrant's business, results of operations or financial condition, including: \n    * Any additional information or explanation necessary to an understanding of the material impact or reasonably likely material impact of the target or goal;  39 40 \n    * How it intends to meet its climate-related targets or goals, and any progress toward meeting the target or goal and how such progress has been achieved;  41  and \n    * A discussion of any material impacts to the registrant's business, results of operations or financial condition as a direct result of the target or goal or the actions taken to make progress toward meeting the target or goal. This discussion must include quantitative and qualitative disclosure of any material expenditures and material impacts on financial estimates and assumptions as a direct result of the target or goal or the actions taken to make progress toward meeting the target or goal.  42 \n\nIf carbon offsets or renewable energy credits or certificates have been used\nas a material component of a registrant's plan to achieve climate-related\ntargets or goals, then the registrant must disclose: (i) the amount of carbon\navoidance, reduction or removal represented by the offsets or the amount of\ngenerated renewable energy represented by the renewable energy credits or\ncertificates; (ii) the nature and source of the offsets or renewable energy\ncredits or certificates; (iii) a description and location of the underlying\nprojects; (iv) any registries or other authentication of the offsets or\nrenewable energy credits or certificates; and (v) the cost of the offsets or\nrenewable energy credits or certificates.  43\n\n##  Financial Statement Footnote Disclosures\n\nFor all reporting companies, including smaller reporting companies and\nemerging growth companies, the final rules also added required disclosure in\nthe Notes to the audited financial statements included in a registrant's\nannual report or registration statement filed with the SEC, as follows:\n\n  * **Capitalized costs and expenditures:** Registrants must disclose the capitalized costs, expenditures expensed, charges and losses incurred as a result of severe weather events and other natural conditions:  44 \n    * A cost, expenditure, charge, loss or recovery is considered attributable to a severe weather event or other natural condition when the event or condition is a \"significant contributing factor\" in incurring the cost, expenditure, charge, loss or recovery.  45 \n    * Quantitative disclosure thresholds  46  : Disclosure is **not** required if: \n      * Expenditures expensed as incurred and losses (net of recoveries) are **less than one percent of the absolute value of pre-tax income or loss** , or if they do not exceed a $100,000 de minimis threshold; or \n      * Capitalized costs and charges (net of recoveries) are **less than one percent of the absolute value of shareholders' equity or deficit** at the end of the relevant fiscal year, or if they do not exceed a $500,000 **de minimis** threshold. \n  * **Recoveries:** Registrants must separately disclose the aggregate amount of any recoveries recognized during the fiscal year as a result of the severe weather events and other natural conditions for which capitalized costs, expenditures expensed, charges or losses have been disclosed.  47 \n  * **Carbon offsets and renewable energy credits:** Registrants must disclose capitalized costs, expenditures expensed, and losses related to the purchase and use of carbon offsets and renewable energy credits or certificates in the financial statements, if they are used as a material component of a company's plans to achieve its climate-related targets or goals:  48 \n    * This disclosure requirement is not subject to the one percent disclosure threshold that applies to the disclosure of costs resulting from severe weather events and other natural conditions. \n    * Companies must separately identify where the capitalized costs, expenditures expensed and losses are presented in the income statement and the balance sheet. \n  * **Estimates and assumptions:** If the estimates and assumptions used in preparing the financial statements were materially impacted by exposure to risks and uncertainties associated with severe weather events and other natural conditions or any disclosed climate-related targets or transition plans, registrants must describe in qualitative terms, how such estimates and assumptions were impacted by such risks and uncertainties.  49 \n  * **Contextual Information:** Registrants must provide contextual information, describing how each specified financial statement effect was derived, including a description of the significant inputs and assumptions used, significant judgments made, other information that is important to understand the financial statement effect and, if applicable, policy decisions made by the registrant to calculate the specified disclosure.  50 \n\n##  Presentation of the New Disclosures\n\nIf implemented, the new rules will be applicable for registrants' Form S-1,\nForm S-4, Form F-1, Form F-4, Form S-11, Form 10, Form 10-K and Form 20-F as\nfollows  51  :\n\n  * **Registration Statements and Annual Reports:** Registrants must provide the Regulation S-K mandated climate-related disclosures, including the attestation, if required, either (i) in a separately-captioned section of its registration statement or annual report, or (ii) in another appropriate section of the filing, such as Risk Factors, Description of Business or Management's Discussion and Analysis of Financial Condition and Results of Operations. The Regulation S-X mandated disclosure must be provided in the registration statement or annual report financial statements. The Regulation S-K disclosure can also be incorporated by reference from another SEC filing as long as the disclosure meets the electronic tagging requirements of the final rules. \n  * **iXBRL:** Both narrative and quantitative climate-related disclosures must be electronically tagged in Inline XBRL. \n\nThe SEC did not adopt any prescriptive requirement for material changes to\nclimate-related disclosures to be disclosed on Form 10-Q or Form 6-K during\nthe fiscal year.\n\nPrivate Companies: Notably, private companies that are parties to business\ncombinations will not have to comply with these requirements in Forms S-4 or\nF-4 (i.e. if the target being acquired is not a public reporting company,\nclimate-related disclosures with respect to the target will not be required).\nHowever, private companies going public in an initial public offering on a\nForm S-1 or Form F-1 must comply on the tiered timelines set forth below,\nwithout any exemption or additional phase-in.\n\n##  Phase-In Periods and Accommodations\n\n###  Phase-Ins\n\nSubject to the stay, the rules may become effective 60 days after publication\nin the Federal Register. The final rules include a phase-in period for all\nregistrants, with the compliance date dependent on the registrant's filer\nstatus, and an additional phase-in period for Scope 1 and 2 emissions\ndisclosure as well as for the assurance requirement and the level of assurance\nrequired.\n\n**Registrant Type** |  **Disclosure and financial statement effects audit** |  **GHG emissions/assurance** |  **Electronic Tagging**  \n---|---|---|---  \n|  **All Reg. S-K and S-X disclosures, other than as noted in this table** |  **Item 1502(d)(2), Item 1502(e)(2), and Item 1504(c)(2)** |  **Item 1505 (Scopes 1 and 2 GHG emissions) 1500** |  **Item 1506 \u2013 Limited Assurance** |  **Item 1506 \u2013 Reasonable Assurance** |  **Item 1508 \u2013 Inline XBRL tagging for subpart 15001**  \n**Large accelerated filers** |  Fiscal year beginning in calendar year 2025 for filings in 2026  |  Fiscal year beginning in calendar year 2026 for filings in 2027  |  Fiscal year beginning in calendar year 2026 for filings in 2027  |  Fiscal year beginning in calendar year 2029 for filings in 2030  |  Fiscal year beginning in calendar year 2033 for filings in 2034  |  Fiscal year beginning in calendar year 2026 for filings in 2027   \n**Accelerated filers (other than SRCs and EGCs)** |  Fiscal year beginning in calendar year 2026 for filings in 2027  |  Fiscal year beginning in calendar year 2027 for filings in 2028  |  Fiscal year beginning in calendar year 2028 for filings in 2029  |  Fiscal year beginning in calendar year 2031 for filings in 2032  |  N/A  |  Fiscal year beginning in calendar year 2026 for filings in 2027   \n**SRCs, EGCs and Non-accelerated filers** |  Fiscal year beginning in calendar year 2027 for filings in 2028  |  Fiscal year beginning in calendar year 2028 for filings in 2029  |  N/A  |  N/A  |  N/A  |  Fiscal year beginning in calendar year 2027 for filings in 2028   \n1  Financial statement disclosures under Article 14 will be required to be\ntagged in accordance with existing rules pertaining to the tagging of\nfinancial statements. See Rule 405(b)(1)(i) of Regulation S-T.  \n  \n###  Accommodations and Safe Harbor\n\n(1) **Accommodations for Smaller Reporting Companies and Emerging Growth\nCompanies:** The rules include the following accommodations and exemptions for\nsmaller reporting companies and emerging growth companies:\n\n  * Extended compliance deadlines and phase-in periods for the required disclosures and associated electronic tagging requirements; and \n  * No requirements to disclose any Scope 1 or Scope 2 GHG emissions, or to provide any attestation report related thereto. \n\n(2) **Delayed emissions disclosure:** The rules include an accommodation that\nallows Scope 1 and/or Scope 2 emissions disclosure, if required, to be filed\non a delayed basis as follows:\n\n  * If a domestic registrant, in its Form 10-Q for the second fiscal quarter in the fiscal year immediately following the year to which the GHG emissions disclosure relates; \n  * If an FPI, in an amendment to its annual report on Form 20 F, which shall be due no later than when such disclosure would be due for a domestic registrant; and \n  * If filing a Securities Act or Exchange Act registration statement, as of the most recently completed fiscal year that is at least 225 days prior to the date of effectiveness of the registration statement. \n\n(3) **Safe harbor:** The final rules extend the Private Securities Litigation\nReform Act (\"PSLRA\") safe harbors to transition plans, scenario analysis,\ninternal carbon price and targets and goals and provide that these statements\nconstitute \"forward-looking statements\" for purposes of the PSLRA safe\nharbors. The safe harbor explicitly extends to issuers who would not otherwise\nenjoy the benefit of the PSLRA safe harbor for forward-looking statements,\nincluding IPO registrants and SPACs. The SEC declined, however, to extend the\nPSLRA safe harbor to Scope 1 and 2 GHG emissions disclosures, given what it\nconsidered to be the \"well-established methodology\" of calculating these\nmetrics.\n\n##  Practical Considerations and Next Steps\n\nIn light of the newly adopted rules, companies should consider their next\nsteps and the following items:\n\n  1. **Begin Preparations Early.** In light of the complexity and extensiveness of the new disclosure requirements, companies should begin their preparations early and develop a working group and plan, including to assess which requirements in the new rules will apply and the steps required to comply. Although the rules are temporarily stayed, the outcome of the judicial proceedings is uncertain and the complexity of the new rules will require significant time for public companies to prepare. \n  2. **Tailor disclosures to fit risk profile and structures.** The SEC stepped back from across-the-board \"prescriptive\" disclosure requirements and instead made the required disclosure more principles-based, in line with other disclosure requirements, such as Management's Disclosure and Analysis of Financial Condition and Results of Operations. The SEC has also removed some of the burdensome requirements relating to third parties (e.g., Scope 3 GHG emissions disclosure requirements, the requirement to assess climate risk based on impact to the registrant's value chain). This change provides companies with both an opportunity to assess the materiality of climate risk and some flexibility to tailor the disclosures based on their particular risk profile, risk management and oversight structures. Given this shift in focus, companies should first spend time thinking about how they assess, manage and mitigate climate-related risk (looking at each area covered by the rules) and only after that is complete should they begin work on the actual disclosure. Both the evaluation and drafting will require working with multidisciplinary teams, and companies should determine an approach that works best for their climate risk profiles and management structures. \n  3. **Assessing materiality in light of each company\u2019s circumstances.** While the addition of a materiality qualifier to many of the disclosure requirements was a welcome change from the proposed rules, it also raises many questions for issuers as they begin their assessment process. Companies may already be disclosing climate-related information, either voluntarily or in order to comply with other mandatory climate risk disclosure regimes, which may impose different requirements and serve different purposes than those in the new rules.  52  The adopting release makes clear that a traditional materiality analysis applies to the new disclosures, rather than an analysis that relies on the requirements of such other regimes. Each company must consider whether a disclosure is material based on whether a reasonable investor would consider it important in making an investment decision or would view omission of such disclosure as significantly altering the total mix of information made available. This assessment will be specific to a company's facts and circumstances, and companies will need to evaluate the particular facts and considerations (both quantitative and qualitative) for their own businesses and document the steps taken to reach their conclusions. \n  4. **Board Committees.** In light of the disclosure on board oversight of climate risk, companies should assess their board committees' responsibilities and charters. For example, a company should consider if it should delegate oversight of climate related risks to a particular board committee, and if it has already done so, it should consider whether to enhance the committee's charter to specify review of climate related disclosure in SEC filings. \n  5. **Internal Control over Financial Reporting (\"ICFR\").** The new rules impact financial statement disclosures, and will therefore be subject to SEC requirements for internal control over financial reporting. Companies will therefore need to start evaluating their controls to assess whether any changes will be needed to comply with the new requirements. \n  6. **Risk of Liability under the US Federal Securities Laws.** The new disclosures in annual reports and registration statements will result in expanded liability risks for companies. For example, companies may face litigation over claims that the new disclosures contain materially misleading statements or omissions under the US federal securities laws. Therefore, it will be crucial to establish fulsome controls to vet and verify the new disclosure. Any forward-looking statements should be clearly identified and appropriate cautionary language added, and risk factor disclosure relating to climate should be assessed and reconsidered in light of the new disclosure, including to protect the company in the event of litigation. \n\n**The following White & Case attorneys authored this alert: ** [ **Maia Gez**\n](https://www.whitecase.com/people/maia-gez) **,** [ **Seth Kerschner**\n](https://www.whitecase.com/people/seth-kerschner) **,** [ **Scott Levi**\n](https://www.whitecase.com/people/scott-levi) **,** [ **Taylor Pullins**\n](https://www.whitecase.com/people/taylor-pullins) **,** [ **Michelle Rutta**\n](https://www.whitecase.com/people/michelle-rutta) **,** [ **Melinda\nAnderson** ](https://www.whitecase.com/people/melinda-anderson) **,** [\n**Danielle Herrick** ](https://www.whitecase.com/people/danielle-herrick)\n\n##  Appendix A\n\n**Definitions Used in the New Rules**\n\n  * \"Climate-related risks\": the actual or potential negative impacts of climate-related conditions and events on a registrant's business, results of operations, or financial condition. \n  * \"Physical Risks\": includes both acute and chronic risks to a registrant's business operations. \n  * \"Acute risks\" are defined as event-driven risks and may relate to shorter-term extreme weather events, such as hurricanes, flood, tornadoes, and wildfires, among other events. \n  * \"Chronic risks\" are defined as those risks that relate to longer term weather patterns, such as sustained higher temperatures, sea level rise and drought, as well as related effects such as decreased arability of farmland, decreased habitability of land, and decreased availability of fresh water. \n  * \"Transition Risks\": the actual or potential negative impacts on a registrant's business, results of operations, or financial condition attributable to regulatory, technological, and market changes to address the mitigation of, or adaptation to, climate-related risks, including, but not limited to, increased costs attributable to changes in law or policy, reduced market demand for carbon-intensive products leading to decreased prices or profits for such products, the devaluation or abandonment of assets, risk of legal liability and litigation defense costs, competitive pressures associated with the adoption of new technologies, and reputational impacts (including those stemming from a registrant's customers or business counterparties) that might trigger changes to market behavior, consumer preferences or behavior, and registrant behavior. \n  * \"Carbon dioxide equivalent or CO2e\": means the common unit of measurement to indicate the global warming potential (\"GWP\") of each greenhouse gas, expressed in terms of the GWP of one unit of carbon dioxide. \n  * \"Greenhouse Gases\": carbon dioxide (\"CO2\"), methane, nitrous oxide, nitrogen trifluoride, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride. \n  * \"GHG emissions\": direct and indirect emissions of greenhouse gases, expressed in metric tons of carbon dioxide equivalent (CO2e): \n    * Direct emissions: GHG emissions from sources that are owned or controlled by a registrant. \n    * Indirect emissions: GHG emissions that result from the activities of the registrant, but occur at sources not owned or controlled by the registrant. \n  * \"GHG emissions attestation provider\": a person or a firm that has all of the following characteristics: \n    * Is an expert in GHG emissions by virtue of having significant experience in measuring, analyzing, reporting, or attesting to GHG emissions. Significant experience means having sufficient competence and capabilities necessary to: \n      * Perform engagements in accordance with professional standards and applicable legal and regulatory requirements; and \n      * Enable the service provider to issue reports that are appropriate under the circumstances. \n    * Is independent with respect to the registrant, and any of its affiliates, for whom it is providing the attestation report, during the attestation and professional engagement period. \n  * \"Internal carbon price\": means an estimated cost of carbon emissions used internally within an organization. \n  * \"Scenario analysis\": means a process for identifying and assessing a potential range of outcomes of various possible future climate scenarios, and how climate-related risks may impact a registrant's business strategy, results of operations, or financial condition over time. \n  * \"Scope 1 emissions\": direct GHG emissions from operations that are owned or controlled by a registrant. \n  * \"Scope 2 emissions\": indirect GHG emissions from the generation of purchased or acquired electricity, steam, heat, or cooling that is consumed by operations owned or controlled by a registrant. \n  * \"Transition plan\": means a registrant's strategy and implementation plan to reduce climate-related risks, which may include a plan to reduce its GHG emissions in line with its own commitments or commitments of jurisdictions within which it has significant operations. \n\n1 The final rules are available  [ here\n](https://www.sec.gov/files/rules/final/2024/33-11275.pdf) , and the fact\nsheet is available  [ here  ](https://www.sec.gov/files/33-11275-fact-\nsheet.pdf) . See also, SEC Chair Gary Gensler's  [ statement\n](https://www.sec.gov/news/statement/gensler-statement-mandatory-climate-risk-\ndisclosures-030624) .  \n2 The proposed rules are available  [ here\n](https://www.sec.gov/rules/proposed/2022/33-11042.pdf) , and the fact sheet\non the proposed rules is available  [ here\n](https://www.sec.gov/files/33-11042-fact-sheet.pdf) . Our alert on the\nproposed rules is available  [ here  ](/insight-alert/sec-proposes-long-\nawaited-climate-change-disclosure-rules) .  \n3 A large accelerated filer is a company that has (a) filed at least one\nannual report, and (b) had more than $700 million unaffiliated market\ncapitalization as of the last day of the most recently completed second fiscal\nquarter.  \n4 Commissioner Peirce emphasized her belief that the existing materiality-\nbased disclosure regime was sufficient to elicit any relevant climate-related\ndisclosure and that these rules put climate on a pedestal as the SEC's \"pet\ntopic of the day.\"  [ Her dissent is available here\n](https://www.sec.gov/news/statement/peirce-statement-mandatory-climate-risk-\ndisclosures-030624) . Commissioner Uyeda argued that the SEC is a \"securities\nregulator without statutory authority or expertise to address political and\nsocial issues\u2026[which has] ventured outside of its lane and set a precedent for\nusing its disclosure regime as a means for driving social change.\"\nCommissioner Uyeda's  [ dissenting statement is available here\n](https://www.sec.gov/news/statement/uyeda-statement-mandatory-climate-risk-\ndisclosures-030624) .  \n5 The order is available at  [ Liberty Energy, Inc., et al. v. U.S Securities\nand Exchange Commission\n](https://www.ca5.uscourts.gov/opinions/unpub/24/24-60109 Order.pdf) , No.\n24-60109 (5th Cir. 2024). The petitioners indicated that they would be\n\"irreparably harmed\" by the failure to grant a stay because the disclosures\nthat will be first required in 2026 must include data collected in 2025 and\ncompanies are implementing systems to prepare the required disclosure.  \n6 See  [ Sierra Club v. U.S. Securities and Exchange Commission\n](https://www.sierraclub.org/sites/default/files/2024-03/Sierra-Club-SCF-SEC-\nPetition-For-Review.pdf) , No. 24-1064 (D.C. Cir. filed Mar. 13, 2024).  \n7 See  [ Natural Resources Defense Council, Inc. v. U.S Securities and\nExchange Commission\n](https://ecf.ca8.uscourts.gov/n/beam/servlet/TransportRoom?servlet=CaseSummary.jsp&caseNum=24-1522&incOrigDkt=Y&incDktEntries=Y)\n, No. 24-707 (2nd Cir. filed Mar. 15, 2024).  \n8 See  [ Ohio Bureau of Workers' Compensation, et al v. SEC\n](https://www.ohioattorneygeneral.gov/Files/Briefing-Room/News-\nReleases/3-13-24-Petition-for-Review.aspx) , No. 24-03220 (6th Cir. filed Mar.\n13, 2024).  \n9 See  [ State of Iowa, et al v. U.S Securities and Exchange Commission\n](https://ca2-showdoc.azurewebsites.us/24-707) , No. 24-01522 (8th Cir. filed\nMar.13, 2024).  \n10 See  [ State of West Virginia v. U.S Securities and Exchange Commission\n](https://ago.wv.gov/Documents/SEC Climate Disclosure Petition for Review.pdf)\n, No. 24- (11th Cir. filed Mar. 6, 2024).  \n11 The SEC submitted this request to the US Judicial Panel on Multidistrict\nLitigation. The courts that have received at least one petition related to the\nSEC rules will each get one entry in a \"drum,\" from which a clerk based in\nWashington will draw the name of the venue to hear the consolidated case. This\nsystem previously has been employed in the context of federal regulations that\nattracted a number of challenges.  \n12 See  [ Congressional Republicans Maneuver to Block SEC's Climate Rules\n(bloomberglaw.com)\n](https://www.bloomberglaw.com/bloomberglawnews/esg/X6UQFQIK000000?bna_news_filter=esg#jcite)\n.  \n13 A GHG accounting standard created through a partnership between the World\nResources Institute and the World Business Council for Sustainable\nDevelopment.  \n14 Item 1502(a) of Regulation S-K.  \n15 Item 1502(b) of Regulation S-K. Specifically, registrants will have to\ndisclose, if applicable, impacts on its: (i) business operations, including\nthe types and locations of its operations; (ii) products or services; (iii)\nsuppliers, purchasers or counterparties to material contracts, to the extent\nknown or reasonably available; (iv) activities to mitigate or adapt to\nclimate-related risks, including adoption of new technologies or processes;\nand (v) expenditures for research and development. The release notes that this\nis a non-exclusive list.  \n16 Item 1502(c) of Regulation S-K. Also asks registrants to disclose how any\nof the targets referenced in Item 1504(b) or in a described transition plan\nrelate to the registrant's business model or strategy.  \n17 Item 1502(d) of Regulation S-K.  \n18 Item 1502(e). This includes, but is not limited to, a registrant's: (i)\nbusiness operations, including the types and locations of its operations; (ii)\nproducts and services; (iii) suppliers, purchasers or counterparties to\nmaterial contracts, to the extent known or reasonably available; (iv)\nactivities to mitigate or adapt to climate-related risks, including adoption\nof new technologies or processes; and (v) expenditures for research and\ndevelopment.  \n19 Item 1502(f) of Regulation S-K.  \n20 Item 1502(g) of Regulation S-K. If a registrant uses more than one internal\ncarbon price to evaluate and manage a material climate-related risk, it must\nprovide the required disclosures for each internal carbon price and disclose\nits reasons for using different prices. If the scope of entities and\noperations involved in the use of a described internal carbon price is\nmaterially different than the organizational boundaries included in the\nregistrant's financial statements, the registrant must briefly describe this\ndifference.  \n21 Item 1505 of Regulation S-K.  \n22 Scope 1 emissions typically include a company's direct emissions associated\nwith its onsite fossil fuel combustion to produce energy. Scope 2 emissions\ntypically include a company's indirect emissions associated with energy\nproduced offsite and consumed by the company.  \n23 If a registrant is required to disclose its Scope 1 and/or Scope 2\nemissions, and any constituent gas of the disclosed emissions is individually\nmaterial, it must also disclose such constituent gas disaggregated from the\nother gases. A registrant may use reasonable estimates when disclosing its GHG\nemissions as long as it also describes the assumptions underlying, and its\nreasons for using, the estimates.  \n24 See pages 246 \u2013 247 of the adopting release.  \n25 This is a noteworthy departure from standard SEC procedure, as SEC rules\ntypically do not require registrants to obtain assurance over disclosure\nprovided outside of the financial statements, including quantitative\ndisclosure. While acknowledging this discrepancy, the release notes that \"GHG\nemissions disclosures are unique in that many companies currently voluntarily\nseek third-party assurance over their climate-related disclosures, and\ncommenters, including investors, have expressed a particular need for\nassurance over GHG emissions disclosures. Current voluntary assurance\npractices have been varied and this fragmentation has diminished the\ncomparability of assurance provided. Prescribing a minimum level of assurance\nrequired for accelerated filers and large accelerated filers over their Scope\n1 and/or Scope 2 emissions in the final rules, along with minimum requirements\nfor the GHG emissions attestation provider and the engagement, will enhance\ncomparability and consistency with respect to assurance over GHG emissions\ndisclosures.\" See page 288 of the adopting release. The release further notes\nthat \"[t]he benefits that assurance will provide in terms of investor\nprotection and increased confidence in GHG emissions disclosure warrants\nrequiring attestation.\" See page 287 of the adopting release.  \n26 Item 1506(d) requires registrants to disclose whether the GHG emission\nattestation engagement is subject to any oversight inspection program.\nRegistrants must also disclose certain information when there is a change in,\nand disagreement with, the registrant's GHG emissions attestation provider.  \n27 The release clarifies that the final rules apply on a prospective basis\nonly with disclosure for historical periods phasing in over time.\nSpecifically, in the first year that an accelerated filer or large accelerated\nfiler is required to provide an attestation report, such report is only\nrequired to cover the Scope 1 and/or Scope 2 emissions for its most recently\ncompleted fiscal year. To the extent the accelerated filer or large\naccelerated filer disclosed Scope 1 and/or Scope 2 emissions for a historical\nperiod, it would not be required to obtain an assurance report covering such\nhistorical period in the first year of the attestation rule's applicability.\nHowever, for each subsequent fiscal year's annual report, the registrant will\nbe required to provide an attestation report for an additional fiscal year\nuntil an attestation report is provided for the entire period covered by the\nregistrant's GHG emissions disclosures.  \n28 For example, in a limited assurance engagement, the attestation provider's\nprocedures are generally limited to analytical procedures and inquiries, but\nin a reasonable assurance engagement, they are also required to perform risk\nassessment and detailed testing procedures to respond to the assessed risk. As\na result, the outcome of a reasonable assurance engagement results in\n\"positive assurance\" (e.g., \"the provider forms an opinion about whether the\nregistrant's GHG emissions disclosures are in accordance with Item 1505 in all\nmaterial respects\") while the outcome of a limited assurance engagement\nresults in negative assurance (e.g., \"the provider forms a conclusion about\nwhether it is aware of any material modifications that should be made to the\ndisclosures for it to be in accordance with Item 1505\").  \n29 Item 1506(a)(2) of Regulation S-K.  \n30 The release notes that \"PCAOB, AICPA, and IAASB standards meet the due\nprocess requirements and are publicly available at no cost to investors. In\naddition\u2026we also believe that the ISO standards related to the attestation of\nGHG emissions disclosures would meet these requirements.\"  \n31 The SEC did amend Item 601 of Regulation S-K to require registrants to file\nas an exhibit to certain registration statements under the Securities Act or\nreports on Form 10-K or 10-Q that are incorporated into these registration\nstatements a letter from the attestation provider that acknowledges its\nawareness of the use in certain registration statements of any of its reports\nwhich are not subject to the consent requirement of section 7.  \n32 The SEC included this amendment, in part, due to concern that the potential\nfor section 11 liability could deter or reduce the number of attestation\nproviders willing to accept these engagements, or alternatively, if GHG\nemissions attestation providers perform significantly expanded procedures,\nmuch closer to reasonable assurance, in order to meet potential liability\nconcerns under section 11, substantial increased costs to issuers could\nresult. The release notes that the same considerations do not apply to\nreasonable assurance engagements.  \n33 The release notes that this \"bifurcated approach to reasonable versus\nlimited assurance engagements is consistent with the current treatment of\naudited financial statements and unaudited (reviewed) interim financial\nstatements.\" See page 335 of the adopting release.  \n34 Item 1501 of Regulation S-K.  \n35 In the case of an FPI with a two-tier board of directors, for purposes of\nparagraph (a) of this section, the term \"board of directors\" means the\nsupervisory or non-management board. In the case of an FPI meeting the\nrequirements of 17 CFR \u00a7 240.10A\u20133(c)(3), the term \"board of directors\" means\nthe issuer's board of auditors (or similar body) or statutory auditors, as\napplicable.  \n36 These disclosures are not required for registrants that do not exercise\nboard oversight of climate-related risk.  \n37 Item 1503 of Regulation S-K.  \n38 Item 1504 of Regulation S-K.  \n39 This includes, as applicable, a description of: (i) the scope of activities\nincluded in the target; (ii) the unit of measurement; (iii) the defined time\nhorizon by which the target is intended to be achieved, and whether the time\nhorizon is based on one or more goals established by a climate-related treaty,\nlaw, regulation, policy or organization; (iv) if the registrant has\nestablished a baseline for the target or goal, the defined baseline time\nperiod and the means by which progress will be tracked; and (v) a qualitative\ndescription of how the registrant intends to meet its climate-related targets\nor goals.  \n40 Item 1504(b) of Regulation S-K.  \n41 Item 1504(c) of Regulation S-K. Registrants must update this disclosure\neach fiscal year by describing the actions taken during the year to achieve\nits targets or goals. The release notes this will \"better enable investors to\nmonitor impacts on the registrant as it attempts to meet its targets or\ngoals.\"  \n42 This disclosure can be provided as part of a discussion regarding another\ndisclosure item in order to eliminate redundancies.  \n43 Item 1504(d) of Regulation S-K. Note that a registrant is not required to\nmake a determination that a severe weather event or other natural condition\nwas, in fact, caused by climate change in order to trigger the disclosure\nrequirement.  \n44 Rules 14-02(c) and (d) of Regulation S-X  \n45 Rule 14-02(g) of Regulation S-X. The rules do not require a determination\nthat the severe weather event or other natural condition is climate-related,\nbut they do require companies to determine what constitutes a severe weather\nevent or other natural condition. According to the adopting release, a company\nwill have flexibility based on the particular risks faced by the company,\nconsidering its geographic location, historical experience and the financial\nimpact of the event on the company. Examples given include hurricanes,\ntornadoes, flooding, drought, wildfires, extreme temperatures and sea level\nrise, but the release makes clear this is a non-exclusive and non-exhaustive\nlist and that the final rules \"give registrants the flexibility to adopt\nreasonable approaches to identifying severe weather events and other natural\nconditions and adapt to changing circumstances.\" See pages 483-487 of the\nadopting release.  \n46 Rule 14-02(b) of Regulation S-X.  \n47 Rule 14-02(f) of Regulation S-X.  \n48 Rule 14-02(e) of Regulation S-X.  \n49 Rule 14-02(h) of Regulation S-X.  \n50 Rule 14-02(a) of Regulation S-X.  \n51 Canadian issuers filing on Form 40-F are exempt from the rules.  \n52 These include rules promulgated by the EPA, including their GHG reporting\nrules, the EU, which adopted the Corporate Sustainability Reporting Directive\n(\"CSRD\") in 2023, and individual states, such as California and its Senate\nBills 261 and 531, all of which may have different disclosure standards and\ndefinitions than those in the new SEC rules. See our alerts, \"  [ Corporate\nSustainability Reporting: New EU rules for large companies and listed SMEs\n](/insight-alert/corporate-sustainability-reporting-new-eu-rules-large-\ncompanies-and-listed-smes) \" and \"  [ California Bills to Require Greenhouse\nGas Emissions Reporting From Companies Doing Business in the State\n](/insight-alert/california-bills-require-greenhouse-gas-emissions-reporting-\ncompanies-doing-business) .\"\n\nWhite & Case means the international legal practice comprising White & Case\nLLP, a New York State registered limited liability partnership, White & Case\nLLP, a limited liability partnership incorporated under English law and all\nother affiliated partnerships, companies and entities.\n\nThis article is prepared for the general information of interested persons. It\nis not, and does not attempt to be, comprehensive in nature. 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                    "source": "https://www.bbc.com/future/article/20200305-why-your-internet-habits-are-not-as-clean-as-you-think"
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                "page_content": "Skip to content\n\n  * [ Home ](/home)\n  * [ News ](/news)\n    * [ Israel-Gaza War ](/news/topics/c2vdnvdg6xxt)\n    * [ War in Ukraine ](/news/war-in-ukraine)\n    * [ US & Canada ](/news/us-canada)\n    * [ UK ](/news/uk)\n      * [ UK Politics ](/news/politics)\n      * [ England ](/news/england)\n      * [ N. Ireland ](/news/northern_ireland)\n        * [ N. 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As the day wears on\nyou will doubtless spend even more time browsing online, uploading images,\nplaying music and streaming video.\n\nEach of these activities you perform online comes with a small cost \u2013 a few\ngrams of carbon dioxide are emitted due to the energy needed to run your\ndevices and power the wireless networks you access. Less obvious, but perhaps\neven more energy intensive, are the data centres and vast servers needed to\nsupport the internet and store the content we access over it.\n\nAlthough the energy needed for a single [ internet search\n](https://googleblog.blogspot.com/2009/01/powering-google-search.html) or [\nemail is small ](https://www.ovoenergy.com/ovo-newsroom/press-\nreleases/2019/november/think-before-you-thank-if-every-brit-sent-one-less-\nthank-you-email-a-day-we-would-save-16433-tonnes-of-carbon-a-year-the-same-\nas-81152-flights-to-madrid.html) , approximately [ 4.1 billion\n](https://www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx) people, or\n53.6% of the global population, now use the internet. Those scraps of energy,\nand the associated greenhouse gases emitted with each online activity, can add\nup.\n\nThe carbon footprint of our gadgets, the internet and the systems supporting\nthem account for about [ 3.7% ](https://theshiftproject.org/wp-\ncontent/uploads/2019/03/Lean-ICT-Report_The-Shift-Project_2019.pdf) of global\ngreenhouse emissions, according to some estimates. It is similar to the amount\n[ produced by the airline industry\n](https://www.bbc.com/future/article/20200218-climate-change-how-to-cut-your-\ncarbon-emissions-when-flying) globally, explains Mike Hazas, a researcher at\nLancaster University. And these emissions are [ predicted to double\n](https://theshiftproject.org/en/article/unsustainable-use-online-video/) by\n2025.\n\n_You might also like:_\n\n\u25cf [ Should you go on a \"flight diet\"?\n](https://www.bbc.com/future/article/20200218-climate-change-how-to-cut-your-\ncarbon-emissions-when-flying)\n\n\u25cf [ Why your bin is a climate problem\n](https://www.bbc.com/future/article/20200224-how-cutting-your-food-waste-can-\nhelp-the-climate)\n\n\u25cf [ Why we need to be more emotional\n](https://www.bbc.com/future/article/20200228-how-our-emotions-could-help-\nsave-the-world)\n\nIf we were to rather crudely divide the 1.7 billion tonnes (1.6 billion tons)\nof greenhouse gas emissions estimated to be produced in the manufacture and\nrunning of digital technologies between all internet users around the world,\nit means each of us is responsible for 414kg (912lbs) of carbon dioxide a\nyear.\n\nGetty Images/Javier Hirschfeld\n\nPopular music videos such as Despacito can have a large carbon footprint if\nthey are streamed billions of times (Credit: Getty Images/Javier Hirschfeld)\n\nBut things are not that simple \u2013 this figure can vary depending where in the\nworld you are. Internet users in some parts of the globe will have a\ndisproportionately large footprint. One study estimated that 10 years ago, the\naverage Australian internet user was responsible for the [ equivalent of 81kg\n(179lbs) of carbon dioxide\n](https://www.researchgate.net/publication/238634031_Carbon_footprint_of_the_Internet)\n(CO2e) being emitted into the atmosphere. Improvements in energy efficiency,\neconomies of scale and use of renewable energy will doubtless have reduced\nthis, but it is clear that people in developed nations still account for the\nmajority of the internet\u2019s carbon footprint. (CO2e is a unit used to express\nthe carbon footprint of all greenhouse gases together as if they were all\nemitted as carbon dioxide)\n\nFor some, the realisation that their online activity is harming the planet has\nspurred them into taking action.\n\n\u201cAnything we can do to reduce carbon emissions is important, no matter how\nsmall, and that includes how we behave on the internet,\" says Philippa Gaut, a\nteacher from Surrey, UK. She is one of a growing number of eco-conscious\nconsumers trying to reduce their environmental impact online and on their\nphones. \u201cIf everybody made changes, it would have more impact,\u201d she adds\n\nOne of the difficulties in working out the carbon footprint of our internet\nhabits is that few people can agree on what they should and should not\ninclude. Should it include the emissions that come from manufacturing the\ncomputing hardware? And what about those from the staff and buildings of\ntechnology companies? Even the figures around the running of data centres are\ndisputed \u2013 many run on renewable energy, while some companies buy \u201c [ carbon\noff-sets ](https://www.bbc.com/future/article/20190409-carbon-offseting-pros-\nand-cons) \u201d to clean up their energy use.\n\nWhile many companies claim to power their data centre\u2019s using renewable\nenergy, in some parts of the world they are still largely powered from the\nburning of fossil fuels\n\nIn the US, data centres are responsible for [ 2% of the country\u2019s electricity\nuse ](https://www.energy.gov/eere/buildings/data-centers-and-servers) , while\nglobally they account for [ just under 200 terawatt Hours (TWh)\n](https://www.itu.int/en/ITU-T/climatechange/Documents/ITU%20AI4EE%20-%20George%20KAMIYA.pdf)\n. According to the United Nation\u2019s International Telecommunications Union,\nhowever, this figure has flatlined in recent years despite rising internet\ntraffic and workloads. This is largely because of improved energy efficiency\nand the move to centralise data centres into giant facilities.\n\nBut while many companies claim to power their data centre\u2019s using renewable\nenergy, in some parts of the world they are still [ largely powered from the\nburning of fossil fuels ](https://www.wired.com/story/amazon-google-microsoft-\ngreen-clouds-and-hyperscale-data-centers/) . And it can be difficult for\nconsumers to choose which data centres they want to use. Many of the major\ncloud providers, however, have pledged to cut their carbon emissions, so\nstoring photos, documents and running services off their servers where\npossible is one approach to take.\n\nAs an individual, simply upgrading our equipment less often is one way of\ncutting the carbon footprint of our digital technology. The greenhouse gases\nemitted while manufacturing and transporting these devices can [ make up a\nconsiderable portion ](https://www.greenpeace.org/usa/reports/greener-\nelectronics-2017/) of the lifetime emissions from a piece of electronics. One\nstudy at the University of Edinburgh found that extending the time you use a\nsingle computer and monitors from four to six years could [ avoid the\nequivalent of 190kg of carbon emissions\n](https://www.ed.ac.uk/files/atoms/files/pc-carbonfootprints-jh-ecci2.pdf) .\n\n**Eco-messaging**\n\nWe can also alter the way we use our gadgets to cut our digital carbon\nfootprints. One of the easiest ways is to switch they way we send messages.\n\nPerhaps unsurprisingly, the footprint of an email also varies dramatically,\nfrom [ 0.3g CO2e for a spam email\n](https://books.google.co.uk/books?id=zs13m5JquBwC&pg=PA15&dq=how+bad+are+bananas+and+email+and+0.3&hl=en&sa=X&ved=0ahUKEwizu8Goq4PoAhUPGsAKHb11AA0Q6AEIKTAA#v=onepage&q=how%20bad%20are%20bananas%20and%20email%20and%200.3&f=false)\nto 4g (0.14oz) CO2e for a regular email and 50g (1.7oz) CO2e for one with a\nphoto or hefty attachment, according to Mike Berners-Lee, a fellow at\nLancaster University who researches carbon footprints. These figures, however,\nwere crunched by Berners-Lee 10 years ago. Charlotte Freitag, a carbon\nfootprint expert at Small World Consulting, the company founded by Berners-\nLee, says the impact of emailing may have gone up.\n\n\u201cWe think the footprint per message might be higher today because of the\nbigger phones people are using,\u201d she says.\n\nGetty Images/Javier Hirschfeld\n\nWhile spam emails can have quite a small carbon footprint, sending images or\nlarge attachments can have a much bigger impact (Credit: Getty Images/Javier\nHirschfeld)\n\nBased on the older figures, some people have estimated that their own emails\nwill generate [ 1.6kg (3.5lb) CO2e in a single day\n](https://carbonliteracy.com/the-carbon-cost-of-an-email/) . Berners-Lee\nhimself also calculated that a typical business user creates [ 135kg (298lbs)\nCO2e ](https://www.theguardian.com/environment/green-living-\nblog/2010/oct/21/carbon-footprint-email) from sending emails every year, which\nis the equivalent of driving 200 miles in a family car.\n\nBut it should also be easy to cut this down. By simply stopping unnecessary\nniceties such as \u201cthank you\u201d emails we could collectively save a lot of carbon\nemissions. If every adult in the UK sent one less \u201cthank you\u201d email, it could\nsave [ 16,433 tonnes of carbon a year ](https://www.ovoenergy.com/ovo-\nnewsroom/press-releases/2019/november/think-before-you-thank-if-every-brit-\nsent-one-less-thank-you-email-a-day-we-would-save-16433-tonnes-of-carbon-a-\nyear-the-same-as-81152-flights-to-madrid.html) \u2013 the equivalent to taking\n3,334 diesel cars off the road, according to energy company, OVO.\n\n\u201cWhile the carbon footprint of an email isn\u2019t huge, it\u2019s a great illustration\nof the broader principle that cutting the waste out of our lives is good for\nour wellbeing and good for the environment,\u201d Berners-Lee says.\n\nSwapping email attachments for links to documents and not sending messages to\nmultiple recipients are another easy way to reduce our digital carbon\nfootprints, as well as unsubscribing from mailing lists we no longer read.\n\n\u201cI unsubscribed from automatically generated newsletters, as when I learned\nabout the carbon footprint from emails, I was horrified,\u201d says Gaut. \u201cNow, I\u2019m\ncareful not to send out my email to new websites\u2026 it\u2019s made me consider the\nimpact more.\u201d\n\nAccording to estimates by antispam service Cleanfox, the average user receives\n2,850 unwanted emails every year from subscriptions, which are responsible for\n28.5kg (63lbs) CO2e.\n\nIf every adult in the UK sent one less \u201cthank you\u201d email, it could save 16,433\ntonnes of carbon a year \u2013 the equivalent to taking 3,334 diesel cars off the\nroad\n\nChoosing to send an SMS text message is the perhaps the most environmentally-\nfriendly alternative as a way of staying in touch because [ each text\ngenerates just 0.014g of CO2e\n](https://books.google.co.uk/books?id=zs13m5JquBwC&pg=PA11&lpg=PA11&dq=carbon+footprint+of+text+message+0.014g&source=bl&ots=ERyThSpwu3&sig=ACfU3U37N02X1GRa05PUwS6S6YBhI57T3w&hl=en&sa=X&ved=2ahUKEwjvvab8qoPoAhW9QEEAHdrjC54Q6AEwBXoECAkQAQ#v=onepage&q=carbon%20footprint%20of%20text%20message%200.014g&f=false)\n. A tweet is estimated to have [ a footprint of 0.2g CO2e\n](https://www.fastcompany.com/1620676/how-much-energy-does-tweet-consume)\n(although Twitter did not respond to requests to confirm this figure) while\nsending a message via a private messaging app such as WhatsApp or Facebook\nMessenger is estimated by Freitag to be only slightly less carbon intensive\nthan sending an email. Again this can depend on what you are sending \u2013 gifs,\nemojis and images have a greater footprint than plain text.\n\nThe carbon footprint of making a one-minute mobile phone call is a little\nhigher than sending a text, according to Freitag, but making video calls over\nthe internet is much higher. One study from 2012 estimated that a five-hour\nmeeting held over a video conferencing call between participants in different\ncountries would produce between [ 4kg (8.8lbs) CO2e and 215kg (474lbs) CO2e\n](http://www2.eet.unsw.edu.au/~vijay/pubs/jrnl/14comcomVC.pdf) .\n\nBut it is important to remember where it replaces travel to reach meetings, it\ncan be far better for the environment. The same study found the video\nconferencing produced just [ 7% of the emissions\n](http://www2.eet.unsw.edu.au/~vijay/pubs/jrnl/14comcomVC.pdf) of meeting in\nperson. Another study found \u201cthe impact of a car ride exceeds the [ impact of\na video conference at less than 20km\n](https://www.yumpu.com/en/document/read/33165368/enviroinfo-2002-environmental-\nadvantages-of-video-conferencing-) \u201d.\n\n**Clean searching**\n\nInternet searching is another tricky area. A decade ago, each internet search\nhad [ a footprint of 0.2g CO2e\n](https://googleblog.blogspot.com/2009/01/powering-google-search.html) ,\naccording to figures released by Google. Today, Google uses a mixture of\nrenewable energy and [ carbon offsetting to reduce the carbon footprint of its\noperations ](https://sustainability.google/reports/environmental-report-2019/)\n, while Microsoft, which owns the Bing search engine, has promised to become [\ncarbon negative ](https://blogs.microsoft.com/blog/2020/01/16/microsoft-will-\nbe-carbon-negative-by-2030/) by 2030, and efforts are underway to investigate\nwhether this footprint is now higher or lower.\n\nAccording to Google\u2019s own figures, however, an average user of its services \u2013\nsomeone who performs 25 searches each day, watches 60 minutes of YouTube, has\na Gmail account and accesses some of its other services \u2013 [ produces less than\n8g (0.28oz) CO2e\n](https://services.google.com/fh/files/misc/google_2019-environmental-\nreport.pdf) a day.\n\nGetty Images/Javier Hirschfeld\n\nSpending less time on niceties such as short, unnecessary \"thank you\" messages\ncould also reduce the carbon footprint of your email (Credit: Getty\nImages/Javier Hirschfeld)\n\nNewer search engines, however, are attempting to set themselves apart as\ngreener options from the outset. Ecosia, for example, says it will plant a\ntree for every 45 searches it performs. This sort of carbon offsetting can\nhelp to remove [ carbon from the atmosphere\n](https://science.sciencemag.org/content/365/6448/76) , but the success of\nthese projects often depends on how long the trees grow for and what happens\nto them when they are chopped down.\n\nRegardless of the search engine you choose, using the web to find information\nis more sustainable than browsing in books. In fact, a paperback\u2019s carbon\nfootprint is around 1kg (2.2lbs) CO2e, while a weekend newspaper accounts for\nbetween 0.3kg (10oz) and 4.1kg (9lbs) CO2e making reading the news online more\nenvironmentally friendly than poring over a paper.\n\nBut you could still read a lifetime of paperbacks \u2013 2,300 to be precise \u2013 for\nthe same carbon footprint as a flight from London to Hong Kong, so don\u2019t feel\ntoo guilty for reading the next best seller. ( _Read more about_ [ _how to\nreduce the impact your flights have on the environment._\n](https://www.bbc.com/future/article/20200218-climate-change-how-to-cut-your-\ncarbon-emissions-when-flying) )\n\nThose who have been tempted by cryptocurrencies might also want to think\ncarefully about the environmental impact of the transactions they conduct.\nVast amounts of computing power are needed for the so-called \u201c [ proof of work\n](https://cointelegraph.com/explained/proof-of-work-explained) \u201d algorithm\nthat is used to validate transactions on Blockchain's distributed ledger\nsystem. One recent study estimated that BitCoin alone is responsible for [\naround 22m tonnes of carbon dioxide emissions every year\n](https://www.sciencedirect.com/science/article/abs/pii/S2542435119302557) \u2013\ngreater than all the carbon footprint of the whole of Jordan.\n\n**Beating boredom**\n\nWatching online videos accounts for the [ biggest chunk\n](https://www.bbc.co.uk/news/technology-45745362) of the world's internet\ntraffic \u2013 60% \u2013 and generates [ 300m tonnes\n](https://theshiftproject.org/en/article/unsustainable-use-online-video/) of\ncarbon dioxide a year, which is roughly 1% of global emissions, according to\nFrench think tank, [ The Shift Project\n](https://theshiftproject.org/en/article/unsustainable-use-online-video/) .\nThis is because, as well as the power used by devices, energy is consumed by\nthe servers and networks that distribute the content.\n\n\u201cIf you flip on your television to watch Netflix, around half the power goes\ninto powering the TV and half the energy goes into powering Netflix,\u201d says\nLancaster University\u2019s Mike Hazas. Some experts, however, insist that the [\nenergy needed to store and stream videos\n](https://mashable.com/article/streaming-versus-driving-carbon-\nemissions/?europe=true) is less than more intensive computational activities\nperformed by data centres.\n\nPornography accounts for a third of video streaming traffic, generating as\nmuch carbon dioxide as Belgium in a year\n\nSome of the climate pollution that comes from internet use also comes from\nsome rather dirty browsing. Pornography accounts for a [ third of video\nstreaming traffic ](https://theshiftproject.org/en/article/unsustainable-use-\nonline-video/) , generating as much carbon dioxide as Belgium in a year.\n\nOn-demand video services such as Amazon Prime and Netflix account for another\nthird while the final third of the video streaming carbon footprint includes\nwatching YouTube and clips on social media. Netflix says its total global\nenergy consumption reached [ 451,000 megawatt hours\n](https://s22.q4cdn.com/959853165/files/doc_downloads/2020/02/0220_Netflix_EnvironmentalSocialGovernanceReport_FINAL.pdf)\nper year, which is enough to power [ 37,000 homes\n](https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator) , but\ninsists it purchases renewable energy certificates and carbon offsets to\ncompensate for any energy that comes from fossil fuel sources.\n\nStreaming and downloading music also has an impact. Rabih Bashroush, a\nresearcher at the University of East London and lead scientist at the European\nCommission-funded Eureca project, calculated that [ five billion plays\n](https://www.bbc.co.uk/news/technology-45798523) clocked up by just one music\nvideo \u2013 the hit 2017 song Despacito \u2013 consumed as much electricity as Chad,\nGuinea-Bissau, Somalia, Sierra Leone and the Central African Republic put\ntogether in a single year. \u201cThe total emissions for streaming that song could\nbe over 250,000 tonnes of carbon dioxide,\u201d he says.\n\nHowever, Hazas points out that some YouTube views are unintentional. A study\nled by his colleague Kelly Widdicks analysed streaming habits and found that\nsome viewers use YouTube as [ background noise\n](http://www.research.lancs.ac.uk/portal/en/publications/streaming-\nmultiscreens-and-youtube\\(fa45527a-6088-485a-9b79-a12f4a2e45c5\\).html) , and\nsometimes even fall asleep, generating carbon for no gain. Cutting back on\nthese uses or stopping video from playing unintentionally on an open browser\nwhen you are not watching, could help keep your carbon footprint down.\n\nGetty Images/Javier Hirschfeld\n\nUsing online videos to drift off to sleep or as background noise places\nunnecessary demand on data centres and harms the climate (Credit: Getty\nImages/Javier Hirschfeld)\n\nFiddling with autoplay settings and switching from high definition to a lower\nresolution when it\u2019s not necessary can also make a difference. Hazas says the\nmost efficient way to see your favourite programme is by waiting for it to be\non terrestrial TV, or choosing to stream it over wi-fi rather than on a mobile\nnetwork can also make a difference.\n\n\u201cUsing a phone over a mobile network is at least twice as energy intensive\nthan using it over wi-fi, so if you can wait until you get home to watch\nYouTube that\u2019s best,\u201d he adds. And, one of the most enjoyable ways to be more\nenvironmentally friendly is to watch films and TV together.\n\n\u201cOn the whole, audio is less problematic,\u201d says Hazas, as streaming audio is\nless energy and carbon intensive than streaming images. But researchers at the\nUniversity of Oslo found that environmental impact of listening to music has [\nnever been higher\n](https://www.gla.ac.uk/news/archiveofnews/2019/april/headline_643297_en.html)\n, with a footprint of 200,000-350,000 tonnes of CO2e in the US alone for\ndownloading tracks onto MP3 players. It\u2019s thought emissions for streaming\nservices may be even higher.\n\nHowever, the number of times you listen to a piece of music can make a\ndifference. Buying a physical CD or record can be better if you listen to the\nsame album repeatedly, but if you only listen to a piece of [ music less than\n27 times over your lifetime ](https://www.bbc.com/future/article/20190207-why-\nstreaming-music-may-be-bad-for-climate-change) , then streaming can be better.\n( _Read more about_ [ _the carbon footprint of streaming music_\n](https://www.bbc.com/future/article/20190207-why-streaming-music-may-be-bad-\nfor-climate-change) _._ )\n\nSimilarly, the environmental cost of downloading video games is thought to be\n[ higher ](https://onlinelibrary.wiley.com/doi/abs/10.1111/jiec.12181) than\nproducing and distributing Blu-Ray disks from shops. The first attempt to map\nthe energy use of gaming in the US found it produces [ 24 megatonnes\n](https://link.springer.com/article/10.1007%2Fs40869-019-00084-2) of carbon\ndioxide a year. Researchers behind the study at the University of California\nfound US gamers use 2.4% of their household electricity \u2013 32 terawatt hours of\nenergy every year \u2013 which is more than freezers or washing machines. They also\nshowed that streaming games uses more energy, so gaming carbon emissions may\nworsen as more people adopt games where the computational work is being done\nremotely rather than on individual consoles, such as with devices like\nGoogle\u2019s Stadia.\n\nGetty Images/Javier Hirschfeld\n\nReading news or books online produces less greenhouse gases than the same\ncontent on paper (Credit: Getty Images/Javier Hirschfeld)\n\nBut Hazas is more optimistic. \"The carbon footprint of playing multiplayer\ngames like Fortnite isn\u2019t too bad,\u201d he says. \u201cThey are designed to be\nresponsive so they don\u2019t require too much data traffic. For example, you get a\nposition of a character on a map, or the fact someone\u2019s shooting, but it\ndoesn\u2019t take too much data to communicate that.\u201d\n\nHowever, updating games is more carbon intensive. \u201cFlagship games like\nFortnite or Call of Duty require lots of updates so you're looking at\ngigabytes every couple of weeks for downloads, which add new features.\"\n\nFor those who enjoy flicking through their social media, there is some good\nnews. It is arguably the least carbon intensive form of digital entertainment.\nAccording to Facebook\u2019s [ sustainability report\n](https://sustainability.fb.com/) , a user\u2019s annual carbon footprint is 299g\nCO2e, which is less than boiling the water for a pot of tea. But if you\nconsider the platform has more than one billion users, that\u2019s a lot of pots of\ntea.\n\nIt\u2019s possible to save carbon by disabling some features for social media and\nother apps.\n\n\u201cWe've found that app updates and automatic cloud backups are about 10% of\ntraffic from mobile phones,\u201d says Hazas. \u201cSo, switching off unnecessary cloud\nbackups and switching off automatic downloads for app updates are good things\nto do.\u201d\n\nBut while changes in our personal online behaviour will only take us so far,\nthere also needs to be change within the industry to ensure that carbon\nemissions can be reduced, says Elizabeth Jardim, a senior corporate campaigner\nat environmental campaign group Greenpeace. The IT industry\u2019s greenhouse gas\nemissions are predicted to [ reach 14% of global emissions by 2040\n](https://www.sciencedirect.com/science/article/pii/S095965261733233X?via%3Dihub)\nbut at the same time the UN's International Telecommunication's Union has set\nthe industry the target of [ reducing its emissions by 45%\n](https://www.itu.int/en/mediacentre/Pages/PR04-2020-ICT-industry-to-reduce-\ngreenhouse-gas-emissions-by-45-percent-by-2030.aspx) over the next decade.\n\n\u201cIt\u2019s more important to make sure the companies building the internet are\nswitching to renewable and phasing out fossil fuels,\u201d says Jardim. \u201cThat's\nwhen searching will be more guilt free.\u201d\n\n_* An earlier version of this article incorrectly stated that each internet\nuser was responsible for 400g of carbon dioxide annually. The figure should\nhave been 414kg of CO2 and the article has been updated._\n\n\\--\n\n**Smart Guide to Climate Change**\n\nFor most BBC Future readers, the question of whether climate change is\nhappening is no longer something that needs to be asked. Instead, there is now\ngrowing concern about what each of us as individuals can do about it. This new\nseries, our \" [ Smart Guide to Climate Change\n](https://www.bbc.com/future/smart-guide-to-climate-change) \", uses scientific\nresearch and data to break down the most effective strategies each of us can\ntake to shrink our carbon footprint.\n\n**\\--**\n\n_Join one million Future fans by liking us on_ [ **_Facebook_ **\n](https://www.facebook.com/BBCFuture/) _, or follow us on_ [ **_Twitter_ **\n](https://twitter.com/BBC_Future) _or_ _**** _ [ **_Instagram_ **\n](https://www.instagram.com/bbcfuture_official/) _._\n\n_If you liked this story,_ [ **_sign up for the weekly bbc.com features\nnewsletter_ **\n](http://pages.emails.bbc.com/subscribe/?ocid=fut.bbc.email.we.email-signup)\n_, called \u201cThe Essential List\u201d. A handpicked selection of stories from BBC\nFuture, Culture, Worklife, and Travel, delivered to your inbox every Friday._\n\n[ Climate change ](/future/tags/climatechange)\n\n[ Smart Guide to Climate Change ](/future/tags/smart-guide-to-climate-change)\n\n[ Digital ](/future/tags/digital)\n\n[ Environment ](/future/tags/environment)\n\n* * *\n\n[ ](/)\n\n##  Follow BBC on:\n\nCopyright 2025 BBC. All rights reserved. __ The _BBC_ is _not responsible for\nthe content of external sites._ [ **Read about our approach to external\nlinking.** ](https://www.bbc.co.uk/editorialguidelines/guidance/feeds-and-\nlinks)\n\n",
                "url": "https://www.bbc.com/future/article/20200305-why-your-internet-habits-are-not-as-clean-as-you-think"
            },
            "reason": "BBC Future is a reputable source for in-depth articles on various topics, including the environmental impact of internet usage. It does not explicitly mention the target company.",
            "reliability_score": 0.9,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "BBC Future is a reputable source for in-depth articles on various topics, including the environmental impact of internet usage.",
            "url": "https://www.bbc.com/future/article/20200305-why-your-internet-habits-are-not-as-clean-as-you-think"
        },
        {
            "content": {
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                    "resource_location": "web",
                    "resource_type": "webpage",
                    "source": "https://pmc.ncbi.nlm.nih.gov/articles/PMC4953604/"
                },
                "page_content": "Skip to main content\n\n**Official websites use .gov**  \nA **.gov** website belongs to an official government organization in the\nUnited States.\n\n**Secure .gov websites use HTTPS**  \nA **lock** (  ) or **https://** means you've safely connected to the .gov\nwebsite. Share sensitive information only on official, secure websites.\n\n[ ](/ \"Home\")\n\n  * [ Advanced Search ](https://www.ncbi.nlm.nih.gov/pmc/advanced/)\n  * [ Journal List ](/journals/)\n  * [ User Guide ](/about/userguide/)\n\n  *   * [ ](https://doi.org/10.7861/clinmedicine.9-3-212 \"View on publisher site\")\n  * [ ](pdf/212.pdf \"Download PDF\")\n  *   *   * ##  PERMALINK \n\nAs a library, NLM provides access to scientific literature. Inclusion in an\nNLM database does not imply endorsement of, or agreement with, the contents by\nNLM or the National Institutes of Health.  \nLearn more: [ PMC Disclaimer ](/about/disclaimer/) | [ PMC Copyright Notice ](/about/copyright/)\n\n. 2009 Jun;9(3):212\u2013213. doi: [ 10.7861/clinmedicine.9-3-212\n](https://doi.org/10.7861/clinmedicine.9-3-212)\n\n#  The health co-benefits of climate change policies: doctors have a\nresponsibility to future generations\n\n[ Ian Roberts\n](https://pubmed.ncbi.nlm.nih.gov/?term=%22Roberts%20I%22%5BAuthor%5D)\n\n###  Ian Roberts\n\n1  London School of Hygiene and Tropical Medicine, London\n\nProfessor of Epidemiology and Public Health\n\nFind articles by [ Ian Roberts\n](https://pubmed.ncbi.nlm.nih.gov/?term=%22Roberts%20I%22%5BAuthor%5D)\n\n1,  \u2709\n\n  *   * \n\n1  London School of Hygiene and Tropical Medicine, London\n\n\u2709\n\nAddress for correspondence: Professor I Roberts, London School of Hygiene and\nTropical Medicine, Keppel Street, London WC1E 7HT. Email:\nian.roberts@lshtm.ac.uk\n\n####  Roles\n\n** Ian Roberts  ** :  Professor of Epidemiology and Public Health\n\n\u00a9 2009 Royal College of Physicians\n\n[ PMC Copyright notice ](/about/copyright/)\n\nPMCID: PMC4953604 PMID: [ 19634380\n](https://pubmed.ncbi.nlm.nih.gov/19634380/)\n\n##  Abstract\n\nMitigating climate change presents unrivalled opportunities for improving\npublic health. The policies that need to be implemented to reduce greenhouse\ngas emissions will also bring about substantial reductions in heart disease,\ncancer, obesity, diabetes, road deaths and injuries, and air pollution. The\nhealth benefits arise because climate change policies necessarily impact on\ntwo of the most important determinants of health: human nutrition and human\nmovement. Although the health co-benefits of climate change policies are\nincreasingly recognised by health professionals they are not widely\nappreciated by those responsible for policy. Because the existence of\nimportant health co-benefits will dramatically reduce the cost to society of\ntaking strong action to mitigate climate change, failure to appreciate their\nimportance could have serious environmental consequences. Health professionals\nhave an urgent responsibility to ensure that the health benefits of\nenvironmental policies are understood by the public and by policymakers.\n\n**Key Words:** air pollution, cancer, climate change, road traffic accidents,\ntransport\n\n* * *\n\nFood production is a significant contributor to anthropogenic climate change,\nestimated to account for one fifth of global greenhouse gas emissions.  1\nLivestock rearing for meat and milk is a particularly important source of\nemissions. One third of the world's land surface is used for livestock\nproduction, either to provide pasture for grazing or to grow grains for cattle\nfeed.  1  Providing grazing land leads to deforestation and grain production\nrequires the use of energy intensive nitrogenous fertilisers. Methane released\nfrom animal manure and from enteric fermentation is a particularly powerful\ngreenhouse gas.\n\nGlobal average meat consumption is currently about 100 g per person per day,\nranging from 25 g per person in low income countries to 250 g per person in\nhigh income countries. Population and economic growth in poor countries is\nincreasing the global demand for meat and milk particularly in East and South\nAsia and in Latin America. This will further increase the carbon footprint of\nlivestock production and by diverting agricultural production away from food\ncrops towards livestock feed will have serious impacts on the poor due to\ncereal price rises. Reducing meat consumption in high income countries is\nessential to allow increased consumption in poor countries without devastating\nenvironmental and equity impacts.  1\n\nReducing the consumption of animal products would help stabilise the climate\nbut also, by reducing the amount of saturated fat and meat in the diet, would\nreduce the incidence of cardiovascular disease and bowel cancer. Reducing the\ntotal quantity of food energy consumed by affluent populations, particularly\nthe consumption of the more carbon intensive fats and refined sugars, would\nalso have environmental effects while reducing the prevalence of obesity and\ndiabetes, both of which are now major health concerns.  2\n\nTransport accounts for about 14% of global greenhouse gas emissions and three\nquarters of these emissions are from road traffic.  3  Transport is the\nfastest growing source of greenhouse gas emissions and current trends are\nclearly unsustainable. A rapid transition to a low carbon transportation\nsystem involving increased levels of walking and cycling is essential to avert\nclimate change and would have major health co-benefits.  3\n\nRoad traffic injuries are a major cause of mortality among young adults in the\nUK and worldwide they account for 1.2 million deaths each year. Pedestrian\ninjury is the leading cause of death in children in the UK and the speed and\nvolume of motor vehicle traffic is the main determinant of injury risk. The\nincidence of road traffic injuries is a function of fossil fuel energy use by\nthe transportation sector. Roads are rivers of kinetic energy, the energy\nbeing derived from the burning of fossil fuels which leads to the carbon\ndioxide emissions responsible for climate change.\n\nReplacing urban car use by walking, cycling and public transport would reduce\nfossil fuel energy use, mitigating climate change but also reducing road\ntraffic injuries and air pollution. It has been estimated that had\ntransportation fossil fuel consumption in the USA been cut by 7% in 1990 (the\nreduction that would have been required under the Kyoto Protocol assuming the\nsame proportional reduction across all sectors) there would have been 80,000\nfewer US road deaths between 1990 and 2003.  4  Because there are steep social\nclass gradients in death rates for pedestrians, reducing motor vehicle traffic\nvolumes and speeds would also have important equity implications. Increased\nwalking and cycling by increasing physical activity would tackle the output\nside of the personal energy balance equation, again reducing the prevalence of\nobesity and reducing cancer incidence.\n\nWorldwide, urban air pollution, much of which is transport related, causes a\nfurther 800,000 premature deaths each year. Yet again reducing traffic volumes\nto avert climate change will have health co-benefits. The introduction of a\ncongestion charge in only a small part of central London lead to modest\nreductions in levels of NO  2  and PM  10  across the Greater London region\nwith corresponding increases in life expectancy.  5\n\nAlthough the health co-benefits of policies to reduce greenhouse gas emissions\nare increasingly recognised by health professionals they are not widely\nappreciated by those responsible for climate change policy.  6  Because health\nco-benefits have the potential to reduce the cost to society of climate change\npolicies it is essential to quantify their extent and to tailor climate change\npolicies in order to maximise them. Health professionals have a responsibility\nto future generations to ensure that the health benefits of environmental\npolicies are recognised, quantified, and that this information is disseminated\nto patients, to the public and to policymakers. Failure to do so would be a\nserious neglect of our collective responsibility.\n\n##  Reference\n\n  * 1\\.  McMichael AJ, Powles JW, Butler CD, Uauy R. Food, livestock production, energy, climate change, and health. Lancet 2007; 370:1253\u201363. 10.1016/S0140-6736(07)61256-2  [ [ DOI ](https://doi.org/10.1016/S0140-6736\\(07\\)61256-2) ] [ [ PubMed ](https://pubmed.ncbi.nlm.nih.gov/17868818/) ] [ [ Google Scholar ](https://scholar.google.com/scholar_lookup?journal=Lancet&title=Food,%20livestock%20production,%20energy,%20climate%20change,%20and%20health&author=AJ%20McMichael&author=JW%20Powles&author=CD%20Butler&author=R%20Uauy&volume=370&publication_year=2007&pages=1253-63&pmid=17868818&doi=10.1016/S0140-6736\\(07\\)61256-2&) ] \n  * 2\\.  Roberts I. Comment and analysis: say no to global guzzling. New Scientist 2007; 309:21.  [ [ Google Scholar ](https://scholar.google.com/scholar_lookup?journal=New%20Scientist&title=Comment%20and%20analysis:%20say%20no%20to%20global%20guzzling&author=I%20Roberts&volume=309&publication_year=2007&pages=21&) ] \n  * 3\\.  Woodcock J, Banister D, Edwards P, Prentice AM, Roberts I. Energy and transport. Lancet 2007; 370:1078\u201388. 10.1016/S0140-6736(07)61254-9  [ [ DOI ](https://doi.org/10.1016/S0140-6736\\(07\\)61254-9) ] [ [ PubMed ](https://pubmed.ncbi.nlm.nih.gov/17868817/) ] [ [ Google Scholar ](https://scholar.google.com/scholar_lookup?journal=Lancet&title=Energy%20and%20transport&author=J%20Woodcock&author=D%20Banister&author=P%20Edwards&author=AM%20Prentice&author=I%20Roberts&volume=370&publication_year=2007&pages=1078-88&pmid=17868817&doi=10.1016/S0140-6736\\(07\\)61254-9&) ] \n  * 4\\.  Roberts I, Arnold E. Policy at the crossroads: climate change and injury control. Inj Prev 2007; 13:222\u20133. 10.1136/ip.2007.016055  [ [ DOI ](https://doi.org/10.1136/ip.2007.016055) ] [ [ PMC free article ](/articles/PMC2598336/) ] [ [ PubMed ](https://pubmed.ncbi.nlm.nih.gov/17686928/) ] [ [ Google Scholar ](https://scholar.google.com/scholar_lookup?journal=Inj%20Prev&title=Policy%20at%20the%20crossroads:%20climate%20change%20and%20injury%20control&author=I%20Roberts&author=E%20Arnold&volume=13&publication_year=2007&pages=222-3&pmid=17686928&doi=10.1136/ip.2007.016055&) ] \n  * 5\\.  Tonne C, Beevers S, Armstrong B, Kelly F, Wilkinson P. Air pollution and mortality benefits of the London Congestion Change: spatial and socioeconomic inequalities. Occup Environ Med 2008; 65:620\u20137.  [ [ DOI ](https://doi.org/10.1136/oem.2007.036533) ] [ [ PubMed ](https://pubmed.ncbi.nlm.nih.gov/18308748/) ] [ [ Google Scholar ](https://scholar.google.com/scholar_lookup?journal=Occup%20Environ%20Med&title=Air%20pollution%20and%20mortality%20benefits%20of%20the%20London%20Congestion%20Change:%20spatial%20and%20socioeconomic%20inequalities&author=C%20Tonne&author=S%20Beevers&author=B%20Armstrong&author=F%20Kelly&author=P%20Wilkinson&volume=65&publication_year=2008&pages=620-7&pmid=18308748&doi=10.1136/oem.2007.036533&) ] \n  * 6\\.  Stern N. The economics of climate change: the Stern review. Cambridge: Cambridge University Press, 2007 10.1126/science.1142920  [ [ DOI ](https://doi.org/10.1126/science.1142920) ] [ [ Google Scholar ](https://scholar.google.com/scholar_lookup?title=The%20economics%20of%20climate%20change:%20the%20Stern%20review&author=N%20Stern&publication_year=2007&) ] \n\n* * *\n\nArticles from Clinical Medicine are provided here courtesy of **Royal College\nof Physicians**\n\n##  ACTIONS\n\n  * [ View on publisher site  ](https://doi.org/10.7861/clinmedicine.9-3-212)\n  * [ PDF (598.1 KB)  ](pdf/212.pdf)\n  *   *   * ##  PERMALINK \n\n##  RESOURCES\n\n###\n\n###\n\n###\n\n##  Cite\n\n  *   * Download .nbib  .nbib \n  * \n\n##  Add to Collections\n\nFollow NCBI\n\n[ NCBI on X (formerly known as Twitter)  ](https://twitter.com/ncbi) [ NCBI on\nFacebook  ](https://www.facebook.com/ncbi.nlm) [ NCBI on LinkedIn\n](https://www.linkedin.com/company/ncbinlm) [ NCBI on GitHub\n](https://github.com/ncbi) [ NCBI RSS feed\n](https://ncbiinsights.ncbi.nlm.nih.gov/)\n\nConnect with NLM\n\n[ NLM on X (formerly known as Twitter)  ](https://twitter.com/nlm_nih) [ NLM\non Facebook  ](https://www.facebook.com/nationallibraryofmedicine) [ NLM on\nYouTube  ](https://www.youtube.com/user/NLMNIH)\n\n[ National Library of Medicine  \n8600 Rockville Pike  \nBethesda, MD 20894\n](https://www.google.com/maps/place/8600+Rockville+Pike,+Bethesda,+MD+20894/%4038.9959508,\n\n            -77.101021,17z/data%3D!3m1!4b1!4m5!3m4!1s0x89b7c95e25765ddb%3A0x19156f88b27635b8!8m2!3d38.9959508!\n            4d-77.0988323)\n\n  * [ Web Policies ](https://www.nlm.nih.gov/web_policies.html)\n  * [ FOIA ](https://www.nih.gov/institutes-nih/nih-office-director/office-communications-public-liaison/freedom-information-act-office)\n  * [ HHS Vulnerability Disclosure ](https://www.hhs.gov/vulnerability-disclosure-policy/index.html)\n\n  * [ Help ](https://support.nlm.nih.gov/)\n  * [ Accessibility ](https://www.nlm.nih.gov/accessibility.html)\n  * [ Careers ](https://www.nlm.nih.gov/careers/careers.html)\n\n  * [ NLM ](https://www.nlm.nih.gov/)\n  * [ NIH ](https://www.nih.gov/)\n  * [ HHS ](https://www.hhs.gov/)\n  * [ USA.gov ](https://www.usa.gov/)\n\n",
                "url": "https://pmc.ncbi.nlm.nih.gov/articles/PMC4953604/"
            },
            "reason": "PMC (PubMed Central) is a free archive of biomedical and life sciences literature. Articles are generally peer-reviewed, making it a reliable source. It does not explicitly mention the target company.",
            "reliability_score": 0.8,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "PMC (PubMed Central) is a free archive of biomedical and life sciences literature.",
            "url": "https://pmc.ncbi.nlm.nih.gov/articles/PMC4953604/"
        },
        {
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                    "resource_type": "webpage",
                    "source": "https://sustainability.lilly.com/environmental/climate"
                },
                "page_content": "Enable JavaScript and cookies to continue\n\n",
                "url": "https://sustainability.lilly.com/environmental/climate"
            },
            "reason": "This is Eli Lilly's sustainability page, detailing their climate initiatives. It's a primary source for their own activities, but may present a biased view. It does not explicitly mention the target company.",
            "reliability_score": 0.6,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "This is Eli Lilly's sustainability page, detailing their climate initiatives.",
            "url": "https://sustainability.lilly.com/environmental/climate"
        },
        {
            "content": {
                "metadata": {
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                    "resource_location": "web",
                    "resource_type": "webpage",
                    "source": "https://www.cdp.net/en"
                },
                "page_content": "CDP pioneered climate disclosure at the turn of the millennium. Founded in the\nknowledge that **transparency drives action** , CDP convinced 35 forward-\nlooking investors to make a simple request to companies: disclose your\nemissions data so we can make smarter decisions.\n\nNow with **the world\u2019s largest, most comprehensive dataset on environmental\naction** , the insights that CDP holds empower investors, companies, cities,\nand national and regional governments **to make Earth-positive decisions** .\n\nIt\u2019s time to create **a world where people, planet and profit are truly\nbalanced** . Transparent disclosure holds the key and, now, CDP\u2019s role is more\nimportant than ever. So, we are stepping up our efforts to collect the data\nneeded to **surface new information** , enabling you to make Earth-positive\ndecisions to protect future generations.\n\n##  CDP's 25  th  Year\n\n25 years since CDP pioneered disclosure, seeing the change catalyzed by data\nfirst-hand, the number of investors backing CDP\u2019s annual request has ballooned\nto more than 700, representing **a quarter of all global institutional\nfinancial assets** .\n\nNow, companies representing **two-thirds of global market capitalization \u2013\nfrom 130 countries \u2013 disclose critical environmental data through CDP** .\nWithin two years **** of an investor request, **companies disclosing through\nCDP reduce their direct emissions by 7-10%** .\n\nHowever, compounding crises have left us at a crossroads. Awareness has\naccelerated, but emissions are still rising and nature is disappearing. Costs\nto the Earth will also cost us our economy. We already face US$38 trillion in\ndamages a year by 2050, [ with incomes to decline by almost 20%\n](https://www.pik-potsdam.de/en/news/latest-news/38-trillion-dollars-in-\ndamages-each-year-world-economy-already-committed-to-income-reduction-\nof-19-due-to-climate-change  ) .\n\n[ Why Disclose?  ](/en/disclose/why-disclose) [ Why use data?  ](/en/data)\n\n##  CDP highlights\n\n###  Scores and A Lists\n\nA record 22,700+ companies were scored by CDP in 2024, assessing their\ntransparency and action as they work to integrate Earth-positive decisions and\nbuild more resilient business models.\n\n[ Learn more  ](/en/data/scores)\n\n###  Disclosure 2025\n\nTransparent disclosure. Actionable insights. Real impact. It\u2019s time to create\na world where people, planet and profit are truly balanced.\n\n[ Learn More  ](/en/disclosure-2025)\n\n###  Corporate Health Check 2025\n\nOur new annual report, in partnership with Oliver Wyman, quantifies how\neffectively large corporations are integrating Earth-positive decisions into\ntheir business models.\n\n[ Explore  ](https://www.cdp.net/en/insights/cdp-2025-corporate-health-check)\n\n###  Explore CDP's Insights\n\n\u00a9 2025 CDP Worldwide\n\nRegistered Charity no. 1122330\n\nVAT registration no: 923257921\n\nA company limited by guarantee registered in England no. 05013650\n\nCDP is [ Cyber Essentials Certified \u2013 click here to view certificate\n](https://assets.ctfassets.net/v7uy4j80khf8/alSF8auPseLDJzWgbaoEU/26bf3e7847c8ac2f89b013db1d70380c/Cyber_Essentials_Plus_Certificate_Feb_2025.pdf)\n.\n\n[ LinkedIn  ](https://uk.linkedin.com/company/cdp-worldwide) [ X\n](https://x.com/CDP) [ YouTube\n](https://www.youtube.com/channel/UCriW4gZMiuZsq51iLSRXdTQ)\n\n",
                "url": "https://www.cdp.net/en"
            },
            "reason": "CDP (Carbon Disclosure Project) is a well-known organization for environmental disclosure. Their website is a reliable source for climate-related data and reports. It does not explicitly mention the target company.",
            "reliability_score": 0.8,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "CDP (Carbon Disclosure Project) is a well-known organization for environmental disclosure.",
            "url": "https://www.cdp.net/en"
        },
        {
            "content": {
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                    "source": "https://cdp.net/en/insights/cdp-2023-disclosure-data-factsheet"
                },
                "page_content": "On this page\n\n  * State and trends of disclosure in 2023 \n  * Coverage of regions and key market indices \n  * Environmental performance \n  * Spotlight: energy \n  * Environmental risks and opportunities \n  * Spotlight: financial institution disclosures \n  * Footnotes \n\nReport\n\n#  Disclosure Data Factsheet 2023\n\nIn 2023, 23,000+ companies \u2013 representing a staggering US$67 trillion in\nmarket capitalization \u2013 disclosed their environmental performance data to CDP.\nThis factsheet presents an overview of the key findings and emerging trends\nfrom this data, showcasing CDP's expanding coverage and growth across regions,\nmarkets, and the key environmental themes of climate change, forests, water\nsecurity, biodiversity, and now, plastics.\n\nWith the number of companies disclosing environmental information growing\nannually, CDP's role as an accountability mechanism is strengthened. This\nfactsheet uses the wealth of data that CDP holds to provide transparency and\ninsight into the evolving landscape of environmental disclosures.\n\n##  State and trends of disclosure in 2023\n\n###  Disclosure beyond climate\n\n56% of disclosing companies are providing environmental performance\ninformation on nature-related issues beyond climate, indicating a growing\nrecognition that providing disclosure on climate alone is not enough.\n\n####  Key messages\n\n  * **In 2023, disclosure numbers rose by 24%** from the 18,700+ companies that disclosed through CDP in 2022 \u2013 and marked an over 140% increase from disclosure in 2020. \n\n  * **~ 8,000 companies started their journey** by disclosing for the first time. \n\n  * **A growing number of companies are providing nature-related disclosures beyond climate** , indicating a rise in awareness that companies have impacts and dependencies on nature, with resulting risks and opportunities. While this is positive progress, it needs to be matched by firm action to manage nature-related impacts, risks and opportunities across value chains. \n\n##  Coverage of regions and key market indices\n\n###  Coverage by region\n\nCDP corporate disclosers are based in approximately 130 countries across the\nworld. Each region has experienced a notable increase in the number of\ncompanies disclosing.\n\n###  Coverage of indices\n\nCompanies in key market indices across the globe are disclosing environmental\ndata to CDP.\n\n**Market Index** |  **Climate change coverage** |  **Forests coverage** |  **Water security coverage**  \n---|---|---|---  \nS&P 500  |  86%  |  14%  |  41%   \nFTSE 100  |  94%  |  28%  |  43%   \nMSCI ACWI  |  61%  |  9%  |  28%   \nMSCI Small Cap  |  40%  |  5%  |  14%   \nTOPIX 500  |  88%  |  15%  |  53%   \nFTSE Eurofirst 300  |  91%  |  21%  |  41%   \nSouth Africa - FTSE JSE All-Share  |  57%  |  9%  |  30%   \nBSE 200  |  40%  |  3%  |  21%   \nS&P TSX 60  |  78%  |  20%  |  30%   \nKOSPI 200  |  54%  |  1%  |  16%   \nHang Seng  |  54%  |  4%  |  29%   \nCSI 300  |  18%  |  1%  |  7%   \nS&P/ASX 300  |  27%  |  3%  |  7%   \n  \n####  Key messages\n\n  * **Environmental disclosure is becoming a global market norm** , as seen by the increase in disclosures across all regions and the coverage of market indices across developed and emerging markets. \n\n  * With many disclosing companies operating in regions anticipating mandatory disclosure, **voluntary disclosure through CDP allows them to gain a competitive edge** and positions them ahead of the trend. \n\n##  Environmental performance \u2013 water, forests, emissions\n\n###  Water withdrawal reduction\n\n  * 30% of all disclosers (1,458 out of 4,815) are setting water withdrawal reduction targets \u2013 a dramatic increase from 14.6% in 2022. The number of companies setting targets relating to pollution and the provision of safe water, sanitation and hygiene (WASH) has also increased, indicating a surge in ambition and action in these important areas. \n\n  * About half of the 223 companies that have disclosed consistently on water between 2015 and 2023 have reduced their water withdrawals. 70,134 million cubic meters of water have been saved by 120 companies, equivalent to 10 times the size of Loch Ness in Scotland. \n\n###  Progress on eradicating deforestation from supply chains\n\nCompanies are demonstrating progress on eradicating deforestation from their\nsupply chains.\n\n  * About half of the 242 companies (126 companies; 52%) that have disclosed consistently on their management of deforestation between 2020 and 2023 now report that they are close to eradicating deforestation for at least one commodity they source. \n\n  * This represents a substantial 40% increase from the number of companies reporting the same in 2020 (90 companies). \n\n  * Overall, this still represents only a small group of companies \u2013 35% of all companies disclosing in 2023 claiming to be nearly deforestation-free [1] for at least one commodity (189 companies). \n\nThe slow rate of action and transition to no-deforestation is leaving\ncompanies and financial institutions exposed to risks as a resilient economy\ncannot be accomplished without progress on deforestation. In 2022, nearly four\nmillion hectares of pristine forests were destroyed, releasing 2.5 Gt CO2e \u2013\nequivalent to the annual fossil fuel emissions of India [2].\n\n###  Emissions disclosure\n\n####  Key messages\n\n  * **In the last nine years, reported reductions in water withdrawal volumes have decreased** among roughly half of the 223 companies that have disclosed consistently on water during this time. \n\n  * **While disclosure of emissions is increasingly mainstreamed** as seen in a relatively high disclosure rate of Scope 1 and 2 emissions, this is just the start, as **only 37% of companies disclosed emissions across all three scopes** . \n\n  * **In the past three years, there has been a substantial increase in the number of companies reporting they are close to eradicating deforestation** for at least one commodity (40%; 90 companies). However this still only represents a small group of companies. **The rate of action and transition to no-deforestation needs to be accelerated.**\n\n##  Spotlight: energy\n\nCDP's growing number of energy disclosures indicates that companies and\nfinancial institutions are embracing the transition to a low-carbon economy\nand are aiming for transparency. While leading companies are setting targets\nto enhance their renewable energy consumption, the majority are still lagging\nbehind in quality disclosures.\n\n###  Disclosure on energy usage\n\n  * 56% of the 23,000+ disclosers in 2023 (13,000+) disclosed how much energy they used. \n\n  * 31% of these companies (4,030) disclosed having no energy consumption from renewable sources. \n\n###  Disclosure on renewable energy targets\n\n  * Only 10% of all disclosing organizations (2,229) have set renewable energy consumption targets. \n\n  * About two-thirds of these organizations disclosed that they aim for 90-100% renewable energy consumption. Of these, 70% have a target date of 2030 or earlier. \n\n###  Renewable energy, deforestation and biodiversity\n\nWhile the transition to 100% renewable energy use is crucial to mitigate\nclimate change, the source of renewable energy used matters.\n\n  * Some forms of renewable energy could cause more issues than they would solve. For example, biofuel production can be associated with land use changes that can cancel out any emissions benefits as well as having negative impacts on biodiversity and food production. \n\n  * The use of the right kind of renewable energy sources needs to be encouraged, otherwise there is a risk of fueling the biodiversity crisis. \n\n###  The Energy-Water Nexus\n\n  * In 2023, 180 companies across the sectors critical to the energy transition \u2013 power generation, fossil fuels and metallic mineral mining \u2013 disclosed their water risks, impacts and opportunities. However, 637 companies were requested to do so. At 21%, the response rate for companies operating in the fossil fuel sector was staggeringly low, despite the critical impact this sector has on water availability and quantity. Pressures on water availability need to be carefully managed if the world wants to reach zero emissions and adapt to the impacts of extreme weather events. \n\nThe good news is that the majority of disclosing companies in these sectors\nare conducting water-related risk assessments. 80% of companies in the fossil\nfuel industry did so (compared to 62% across all reporting industries). These\nassessments are paramount, to enable companies to anticipate and mitigate\nrisks that could have substantive impacts on their operations, as well as\nsurrounding communities and ecosystems.\n\n###  Financial institution exposure to fossil fuels\n\n  * Almost 50% of the 575 financial institutions that disclosed in 2023 report holding an estimated US$9 trillion in fossil fuel financing across their portfolios \u2013 equivalent to the **combined GDP of Japan and Germany** . \n\n####  Key messages\n\n  * Most of the 13,000 companies that disclosed on their energy consumption report that they **use renewable energy in their energy mix** . \n\n  * However, 44% of the overall number of disclosing companies are **still not reporting on their energy consumption data** . In the transition to a low-carbon economy, **stakeholders \u2013 including investors \u2013 must encourage comprehensive disclosure from all companies** to improve transparency and a better understanding of corporate environmental impact and risk exposure. \n\n  * Although companies have begun embracing the transition to renewable energy, **ambition is still lacking** with only 10% of all disclosers setting targets for renewable energy consumption. \n\n  * **It is important for the renewable energy transition to rely on sources of renewable energy which do not have negative impacts on nature and climate** . For example, the use of wood-based biomass can result in an increase in deforestation and worsening of the biodiversity crisis. \n\n  * **Greater accountability on water impact disclosure is needed from the energy sector.** Investors must call for increased transparency from companies in this sector in relation to their high impact on water resources. \n\n  * **Financial institutions have a significant exposure to carbon-intensive assets across their portfolio.** They must take more ambitious steps towards phasing out fossil fuels across their portfolios to meet targets. \n\n###  Environmental risks and opportunities\n\n####  Climate-related risks and opportunities\n\nOf the total number of companies that disclosed on climate change:\n\n  * 52% of disclosing companies (11,998) reported identifying exposure to inherent climate-related risks that potentially posed substantive financial or strategic impact on their business. \n\n  * 63% of disclosing companies (14,707) identified climate-related opportunities with the potential for substantive financial or strategic impact on their business. \n\n####  Forests-related risks and opportunities\n\nOf the total number of companies that disclosed on forests:\n\n  * 65% of disclosing companies (572) identified exposure to inherent forest-related risks that potentially posed substantive financial or strategic impact on their business (for at least one commodity). \n\n  * 73% of disclosing companies (647) identified forest-related opportunities with the potential for substantive financial or strategic impact on their business (for at least one commodity). \n\n####  Water-related risks and opportunities\n\nOf the total number of companies that disclosed on water:\n\n  * 44% of disclosing companies (2,096) identified exposure to inherent water-related risks that potentially posed substantial financial or strategic impact on their business. \n\n  * 50% of disclosing companies (2,431) identified water-related opportunities with the potential for substantive financial or strategic impact on their business \n\n####  Key messages\n\n  * **Most disclosing companies identified risks and opportunities** which potentially posed substantial financial or strategic impact on their business. \n\n  * **More companies have identified opportunities than risks** , across all themes. \n\n  * **It is less costly for businesses to manage their risks** than bear the potential financial impact of these risks materializing, across all themes. \n\n##  Spotlight: financial institution disclosures\n\n###  Portfolio emissions targets\n\nIn 2023, 575 financial institutions (FIs) disclosed to the Financial Services\nquestionnaire.\n\n  * Only 37% reported having set a portfolio target \u2013 up from 29% (out of 556 institutions) in 2022. \n\n  * Meanwhile, 38% reported targets that only cover their operational emissions. \n\n  * 25% did not report any targets at all. \n\n####  Key messages\n\n  * **An increasing number of FIs are beginning to measure their portfolio impacts across themes** . The number of FIs that disclosed measuring their portfolio impact on climate rose from 66% in 2022 to 72% in 2023. \n\n  * **A significant gap remains in forest and water-related metrics** despite this increase in FIs measuring climate-related impact. Only 13% reported that they measure their portfolio impacts on either one or both themes. \n\n  * Despite notable improvements since 2022, **FIs are still falling short on the scale of action needed for robust portfolio target-setting** . There is significant ground to cover. As CDP's 2022 Financial Services Disclosure report shows, although portfolio emissions of global FIs are on average over 750x larger than their operational emissions, about 40% of them still only reported operational emissions targets, and 25% reported no targets at all. \n\n##  Footnotes\n\n1\\. 'Nearly-deforestation free' is defined as companies that:\n\n  * have comprehensive zero deforestation commitments or policies; \n\n  * have a system to control, monitor and verify compliance across their supply chain; and \n\n  * report that more than 90% of their volumes are compliant. \n\nAll analysis is based on reported volumes. Claims have not been verified by\nCDP.\n\n2\\. Source: World Resources Institute (2022) [ Forest Pulse: The Latest on the\nWorld\u2019s Forests ](https://research.wri.org/gfr/latest-analysis-deforestation-\ntrends) .\n\n\u00a9 2025 CDP Worldwide\n\nRegistered Charity no. 1122330\n\nVAT registration no: 923257921\n\nA company limited by guarantee registered in England no. 05013650\n\nCDP is [ Cyber Essentials Certified \u2013 click here to view certificate\n](https://assets.ctfassets.net/v7uy4j80khf8/alSF8auPseLDJzWgbaoEU/26bf3e7847c8ac2f89b013db1d70380c/Cyber_Essentials_Plus_Certificate_Feb_2025.pdf)\n.\n\n[ LinkedIn  ](https://uk.linkedin.com/company/cdp-worldwide) [ X\n](https://x.com/CDP) [ YouTube\n](https://www.youtube.com/channel/UCriW4gZMiuZsq51iLSRXdTQ)\n\n",
                "url": "https://cdp.net/en/insights/cdp-2023-disclosure-data-factsheet"
            },
            "reason": "This is a fact sheet from CDP (Carbon Disclosure Project). It's a reliable source for aggregated climate disclosure data. It does not explicitly mention the target company.",
            "reliability_score": 0.8,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "This is a fact sheet from CDP (Carbon Disclosure Project).",
            "url": "https://cdp.net/en/insights/cdp-2023-disclosure-data-factsheet"
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                    "source": "https://about.chubb.com/citizenship/environment.html"
                },
                "page_content": "#  Environment & Climate Change\n\nAt Chubb, we recognize our responsibility to provide solutions that help\nclients manage environmental risks, to reduce our own environmental impact and\nto make meaningful contributions to environmental causes.\n\n##  Corporate citizenship\n\nAt Chubb, good corporate citizenship lies at our core \u2014 how we practice our\ncraft of insurance, how we work together to serve our customers, how we treat\neach other, and how we work to help make a better world for our communities\nand our planet.\n\n  * **Recognizing and responding** to the reality of climate change across our businesses \n  * **Managing environmental risk** for our customers with innovative products and risk engineering solutions \n  * **Supporting environmental resiliency** projects throughout the world \n\n  * **Protecting biodiversity** and saving land through our philanthropy \n  * **Reducing the environmental footprint** of our own operations \n\n##  Chubb and climate change\n\nClimate change is a reality and its effects can be seen by an increased\nfrequency and severity of natural catastrophes. Climate change is contributing\nto higher sea surface temperatures, rising sea levels and increasing trend in\nextreme weather events, including floods, droughts, winter storms, heat waves,\nwildfires and hurricane intensity. Chubb\u2019s business involves providing clients\nwith insurance and reinsurance protection from the impact of natural\ncatastrophes, including weather events that are more frequent or severe. We\nrecognize that a changing climate affects everyone \u2014 customers, employees,\nshareholders, business partners and the communities we serve.\n\nStrategy\n\nChubb is an underwriting company, and the company strives to emphasize quality\nof underwriting rather than volume of business or market share. The company\u2019s\nunderwriting strategy is to manage risk by employing consistent, disciplined\npricing and risk selection. Underwriting discipline is at the heart of our\noperating philosophy. Chubb applies the same risk management rigor to its\nbroadly diversified fixed income portfolio as it does to the company\u2019s\nunderwriting practice. In addition, Chubb accounts for the potential impact of\ncatastrophe and climate risks on the company\u2019s own facilities and operations.\nDirect risk to Chubb\u2019s business operations exists to the extent that\nincreasingly frequent or severe weather events associated with climate change\noccur where Chubb has offices.\n\nGovernance\n\nAt Chubb, assessing and managing risk starts at the top, with senior\nmanagement. Risk management at Chubb is rigorous, with processes and\ngovernance to provide checks and balances. Chubb\u2019s global enterprise risk\nmanagement (ERM) framework \u2014 which encompasses climate risk \u2014 is embraced by\ncolleagues at all levels of the company, from the Chief Executive Officer\n(CEO) and Board of Directors, down to each business unit and function. It is\nbroadly multi\u2013disciplinary and one of its objectives is effective governance.\n\nRisk management\n\nThe potential impacts of climate change on the insurance industry are myriad\nand multivariate. These risks and opportunities fall broadly into three\ncategories: physical risks and opportunities; transition risks and\nopportunities; and liability risks and opportunities\n\n##  Policies and Reports\n\n[ Read the Chubb 2024 Sustainability Report\n](https://investors.chubb.com/Sustainability-Report-2024/ \"Read the Chubb 2024\nSustainability Report - Opens in new window\")\n\n[ Read Chubb\u2019s Corporate Climate Underwriting Criteria Summary\n](/content/dam/chubb-sites/chubb/about-\nchubb/citizenship/environment/pdf/chubb-corporate-climate-underwriting-\ncriteria-for-high-emitting-industries.pdf \"Read Chubb\u2019s Corporate Climate\nUnderwriting Criteria Summary - Opens in new window\")\n\n##  Metrics and Targets\n\nChubb measures and reports on climate risk in a number of different ways. A\nprimary objective of Chubb\u2019s environmental program is to measure, record and\nreduce greenhouse gas (GHG) emissions in the company\u2019s own operations.  \n\nAt the end of 2019, Chubb achieved the first of its two GHG emissions\nreduction goals. We reduced our GHG emissions by 22% off a 2016 baseline,\nexceeding our goal of reducing emissions 20% by 2025. As of year-end 2021,\nChubb also reached the second of its two goals by reducing our Scope 1 and\nScope 2 GHG emissions by 49% off a 2016 baseline. We accomplished this goal\nthrough a combination of real estate portfolio optimization, energy efficiency\nprojects and renewable electricity purchase.\n\n2024 GHG Emissions\n\n##  2024 GHG Emissions\n\nChubb\u2019s annual GHG inventory covers our Scope 1, Scope 2, and certain Scope 3\n(business travel) emissions. Chubb remains committed to identifying ways to\ncreate emissions reductions in the real economy and we continue to assess the\nappropriateness of setting further Scope 1 and 2 targets. Chubb seeks to avoid\nthe\n\npurchase of carbon offsets and to instead prioritize investments in\noperational efficiency and the purchase of renewable energy in every country\nwhere is it available for purchase and reasonably priced. The GHG emissions\ndata reported below covers fiscal year 2024. Chubb uses methodology based on\nthe World Resources Institute and the World Business Council for Sustainable\nDevelopment (WRI/WBCSD) GHG Protocol for data collection and analysis.\n\n##  Chubb 2024 Sustainability Report\n\nThe Chubb Corporate Environmental Program is now in its 19th year. Chubb\nremains committed to communicating important information about the company\u2019s\nenvironmental initiatives to our clients, shareholders, employees, business\npartners, the communities where we operate and others who have an interest in\nour company, our industry and the environment. Our Sustainability Report\noutlines the full scope of the company\u2019s environmental program and\ninitiatives.\n\n[ Download the report  ](https://investors.chubb.com/Sustainability-\nReport-2024/ \"Download the report - Opens in new window\")\n\n##  Environmental solutions\n\nChubb is committed to developing insurance products and risk management\nservices that facilitate market\u2013based solutions to current and pending\nenvironmental and climate-related issues. Today, Chubb is one of the largest\nand most advanced global underwriters of environmental liabilities and\npollution risk, with environmental risk units in North America, Europe, Asia\nand Latin America.\n\nOur advanced environmental insurance solutions include:\n\n  * Coverages for premises-based exposures \n  * Contractors\u2019 and project pollution liability \n  * Renewable energy \n  * Clean tech and environmental cleanup projects \n  * Green building consulting services \n  * Property policies for greener rebuilding after a loss \n\nChubb\u2019s role in mitigating supply chain and global operations risks through\nits risk engineering services helps organizations identify climate-related\nexposures and provides risk management expertise to help manage environmental\nchallenges caused by climate change.\n\n##  LEED projects\n\nChubb has implemented green building practices in many of our buildings. In a\nnumber of locations, we have pursued the U.S. Green Building Council\u2019s LEED\u00ae\n(Leadership in Energy & Environmental Design) certification. Green building\npractices help improve indoor air quality, address resource management and\nreduce building water and energy use.\n\nBoth of our largest office building locations in the U.S., Philadelphia and\nWhitehouse Station, N.J., are LEED\u2013certified Platinum and Gold, respectively.\nOur building in Bermuda is LEED\u2013certified Platinum. Many of our leased\nproperties around the world are also LEED\u2013certified, including among others\nParis (Platinum), Chicago (Gold), Quito (Silver) and New York (Silver). In\ntotal, 25 Chubb offices are in LEED\u2013certified buildings.\n\n##  Corporate Environmental Program goals\n\nThe Corporate Environmental Program has additional operational goals,\nincluding establishing a recycling program in each office and working toward\n100% adoption, globally discontinuing use of disposable plastic water bottles,\nremoving all disposable Styrofoam products, purchasing only sustainable copy\npaper, and reducing paper consumption year over year. A number of Chubb\u2019s\noffices, including some of our largest locations, have met these goals. Others\nare making progress on the journey to achieve them.\n\n##  Environmental philanthropy\n\nThe environment is a priority in Chubb\u2019s corporate philanthropy. Chubb\nsupports communities around the world in which we live and work through\nestablished philanthropic entities and company-sponsored volunteer\ninitiatives.\n\nGrants from Chubb\u2019s charitable foundations have helped preserve sensitive\nlands and habitats across the world, finance \u201cgreen\u201d business entrepreneurs,\nand support educational programs that promote a healthy and sustainable\nenvironment.\n\n[ Learn more about Chubb\u2019s environmental philanthropy\n](https://about.chubb.com/citizenship/philanthropy/environmental-\nphilanthropy.html \"Learn more about Chubb\u2019s environmental philanthropy\")\n\n##  Corporate Climate Underwriting Criteria\n\n[ Chubb\u2019s Corporate Climate Underwriting Criteria Summary\n](/content/dam/chubb-sites/chubb/about-\nchubb/citizenship/environment/pdf/chubb-corporate-climate-underwriting-\ncriteria-for-high-emitting-industries.pdf \"Chubb\u2019s Corporate Climate\nUnderwriting Criteria Summary - Opens in new window\")\n\nThrough Chubb\u2019s underwriting process, we have opportunities to promote good\nrisk management and the adoption of sound engineering practices by our\nclients. Our climate strategy seeks to deploy Chubb\u2019s fundamental areas of\nexpertise to address the high-emitting industries we insure. Our approach to\nthese industries involves conducting our own review of best practices, seeking\nguidance from non-governmental organization (NGO) partners, and engaging with\nour clients to develop perspectives on GHG emissions mitigation measures that\napply best engineering practices and relate to risk quality. As we develop\nunderwriting criteria, we will simultaneously offer our on-the-ground\nengineering expertise, working on-site with our clients to help deploy best\npractices and controls to reduce GHG emissions.\n\nWe applied this approach to the development of our underwriting criteria for\noil and gas, steel, and cement, and we are currently evaluating the potential\nevidence to support the development of criteria in other high-emitting\nindustries. We anticipate announcing criteria for additional high-emitting\nindustries over the course of 2025.\n\n##  Engaging our employees\n\nChubb has long engaged its employees in environmental efforts. Various offices\nhave had employee-led \u201cgreen teams\u201d for decades. However, in the interest of\ncoordinating globally and connecting employees across the company, on Earth\nDay 2019 we founded the Chubb Environmental Network (CEN).\n\nThe CEN is comprised of volunteer employees in offices around the world and\nacts as a resource that globally connects employees passionate about\nenvironmental sustainability. CEN\u2019s goals are to support Chubb\u2019s environmental\ngoals, set office-specific sustainability goals, and be thought leaders in\nChubb\u2019s role in responding to environmental challenges.\n\n##  Latest Stories\n\nEnvironment\n\nThe race to save a vital habitat\n\n[ Read more  ](https://about.chubb.com/stories/the-race-to-save-a-vital-\nhabitat.html \"Read more_self\")\n\nEnvironment\n\nTaking the LEED in green buildings\n\n[ Read more  ](https://about.chubb.com/stories/taking-the-leed-in-green-\nbuildings.html \"Read more_self\")\n\nEnvironment\n\nSeeds of change: Helping forests take root\n\n[ Read more  ](https://about.chubb.com/stories/seeds-of-change-helping-\nforests-take-root.html \"Read more_self\")\n\n[ ](/content/chubb-sites/chubb-com/global-about-us.html)\n\n[ United States  ](javascript:void\\(0\\))\n\n  * [ About Us ](/content/chubb-sites/chubb-com/global-about-us.html)\n    * [ Leadership ](https://about.chubb.com/who-we-are/leadership.html)\n    * [ Locations 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                "url": "https://about.chubb.com/citizenship/environment.html"
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            "reason": "This is Chubb's environmental citizenship page. It's a primary source for their own activities, but may present a biased view. It does not explicitly mention the target company.",
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            "summary": "This is Chubb's environmental citizenship page.",
            "url": "https://about.chubb.com/citizenship/environment.html"
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                    "source": "https://plana.earth/academy/what-are-scope-1-2-3-emissions"
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                "page_content": "[ Access the online course Business services Sustainability Programme 2023\n](https://plana.earth/sustainability-programmes/business-services) [ Acc\u00c3\u00a9dez\nau cours en ligne Business services Sustainability Programme 2023\n](https://plana.earth/sustainability-programmes/business-services) [\nRegistrierien sie sich f\u00c3\u00bcr das Business services Sustainability Programme\n2023  ](https://plana.earth/sustainability-programmes/business-services)\n\n* [ Home ](https://plana.earth/)\n* [ Carbon footprint ](https://plana.earth/glossary/carbon-footprint)\n* [ GHG emissions scopes and categories ](https://plana.earth/academy/ghg-emission-scopes-categories)\n\n  * [ What are Scopes 1, 2 and 3 of Carbon Emissions?  ](/academy/what-are-scope-1-2-3-emissions)\n\n#  What are Scopes 1, 2 and 3 of Carbon Emissions?\n\n\u00f0\u009f\u009b \u00ef\u00b8\u008f Cette page est en cours de traduction en Fran\u00c3\u00a7ais.\n\n\u00f0\u009f\u009b \u00ef\u00b8\u008f Diese Seite wird derzeit ins Deutsche \u00c3\u00bcbersetzt.\n\nAll you have to know, right here.\n\n[ Climate Science  ](/category/climate-science)\n\nPlease [ accept marketing-cookies ](javascript:Cookiebot.renew\\(\\)) to access\nthe audio reading feature.\n\n[ Tara Bernoville  ](/author/tara-bernoville)\n\nJune 12, 2022\n\nCarbon emissions are on the international scope. Experts have warned us for\ndecades that [ inaction will lead to drastic hunger levels\n](https://www.forbes.com/sites/deloitte/2020/01/22/reducing-environmental-\nimpact-is-now-a-business-imperative/#254579856cc6) , mass migration due to\nflooding, the collapse of financial markets and many more socio-economic\ndisasters. If businesses were anxious about COVID-19, climate change will give\nthem goosebumps. That is why leaders and executives are now increasing their\nattention to sustainability, and reviewing their mission and purpose.\nSustainability is a business imperative, and should not be considered as a\nmere component of corporate social responsibility.\n\nBusinesses must reduce their environmental impact. One of the most significant\nways to do this is by reducing their carbon footprint, and this starts with\nmonitoring carbon emissions. **Our comprehensive guide explains** [ **emission\nscopes** ](https://plana.earth/academy/ghg-emission-scopes-categories) **1, 2\n& 3 (as defined by the GHG Protocol), and how ** [ **Plan A helps companies\ncalculate their carbon footprint** ](/measure-emissions) **and achieve\nambitious decarbonisation goals.**\n\nScope 1 2 3 emissions credit: Dmitry Makeev\n\n##  Reducing carbon emissions is a business imperative\n\nRecent announcements from GAFA and other major companies show how significant\ncarbon footprints have become for businesses. Apple, for example, has\ncommitted to making its [ supply chain carbon-neutral by 2030\n](https://www.apple.com/newsroom/2020/07/apple-commits-to-be-100-percent-\ncarbon-neutral-for-its-supply-chain-and-products-by-2030/) . Nine other huge\ncompanies (inc. Starbucks, Microsoft, Unilever, Nike) are founders of\n_Transform to Net Zero_ , with the mission to [ accelerate the transition to a\nnet-zero carbon economy ](https://transformtonetzero.org/) .\n\nThe fact is, [ carbon emissions are responsible for 81% of overall GHG\nemissions ](https://www.epa.gov/ghgemissions/overview-greenhouse-gases) , and\nbusinesses are responsible for a lot of it. The rest of GHG emissions are:\n**methane** (10%), **nitrous oxide** (7%) and **fluorinated gases** (3%).\nBusinesses must monitor and report their CO  2  emissions, which is the key\nfirst step in reducing them. To do so, **companies must classify their** [\n**carbon footprint** ](/glossary/carbon-footprint) **in three scopes** .\n\n> \"Companies that persist in treating climate change solely as a corporate\n> social responsibility issue, rather than a business problem, will risk the\n> greatest consequences.\"\n\nMichael E. Porter and Forest L. Reinhardt\n\n\u00e2\u0080\u008d\n\n\u00e2\u0080\u008d\n\n##  Explained: Scope 1, 2 & 3 emissions\n\nAccording to the leading [ GHG Protocol corporate standard\n](https://ghgprotocol.org/sites/default/files/standards_supporting/FAQ.pdf) ,\na company's greenhouse gas emissions are classified into **three scopes** .\nScope 1 and 2 are mandatory to report, whereas scope 3 is voluntary in some\ncases and is the hardest to monitor. However, **companies succeeding in\nreporting all three scopes (for example by** [ **leveraging carbon accounting\nsoftware** ](/academy/best-carbon-accounting-software-2023) **) will gain a\nsustainable competitive advantage** .\n\nScheme 1,2,3 scope emissions Credit: Plan A based on GHG protocol\n\n###  Scope 1: direct emissions\n\n[ **Scope 1 emissions** ](/glossary/scope-1-emissions) **** are direct\nemissions from company-owned and controlled resources. In other words,\nemissions are released into the atmosphere as a direct result of a set of\nactivities, at a firm level. It is divided into four categories: stationary\ncombustion (e.g fuels, heating sources). All fuels that produce GHG emissions\nmust be included in scope 1.\u00c2\n\nThen, **mobile combustion** is all vehicles owned or controlled by a firm,\nburning fuel (e.g. cars, vans, trucks). The increasing use of \u00e2\u0080\u009celectric\u00e2\u0080\u009d\nvehicles (EVs), means that some of the organisation fleets could fall into\nScope 2 emissions.\n\nScope 1 emissions - Transportation  \nCredit: Rodrigo Abreu\n\n**Fugitive emissions** are leaks from greenhouse gases (e.g. refrigeration,\nair conditioning units). It is important to note that refrigerant gases are a\nthousand times more dangerous than CO  2  emissions. Companies are encouraged\nto report these emissions.\n\n**Process emissions** are released during industrial processes, and on-site\nmanufacturing (e.g. production of CO  2  during cement manufacturing, factory\nfumes, chemicals).\n\nScope 1 emissions Credit: Torbenbrinker\n\n###  Scope 2: indirect emissions - owned\n\n[ **Scope 2 emissions** ](/glossary/scope-2-emissions) are indirect emissions\nfrom the generation of purchased energy, from a utility provider. In other\nwords, all GHG emissions released in the atmosphere, from the **consumption of\npurchased electricity, steam, heat and cooling** .\n\nScope 2 emissions credit: Norbert Nagel\n\nFor most organisations, electricity will be the unique source of scope 2\nemissions. Simply stated, [ the energy consumed falls into two scopes\n](https://ghgprotocol.org/scope_2_guidance) : Scope 2 covers the electricity\nconsumed by the end-user. Scope 3 covers the energy used by the utilities\nduring transmission and distribution (T&D losses).\n\n###  **Scope 3: indirect emissions - n** ot owned\n\n**Read this paragraph carefully as scope 3 emissions represent the holy grail\nof emissions.\u00c2**\n\n[ Scope 3 emissions ](/glossary/scope-3-emissions) are all indirect emissions\n- not included in scope 2 - that occur in the value chain of the reporting\ncompany, including both upstream and downstream emissions. In other words,\nemissions are linked to the company's operations. According to the [ GHG\nprotocol ](/glossary/greenhouse-gas-ghg-protocol) , scope 3 emissions are\nseparated into 15 categories.\n\n####  **Upstream activities**\n\nScope 3 emissions - Travel  \nCredit: Arpingstone\n\nUpstream activities fall under several categories: for many companies, [\n**business travel** **emissions** ](/glossary/scope-3-category-6) is one of\nthe most significant to report (e.g. air travel, rail, underground and light\nrail, taxis, buses and business mileage using private vehicles). Also, [\n**employee commuting** **emissions** ](/glossary/scope-3-category-7) shall be\nreported, as it results from the emissions emitted through travel to and from\nwork. It can be decreased through public transportation and home office.\u00c2\n\n[ **Waste generated** **in operations** ](/glossary/scope-3-category-5)\nrelates to waste sent to landfills and wastewater treatments. Waste disposal\nemits methane (CH  4  ) and nitrous oxide (N  2  O), which cause greater\ndamage than CO  2  emissions.\n\nScope 3 emissions \u00c2 \u00e2\u0080\u0093 Waste  \nCredit: Acabashi\n\n[ Purchased goods and services ](/glossary/scope-3-category-1) , includes all\nthe upstream ('cradle to gate') emissions from the production of goods and\nservices purchased by the company in the same year. It is useful to\ndifferentiate between purchases of production-related products (e.g,\nmaterials, components and parts) and non-production-related products (e.g,\noffice furniture, office supplies and IT support).\n\nScope 3 emissions \u00e2\u0080\u0093 Office supplies  \nCredit: Friedrich Haag\n\n[ **Transportation and distribution emissions**\n](/glossary/scope-3-category-9) occur in upstream (suppliers) and downstream\n(customers) elements of the value chain. It includes emissions from\ntransportation by land, sea and air, as well as emissions relating to third-\nparty warehousing.\n\n[ Fuel and energy-related activities\n](https://ghgprotocol.org/sites/default/files/standards_supporting/Chapter3.pdf)\ninclude emissions relating to the production of fuels and energy purchased and\nconsumed by the reporting company, in the reporting year that is not included\nin scope 1 and 2.\n\nScope 3 emissions \u00e2\u0080\u0093 Fuel Production  \nCredit: Khamkeo Vilaysing\n\n[ **Capital goods**\n](https://ghgprotocol.org/sites/default/files/standards_supporting/Chapter2.pdf)\nare final products that have an extended life and are used by the company to\nmanufacture a product, provide a service or, store, sell and deliver\nmerchandise. Examples of capital goods include buildings, vehicles, machinery.\nFor purposes of accounting for scope 3 emissions, companies should not\ndepreciate, discount, or amortise the emissions from the production of capital\ngoods over time. Instead, companies should account for the total cradle-to-\ngate emissions of purchased capital goods in the year of acquisition (GHG\nprotocol).\n\n####  **Downstream activities**\n\nScope 3 emissions - Investments  \nCredit: Sharon Mccutcheon\n\n[ **Investment** **emissions** ](/glossary/scope-3-category-15) are included\nlargely for financial institutions, but other organisations can still\nintegrate it into their reporting. According to GHG accounting, investments\nfall under 4 categories: equity investments, debt investments, project\nfinance, managed investments and client services.\n\n[ **Franchises emissions** ](/glossary/scope-3-category-14) are businesses\noperating under a licence to sell or distribute another company\u00e2\u0080\u0099s goods or\nservices within a certain location. Franchisees (e.g. companies that operate\nfranchises and pay a fee to the franchisor) should include emissions, from\noperations under their control. \u00e2\u0080\u009cFranchisees may optionally report upstream\nscope 3 emissions associated with the franchisor\u00e2\u0080\u0099s operations (i.e., the\nscope 1 and scope 2 emissions of the franchisor) in category 1 (Purchased\ngoods and services).\"\n\nScope 3 emissions \u00e2\u0080\u0093 Franchises  \nCredit: Gillfoto\n\n[ **Leased assets emissions** ](/glossary/scope-3-category-13) correspond to\nleased assets by the reporting organisation (upstream) and assets to other\norganisations (downstream). The calculation method is complex and shall be\nreported in scope 1 or 2, depending on the nature of the leased asset.\u00c2\n\n[ **Used of sold products emissions** ](/glossary/scope-3-category-11) **** is\nincluded, concerning \"in-use\" products that are sold to the consumers. It\nmeasures the emissions resulting from product usage, even if it varies\nconsiderably. For example, the use of an iPhone will take many years to equal\nthe emissions emitted during production.\n\nAt the same time, \" [ **end of life treatment emissions**\n](/glossary/scope-3-category-12) \" corresponds to products sold to consumers,\nand is reported similarly as \"waste generated during operations\". Companies\nmust assess how their products are disposed of, which can be difficult as it\nusually depends on the consumer. This encourages firms to design recyclable\nproducts that limit landfill disposal.\n\nScope 3 emissions \u00e2\u0080\u0093 End of life treatment  \nCredit: Alfonso Navarro\n\n##  Why measure all 3 scopes?\n\nThe importance of scope 3 emissions - Apple carbon footprint \u00c2  \nCredit: Apple\n\nMore often than not, **emissions along the value chain represent the biggest\nGHG impact** . For decades, companies have **missed significant opportunities\nfor improvement** . For example, Kraft Foods reported that 90% of its total\nemissions, fell under its value chain (cf. scope 3). Finally, companies must\nconduct a full GHG emission inventory - scope 1, 2 and 3 - to focus their\nefforts on reducing carbon emissions, carbon footprint and becoming carbon-\nneutral.\n\n**Reporting and reducing carbon emissions is time-consuming, challenging and\ndeserves close expertise.** [ **Plan A** ](https://plana.earth/) **offers\nunique tools to reduce your carbon emissions, per scope.** [ **Start your net-\nzero journey by scheduling a call with Plan\u00c2 A's experts.**\n](https://plana.earth/request-demo)  \n\nRead more\n\n[ ](/academy/net-zero-targets)\n\n[ Net-zero targets: From target-setting to achievement  ](/academy/net-zero-\ntargets) [ Climate Science  ](/category/climate-science)\n\n[ ](/academy/dual-reporting)\n\n[ Navigating dual reporting for Scope 2 emissions: Location vs market\n](/academy/dual-reporting) [ Climate Science  ](/category/climate-science)\n\n[ ](/academy/climate-risk)\n\n[ What is climate risk, and how can companies manage it?  ](/academy/climate-\nrisk) [ Climate Science  ](/category/climate-science)\n\nNo items found.\n\nOur sustainability experts\n\n##  Get your company on the path to net-zero\n\nOur sustainability experts will find the right solution for you.\n\n[ Schedule a call  ](/request-demo)\n\n[ ](/)\n\nProduct\n\n[ Product overview ](/product) [ Collect data ](/collect-data) [ Measure\nemissions ](/measure-emissions) [ Report on ESG ](/report-sustainability) [\nSet targets ](/set-decarbonisation-targets) [ Emissions reduction ](/reduce-\ncarbon-footprint)\n\nSolutions\n\n[ Offerings ](/offerings) [ Software & IT ](/industries/software-and-it) [\nBusiness services ](/industries/business-services) [ Fleet management\n](/industries/fleet) [ Media ](/industries/media) [ Fashion & apparel\n](/industries/fashion-apparel)\n\nAbout us\n\n[ Mission ](/about) [ Careers ](/careers) [ Press ](/press) [ Sustainability\nInitiative ](/sustainability-initiative)\n\nResources\n\n[ Academy ](/academy) [ Whitepaper centre ](/whitepaper) [ Regulation centre\n](/policy-centre) [ Online courses ](/online-courses) [ Carbon scanner\n](/carbon-scanner-en) [ Corporate sustainability glossary ](/glossary) [\nEvents hub ](/events-hub) [ Best carbon accounting software ](/academy/best-\ncarbon-accounting-software-2023) [ All articles ](/all-articles) [\nSustainability Navigator ](/sustainability-navigator)\n\nCertifications & Awards\n\n[ ](https://www.certipedia.com/quality_marks/0000081059?locale=en)\n\n[ ](https://www.bcorporation.net/en-us/find-a-b-corp/company/plan-a-earth/)\n\nOffices  \n\u00e2\u0080\u008d\n\nParis\n\nClimate House - 39 Rue du Caire, 75002 Paris  \n\nLondon\n\n86-90 Paul Street,  \nEC2A 4NE\n\nBerlin\n\nSchlesische Strasse 26,  \n10997 Berlin\n\nMunich\n\nRosental 7,  \n80331 Munich\n\n[ ](https://de.linkedin.com/company/planaearth#) [\n](https://twitter.com/planaearth?lang=en) [\n](https://www.instagram.com/planaearth/?hl=en) [\n](https://www.facebook.com/planaearth)\n\n[ Legal resources ](/terms-conditions) [ Privacy Policy ](/privacy-policy) [\nApp status ](https://plana.statuspage.io/) [ Information security ](/security)\n\nWelcome to Gaia\n\n[ READ\u00c2 THE\u00c2 TERMS\u00c2 OF\u00c2 USE ](https://plana.earth/ai-chatbot-terms-of-use)\n\nSustainability is a deep and broad ocean to navigate. Use my knowledge and\nintelligence to learn exponentially and find the right resources to make your\ncase.  \n\n",
                "url": "https://plana.earth/academy/what-are-scope-1-2-3-emissions"
            },
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            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "Plana Earth provides educational content on carbon accounting.",
            "url": "https://plana.earth/academy/what-are-scope-1-2-3-emissions"
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                    "source": "https://sustainability.equinix.com/governance/climate-risk-management/"
                },
                "page_content": "__\n\n##  The page you are looking for is not found\n\nThe page you are looking for does not exist. It may have been moved, or\nremoved altogether. Perhaps you can return back to the site's homepage and see\nif you can find what you are looking for.\n\n[ Back to homepage ](https://sustainability.equinix.com/)\n\n[ Equinix.com ](https://www.equinix.com/) | \n\n[ Terms of Use ](https://www.equinix.com/company/legal/terms/) | \n\n[ Privacy Statement ](https://www.equinix.com/company/legal/privacy/) | \n\n[ Contact Us ](mailto: Sustainability@equinix.com) | \n\nCookie Preferences\n\n\u00a9  2021  Equinix, Inc. All rights reserved.\n\n###  Change Region\n\n####  Americas\n\n  * [ Global (English)  ](/)\n\n####  Europe\n\n  * [ France (French)  ](/fr/)\n  * [ Germany (German)  ](/de/)\n\n####  Asia-Pacific\n\n  * [ Japan (Japanese)  ](/ja/)\n  * [ Korea (Korean)  ](/ko/)\n\n",
                "url": "https://sustainability.equinix.com/governance/climate-risk-management/"
            },
            "reason": "This is Equinix's page on climate risk management. It's a primary source for their own activities, but may present a biased view. It does not explicitly mention the target company.",
            "reliability_score": 0.6,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "This is Equinix's page on climate risk management.",
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                "page_content": "Skip to content\n\n##  [ CCPI 2025: Ranking and Results ](https://ccpi.org/ranking/)\n\nThe **Climate Change Performance Index** (CCPI) is an instrument to enable\ntransparency in national and international climate politics. The CCPI uses a\nstandardized framework to compare the climate performance of 63 countries and\nthe EU, which together account for over 90% of global greenhouse gas\nemissions. The climate mitigation performance is assessed in four categories:\nGHG Emissions, Renewable Energy, Energy Use and Climate Policy.\n\nWe publish a new edition of the CCPI every year at the COPs. Stay informed\nabout the CCPI and the CRI by subscribing to our mailing list, hosted by\nGermanwatch, [ here ](https://ccpi.org/contact/) .\n\n[ Download Climate Change Performance Index (CCPI) 2025 (non-commercial use\nonly)  ](https://ccpi.org/download/climate-change-performance-index-2025/)\n\n###  Winner/Loser CCPI 2025\n\n[ Detailed Ranking ](/ranking/)\n\nShare\n\n[ __ ](https://twitter.com/share?url=https%3A%2F%2Fccpi.org%2F&text=Homepage)\n[ __ ](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fccpi.org%2F)\n[ __ ](https://www.linkedin.com/sharing/share-\noffsite/?url=https%3A%2F%2Fccpi.org%2F) [ __\n](mailto:?subject=Homepage&body=https%3A%2F%2Fccpi.org%2F)\n\n[ United Kingdom _A loser last year, a winner this year. The United Kingdom\ngreatly improved its ranking in the current CCPI. The UK shut down its last\ncoal fired power plant and, while fossil fuel production continues, no new\nlicenses are being granted. The new government lifted a ban on onshore wind\nprojects and plans to invest in public transport while banning the sale of new\nfossil fuel cars in the coming years. Although the UK\u2019s climate policies are\nnot yet aligned with the 1.5\u00b0C target, the change in government has paved the\nway for more ambitious climate governance. All these factors help change its\nstatus from loser to winner._ ](/country/gbr) [ Argentina _At 59th, Argentina\nis among the lowest ranked countries and clearly a loser in this year\u2019s CCPI.\nIts newly elected government denies manmade climate change in the face of\nscientific consensus. The term \u2018climate change\u2019 has even been removed from the\ncountry\u2019s official documents. Climate policies are at risk of being reversed\nand implementation is lagging. This lack of ambition is impeding Argentina\u2019s\nprogress and the CCPI experts call on the new government to take climate\nchange seriously, ensure a just energy transition, and implement energy\nefficiency measures. Argentina\u2019s discouraging trends make it a loser in our\nrankings._ ](/country/arg)\n\n\u273d The labelled countries are the biggest producers of oil, gas, and coal\nworldwide.\n\n##  Curious how your country performs?\n\n[ Algeria ](https://ccpi.org/country/dza) | [ Argentina ](https://ccpi.org/country/arg) | [ Australia ](https://ccpi.org/country/aus) | [ Austria ](https://ccpi.org/country/aut) | [ Belarus ](https://ccpi.org/country/blr) | [ Belgium ](https://ccpi.org/country/bel) | [ Brazil ](https://ccpi.org/country/bra) | [ Bulgaria ](https://ccpi.org/country/bgr) | [ Canada ](https://ccpi.org/country/can) | [ Chile ](https://ccpi.org/country/chl) | [ China ](https://ccpi.org/country/chn) | [ Chinese Taipei ](https://ccpi.org/country/twn) | [ Colombia ](https://ccpi.org/country/col) | [ Croatia ](https://ccpi.org/country/hrv) | [ Cyprus ](https://ccpi.org/country/cyp) | [ Czech Republic ](https://ccpi.org/country/cze) | [ Denmark ](https://ccpi.org/country/dnk) | [ Egypt ](https://ccpi.org/country/egy) | [ Estonia ](https://ccpi.org/country/est) | [ EU ](https://ccpi.org/country/eu) | [ Finland ](https://ccpi.org/country/fin) | [ France ](https://ccpi.org/country/fra) | [ Germany ](https://ccpi.org/country/deu) | [ Greece ](https://ccpi.org/country/grc) | [ Hungary ](https://ccpi.org/country/hun) | [ India ](https://ccpi.org/country/ind) | [ Indonesia ](https://ccpi.org/country/idn) | [ Ireland ](https://ccpi.org/country/irl) | [ Islamic Republic of Iran ](https://ccpi.org/country/irn) | [ Italy ](https://ccpi.org/country/ita) | [ Japan ](https://ccpi.org/country/jpn) | [ Kazakhstan ](https://ccpi.org/country/kaz) | [ Latvia ](https://ccpi.org/country/lva) | [ Lithuania ](https://ccpi.org/country/ltu) | [ Luxembourg ](https://ccpi.org/country/lux) | [ Malaysia ](https://ccpi.org/country/mys) | [ Malta ](https://ccpi.org/country/mlt) | [ Mexico ](https://ccpi.org/country/mex) | [ Morocco ](https://ccpi.org/country/mar) | [ Netherlands ](https://ccpi.org/country/nld) | [ New Zealand ](https://ccpi.org/country/nzl) | [ Nigeria ](https://ccpi.org/country/nga) | [ Norway ](https://ccpi.org/country/nor) | [ Pakistan ](https://ccpi.org/country/pak) | [ Philippines ](https://ccpi.org/country/phl) | [ Poland ](https://ccpi.org/country/pol) | [ Portugal ](https://ccpi.org/country/prt) | [ Republic Of Korea ](https://ccpi.org/country/kor) | [ Romania ](https://ccpi.org/country/rou) | [ Russia ](https://ccpi.org/country/rus) | [ Saudi Arabia ](https://ccpi.org/country/sau) | [ Slovakia ](https://ccpi.org/country/svk) | [ Slovenia ](https://ccpi.org/country/svn) | [ South Africa ](https://ccpi.org/country/zaf) | [ Spain ](https://ccpi.org/country/esp) | [ Sweden ](https://ccpi.org/country/swe) | [ Switzerland ](https://ccpi.org/country/che) | [ Thailand ](https://ccpi.org/country/tha) | [ T\u00fcrkiye ](https://ccpi.org/country/tur) | [ Ukraine ](https://ccpi.org/country/ukr) | [ United Arab Emirates ](https://ccpi.org/country/are) | [ United Kingdom ](https://ccpi.org/country/gbr) | [ United States ](https://ccpi.org/country/usa) | [ Uzbekistan ](https://ccpi.org/country/uzb) | [ Vietnam ](https://ccpi.org/country/vnm)\n\n> In a world full of divisions, complexities and conspiracy theories, openly\n> offering data-based big pictures of the state of climate policies is a\n> service of utmost significance to our democracy. The CCPI helps people\n> across the globe to follow the climate transition in real terms, compare\n> progress, learn from other countries, and make sense of the fractures and\n> policy challenges along the way.\n>\n> **Theodota Nantsou** Head of Policy, WWF Greece\n\n###  Methodology\n\nThe CCPI evaluates 63 countries and the European Union, which together\ngenerate 90%+ of global greenhouse gas emissions.  \nUsing standardised criteria, the CCPI looks at four categories, with 14\nindicators: Greenhouse Gas Emissions (40% of the overall score), Renewable\nEnergy (20%), Energy Use (20%), and Climate Policy (20%).  \nThe CCPI\u2019s unique climate policy section evaluates countries\u2019 progress in\nimplementing policies working towards achieving the Paris Agreement goals.\n\n[ How the CCPI works ](/methode/)\n\nThe climate crisis is an existential threat to life on Earth. To reduce the\nmagnitude of the crisis\u2019 impacts, we must limit global warming to 1.5\u00b0C, as\ndecided in the Paris Agreement. Only decisive action will reduce greenhouse\ngas emissions, which are responsible for climate change. **As an independent\nmonitoring tool, the CCPI has a leading role in informing on the Paris\nAgreement\u2019s implementation phase.**  \n**Since 2005, the CCPI has provided analysis of countries\u2019 climate protection\nperformance.** It creates transparency in climate policy, makes it possible to\ncompare climate protection efforts, and lets you see progress and setbacks.\n\n###  News Slider\n\n[ Photo: Kelly Sikkema | Unsplash  **What Gets Measured Gets Managed? Exploring the Climate Change Performance Index and Climate Risk Index** What is the difference between the Climate Change Performance Index and the newly launched Climate Risk Index? How are \u2026  Read more  ](https://ccpi.org/what-gets-measured-gets-managed-exploring-the-climate-change-performance-index-and-climate-risk-index/)\n\n#### [ **Livestream: CCPI Press Conference 2025** Link to UNFCCC streaming\nsite \u2026  Read more  ](https://ccpi.org/ccpi-press-conference-2025/)\n\n[ Photo: Claudio Schwarz | Unsplash  **Overcoming the Implementation and Ambition Gaps** Rapid, deep reductions in global greenhouse gas (GHG) emissions are the only way to prevent dangerous climate change an\u2026  Read more  ](https://ccpi.org/overcoming-the-implementation-and-ambition-gaps/)\n\n[ Photo: Anne Nyg\u00e5rd | Unsplash  **Historical Responsibility for the Climate Crisis: The Roots of the Unfair Imbalance** A handful of industrialised countries emit great amounts of GHG emissions, and the consequences disproportionately affe\u2026  Read more  ](https://ccpi.org/historical-responsibility-for-the-climate-crisis-the-roots-of-the-unfair-imbalance/)\n\n[ Photo: Konrad Koller | Unsplash  **Energy Efficiency: The Overlooked Way to Curb Emissions** \u2018Energy efficiency is not just low hanging fruit; it is fruit that is lying on the ground,\u2019 US Secretary of En\u2026  Read more  ](https://ccpi.org/energy-efficiency-the-overlooked-way-to-curb-emissions/)\n\n#### [ **Lalit Chennamaneni, What does the election results means for India\u2019s\nclimate policy?** From April to June, India held general elections. We asked\nour expert Lalit Chennamaneni from Germanwatch, which import\u2026  Read more\n](https://ccpi.org/india-after-the-election/)\n\n[ Photo: Rixa Schwarz  **CCPI 2024 Press Conference** Here you can find a\nrecording of our press conference of CCPI 2024 which took place on December\n8th. https://www.you\u2026  Read more  ](https://ccpi.org/ccpi-2024-press-\nconference/)\n\n[ Pixabay / Ralf Vetterle  **Which European Countries are the Worst Climate\nPolluters, and Why?** The 27 member states of the European Union have\naccounted for about 20% of global cumulative carbon dioxide (CO2) emiss\u2026  Read\nmore  ](https://ccpi.org/which-european-countries-are-the-worst-climate-\npolluters-and-why/)\n\n[ climatevisuals.org | Kenneth Mankoff  **How to Measure Countries\u2019 Climate Performance** There are several metrics and possibilities to measure the performance of climate policies and actions, which differ in\u2026  Read more  ](https://ccpi.org/how-to-measure-countries-climate-performance/)\n\n#### [ **Jan Burck, how to increase countries\u2019 efforts in climate\nprotection?** Since 2005, the Climate Change Performance Index (CCPI) has\nassessed and compared the climate action efforts of 59 coun\u2026  Read more\n](https://ccpi.org/jan-burck-how-to-increase-countries-efforts-in-climate-\nprotection/)\n\n[ A large transport ship with cargo can be seen from the side as it travels\nthrough the sea  **State of the Climate: Trying to beat the clock** Russia\u2019s\ninvasion of Ukraine illustrates that most countries still heavily depend on\nfossil fuels. This dependency af\u2026  Read more  ](https://ccpi.org/state-of-the-\nclimate-trying-to-beat-the-clock/)\n\n[ Source: Shutterstock  **Hope for Change \u2013 How civil society, litigation, and\nnew business models can accelerate the transformation** The year 2021 has been\na busy one for climate diplomacy. Several high-level international events have\ntaken place, enha\u2026  Read more  ](https://ccpi.org/hope-for-change-how-civil-\nsociety-litigation-and-new-business-models-can-accelerate-the-transformation/)\n\n[ Photo: Kelly Sikkema | Unsplash  **What Gets Measured Gets Managed? Exploring the Climate Change Performance Index and Climate Risk Index** What is the difference between the Climate Change Performance Index and the newly launched Climate Risk Index? How are \u2026  Read more  ](https://ccpi.org/what-gets-measured-gets-managed-exploring-the-climate-change-performance-index-and-climate-risk-index/)\n\n[ Photo: Claudio Schwarz | Unsplash  **Overcoming the Implementation and Ambition Gaps** Rapid, deep reductions in global greenhouse gas (GHG) emissions are the only way to prevent dangerous climate change an\u2026  Read more  ](https://ccpi.org/overcoming-the-implementation-and-ambition-gaps/)\n\n[ Photo: Anne Nyg\u00e5rd | Unsplash  **Historical Responsibility for the Climate Crisis: The Roots of the Unfair Imbalance** A handful of industrialised countries emit great amounts of GHG emissions, and the consequences disproportionately affe\u2026  Read more  ](https://ccpi.org/historical-responsibility-for-the-climate-crisis-the-roots-of-the-unfair-imbalance/)\n\n#### [ **Lalit Chennamaneni, What does the election results means for India\u2019s\nclimate policy?** From April to June, India held general elections. We asked\nour expert Lalit Chennamaneni from Germanwatch, which import\u2026  Read more\n](https://ccpi.org/india-after-the-election/)\n\n[ Photo: Rixa Schwarz  **CCPI 2024 Press Conference** Here you can find a\nrecording of our press conference of CCPI 2024 which took place on December\n8th. https://www.you\u2026  Read more  ](https://ccpi.org/ccpi-2024-press-\nconference/)\n\n[ climatevisuals.org | Kenneth Mankoff  **How to Measure Countries\u2019 Climate Performance** There are several metrics and possibilities to measure the performance of climate policies and actions, which differ in\u2026  Read more  ](https://ccpi.org/how-to-measure-countries-climate-performance/)\n\n#### [ **Jan Burck, how to increase countries\u2019 efforts in climate\nprotection?** Since 2005, the Climate Change Performance Index (CCPI) has\nassessed and compared the climate action efforts of 59 coun\u2026  Read more\n](https://ccpi.org/jan-burck-how-to-increase-countries-efforts-in-climate-\nprotection/)\n\n[ Source: Shutterstock  **Hope for Change \u2013 How civil society, litigation, and\nnew business models can accelerate the transformation** The year 2021 has been\na busy one for climate diplomacy. Several high-level international events have\ntaken place, enha\u2026  Read more  ](https://ccpi.org/hope-for-change-how-civil-\nsociety-litigation-and-new-business-models-can-accelerate-the-transformation/)\n\n###  [ Find out more about the CCPI ](https://ccpi.org/methodology/)\n\n[ Photo: Rixa Schwarz  Philosophy & Team  ](/ccpi-philosophy-team/)\n\n[ unsplash.com | Ronan Furuta  Support CCPI  ](/donate/)\n\n#### [ Donor and Partner  ](/ccpi-philosophy-team/#funding)\n\n**CCPI**\n\n  * [ Countries ](https://ccpi.org/countries/)\n  * [ Ranking ](https://ccpi.org/ranking/)\n  * [ CCPI-Blog ](https://ccpi.org/ccpi-blog/)\n  * [ Methodology ](https://ccpi.org/methodology/)\n  * [ CCPI FAQ ](https://ccpi.org/faqs/)\n  * [ Downloads ](https://ccpi.org/downloads/)\n\n\u00a9 2025 Germanwatch\n\n**About us**\n\n  * [ Philosophy & Team ](https://ccpi.org/ccpi-philosophy-team/)\n  * [ Impact ](https://ccpi.org/impact/)\n  * [ Testimonials ](https://ccpi.org/testimonials/)\n  * [ Support CCPI ](https://ccpi.org/donate/)\n\n[ Privacy Policy ](/privacy-policy/)\n\n[ Legal ](https://ccpi.org/disclaimer/)\n\n[ Terms of Use ](https://ccpi.org/terms-of-use/)\n\n**Contact**\n\n  * [ Contact ](https://ccpi.org/contact/)\n\n[ Legal ](https://ccpi.org/disclaimer/)\n\n**Data Use**\n\n  * [ Data Use ](https://ccpi.org/data-use-overview/)\n  * [ License Inquiries ](https://ccpi.org/license-inquiries/)\n  * [ Terms of Use ](https://ccpi.org/terms-of-use/)\n\n[ Terms of Use ](https://ccpi.org/terms-of-use/)\n\n",
                "url": "https://ccpi.org/"
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            "reason": "CCPI (Climate Change Performance Index) is a reputable source for evaluating countries' climate performance. It does not explicitly mention the target company.",
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            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "CCPI (Climate Change Performance Index) is a reputable source for evaluating countries' climate performance.",
            "url": "https://ccpi.org/"
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                    "source": "https://www.mckinsey.com/capabilities/sustainability/our-insights/climate-risk-and-decarbonization-what-every-mining-ceo-needs-to-know"
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                "page_content": "Skip to main content\n\n#\n\nClimate risk and decarbonization: What every mining CEO needs to know\n\nJanuary 28, 2020  | Article \n\nLindsay Delevingne \u00c2  Will Glazener \u00c2  Liesbet Gr\u00c3\u00a9goir  \u00c2  [ Kimberly\nHenderson  ](/our-people/kimberly-henderson)\n\nBuilding a climate strategy won\u2019t be quick or easy\u2014but waiting is not an\noption.\n\n###\n\n(PDF-3 MB)\n\n**In the mining industry,** the impact of climate change and how the industry\ncan respond to it has increasingly been a topic of discussion over the past\ndecade.\n\nMining is no stranger to harsh climates; much of the industry already operates\nin inhospitable conditions. But forecasts of hazards such as heavy\nprecipitation, drought, and heat indicate these effects will get more frequent\nand intense, increasing the physical challenges to mining operations.\n\nUnder the 2015 [ Paris Agreement ](https://unfccc.int/process-and-\nmeetings/the-paris-agreement/the-paris-agreement) , 195 countries pledged to\nlimit global warming to well below 2.0\u00c2\u00b0C, and ideally not more than 1.5\u00c2\u00b0C\nabove preindustrial levels. That target, if pursued, would manifest in\ndecarbonization across industries, creating major shifts in commodity demand\nfor the mining industry and likely resulting in declining global mining\nrevenue pools. Mining-portfolio evaluation must now account for potential\ndecarbonization of other sectors.\n\nThe mining sector itself will also face pressure from governments, investors,\nand society to reduce emissions. Mining is currently responsible for 4 to 7\npercent of greenhouse-gas (GHG) emissions globally. Scope 1 and Scope 2 CO  2\nemissions from the sector (those incurred through mining operations and power\nconsumption, respectively) amount to 1 percent, and fugitive-methane emissions\nfrom coal mining are estimated at 3 to 6 percent.  [ 1  Emission estimates are\nbased on research by McKinsey\u00e2\u0080\u0099s Basic Materials Institute. The range of\nfugitive-methane emissions is a function of the time horizon at which the\nwarming impact of methane is calculated. The lower number refers to global-\nwarming potential on a 100-year time frame (GWP100), and the higher number\nrefers to global-warming potential on a 20-year time frame (GWP20).\n](javascript:void\\(0\\);) A significant share of global emissions\u00e2\u0080\u009428\npercent\u00e2\u0080\u0094would be considered Scope 3 (indirect) emissions, including the\ncombustion of coal.\n\nTo address climate risk, mining companies can focus on three areas: which\nassets are most at risk from physical climate change; how decarbonization\ncould shift demand for key minerals; and how miners can decarbonize their own\noperations.\n\nThe mining industry has only just begun to set emission-reduction goals.\nCurrent targets published by mining companies range from 0 to 30 percent by\n2030, far below the Paris Agreement goals.  [ 2  Limiting climate change will\nrequire a significant reduction in greenhouse-gas emissions between 2010 and\n2050: a 41 to 72 percent decrease for a 2.0\u00c2\u00b0C scenario and a 78 to 89 percent\ndecrease for a 1.5\u00c2\u00b0C scenario, according to data from the Intergovernmental\nPanel on Climate Change (IPCC). This industry target range does not include\nScope 3 emissions.  ](javascript:void\\(0\\);) Mines theoretically can fully\ndecarbonize (excluding fugitive methane) through operational efficiency,\nelectrification, and renewable-energy use. Capital investments are required to\nachieve most of the decarbonization potential, but certain measures, such as\nthe adoption of renewables, electrification, and operational efficiency, are\neconomical today for many mines.\n\nTo address climate risk for miners, we examine three questions in this\narticle: Which mining assets are most at risk from physical climate change?\nHow could decarbonization shift demand for key minerals? And how can mining\ncompanies decarbonize their own operations? We then lay out the operational,\ninvestment, and portfolio options that mining executives can use to create [\nan actionable climate strategy ](/capabilities/sustainability/our-\ninsights/earth-to-ceo-your-company-is-already-at-risk-from-climate-change) and\nset ambitious targets.\n\n##  Vulnerable mining assets\n\nDespite [ changing climate conditions ](/capabilities/sustainability/our-\ninsights/climate-risk-and-response-physical-hazards-and-socioeconomic-impacts)\n, options exist to improve the resiliency of mining assets to certain physical\neffects. We evaluated the impact of water stress and flooding in detail and\nsuggest how operators might mitigate these risks.\n\n###  Water stress\n\nClimate change is expected to cause more frequent droughts and floods,\naltering the supply of water to mining sites and disrupting operations. We\nrecently ran and analyzed a water-stress and flooding scenario using\nMcKinsey\u00e2\u0080\u0099s MineSpans database on copper, gold, iron ore, and zinc.  [ 3  We\nlooked at current and projected water stress, defined as the ratio of the\namount of water used over the total quantity of water available locally, from\nthe World Resources Institute\u00e2\u0080\u0099s [ Aqueduct Water Risk Atlas\n](https://www.wri.org/resources/maps/aqueduct-water-risk-atlas) . We then\noverlaid data from McKinsey\u00e2\u0080\u0099s [ MineSpans database\n](https://www.mckinsey.com/solutions/minespans/overview) on the location,\nproduction, and type of more than 3,000 mines worldwide for four major\nextracted commodities: copper, gold, iron ore, and zinc.\n](javascript:void\\(0\\);)\n\n> Water-stress hot spots are expected to worsen in the coming decades. In\n> Chile, 80 percent of copper production is already located in extremely high\n> water-stressed and arid areas; by 2040, it will be 100 percent.\n\nWe found that today, 30 to 50 percent of production of these four commodities\nis concentrated in areas where water stress is already high.  [ 4  \u00e2\u0080\u009cHigh\u00e2\u0080\u009d\nwater stress denotes a ratio of water demand to water supply of 40 percent or\ngreater.  ](javascript:void\\(0\\);) In 2017, these sites accounted for roughly\n$150 billion in total annual revenues and were clustered into seven water-\nstress hot spots for mining: Central Asia, the Chilean coast, eastern\nAustralia, the Middle East, southern Africa, western Australia, and a large\nzone in western North America.\n\nClimate science indicates that these hot spots will worsen in the coming\ndecades.  [ 5  According to recent reports from the Intergovernmental Panel on\nClimate Change, including _Global warming of 1.5\u00c2\u00b0C_ , October 2018, and\n_Fifth assessment report_ , 2014, both on ipcc.ch.  ](javascript:void\\(0\\);)\nIn Chile, 80 percent of copper production is already located in extremely high\nwater-stressed and arid areas; by 2040, it will be 100 percent. In Russia, 40\npercent of the nation\u00e2\u0080\u0099s iron ore production, currently located in high\nwater-stressed areas, is likely to move to extreme water stress by 2040.\n\nMining regions not accustomed to water stress are projected to become\nincreasingly vulnerable. By 2040, 5 percent of current gold production will\nlikely shift from low\u00e2\u0080\u0093medium water stress to medium\u00e2\u0080\u0093high, 7 percent of\nzinc production could move from medium\u00e2\u0080\u0093high to high water stress, and 6\npercent of copper production could shift from high to extremely high water\nstress (Exhibit 1). Depending on the water intensiveness of the processing\napproach, such changes, while seemingly minor in percentage terms, could be\ncritical to a mine\u00e2\u0080\u0099s operations or license to operate.\n\nMining executives in these regions are acutely aware of the water issue. For\ninstance, Leagold Mining recently shut down its RDM gold mine in Brazil for\ntwo months because of drought conditions, even though it had built a dam and a\nwater pipeline. Even in areas with low water stress, certain water-intensive\nmining processes are jeopardized. In Germany\u00e2\u0080\u0094not a country known for being\nvulnerable to drought\u00e2\u0080\u0094a potash miner was forced to close two locations\nbecause of severe water shortages in the summer of 2018, losing nearly $2\nmillion a day per site. The frequency and severity of these conditions are\nexpected to increase along with the current climate trajectory.\n\nSince water stress is likely to increase at different rates from place to\nplace, mining executives will need to look at local water-stress projections\nfor their individual sites and determine where the worst effects are likely to\noccur.\n\n> In the long term, more capital-intensive approaches are also possible. New\n> water infrastructure, such as dams and desalination plants, is expensive but\n> sometimes necessary.\n\nTo improve resiliency, companies can reduce the water intensity of their\nmining processes. They can also recycle used water and reduce water loss from\nevaporation, leaks, and waste. Anglo American improved evaporation monitoring\nat its Drayton mine dam in Australia, for example. Mining companies can\nprevent evaporation by putting covers on small and medium dams.\n\nIn the long term, more capital-intensive approaches are also possible. New\nwater infrastructure, such as dams and desalination plants, is expensive but\nsometimes necessary. Companies can also rely on so-called natural capital,\nlike wetland areas, to improve groundwater drainage.\n\nThe option of securing water rights is becoming harder and can take years of\nengagement because of increased competition for natural resources and tensions\nbetween operators and local communities. Basin and regional planning with\nregulatory and civic groups is an important strategy but cannot alone solve\nthe underlying problem of water stress.\n\n###  Flooding\n\nFlooding from extreme rains can also cause operational disruptions, including\nmine closure, washed-out roads, and unsafe water levels in tailing dams. At\none open-pit coal mine, we observed 10 percent annual production losses from\nwet weather. Flooding affects some commodities more than others, based on\ntheir location; in our analysis, iron ore and zinc are the most exposed to\nextremely high flood occurrence, at 50 percent and 40 percent of global\nvolume, respectively.  [ 6  We looked at current mine production from our\nMineSpans database and overlaid it on flooding estimates from the Aqueduct\nWater Risk Atlas\u00e2\u0080\u0099s business-as-usual scenario, representing a global mean\ntemperature increase of 2.6\u00c2\u00b0C to 4.8\u00c2\u00b0C.  ](javascript:void\\(0\\);)\n\nThe problem is expected to get worse, particularly in six \u00e2\u0080\u009cwet spots\u00e2\u0080\u009d\nlikely to experience a 50 to 60 percent increase in extreme precipitation this\ncentury: northern Australia, South America, and southern Africa during\nSouthern Hemisphere summer, and central and western Africa, India and\nSoutheast Asia, and Indonesia during Southern Hemisphere winter.\n\nTo address high-water concerns, companies can adopt flood-proof mine designs\nthat improve drainage and pumping techniques. They can adapt roads (such as by\nusing hard metal or crusted rock for speed drying) or build sheeted haul\nroads, as First Quantum Minerals did at its Sentinel copper mine in Zambia.\nThey can also use conveying methods that don\u00e2\u0080\u0099t rely on trucking (such as by\ncreating a full in-pit crushing and conveying system).\u00c2\n\n###  Other climate factors\n\nExtreme weather combined with sea-level rise can damage processing or\ntransportation infrastructure located near coastlines.\n\nExtreme heat in already hot places\u00e2\u0080\u0094particularly Australia, China, and parts\nof North and West Africa\u00e2\u0080\u0094can decrease worker productivity and raise cooling\ncosts. It can also put workers\u00e2\u0080\u0099 health (and sometimes their lives) at risk.\nIndirect [ socioeconomic consequences from climate change\n](/capabilities/sustainability/our-insights/climate-risk-and-response-\nphysical-hazards-and-socioeconomic-impacts) \u00c2 can also affect the political\nenvironment surrounding a mine.\n\nExtreme heat in already hot places\u00e2\u0080\u0094particularly Australia, China, and parts\nof North and West Africa\u00e2\u0080\u0094can decrease worker productivity and raise cooling\ncosts. It can also put workers\u00e2\u0080\u0099 health (and sometimes their lives) at risk.\nIndirect socioeconomic consequences from climate change can also affect the\npolitical environment surrounding a mine.\n\n##  Shifting demand for minerals\n\nSignificant growth of low-carbon technologies will occur if industries commit\nto cutting emissions in line with Paris Agreement targets. Technologies that\nsupport decarbonization include wind turbines, solar photovoltaics, electric\nvehicles, energy storage, metal recycling, hydrogen fuel cells, and carbon\ncapture and storage.\n\nThe mining industry will be part of the decarbonization solution by providing\nthe raw materials needed for these technologies. Simultaneously, their growth\nwill alter demand patterns for upstream mining commodities.\n\nWe developed a theoretical commodity-demand-shift scenario, quantifying the\nimpact on commodity demand by 2030, assuming global warming is limited to 2\u00c2\u00b0C\n(Exhibit 2). Because the exact scale and mix of decarbonization technologies\nin a 2\u00c2\u00b0C scenario is far from certain, the demand shifts are displayed as\ndirectional movements when compared with business-as-usual forecasts.\n\nCoal, currently about 50 percent of the global mining market, would be the\nmost obvious victim of such shifts. Decarbonization of the power sector would\nmean taking net GHG emissions to zero, implying an almost complete reduction\nin the combustion of coal. And if metal companies switch to hydrogen and\nbiofuels as energy sources, demand for metallurgical coal will weaken. While\ncoal demand is still rising, capital investments in coal mines have become\nmore difficult, with public opinion hardening and some banks pulling away from\nthe industry in certain regions.\n\nMore energy-efficient processing and widespread recycling would put pressure\non virgin-ore markets. In a 2\u00c2\u00b0C scenario, bauxite, copper, and iron ore will\nsee growth from new decarbonization technologies offset by increased recycling\nrates, as a result of the growing circular economy and focus on metal\nproduction from recycling versus virgin ore.\n\n> Fully replacing revenues from coal will be difficult. Yet many of the\n> world\u00e2\u0080\u0099s biggest mining companies will need to rebalance nondiverse mineral\n> portfolios.\n\nAt the other end of the spectrum, niche minerals could experience dramatic\ngrowth. As the global electrification of industries continues, electric\nvehicles and batteries will create growth markets for cobalt, lithium, and\nnickel. Emerging technologies such as hydrogen fuel cells and carbon capture\nwould boost demand for platinum, palladium, and other catalyst materials,\nwhile rare earths would be needed for wind-turbine magnets.\n\nFully replacing revenues from coal will be difficult. Yet many of the\nworld\u00e2\u0080\u0099s biggest mining companies will need to rebalance nondiverse mineral\nportfolios. Many of the largest mining companies derive the bulk of their\nearnings from one or two commodities. Copper-heavy portfolios may benefit from\ndemand growth related to widespread electrification, for example. And iron\nore\u00e2\u0080\u0093 and aluminum-heavy portfolios may see an upside from decarbonization\ntechnologies, but they are also more likely to be hit by rising recycling\nrates.\n\nNiche commodities probably will not be able to replace the magnitude of\nearnings from coal, but they could help manage losses (Exhibit 3). For miners,\na rebalanced portfolio would require agility\u00e2\u0080\u0094sophisticated market\nintelligence and flexible assets\u00e2\u0080\u0094which could become a competitive advantage\nin enabling responses to mineral-demand shifts.\n\nThere is a growing interest in low-carbon metals from downstream-production\nprocesses. For example, some automotive companies that manufacture products\nusing a carbon-neutral process are asking suppliers to deliver carbon-neutral\nparts, often made with niche metals. Technology giant Apple has announced the\npurchase of carbon-free aluminum for its products. Although metals are not yet\npriced on their CO  2  footprint, that day could come.\n\nA legislated carbon price could also shift the competitive dynamics. A local\nprice on carbon\u00e2\u0080\u0094in any form\u00e2\u0080\u0094affects advantages in different mining\nregions, commodities, processing routes, and companies. In Europe, for\nexample, the Emission Trading System (ETS) is entering a new phase of\nemission-reduction targets. The so-called Green Deal on emission regulations,\nwhile in its early stages, could lead to a higher carbon price for European\nprimary industries, resulting in possible competitive disadvantages for some\ncompanies in global markets.\n\nBesides shifting commodity demand, major reductions in carbon emissions would\nalso affect commodity prices. A global carbon price, investments to\ndecarbonize operations, and strong growth in commodities requiring the opening\nof new mines would increase mining costs, leading to higher commodity prices.\nThe commodities at stake and the potential price growth are functions of how\nand at what pace decarbonization occurs.\n\n##  How mining can decarbonize\n\nThe mining industry generates between 1.9 and 5.1 gigatons of CO  2\nequivalent (CO  2  e) of GHG emissions annually. The majority of emissions in\nthis sector originate from fugitive coal-bed methane that is released during\ncoal mining (1.5 to 4.6 gigatons), mainly at underground operations.  [ 7\nGreenhouse-gas emissions from fugitive methane are estimated based on average\nmethane-emission factors, as published by the Intergovernmental Panel on\nClimate Change (IPCC). The range is because of time-frame considerations when\nconverting methane to CO  2  equivalent. The lower number refers to global-\nwarming potential on a 100-year time frame (GWP100), and the higher number\nrefers to global-warming potential on a 20-year time frame (GWP20). In the\nGWP20 calculation, the contribution of fugitive methane is three times\nstronger.  ](javascript:void\\(0\\);) Power consumption in the mining industry\ncontributes 0.4 gigaton of CO  2  e.\n\nFurther down the value chain\u00e2\u0080\u0094what could be considered Scope 3 emissions  [ 8\nA significant share of global emissions would be considered Scope 3 emissions\nfor miners. Coal-based power accounts for roughly 20 percent of global\nemissions (excluding power for mining and metals); coal use in industry\naccounts for a further 8 percent. Additional Scope 3 emissions include gas\ncombustion to process metals and emissions generated upstream for the\nproduction of mining equipment.  ](javascript:void\\(0\\);) \u00e2\u0080\u0094the metal\nindustry contributes roughly 4.2 gigatons, mainly through steel and aluminum\nproduction. Coal combustion for the power sector contributes up to roughly ten\ngigatons of CO  2  .\n\n> To stay on track for a global 2\u00c2\u00b0C scenario, all sectors would need to\n> reduce CO  2  emissions from 2010 levels by at least 50 percent by 2050. To\n> limit warming to 1.5\u00c2\u00b0C, a reduction of at least 85 percent would likely be\n> needed.\n\nAny serious effort to implement Paris Agreement goals would require a major\ncontribution from the entire value chain. To stay on track for a global 2\u00c2\u00b0C\nscenario, all sectors would need to reduce CO  2  emissions from 2010 levels\nby at least 50 percent by 2050.  [ 9  Intergovernmental Panel on Climate\nChange (IPCC) data.  ](javascript:void\\(0\\);) To limit warming to 1.5\u00c2\u00b0C, a\nreduction of at least 85 percent would likely be needed.  [ 10  Based on\nMcKinsey\u00e2\u0080\u0099s 1.5\u00c2\u00b0C-scenario analysis, achieving net-zero global CO  2\nemissions by 2050 would require an 85 percent reduction of gross emissions,\nwith the remaining 15 percent offset by CO  2  -removal solutions, such as\nreforestation and bioenergy with carbon capture and storage.\n](javascript:void\\(0\\);) Mining companies\u00e2\u0080\u0099 published emission targets tend\nto be more modest than that, setting low targets, not setting targets beyond\nthe early 2020s, or focusing on emission intensity rather than absolute\nnumbers.\n\nExternal pressure to decarbonize depends on a mix of factors, including\ninvolvement by investors, regulators, and customers. Decarbonization will also\nvary by geography, segment, and executives\u00e2\u0080\u0099 own priorities. The [ Task Force\non Climate-related Financial Disclosures ](https://www.fsb-tcfd.org/) (TCFD),\na coalition with support from more than 300 investors with nearly $34 trillion\nin assets under management, recommends that companies report their\n\u00e2\u0080\u009ctransition risks\u00e2\u0080\u009d under a 2\u00c2\u00b0C decarbonization scenario.\n\nDecarbonizing the mining industry would require a serious effort by the coal\nindustry, particularly in tackling fugitive methane. Solutions for capturing\nmethane (and using it to generate power) exist, but they are not commonly\nimplemented. In the United States, for instance, the Coalbed Methane Outreach\nProgram\u00e2\u0080\u0094part of the Environmental Protection Agency\u00e2\u0080\u0094works with the coal-\nmining industry to support project development and to overcome technical and\nother barriers to implementation. But there are no ready solutions for all\ntypes of mines, and the investment is not economical in many cases.\n\nTo create a baseline of current mining emissions, we overlaid our MineSpans\ndatabase of mines\u00e2\u0080\u0099 operational characteristics with emission factors by fuel\nsource (Exhibit 4). Across commodities, electricity usage amounts to 0.3\ngigaton and diesel to roughly 0.1 gigaton.\n\nWe then estimated the possible impact of, and constraints on, several mining-\ndecarbonization levers (Exhibit 5).\n\nThe decarbonization potential for mines varies by commodity, mine type, power\nsource, and grid emissions, among other factors. Across the industry, noncoal\nmines could fully decarbonize by using multiple levers. Some are more\neconomical than others\u00e2\u0080\u0094operational efficiency, for example, can make\nincremental improvements to the energy intensity of mining production while\nrequiring little capital expenditure.\n\n> Several big mining companies have installed their own sustainability\n> committees, signaling that mining is joining the wave of corporate\n> sustainability reporting and activity.\n\nMoving to renewable sources of electricity is becoming increasingly feasible,\neven in off-grid environments, as the cost of battery packs is projected to\ndecline 50 percent from 2017 to 2030. Codelco, for instance, uses solar power\nfor one of its copper mines in Chile, and Fortescue Metals is investing in\nrenewable energy at its iron ore mines in the Pilbara region in Australia. BHP\nrecently signed contracts for renewable energy at its Escondida and Spence\ncopper mines.\n\nElectrification of mining equipment, such as diesel trucks and gas-consuming\nappliances, is only starting to become economical. Right now, only 0.5 percent\nof mining equipment is fully electric. However, in some cases, battery\nelectric vehicles have a 20 percent lower total cost of ownership versus\ntraditional internal-combustion-engine vehicles. Newmont, for example,\nrecently started production at its all-electric Borden mine in Ontario,\nCanada.\n\nSome decarbonization actions will benefit the bottom line, while others will\nprioritize social responsibility. Future regulatory and technological\ndevelopments may change the viability of certain actions, but one thing is\ncertain: the business case will vary for each mine\u00e2\u0080\u0094and each company.\n\nTo date, mining companies have viewed sustainability mostly through a local\nlens, but achieving a 1.5\u00c2\u00b0C to 2.0\u00c2\u00b0C pathway will require significant global\naction. Several big mining companies have installed their own sustainability\ncommittees, signaling that mining is joining the wave of [ corporate\nsustainability reporting and activity ](/capabilities/sustainability/our-\ninsights/more-than-values-the-value-based-sustainability-reporting-that-\ninvestors-want) . Reporting emissions and understanding decarbonization\npathways are the first steps toward setting targets and taking action.\n\n##  A checklist for top executives\n\nTo respond to the impact of climate change, mining executives should take five\nmain actions.\n\nFirst, perform an end-to-end diagnostic of climate change\u00e2\u0080\u0099s effects on the\nbusiness so that you know which assets to protect from physical climate change\nand which stand to gain or lose from decarbonization. The physical risks of\nclimate change, such as water stress, precipitation, and heat, must be\nevaluated at a localized, asset-specific level. Such analyses may require\ntechnical expertise from outside the organization, tailored to the company\u00e2\u0080\u0099s\nspecific footprint and operations.\n\nDecarbonization scenarios should be built into demand forecasts for a\ncompany\u00e2\u0080\u0099s commodities, including accounting for at-scale renewables, metal\nrecycling, and even metal-process-route shifts. Site-specific baseline\nemissions should be understood, and potential abatement levers evaluated.\n\nSecond, mobilize the C-suite and the board. Climate change\u00e2\u0080\u0094the risks and the\nopportunities\u00e2\u0080\u0094should be considered a board-level topic, given its systemic,\nlong-term, and potentially dramatic impact. Ambitious climate targets that\ncome from the top\u00e2\u0080\u0094an approach the mining sector is only beginning to\nembrace\u00e2\u0080\u0094can create value and spur employee and stakeholder engagement.\n\n[ Read the report  ](/capabilities/sustainability/our-insights/climate-risk-\nand-response-physical-hazards-and-socioeconomic-impacts)\n\nThird, focus on operational transformation, investments, and innovation.\nSeveral percentage points of no-regrets energy-efficiency moves can often be\nfound at mines, and climate targets can focus efforts to unearth them.\nShifting to renewables can offer benefits, such as lower electricity costs and\nreduced volatility. Bolder investments\u00e2\u0080\u0094such as reimagining processes to\naccount for shifting water demand and embarking on a decarbonization plan\nusing both existing technologies and promising new alternatives\u00e2\u0080\u0094may also be\nmade.\n\nFourth, evaluate and potentially reshape your portfolio. Climate change\nintroduces unpredictability, requiring \u00e2\u0080\u009cclimate intelligence\u00e2\u0080\u009d to be\nembedded in decision-making processes, such as capital allocation. The ability\nto move relatively quickly in or out of niche materials will become valuable.\n\nFifth, continue to engage through reporting, partnerships, and other proactive\nmeasures. Some investors, such as those signed with the TCFD, now require [\nclimate-risk disclosures ](/capabilities/sustainability/our-insights/more-\nthan-values-the-value-based-sustainability-reporting-that-investors-want) ;\nthis will become more important as climate expectations mature. Such reporting\ncan serve as a forcing device for internal change. Industry\ncoalitions\u00e2\u0080\u0094including peers, customers, suppliers, and society at large\u00e2\u0080\u0094can\naid engagement. Additionally, an ambitious agenda on one of society\u00e2\u0080\u0099s most\ndifficult goals can be motivational for employees and external stakeholders\nalike.\n\nMining companies are reviewing commodity portfolios, setting targets, and\nengaging with stakeholders. Yet these actions may not be keeping up with\nsociety\u00e2\u0080\u0099s expectations\u00e2\u0080\u0094as increasingly voiced by investors seeking\ndisclosures, companies asking their suppliers to decarbonize, and communities\nadvocating for action on environmental issues.\n\nAction on climate change is growing in the mining industry, as companies\nreview commodity portfolios, set targets, and engage with stakeholders.\n\nYet these actions are too modest to reach the 1.5\u00c2\u00b0C to 2.0\u00c2\u00b0C scenario and\nmay not be keeping up with society\u00e2\u0080\u0099s expectations\u00e2\u0080\u0094as increasingly voiced\nby investors seeking disclosures, companies asking their suppliers to\ndecarbonize, and communities advocating for action on environmental issues.\nMining companies concerned about their long-term reputation, \u00e2\u0080\u009clicense to\noperate,\u00e2\u0080\u009d or contribution to decarbonization efforts may start to consider\nmore aggressive decarbonization and resilience plans.\n\n#####\n\n**Lindsay Delevingne** is a consultant in McKinsey\u2019s New Jersey office, **Will\nGlazener** is a consultant in the Houston office, **Liesbet Gr\u00e9goir** is a\nconsultant at the Brussels Innovation Center, and **[ Kimberly Henderson\n](/our-people/kimberly-henderson) ** is a partner in the Washington, DC,\noffice.\n\nThe authors wish to thank Jukka Maksimainen, Oliver Ramsbottom, Victoria\nSiebert, and Steven Vercammen for their contributions to this article.\n\n#####  Explore a career with us\n\n[ ](/careers/search-jobs)\n\n#####  Related Articles\n\n[ ](/capabilities/sustainability/our-insights/climate-risk-and-response-\nphysical-hazards-and-socioeconomic-impacts)\n\nReport - _MGI Research_\n\n######  [ Climate risk and response: Physical hazards and socioeconomic\nimpacts  ](/capabilities/sustainability/our-insights/climate-risk-and-\nresponse-physical-hazards-and-socioeconomic-impacts)\n\n[ ](/capabilities/sustainability/our-insights/earth-to-ceo-your-company-is-\nalready-at-risk-from-climate-change)\n\nCommentary\n\n######  [ Earth to CEO: Your company is already at risk from climate change\n](/capabilities/sustainability/our-insights/earth-to-ceo-your-company-is-\nalready-at-risk-from-climate-change)\n\n[ ](/capabilities/sustainability/our-insights/how-industry-can-move-toward-a-\nlow-carbon-future)\n\nArticle\n\n######  [ How industry can move toward a low-carbon future\n](/capabilities/sustainability/our-insights/how-industry-can-move-toward-a-\nlow-carbon-future)\n\n",
                "url": "https://www.mckinsey.com/capabilities/sustainability/our-insights/climate-risk-and-decarbonization-what-every-mining-ceo-needs-to-know"
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            "summary": "McKinsey is a well-known consulting firm.",
            "url": "https://www.mckinsey.com/capabilities/sustainability/our-insights/climate-risk-and-decarbonization-what-every-mining-ceo-needs-to-know"
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                "page_content": "#  Climate resilience\n\nDriving practical solutions for a resilient future.\n\nClimate and resilience\n\nSolutions  (  1  of  4  )  [ Talk to an expert ](/contact-us)\n\n  * Solutions \n\n  * Services \n\n  * Client stories \n\n  * Insights \n\n[ Talk to an expert ](/contact-us)\n\nBack to top\n\n[ Talk to an expert ](/contact-us)\n\n##  Make better decisions in the face of environmental uncertainties\n\nAs a leading science-based and data-driven consultancy, we help organizations\nuse resources more efficiently, reduce costs, and accelerate mission\nachievement.\n\n### [ Policy and planning  Assess your environmental risks and opportunities,\nengage your stakeholders, and integrate resilience and adaptation into your\nlong-term planning and operations.  Learn more  ](/work/climate/climate-\naction-planning)\n\n### [ Predictive risk analytics  Enhance resilience, optimize resource\nallocation, and make informed decisions with customized environmental\nprojections and risk analyses across any time and location.  Learn more\n](/work/climate/risk-analytics)\n\n### [ Stakeholder engagement  Share the latest developments with your\ncustomers and empower them to make informed decisions that drive change and\nenhance resilience.  Learn more  ](/work/climate/communications)\n\n##  Services\n\n  * Benefits assessment \n  * [ Electrification ](/work/energy/electrification)\n  * Energy and resource modeling and benchmarking \n  * [ Energy efficiency ](/work/energy/efficiency-programs)\n  * Energy security and reliability \n\n  * Grid resilience \n  * Industry standards, and protocols \n  * Framework development \n  * Infrastructure funding and improvements \n  * [ Environmental planning ](/work/environment/environmental-planning)\n\n  * [ Grants management ](/work/program-implementation/grants-management)\n  * Impact monitoring and evaluation \n  * Resilience infrastructure planning \n  * [ Transportation electrification ](/work/transportation/clean-vehicles-fuels)\n  * Voluntary program design and implementation \n\n##\n\nOur work\n\n[ Client story  Duke Energy uses AI to address climate vulnerabilities\n](https://www.icf.com/clients/energy/duke-energy-climate-resilience-journey) [\nClient story  Hawaii uses innovative GIS mapping to build energy\ninfrastructure resilience  ](https://www.icf.com/clients/energy/hawaii-energy-\ninfrastructure-resilience-planning)\n\n[ Explore all client stories ](/clients)\n\n##\n\nOur insights\n\n[ Article  5 factors that will shape nuclear energy\u2019s future\n](https://www.icf.com/insights/energy/nuclear-energy-growth-factors) [ Article\n3 emerging priorities to build regional resilience to extreme weather\n](https://www.icf.com/insights/energy/regional-extreme-weather-resilience-\npriorities) [ Article  How MPOs can advance transportation resilience to\nextreme weather  ](https://www.icf.com/insights/transportation/resilience-\nimprovement-plan-best-practices)\n\n[ More climate insights ](/insights/climate)\n\nICF in the news\n\n[ In the news  Surging US power demand set to exceed supply\n](https://www.ft.com/content/b2a3a617-8492-4e14-b50e-d4563a090514)\n\n[ In the news  A data center fight touches on a big question\n](https://insideclimatenews.org/news/17102024/inside-clean-energy-data-center-\nfight-ai-boom-financial-risk/)\n\n[ In the news  AI data centers tackle the sustainable energy challenge\n](https://impactalpha.com/data-centers-ai-sustainable-energy/)\n\n[ Guest piece  APS, Duke, other utilities pursue new climate resilience\nstrategies as some await upcoming tools\n](https://www.utilitydive.com/news/utility-resilience-extreme-weather-\nplanning-aps-duke-epri/725820/)\n\n[ In the news  AI improvements, DERs and new generation needed to meet power\ndemand: USEA panel  ](https://www.utilitydive.com/news/ai-improvements-ders-\nand-new-generation-needed-to-meet-power-demand-usea/737500/)\n\n[ In the news  Where heat waves might cause blackouts: Look up your area\n](https://www.washingtonpost.com/climate-environment/interactive/2024/texas-\ncalifornia-heat-waves-blackouts-map/?itid=sf_climate_climate-lab_article_list)\n\nRelated industries, solutions, and services\n\n  * [ Cyber security services and resilience consulting ](/work/cybersecurity)\n  * [ Disaster management ](/work/disaster-management)\n  * [ Electrification ](/work/energy/electrification)\n\n  * [ Energy and Utilities ](/work/energy)\n  * [ Environment ](/work/environment)\n  * [ Transportation ](/work/transportation)\n\nOur client stories\n\nDiscover how we help clients achieve success.\n\n[ Learn more  ](/clients)\n\nInsights in your inbox\n\nReceive perspectives on the industries and issues that matter.\n\n[ Subscribe  ](/insights-subscription)\n\n  * [ Terms of Use ](/legal/terms-of-use)\n  * [ Privacy Statement ](/legal/privacy-statement)\n  * [ Cookie Policy ](/legal/cookies-similar-technologies)\n  * [ Do Not Sell or Share My Personal Information ](/legal/do-not-sell-my-personal-information)\n  * [ Limit the Use of My Sensitive Personal Information ](/legal/do-not-sell-my-personal-information)\n  * [ Accessibility Statement ](/legal/accessibility-statement)\n  * [ Sitemap ](/sitemap)\n\nCopyright 2025, ICF International Inc.  \nAll Rights Reserved\n\n",
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                    "source": "https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/our-planet/climate-action.html"
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                "page_content": "#  Climate Action\n\nWe are taking action on climate and transforming our food systems to help them\nbe more resilient for the future.\n\n**  \nJump To: ** Our Recent Progress  |  Our Strategy  |  Our Net Zero Targets  |  Our Performance Data  |  How We Measure Our Climate Impact  |  Climate-Related Risks and Opportunities  |  Collaborating to Drive Change  |  Climate Action in Our Supply Chain  |  Climate Action Across Our Restaurants and Offices  |  Accelerating Circularity  |  California Voluntary Carbon Market Disclosures Act    \n\n* * *\n\nWe believe that reducing emissions and adapting to climate change is critical\nto helping improve the resiliency of the McDonald\u2019s System. We work toward our\nclimate action ambitions by focusing on reducing emissions in restaurant\noperations, engaging suppliers to reduce emissions in supply chains,\nstrengthening our business resilience and using our voice to advocate for\ncollective transformation.\n\n##  Our Recent Progress\n\n  * Our global science-based target, which we revised in 2023, has been validated by the Science Based Targets initiative (SBTi) and covers all three emission scopes in line with a 1.5\u02daC warming scenario.   \n  \n\n  * We are tying our commitment to eliminate deforestation in priority commodities to climate action, using the SBTi\u2019s Forest, Land and Agriculture (FLAG) framework to calculate and address our emissions associated with land use change.   \n  \n\n  * We have signed deals, along with our North American Logistics Council (NALC), to purchase renewable energy and associated renewable energy certificates.   \n\nSee our latest Purpose & Impact Report on the [ Goal Performance & Reporting\n](/corpmcd/our-purpose-and-impact/impact-strategy-and-reporting/performance-\nreports.html) page, as well as our [ Climate Resiliency Summary (PDF \u2013 1.3 MB)\n](/content/dam/sites/corp/nfl/pdf/McDonalds-2023-Climate-Resiliency-\nSummary.pdf) , for our progress in more detail.\n\nBack to Top\n\n##  Our Strategy\n\nClimate change is one of the biggest challenges of our time. Natural disasters\nand extreme weather patterns pose increased risks to food supply resilience\nand communities around the world, including those from which we operate and\nsource.\n\nWe have a unique opportunity as a global brand to mobilize the entire\nMcDonald\u2019s System \u2013 the Company, Franchisees, and direct and indirect\nsuppliers \u2013 to catalyze change. Working with the McDonald\u2019s System, we are\nhelping reduce the climate impact of our restaurants and food systems.\n\nWe aim to embed our climate goals across our operations and are prioritizing\nactions in the most carbon-intensive aspects of Company- and Franchisee-owned\nand operated restaurants and our supply chain.\n\nWe continue to implement our strategy through various actions, including:\n\n  * **Restaurants and offices:** We are driving a transition to more renewable energy while identifying opportunities to enhance energy efficiency by design in our restaurants and the equipment we use, such as by identifying lower-impact refrigerant solutions. We are accelerating circularity to help reduce the impact of our guest packaging and waste, and design d\u00e9cor for greater circularity in our restaurants. These efforts are also supported by strategic supply chain actions in support of climate action.   \n  \n\n  * **Supply chain:** We are engaging suppliers to set targets that support emissions reductions within their operations and supply chains, and which align with our own Scope 3 SBTi goal. Together with our suppliers and other relevant stakeholders, we are accelerating and scaling farm projects to help reduce emissions, with a focus on regenerative agriculture, farm management and deforestation elimination consistent with our [ Commitment on Forests and Natural Ecosystems (PDF \u2013 126 KB) ](/content/dam/sites/corp/nfl/pdf/McDonaldsCommitmentOnForestsAndNaturalEcosystems.pdf) . We also encourage our suppliers to reduce their facilities\u2019 emissions and source renewable energy.   \n  \n\n  * **Collaborating to drive and advocate for change:** Beyond our System, we are using our business\u2019 scale to work with industry, governments, nongovernmental organizations (NGOs) and others to advocate for climate action initiatives.   \n  \n\nOn this page, you\u2019ll find out more about our strategy and impact reduction\nmeasures across our business.\n\n  * Our Net Zero Targets \n  * Our Performance Data \n  * How We Measure Our Climate Impact \n  * Climate-Related Risks and Opportunities \n  * Collaborating to Drive Change \n  * Climate Action in Our Supply Chain \n  * Climate Action Across Our Restaurants and Offices \n  * Accelerating Circularity \n\nBack to Top\n\n##  Our Net Zero Targets\n\nIn 2018, we set targets, approved by the SBTi, to reduce GHG emissions in line\nwith a 2\u02daC warming scenario. Since then, as science has evolved, so have our\ntargets. In 2023, The SBTi validated our global 2050 net zero emissions\nreduction target and our adjusted 2030 global emissions targets, aligned with\nthe latest guidance to help keep global temperature rises below 1.5\u00b0C.  1\n\n###  Our 2030 Emissions Target\n\nBy the end of 2030, from a 2018 base year, McDonald\u2019s commits to reduce:\n\n  * Absolute Scope 1 and 2 GHG emissions by 50.4% from Company-owned and operated restaurants and offices.   \n  \n\n  * Absolute Scope 3 energy and industrial GHG emissions by 50.4% from Franchisee and Company-owned and operated restaurants, and the facility, logistics and plastic packaging emissions in our supply chain.   \n  \n\n  * Absolute Scope 3 FLAG GHG emissions by 16% and to maintain no deforestation across its primary deforestation-linked commodities.   \n\nAchieving these targets will require continued and immediate action throughout\nour own business and across our full value chain \u2013 including our independent\nFranchisees and suppliers, with support and enabling conditions from industry\npeers, NGOs and government on all levels. Among other efforts, we intend to\ncontinue focusing on:\n\n  * Adding renewable energy to the grid, including through virtual power purchase agreements (VPPAs).   \n  \n\n  * Scaling regenerative agriculture practices within our supply chain.   \n  \n\n  * Contributing to deforestation-free supply chains for our primary commodities through our sourcing actions.   \n  \n\n  * Using our voice to advocate for climate-positive policies globally.   \n\n###  Recognizing the Evolving Landscape\n\nWe will continue to drive meaningful progress on our global target while\nrecognizing that our emissions reduction plans and ambitions may be impacted\nby elements outside the Company\u2019s direct control. This may include external\npolicy and geopolitical changes, technological advancements, developments in\nglobal climate accounting standards and the actions of our Franchisees and\nsuppliers.\n\nCurrently, we have aligned our target with the SBTi\u2019s 2023 guidance for\ntarget-setting, and our data collection and analysis approach uses the\nGreenhouse Gas Protocol, the primary global emissions accounting framework. We\nwill continue to share our progress as accounting frameworks evolve. Any\nchanges to third-party guidance or technologies that were utilized to inform\nour strategies have the potential to impact our ability to meet our current\ntargets. Given the long-term nature of our strategies, this could result in\nrevision of our assumptions, calculations and targets, depending on how\nstandards and measurement capabilities develop.\n\nWe also know we will need external climate accounting standards to continue\nevolving in the pragmatic way we anticipate \u2013 especially for nature-based\nsolutions, such as soil carbon sequestration and land use change, and for\nrenewable energy \u2013 to enable us to meet our current targets.\n\nOur climate ambitions will be balanced with overall Company performance\nambitions, including financial growth and continued innovation in our menu\nofferings and sourcing. The Company\u2019s pursuit of financial growth strategies,\nincluding the development of new restaurants and continued sales growth, could\nalso result in an increase in near- or medium-term GHG emissions if we do not\ndecarbonize our footprint at a rate greater than business growth. This balance\nof Companywide objectives and navigating the external environment will remain\ncritical in enabling progress on our climate targets while also driving our\nbusiness strategies forward.\n\nBack to Top\n\n##  Our Performance Data  \n\nThe figures below reflect our 2023 GHG emissions relative to our 2018 base\nyear.\n\n**GHG Emissions (Metric Tons Carbon Dioxide Equivalent (CO 2  e)) ** 2\n\n**Emissions** |  **2018 (Baseline)** |  **2023**  \n---|---|---  \nScope 1 Emissions  |  106,963  |  100,264   \nScope 2 Emissions (market-based)  |  364,985  |  224,964   \nScope 3 Emissions  |  62,354,135  |  59,929,320   \n  \n  \nBack to Top\n\n##  How We Measure Our Climate Impact\n\nWe hold ourselves accountable by measuring emissions annually and working with\nexperts to report our progress using the latest leading methodologies for data\ncollection and analysis, notably the GHG Protocol.\n\nWe have an internal, enterprise-level climate tracking system that uses\nmillions of data points to model emissions from our sourcing, restaurants and\noperations. The system is also a way to share actionable data and benchmarking\ninsights with key internal audiences to inform strategy development. We follow\ntailored approaches to calculate emissions in various categories, including:\n\n  * **Land use change:** We calculate land use change emissions and integrate them into annual carbon footprint reports. To reinforce the credibility of our strategy, we are helping develop globally relevant and accepted GHG accounting methods through various third-party coalitions. We recognize that, due to calculation processes for land use change, the actions we take today to eliminate deforestation and address conversion will reduce \u2013 but not eliminate \u2013 our emissions by 2030. We are committed to credibly accounting for these impacts in line with established standards, using this information to further inform our reduction strategy.   \n**  \n**\n\n  * **Renewable energy:** For renewable energy, our impact is calculated in line with the GHG Protocol\u2019s market-based accounting method. We allocate Energy Attribute Certificates (EACs) between Company-owned and operated restaurants and Franchisees by percentage, as determined by store count for each country. We use a country-level emission factor to credit EAC purchases, so there is only one emission factor per country for EACs. The program comprises a combination of EAC mechanisms, including but not limited to VPPA structures that produce additionality, unbundled EAC purchases and EACs that might come packaged with a retail solution. ****\n\nOur climate plans and targets are informed by internal and external data sets\nthat are potentially incomplete and continue to evolve over time. This\nincludes Company growth predictions and emissions footprint measurements for\nvarious operational activities and geographies. We will continue to evolve the\nsystems we use through annual reviews of data quality and completeness,\nclimate accounting methodology and the latest external scientific insights and\nbenchmarking capabilities. Therefore, we expect that, going forward, our\nbaseline and annual progress figures may adjust accordingly.\n\nBack to Top\n\n##  Climate-Related Risks and Opportunities\n\nImpacts of climate change threaten to disrupt agricultural food supply chains\nand restaurant operations while posing real risks to vulnerable communities\nglobally and our own ability to drive climate action and maintain business\noperations. Recognizing these increasing impacts, we are focused on building\nresiliency across our System to help our restaurants and supply chain adapt to\nmore extreme weather events and temperatures, water scarcity, flooding and the\npotential associated operating costs.\n\nWe are assessing climate risk and strengthening our collective resiliency\nusing the Task Force on Climate-related Financial Disclosures (TCFD) to guide\nour reporting approach. During 2024, we released our updated [ 2023 Climate\nResiliency Summary (PDF \u2013 1.3 MB)\n](/content/dam/sites/corp/nfl/pdf/McDonalds-2023-Climate-Resiliency-\nSummary.pdf) , an overview of the governance, strategy, risk management and\nmetrics of our global climate action approach \u2012 guided by TCFD recommendations\nand reflective of 2023 data.\n\nSee our [ Business Resilience ](/corpmcd/our-purpose-and-impact/impact-\nstrategy-and-reporting/business-resilience.html) page for more detail on our\noverall risk management process.\n\nBack to Top\n\n##  Collaborating to Drive Change\n\nWe know addressing climate change requires a collective effort across our\nglobal community. That is why we\u2019re working with our suppliers, Franchisees,\nindustry, governments, NGOs and others.\n\n###  Climate-Related Pledges, Groups and Memberships\n\nCollaborations help us contribute to climate action and advocate for climate\npolicy. We know the realization of our climate ambitions will require\nsignificant action from the McDonald\u2019s System and beyond. We are working with\nvarious stakeholders to help enable a shift in climate policy, knowledge and\naccounting, including:\n\n  * [ Ceres Business for Innovative Climate and Energy Policy (BICEP) ](https://www.ceres.org/networks/ceres-policy-network) network: Alongside over 85 other organizations, we advocate for strong climate and clean energy policies in the U.S.   \n  \n\n  * [ Clean Energy Buyers Association (CEBA) ](https://rebuyers.org/) : As a member of CEBA, we collaborate with other energy buyers, energy providers and service providers to navigate energy market complexities.   \n  \n\n  * [ Consumer Goods Forum (CGF) Forest Positive Coalition ](https://www.theconsumergoodsforum.com/environmental-sustainability/forest-positive/) : A multi-company initiative to stop commodity-driven deforestation and address global climate change issues across the sector. Learn more on our [ Nature, Forests & Water ](https://author-p23462-e75052.adobeaemcloud.com/content/mcdonalds/corpmcd/our-purpose-and-impact/our-planet/nature-forests-water.html) page.   \n  \n\n  * [ Energy Transition Accelerator (ETA) ](https://www.etaccelerator.org/) : In 2023, we signed a letter of interest, welcoming the ETA as an opportunity to support large-scale power sector transformation while accelerating progress toward climate goals.   \n  \n\n  * [ Gold Standard Value Change Initiative ](https://valuechangeinitiative.com/) : We have worked with others to test new techniques of carbon accounting in the supply chain and deal with challenges around traceability.   \n  \n\n  * [ Greenhouse Gas Protocol ](https://ghgprotocol.org/) : Technical Working Group on Land Based Emissions: Through this working group, we collaborate with GHG accounting specialists, NGOs and other companies to establish standards and guidance for use when measuring the impact of emissions from farming, forestry and other land-based activities.   \n  \n\n  * [ SBTi\u2019s FLAG project ](https://sciencebasedtargets.org/sectors/forest-land-and-agriculture) consultative group: In 2022, we contributed to expert advice and direction for companies in land-intensive sections to ensure criteria for target-setting are clear and practical. This experience helped inform our own journey to update our SBTi-validated targets in 2023.   \n  \n\n  * U.S. Congress: We meet with Members of Congress and staff to discuss climate-related topics that are of importance to the Company.   \n  \n\n  * [ WWF's Climate Business Network ](https://wwf.panda.org/discover/our_focus/climate_and_energy_practice/what_we_do/climatebusiness/climate_business_network/) : We joined the network to exchange ideas with peers on how to reduce emissions in line with our global climate targets. \n\nBack to Top\n\n##  Climate Action in Our Supply Chain\n\nTogether with our suppliers, we share a commitment to take action to address\nclimate change.\n\n###  Supplier-Supported Climate Action\n\nOur ability to measure and achieve reductions in overall GHG emissions \u2013\nparticularly our Scope 3 emissions \u2013 depends significantly on the work and\ncollaboration of our suppliers. We expect McDonald\u2019s food, packaging and\nlogistics suppliers to set climate targets, measure their emissions and\nachieve reductions in line with their broader sustainability strategies. This\nexpectation is communicated to suppliers, with support provided through our\nGlobal Sustainable Sourcing Guide.\n\nThrough our climate data and insights platform, we model the various impacts\nsuppliers and sourcing categories have on our emissions. These insights allow\nus to target our work with suppliers on strategies that support our science-\nbased targets and reduce our collective climate impact.\n\n###  Nature-Based Climate Solutions\n\nWe believe in the power of sustainable agriculture practices to help increase\nbiodiversity, enrich soils and boost climate resilience. At McDonald\u2019s, we\nlook to scale the adoption of regenerative agriculture principles by our\nsuppliers to help build more resilient supply chains and drive action against\nour climate goals.\n\nRead our approach to eliminating deforestation and addressing conversion on\nour [ Nature, Forests & Water ](/corpmcd/our-purpose-and-impact/our-\nplanet/nature-forests-water.html) page and our approach to regenerative\nagriculture and responsible farm management on our [ Responsible Sourcing\n](/corpmcd/our-purpose-and-impact/food-quality-and-sourcing/responsible-\nsourcing.html) page.\n\n###  Managing Our Transport and Logistics Impact\n\nWe have a two-fold approach to working with our suppliers to achieve world-\nclass logistics operations with the lowest feasible environmental footprint:\n\n  * Driving fewer miles and using less fuel through routing improvements, innovations like engineless cooling and air deflectors, and driver training.   \n  \n\n  * Increasing the use of alternative fuels with lower emissions compared to diesel, including renewable natural gas created from biowaste, biofuels, hydrogen, natural gas, propane and electricity. Where possible, we encourage suppliers to use biofuels that are generated from by-products rather than crops grown for food. \n\nAll of McDonald\u2019s independent logistics suppliers have set science-based\ntargets, approved by the SBTi. These SBTi-approved targets vary in terms of\nscenario alignment and scope inclusion based on the needs of individual\nsuppliers.\n\nBack to Top\n\n##  Climate Action Across Our Restaurants and Offices\n\nAs of the end of 2023, restaurant energy use represented 78% of SBTi boundary\nrestaurant and offices emissions footprint, and as such, is a key focus area\nfor accelerating progress against our 2030 targets. With restaurants in over\n100 markets globally, approximately 95% of which are franchised, we are\nworking with our Franchisees on innovative solutions for creating and managing\nincreasingly sustainable, efficient locations. This includes investing in\nareas such as LED lighting, energy management systems and energy-efficient\nkitchen equipment. Across the globe, our markets are in various phases of\nstrategy development and implementation.\n\n###  Adding Renewable Energy to the Grid\n\nOne of the most effective and timely actions we can take to reduce\nelectricity-related emissions is purchasing renewable energy to cover\nrestaurant needs. We are increasingly looking for solutions to power more of\nour sites with carbon-free energy while increasing awareness and adoption of\nrenewable electricity throughout the System. We collaborate with our markets,\nFranchisees and trade associations to understand the complex local and global\nlandscape to support renewable energy growth and evaluate opportunities to\nadvocate for policies that accelerate progress.\n\nSince 2019, McDonald\u2019s has signed multiple large-scale renewable energy VPPAs\nthat will help add new renewable energy to the U.S. grid. The projects we have\ncontracted renewable energy through cover both solar and wind technologies and\nare operational in Texas, Illinois, Oklahoma and Louisiana.\n\nA supportive policy environment is essential as the industry transitions to\ncarbon-free energy; it also requires a resilient renewable energy supply\nchain. However, today, the renewable energy industry continues to experience\nsupply chain issues. Faced with these current headwinds, we recognize some\ncontracted projects in our portfolio may need to be replaced with others in\nthe future. We continue to monitor the progress of all projects to ensure they\nmeet our selection criteria.\n\nAs renewable energy is a key driver of our overall climate strategy, we\ncontinue to work across both Company-owned and operated and franchised\nrestaurants globally to understand the energy landscape on a local level and\nwhere there are opportunities to drive maximum impact across our System. Our\nability to meet our SBTi-validated targets may be impacted if third-party\naccounting methodologies do not enable or recognize McDonald\u2019s procurement of\nrenewable electricity to account for Franchisee restaurant emissions. While\nthere is uncertainty regarding how third-party accounting methodologies may\nevolve, our corporate VPPA program is focused on advancing wide-reaching\nimpact and has been able to support projects that help drive renewable energy\nadditionality.\n\nBack to Top\n\n##  Accelerating Circularity\n\nMcDonald\u2019s is embracing circularity, addressing waste and tackling emissions\nin key areas for our business and System. That means McDonald\u2019s is thinking\nabout how we use, design, produce, transport, dispose and recover materials,\nas well as the opportunities to extend the life of those materials and find\nsavings, all while helping reduce the impact on the planet.\n\nFor example, our packaging, toys and waste goals aim to help accelerate a\ncircular economy approach by advancing the reduction, reuse or recycling of\nguest packaging, and helping create demand for recycled materials. Where\npossible, and aligned with our circularity strategy, this can also contribute\nto reducing emissions and driving progress toward our climate commitments. To\nidentify strategies to help us continue reducing Scope 3 emissions related to\nprocuring the materials used to operate our business, we engage with our\nsuppliers, markets and Franchisees, as well as customers, NGOs and local\ngovernments.\n\nAlso, we are exploring new, more sustainable ways to design and create d\u00e9cor\nfor our restaurant dining areas. Our approach is founded on the ideas of\nsimplicity and disassembly \u2013 incorporating d\u00e9cor that is modular and can be\neasily replaced in sections when needed. Pieces are held together using\nmechanical fixings, instead of glue, so teams can more effectively break\nrestaurant features down by raw material type for recycling or reuse. By\ndesigning d\u00e9cor for greater circularity, we can work toward reducing our\noverall waste-related environmental impact. We will continue to evaluate\nopportunities to promote circularity within our System.\n\nRead more on our [ Packaging, Toys & Waste ](/corpmcd/our-purpose-and-\nimpact/our-planet/packaging-toys-and-waste.html) page.\n\nBack to Top\n\n##  California Voluntary Carbon Market Disclosures Act\n\nMcDonald\u2019s Corporation makes the following information available pursuant to\nthe California Voluntary Carbon Market Disclosures Act: [ McDonald\u2019s\nCalifornia Voluntary Carbon Market Disclosures Act (VCMDA) Disclosure\nStatement (PDF \u2013 144 KB)\n](/content/dam/sites/corp/nfl/pdf/McDonalds_California_Voluntary_Carbon_Market_Disclosures_Act_Statement.pdf)\n.\n\nBack to Top\n\n##  Footnotes\n\n1  McDonald\u2019s SBTi-validated target in full:\n\n  * McDonald\u2019s Corporation commits to reduce absolute Scope 1 and 2 GHG emissions 50.4% by 2030 from a 2018 base year.   \n\n  * McDonald\u2019s Corporation also commits to reduce absolute Scope 3 energy and industrial GHG emissions from purchased goods and services, fuel and energy- related activities, upstream transportation and distribution, waste generated in operations, end-of-life treatment of sold products, and franchises 50.4% within the same timeframe.   \n\n  * McDonald\u2019s Corporation commits to reduce absolute Scope 3 FLAG GHG emissions 16% by 2030 from a 2018 base year. McDonald\u2019s Corporation also commits to maintain no deforestation across its primary deforestation-linked commodities. \n\n2  Consistent with past reporting by the Company, these figures include the\nimpact through 2023 of the Corporate-backed VPPA program in the U.S.,\nrecognizing that the SBTi is currently assessing the effectiveness of\nEnvironmental Attribute Certificates (EACs) in corporate climate targets to\ninform its revisions to the net zero standard.\n\nBack to Top\n\n###  Latest Stories\n\n* * *\n\n##  More in Our Purpose & Impact\n\n* * *\n\nNature, Forests & Water\n\nWe take a holistic approach to helping protect natural resources, the\ncommunities that rely on them and the future of our business.\n\n[ Read more about Nature, Forests & Water ](/corpmcd/our-purpose-and-\nimpact/our-planet/nature-forests-water.html \"Read more about Nature, Forests &\nWater\")  \n\nPackaging, Toys & Waste\n\nWe are working to accelerate solutions that help reduce waste while also\ntransitioning to more sustainable packaging and toy materials.\n\n[ Read more about Packaging, Toys & Waste ](/corpmcd/our-purpose-and-\nimpact/our-planet/packaging-toys-and-waste.html \"Read more about Packaging,\nToys & Waste\")  \n\nResponsible Sourcing\n\nWe aim to use our scale and influence to help positively impact our planet, in\naddition to animals and the people connected to our supply chain, especially\nwhen sourcing our priority commodities, which is where we believe we can have\nthe greatest impact: beef, soy for chicken feed, fiber, palm oil, fish and\ncoffee.\n\n[ Read more about Responsible Sourcing ](/corpmcd/our-purpose-and-impact/food-\nquality-and-sourcing/responsible-sourcing.html \"Read more about Responsible\nSourcing\")  \n\n[ ](https://www.instagram.com/mcdonaldscorp/)\n\n[ ](https://www.linkedin.com/company/mcdonald%27s-corporation)\n\n[ ](https://www.tiktok.com/@mcdonalds_corp?lang=en)\n\n* * *\n\n  * [ Privacy  ](https://www.mcdonalds.com/us/en-us/privacy-overview.html)\n  * [ Terms & Conditions  ](/corpmcd/terms-and-conditions.html)\n\nCookie Settings  \n\n\u00a9 2025 McDonald's. All Rights Reserved\n\n##  Leaving McDonald's Web Site\n\nYou are leaving McDonald\u2019s to visit a site not hosted by McDonald\u2019s. Please\nreview the third-party\u2019s privacy policy, accessibility policy, and terms.\nMcDonald\u2019s is not responsible for the content provided by third-party sites.\n\nContinue\n\n",
                "url": "https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/our-planet/climate-action.html"
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                "page_content": "Skip to main content\n\n[ ](/) [ Key Topics ](/priority-topics) [ Efficiency & Emissions ](/priority-\ntopics/efficiency-emissions)\n\nSide Navigation\n\nQuick Links  [ Print ](javascript:window.print\\(\\))\n\n#  Efficiency & Emissions\n\n##  Pursuing carbon neutrality and deploying Smart Climate Solutions to\nsupport cost savings and emission reductions.\n\nClick through to learn about our [ 2024 impact in action ](/priority-\ntopics/efficiency-emissions#ptSection4) . For detailed data, please see our [\ncorporate responsibility KPI webpage ](/progress/corporate-responsibility-\nkpis) .\n\nPlease note that 2024 data is estimated. Final values will be available in Q2\n2025.\n\n[ Global Reporting Initiative Standard Disclosures  203-2; 305-1; 305-2;\n305-3; 305-4; 305-5; 305-6  ](/reports/reporting-frameworks/gri) [ Task Force\non Climate-related Financial Disclosures  Governance; strategy; risk\nmanagement; metrics & targets  ](/reports/reporting-frameworks/tcfd)\n\n##  Why It Matters: The Global Context\n\nThe latest World Meteorological Organization update indicates there is an [\n80% chance global temperatures will exceed 1.5\u00b0C ](https://wmo.int/news/media-\ncentre/global-temperature-likely-exceed-15degc-above-pre-industrial-level-\ntemporarily-next-5-years) above preindustrial levels. As global temperatures\nhave risen, so too has the frequency of unpredictable weather events and\ndevastating natural disasters. Stakeholders important to our business expect\nus to do our part to drive meaningful action. With growing energy demands\nacross the world, it\u2019s important that the country has access to a mix of\nenergy sources and that corporations explore innovative ways to reduce\nconsumption and improve resilience.\n\n##  Our Approach\n\nWe are addressing our own emissions in a responsible and financially\nbeneficial way, as well as supporting customers and suppliers to do the same.\nWe are also working strategically to enhance resilience for our network\noperations and the communities in which we operate.\n\nIn 2020, we committed to Scope 1 and 2  1  carbon neutrality across global\noperations by 2035; in 2021, we set interim targets that were approved by the\nScience Based Targets initiative (SBTi). Our Scope 1 and 2 2030 SBTi target\naligns with a 1.5\u00b0C pathway.\n\nTo help assess and reduce our impact \u2014 and related impacts on our operations \u2014\nwe have developed a strategy that focuses on:\n\n  1. Lowering emissions \n  2. Building resilience \n  3. Seizing opportunities \n\n###  1\\. Lowering Emissions\n\nTo meet our goals, we work to minimize our emissions through financially\nprudent approaches, targeting continuous improvements through:\n\n  * Energy efficiency projects and network optimization efforts \n  * Renewable energy procurement \n  * Transitioning our fleet to low-carbon alternatives \n\nThough we aim to reduce emissions as much as possible, there may be some\nsources that cannot be eliminated. In these cases, we may, in the future,\ninvest in carbon offsets. We are committed to pursuing only the most credible\noffsets and to being transparent in our approach. To date, offsets are not\nincluded in our carbon footprint.\n\n####  Energy Efficiency and Network Optimization\n\nWe drive operational and network energy efficiencies, updating systems and\ndecommissioning obsolete assets to reduce annual energy consumption. We also\nconduct proof of concept trials and implement technology-enabled solutions\nacross our facilities and network that can deliver scalable energy savings.\n\nTo understand current performance, we strategically use AT&T connectivity and\nInternet of Things (IoT) technologies to acquire data from facility equipment\nand network assets. We analyze the data centrally to set baselines, monitor\nstatus and identify required maintenance in real time to identify\nopportunities for reducing costs and unnecessary energy use.\n\n####  Renewable Energy Procurement\n\nWhere we do use energy, we work to meet more of our needs with energy from\nrenewable sources, recognizing that Scope 2 emissions (from purchased\nelectricity) account for most of our operational emissions (Scope 1 and 2). We\nactively explore financially beneficial large-scale renewables contracts,\nacquiring renewable energy credits to validate our purchases. Through\nrenewable energy contracts, we not only reduce our carbon footprint, but also\nrealize cost savings for the company.\n\nAT&T reports market-based Scope 2 emissions in accordance with the [\nGreenhouse Gas (GHG) Protocol ](https://ghgprotocol.org/) , enabling us to\naccount for renewable electricity in our portfolio. Learn more about our\nenergy efficiency efforts and renewable energy use in our [ Energy Management\nissue brief ](/priority-topics/energy-management) .\n\n####  Low-Carbon Fleet\n\nOur ground fleet constitutes the largest proportion of our Scope 1 emissions.\nWe aim to reduce fleet emissions by at least 76% by 2035, investing in\nelectric vehicles (EVs) \u2014 as well as the infrastructure needed to support\nthem. We hold active membership with the [ Corporate Electric Vehicle Alliance\n](https://www.ceres.org/transportation/corporate-electric-vehicle-alliance) to\nidentify more opportunities to add EVs to our fleet while addressing wider\nchallenges to adoption.\n\n####  Scope 3 Emissions\n\nScope 3  2  emissions are our largest single emissions source and, as such,\ncollaborating with key suppliers to address value chain emissions also remains\nan ongoing priority. This includes supporting our suppliers to set, and\nprogress against, their own emissions-reduction goals.\n\nLearn more about our Scope 3 emissions categories in our [ 2024 Scope 3\nEmissions Categories document\n](/ViewFile?fileGuid=16621902-66f1-43ae-881b-882eb9bf3d74) .\n\n###  2\\. Building Resilience\n\nWe integrate advanced data into decision-making processes to protect our\nbusiness and infrastructure against severe weather-related impacts.\n\nAT&T assesses how regulations, technology developments and market or\nreputational factors could affect our company. We consider long-term projected\nimpacts and seek new ways to integrate data into planning systems to inform\ninfrastructure decisions.\n\nLearn more about our Enterprise Risk Management (ERM) process in our [ Ethics\n& Integrity issue brief ](/priority-topics/ethics-integrity) .\n\n####  Scenario Analysis\n\nIn 2023, we engaged an external vendor to complete a scenario analysis aligned\nwith Task Force on Climate-related Financial Disclosures (TCFD)\nrecommendations. For more information, see our [ TCFD Report\n](/reports/reporting-frameworks/tcfd) and [ Climate Strategy & Transition Plan\n](/ViewFile?fileGuid=01b84e21-1bbf-4696-98d8-3f9cbec733bd) .\n\n####  Physical Risks\n\nKeeping our network and operations up and running is critical to the millions\nwho rely on AT&T connectivity. That\u2019s why we\u2019re assessing, managing and\nworking to reduce the potential impacts and magnitude of physical risks on our\noperations. We conduct regular analysis and implement solutions to help ensure\nthat our network infrastructure, such as cell sites, can withstand natural\ndisasters and other environmental factors.\n\n####  Transition Risks\n\nWe are exploring both the potential risks and opportunities to AT&T associated\nwith a lower-emissions economy. For instance, changes in federal, state and\nforeign government regulation could result in additional costs of compliance\nor litigation.\n\n####  The ClimRR Portal\n\nTogether with the U.S. Department of Energy\u2019s Argonne National Laboratory and\nthe U.S. Department of Energy\u2019s Grid Deployment Office, we created the ClimRR\n(climate risk and resilience) portal. The portal provides cutting-edge,\nlocalized projections \u2014 based on underlying datasets containing over 60\nvariables \u2014 and projects future hazards like extreme heat, heavy rainfall and\nwildfire.\n\nClimRR helps improve America\u2019s preparedness for extreme weather events, making\nsome of the world\u2019s most sophisticated modeling freely and publicly accessible\nso state, local, tribal and territorial emergency managers and community\nleaders can explore localized data on future risks to inform resilience\nstrategies.\n\nLearn more about how we\u2019re driving resilience in our [ Network Resilience\nissue brief ](/priority-topics/network-resilience) .\n\n###  3\\. Seizing Opportunities\n\nWe leverage our product portfolio to support our business customers\u2019\nemissions-reduction ambitions. In 2021, we launched the [ Gigaton Goal\n](https://sustainability.att.com/cr/environment/reducing-\nemissions#:~:text=and%20reducing%20costs.-,SMART%20CLIMATE%20SOLUTIONS,-Helping%20Customers)\nto deliver connectivity solutions that will help enable business customers\nreduce their consumption and expenses, and to collectively save a gigaton (1\nbillion metric tons) of GHG emissions between 2018 and 2035.  3  To achieve\nthis ambitious target, we are developing Smart Climate Solutions that\nintegrate AT&T Fiber, 5G and IoT with complementary technologies that help\ncompanies become more efficient and move us to a lower-carbon economy.\n\nBut we understand connectivity-enabled efficiency isn\u2019t enough; we also need\nto stimulate game-changing innovation that fundamentally shifts how we think\nabout emissions reduction. We believe Smart Climate Solutions can both enhance\nefficiency in traditional operations for our business customers and foster the\ngrowth of new, emissions-reducing industries in six key areas:\n\n  * **Smart Buildings:** Enable energy and emissions monitoring, optimization and reporting. \n  * **Transportation:** Facilitate fleet telematics, EV charging, autonomous and vehicle-to-infrastructure communication. \n  * **Renewable Energy and Storage:** Optimize renewable production and storage with IoT sensors and connectivity. \n  * **Methane Leak Detection:** Reduce methane leaks with sensors, video intelligence and connectivity. \n  * **Carbon Dioxide Removal and Digital Measurement, Reporting and Verification:** Support carbon removals by monitoring and optimizing performance and enabling data to prove credibility. \n  * **New Fuel Production Manufacturing and Logistics:** Utilize smart factory and transportation asset tracking for new fuels such as hydrogen and sustainable aviation fuel. \n\nWe work with The Carbon Trust to develop emissions abatement factors\nrepresenting the average emissions reduction that can be achieved through\nthese Smart Climate Solutions.\n\nLearn more about our Gigaton Goal by viewing our [ progress update\n](/ViewFile?fileGuid=a0d2bc49-7152-4d59-a835-cef357b2fbd4) . To explore how we\nmeasure our impact, visit our [ 2025 Gigaton Methodology\n](/ViewFile?fileGuid=a990da76-0eda-4872-b926-e3ae896d7308) .\n\n####  Efficiency and Emissions Governance\n\nTo ensure we\u2019re playing our role effectively, we have assigned oversight\nresponsibility to several internal bodies.\n\n**At Board of Directors level:**\n\n  * **Governance and Policy Committee (GPC):** Meets throughout the year to assist the Board in overseeing our governance practices and corporate responsibility strategy, including related policies, programs and sustainability reporting. In 2024, the GPC held five regularly scheduled meetings and received information about environmental initiatives and reporting. \n  * **Audit Committee:** Oversees our internal audit of corporate responsibility reporting and integration of corporate responsibility issues into corporate ERM analysis. \n\n**At Management level:**\n\n  * **Chief Sustainability Officer and Senior Vice President of Corporate Responsibility:** Oversees AT&T\u2019s strategy, receiving weekly updates on cross-company activities and developments. \n  * **Corporate Responsibility Governance Council:** Led by our Chief Sustainability Officer and comprising senior executives and officers responsible for business areas most closely linked to our current corporate responsibility priorities. It meets multiple times annually and collaborates on initiatives, competencies and perspectives. \n  * **Assistant Vice President (AVP) of Global Environmental Sustainability:** Directly reports to the Chief Sustainability Officer, oversees AT&T\u2019s environmental programming and leads our Environment Committee. \n  * **Environmental Sustainability Team:** Led by the AVP of Global Environmental Sustainability, monitors internal and external developments and communicates the most relevant issues to the Chief Sustainability Officer. The team works with business unit experts to implement and enhance programs and policies addressing environmental risks and opportunities. \n  * **Senior Vice President of Engineering and Operations:** Responsible for network resilience, including energy and water use. Oversees our commitments to renewable energy procurement, energy efficiency, network disaster response and business continuity planning. \n  * **AT &T Implementation, Provisioning and Optimization Organization: ** Sits in our Network Engineering and Operations organization and oversees business aspects that impact emissions, such as energy efficiency and energy conservation measures, decommissioning activities and renewable energy purchases. Other measures affecting emissions \u2014 such as our fleet \u2014 are managed within distinct departments in accordance with organizational procedures. \n\nFor more information on our oversight of these issues please visit our [ TCFD\nReport ](/reports/reporting-frameworks/tcfd) .\n\n###  Robust Management and Policies\n\nRobust policies and procedures guide how we manage risks and opportunities,\nincluding:\n\n  * The [ AT&T Environmental Statement ](/ViewFile?fileGuid=f851bf03-69bc-43c0-a163-cc1c01000f01) , which addresses our approach to managing impacts, reducing emissions, increasing operational resilience and helping customers pursue sustainability. \n  * Our [ Climate Strategy & Transition Plan ](/ViewFile?fileGuid=01b84e21-1bbf-4696-98d8-3f9cbec733bd) , which describes our overall approach. \n\nTo keep pace with the evolving sustainability landscape and scope of our\ncompany, we continuously revise and strengthen our GHG emissions management\nprogram in line with relevant standards, protocols and best practices. This is\nguided by the work we do with an integrated energy services provider to\ncompile, analyze and produce annual emissions reports. The content and methods\nrelated to data calculation, estimation and aggregation are reviewed annually\nto identify improvement opportunities.\n\nWe continue to automate emissions data collection and calculations associated\nwith our annual emissions statement. The goal is to reduce data collection and\nprocessing time, accelerate data validation and decrease the likelihood of\nhuman error.\n\n###  Stakeholder Engagement\n\nNo single entity can solve the largest environmental challenges, which is why\nwe partner with industry peers, governments, nonprofits and academia who are\nequally committed to creating a cleaner, more sustainable world, including:\n\n  * **[ Center for Climate and Energy Solutions (C2ES) ](https://www.c2es.org/) : ** AT&T supported C2ES in developing a multistakeholder-led framework for business leadership on resilience. We also supported C2ES to develop and launch their [ Principles for Corporate Climate Resilience Leadership ](https://www.c2es.org/principles-for-corporate-climate-leadership/) . \n  * **[ Corporate Electric Vehicle Alliance ](https://www.ceres.org/transportation/corporate-electric-vehicle-alliance) : ** AT&T is a member of the Corporate Electric Vehicle Alliance to understand and support the transition to EVs across all use cases and class sizes. \n  * **[ Global enabling Sustainability Initiative (GeSI) ](https://gesi.org/) : ** AT&T participates in GeSI projects and activities in the areas of climate, supply chain and human rights. \n  * **[ Trellis Network ](https://www.greenbiz.com/trellis-network) : ** AT&T participates in various Trellis Network interest groups focused on strategy, circularity, transportation and logistics, and carbon markets. \n  * **[ Interdependent Networked Community Resilience Modeling Environment (IN-CORE) ](https://www.in-core.org/) : ** AT&T supports IN-CORE, which provides expertise in community resilience, as we grow the user base and awareness of the ClimRR portal. \n  * **[ Third Derivative ](https://www.third-derivative.org/) : ** AT&T works with Third Derivative to identify new technologies that could benefit from the integration of AT&T connectivity to become a Smart Climate Solution or that we could use at AT&T to help lower our operational emissions. \n  * **[ University of Texas\u2019 Center for Water and the Environment (CWE) ](https://cwe.engr.utexas.edu/) : ** AT&T collaborated with CWE to explore how Texas and first responders can use AT&T\u2019s future flooding dataset to enhance readiness and risk-reduction efforts. \n\nWe are also members of trade associations that support environmental action,\nsuch as the [ Business Roundtable ](https://www.businessroundtable.org/) and\nthe [ U.S. Chamber of Commerce ](https://www.uschamber.com/) .\n\n##  Our 2024 Impact in Action\n\nTopic  |  Goal  |  Progress  4   \n---|---|---  \nGHG Emissions  |  Reduce our absolute Scope 1 and 2 GHG emissions by 63% (2015 base year) \u2014 aligning with a 1.5\u00b0C pathway by the end of 2030.  5  6  |  **Reduction of** **51%** from our 2015 base year (8.8 million metric tons of CO  2  e) \u2014 81% attainment toward our Scope 1 and 2 science-based target.   \nCarbon Neutrality  |  Achieve carbon neutrality (Scope 1 and 2 emissions) by the end of 2035.  |  **Reduction of more than** **4.5 million metric tons** **CO 2  e ** from our 2015 base year \u2014 51% attainment toward our carbon-neutrality target.  7   \nCustomer Emissions-Reduction Enablement  |  Deliver connectivity solutions that enable business customers to reduce a gigaton (1 billion metric tons) of GHG emissions from 2018 through the end of 2035.  |  **Enabled** **227.2 million metric tons of customer emissions savings** \u2014 23% of our Gigaton Goal.   \n  \n###  Tackling Our Emissions\n\nOur ground fleet emissions accounted for 72% of our 2024 Scope 1 emissions  8\nwhile 87% of total operational emissions were attributable to purchased\nelectricity. In 2024, we entered two new contracts to purchase renewable\nenergy; we also conducted 511,470 projects to enhance energy efficiency. For\nmore information, see our [ Energy Management issue brief ](/priority-\ntopics/energy-management) .\n\n####  Scope 1 Emissions\n\nScope 1 emissions account for 3.8% of our total reported emissions and 12.6%\nof our total operational emissions.  9\n\nThroughout the year, we maintained our focus on building capacity to support a\nlarger EV fleet. In California \u2014 where new Advanced Clean Fleets regulation\nrequires that at least 10% of fleet vehicles be zero-emission or near-zero-\nemission vehicles \u2014 two AT&T sites are currently under development to become\nhubs for infrastructure that will support future expansion of our EV fleet.\n\nIn 2024, Scope 3 emissions represented 70% of our total footprint. Our Scope 3\nemissions decreased by 7.5% from 2023 to 2024. The most impactful reductions\ncan be seen in Purchased Goods & Services and Capital Goods, which despite\nstability in spend, emissions reduced due to the efforts of our suppliers to\nreduce their emissions and reductions in EEIO emissions factors. Emissions\nrelated to Transportation and Distribution also saw significant reductions due\nto a sharp decrease in the EPA\u2019s emission factor related to trucking in the\nUnited States. Some of the reduction of Scope 3 was counteracted by an\nincrease in emissions related to Waste Generated in Operations and Employee\nCommuting. Waste overall increased due to AT&T\u2019s significant investment in our\nnational fiber footprint and decommissioning of older network elements, while\nEmployee Commuting increased due to using more accurate data regarding\ncommutes rather than state-level averages.\n\nExplore our emissions data in more detail in our [ corporate responsibility\nKPI webpage ](/progress/corporate-responsibility-kpis) .\n\n###  Delivering More Smart Climate Solutions\n\nBy the end of 2024, we had identified 31 Smart Climate Solutions and\ncalculated the emissions reductions each can support. These solutions have\nalready enabled emissions reductions of 227.2 million metric tons of CO  2  e\n\u2014 23% of our Gigaton Goal.\n\n####  Collaborating on Carbon Removal\n\nIn March 2024, we announced an agreement with 1PointFive \u2014 a carbon removal\ncompany \u2014 to purchase CO  2  removal credits from their first large-scale\nDirect Air Capture (DAC) facility. Known as STRATOS and set to be the largest\nfacility of its kind in the world, the site is designed to capture up to\n500,000 metric tons of CO  2  annually when fully operational.\n\nTo further support this work, we are providing fiber connectivity which will\nenable 1PointFive to monitor and optimize the facility.\n\n###  Fueling Collective Action\n\nWe\u2019re continuously amplifying ClimRR\u2019s scope, incorporating new data layers on\npluvial flood projections.\n\nTo support forward-looking data being incorporated into hazard mitigation\nplans, during 2024, we also piloted the Climate Resilient Communities\nInitiative. Through the initiative, participating regions receive assistance\nfrom AT&T, Argonne National Laboratory and IN-CORE to apply ClimRR insights to\nhazard mitigation and resilience plans and to understand potential local\nimpacts of extreme heat, flooding, dangerous fire weather conditions or\ndrought. By doing so, local agencies are empowered to proactively protect\nvulnerable members of their communities. For example, in New York, Albany\nCounty is analyzing potential future hazards such as more frequent and intense\nsnowstorms that could raise maintenance costs and storm disruptions. ClimRR\ndata also helped the county identify areas at heightened risk of significant\nprecipitation and landslides. By gaining these insights, Albany County can\nbetter target priority areas for risk-mitigation solutions.\n\nDuring 2024, we were honored to be recognized as the winner of the U.S.\nChamber of Commerce Citizens Award in the category \u201cBest Community Resilience\nand Disaster Response Program\u201d for the ClimRR portal and our Network Disaster\nRecovery efforts. We are also proud to have been frequently recognized by C2ES\nfor ClimRR. We were also recognized as Champion Winner of the Top\nSustainability Initiative at the 2024 Digital Engineering Awards for both the\nportal and our Climate Resilient Communities Initiative.\n\nLearn how we\u2019re further leveraging data to enhance our understanding of heat-\nrelated human impacts in our [ Environment, Health & Safety Compliance issue\nbrief ](/priority-topics/environment-health-safety-compliance) .\n\n  1. Scope 1 emissions include direct emissions from sources owned or controlled by the company. Scope 2 emissions include indirect emissions that result from the generation of purchased energy. \n  2. Scope 3 emissions are indirect value chain emissions that are neither produced directly by a company nor the result of activities from owned or controlled assets. \n  3. A gigaton amounts to about a fifth of all U.S. GHG emissions in 2020. Calculated using U.S. Environmental Protection Agency (EPA) data, [ https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks ](https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks) . \n  4. Data (2020\u20132023) is rounded and inclusive of AT&T operations (U.S. and international). Starting in 2022, data does not include DIRECTV, Vrio, Xandr or WarnerMedia. \n  5. Note that data is rounded. \n  6. SBTi-approved goal. \n  7. Representative of all AT&T operations, excluding AT&T Mexico. \n  8. Data is rounded and inclusive of AT&T operations (U.S. and international). \n  9. Inclusive of global Scope 1, 2 and 3 emissions. \n\n* * *\n\nLast Updated: 4/23/2025\n\n##  Related Key Topics\n\n[ Circularity\n\n  * Circular Resources \n  * Addressing Operational Waste \n  * Circularity Governance \n\n](/priority-topics/circularity) [ Community Engagement & Philanthropy\n\n  * Philanthropic Giving \n  * Volunteerism \n  * Disaster Response \n\n](/priority-topics/community-engagement) [ Energy Management\n\n  * Renewable Energy \n  * Energy Efficiency Projects \n  * Energy Management Platform \n\n](/priority-topics/energy-management) [ Environment, Health & Safety\nCompliance\n\n  * EHS Management System \n  * EHS Inspections \n  * Occupational Health & Safety \n\n](/priority-topics/environment-health-safety-compliance) [ Natural Resources\n\n  * Biodiversity \n  * Water Management \n  * Paper Procurement \n\n](/priority-topics/natural-resources) [ Network Resilience\n\n  * Enhancing Our Network \n  * Driving Resilience \n  * Business Continuity \n\n](/priority-topics/network-resilience) [ Responsible Supply Chain\n\n  * Supply Chain Resilience \n  * Supplier Sustainability \n  * Supplier Inclusivity \n\n](/priority-topics/responsible-supply-chain)\n\n[ View All Key Topics ](/priority-topics)\n\n[ Corporate Responsibility  ](/)\n\nJoin the conversation using  **#ATTimpact**\n\n[ ](https://twitter.com/attimpact) [ ](https://www.instagram.com/attimpact/)\n\n[ Privacy Notice ](http://about.att.com/sites/web_policy) [ Terms of Use\n](https://www.att.com/legal/terms.attWebsiteTermsOfUse.html) [ Accessibility\n](https://www.att.com/accessibility) [ Contact Us\n](https://www.att.com/support/contact-\nus/?source=EPcc000000000000U&wtExtndSource=Footer_Newsroom_DGen) [ Subscribe\nto AT&T News ](https://about.att.com/pages/subscribe-att-news) [\n](https://about.att.com/csr/home/privacy/rights_choices.html)\n\n\u00a9 2025 AT&T Intellectual Property. All rights reserved.\n\n",
                "url": "https://sustainability.att.com/priority-topics/efficiency-emissions"
            },
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                "page_content": "#  Innovating sustainable ideas.  Growing renewable solutions.\n\nWe\u00e2\u0080\u0099re building the world\u00e2\u0080\u0099s most energy-efficient computing infrastructure,\nwhile advancing water stewardship, and strengthening energy grids in\ncommunities \u00e2\u0080\u0094 all driving toward our global goal of net-zero emissions by\n2030.\n\n##  Zeroing in on  net-zero emissions\n\nA wind farm in Minco, Oklahoma, provides energy to our data center in Mayes\nCounty, Oklahoma.\n\n####  Reducing emissions across our operations and value chain\n\nData centers are a key part of Google\u00e2\u0080\u0099s journey toward net-zero carbon.\n\nWe are actively working on ways to reduce the amount of greenhouse gas\nemissions from our data center construction by reducing the quantity of\nmaterials required to build our data centers as well as using more sustainable\nmaterials such as green concrete and renewable diesel in construction\nactivity.\n\nBy being ambitious in our goals, we\u00e2\u0080\u0099re  leading the charge by pursuing net\nzero across our own operations.\n\n  * [ \u00e2\u0080\u009cWe have a bold goal to reach net-zero emissions across all of our operations and value chain by 2030, supported by a goal to run on 24/7 CFE on every grid where we operate.\u00e2\u0080\u009d  Google Sustainability Leadership  View \u00e2\u0080\u009cOur 2024 Environmental Report\u00e2\u0080\u009d  ](https://blog.google/outreach-initiatives/sustainability/2024-environmental-report/)\n\n##  Optimizing water use  and innovation at our data centers\n\n####  Taking a climate-conscious approach to cooling our facilities\n\nSimilar to personal computers, the servers in data centers generate heat and\nneed to be cooled in order to operate safely and efficiently. Water cooling is\nan energy-efficient way to remove heat, and is often a more sustainable option\ncompared to other energy-intensive cooling methods such as chillers or air\nconditioning. At each data center campus, our cooling decisions look at the\nlocal environment \u00e2\u0080\u0094 balancing the availability of carbon-free energy and\nresponsibly-sourced water, including alternatives to freshwater \u00e2\u0080\u0094 to\nminimize the net climate impact both today and in the future.\n\n  * [ Freshwater From Low or Medium risk watersheds  83%  For our entire fleet of data centers, 83% of our freshwater withdrawal is from watersheds with low or medium risk.  Learn more about our commitment  ](https://www.gstatic.com/gumdrop/sustainability/google-2024-environmental-report.pdf )\n\nA sunset over St. Ghislain, Belgium, illuminates our water storage tanks and\ncooling towers.\n\n####  Water stewardship at our data centers\n\n  * [ Climate-conscious cooling strategy  Climate-conscious cooling is our approach to balancing the trade-offs when making cooling decisions based on local hydrology and emissions factors. We use a multi-dimensional, data-driven methodology, in consultation with local experts, to find the best cooling solution for every new and existing data center location.  Read more  ](https://blog.google/outreach-initiatives/sustainability/our-commitment-to-climate-conscious-data-center-cooling/ )\n\n  * [ Responsible water use at our data centers  Responsible water use means that if a water source is assessed as high risk, we look for alternative solutions. For example, in Mesa, Arizona, we found the local water source was at high risk of depletion and scarcity. Therefore, we opted to air-cool the data center, minimizing our impact on the local watershed.  Read more  ](https://cloud.google.com/blog/topics/sustainability/assessing-watershed-health-in-data-center-host-communities )\n\n  * [ Investing in local watershed health  We aim to replenish more freshwater than we consume, on average, across our data centers and offices by 2030. Our local water stewardship initiatives are rooted in collaboration and industry best practice, addressing shared water challenges and tracking measurable improvements in the replenishment and health of the watersheds in our data center communities.  Read more  ](https://blog.google/outreach-initiatives/sustainability/how-were-supporting-our-commitment-to-water-stewardship/)\n\nClear waters reflect our Eemshaven, Netherlands, data center.\n\n####  Alternative cooling  \n33%  \n\nIn 2023, roughly one-third of our data center campuses used non-potable water\nsources or air-cooling methods.\n\n##  Building a  more reliable, affordable, and sustainable  energy system for\nall\n\nWind turbines spin near our Eemshaven, Netherlands, data center.\n\n####  We are driving sustainable load growth as a leader, innovator, and\ncollaborator\n\nAs electrification, industrial growth, and digitalization create benefits for\neconomies and communities around the world \u00e2\u0080\u0094 including Google products and\nservices \u00e2\u0080\u0094 they\u00e2\u0080\u0099re also creating new electricity demand. Meeting this\ndemand with reliable, affordable, and clean power is one of our greatest\nchallenges \u00e2\u0080\u0094 and opportunities.\n\nWe're committed to responsibly managing our data center energy consumption and\nleveraging our capital, expertise, and technology to enhance the energy\necosystem. We see Google's growing infrastructure as both catalytic to the\n21st century economy and the transformation of the electricity system,\nproviding benefits across communities and electrical grids where we operate.\nNow is the moment to build a better energy system for the future and for\neveryone.\n\n  * [ Energy efficiency  4x  We have four times more computing power today than we had five years ago, using the same amount of electrical power.  ](https://datacenters.google/efficiency)\n\n##  Our latest energy updates\n\n  * [ \u00e2\u0080\u009cNew ways we're advancing our clean energy commitments in the U.S.\u00e2\u0080\u009d  Read more  ](https://blog.google/outreach-initiatives/sustainability/new-ways-were-advancing-our-clean-energy-commitments-in-the-us/ )\n\n  * [ \u00e2\u0080\u009cOur investment to accelerate clean energy in Asia Pacific\u00e2\u0080\u009d  Read more  ](https://blog.google/outreach-initiatives/sustainability/google-clean-energy-asia-pacific/ )\n\n  * [ \u00e2\u0080\u009cHow we're working with utilities to create a new model for clean energy\u00e2\u0080\u009d  Read more  ](https://blog.google/outreach-initiatives/sustainability/google-clean-energy-partnership/ )\n\n  * [ \u00e2\u0080\u009cOur clean energy progress in Japan\u00e2\u0080\u009d  Read more  ](https://cloud.google.com/blog/topics/sustainability/new-agreements-bring-solar-energy-to-japans-electricity-grid )\n\n[ View all energy news ](/discover-more/latest-news/?topic=energy)\n\n####  Leading the industry in energy-efficient data centers\n\nWe strive to build the world\u00e2\u0080\u0099s most energy-efficient computing\ninfrastructure so we can power more searches and products with less energy.\nGoogle data centers are among the most efficient in the world because of AI,\ninstalling smart temperature and lighting controls, redesigning how power is\ndistributed to reduce energy loss, and other site-specific innovations and\ncollaborations.\n\nWindmills at the Norther Offshore Wind Farm in Belgium, our first offshore\nwind power purchase agreement (PPA).\n\n####  Continuous improvement  \n1.8x  \n\nOur data centers are approximately 1.8 times as energy efficient as the\ntypical enterprise data center.\n\n###  Average Power Usage Effectiveness (PUE) for all Google data centers\n\n[ Learn more about our data center PUE\n](https://datacenters.google/efficiency)\n\nOur data centers are among the most efficient in the world with our fleet-wide\nPUE dropping significantly since we first started reporting our numbers in\n2008.\n\n####  Frequently asked questions\n\n[ View the full FAQ ](https://datacenters.google/discover-more/faq)\n\n##  I see a lot of references to net-zero emissions and carbon-free energy.\nWhat's the difference?\n\nIn 2021, we set a goal to reach net-zero emissions across all of our\noperations and value chain by 2030. Our approach will continue to evolve and\nwill require us to navigate significant uncertainty \u00e2\u0080\u0094 including the\nuncertainty around the future environmental impact of AI, which is complex and\ndifficult to predict. In addition, solutions for some key global challenges\ndon\u00e2\u0080\u0099t currently exist, and will depend heavily on the broader clean energy\ntransition.\n\nAs our business and industry continue to evolve, we expect our total\ngreenhouse gas (GHG) emissions to rise before dropping toward our absolute\nemissions reduction target.\n\nFor our Net Zero goal, we aim to achieve net-zero GHG emissions across all of\nour operations and value chain by 2030 by reducing 50% of our combined Scope\n1, Scope 2 (market-based), and Scope 3 absolute emissions (compared to our\n2019 base year) by 2030, and investing in nature-based and technology-based\ncarbon removal solutions to neutralize our remaining emissions. We\u00e2\u0080\u0099ve\nformally committed to the Science Based Targets initiative (SBTi) to validate\nour absolute emissions reduction target. We\u00e2\u0080\u0099ll proactively monitor the\nevolution of global standards to ensure our definition maintains general\nalignment while maximizing our positive impact on the planet.\n\nCarbon-free energy (CFE) is any type of electricity generation that doesn\u00e2\u0080\u0099t\ndirectly emit carbon dioxide, including (but not limited to) solar, wind,\ngeothermal, hydropower, and nuclear. Sustainable biomass and carbon capture\nand storage (CCS) are special cases considered on a case-by-case basis, but\nare often also considered carbon-free energy sources.\n\n##  How does Google incorporate climate action into your energy usage?\n\nGoogle is one of the world\u00e2\u0080\u0099s largest corporate buyers of clean energy and\nleaders in advancing clean energy technologies. In 2017, Google became the\nfirst major company to match 100% of our annual electricity consumption on a\nglobal basis with renewable energy, which we\u00e2\u0080\u0099ve achieved every year since.\nAnd in 2024, we signed contracts to purchase approximately 4 gigawatts (GW) of\nclean energy generation capacity\u00e2\u0080\u0089\u00e2\u0080\u0094 more than in any prior year in our\nhistory.\n\nBuilding on our [ _first two decades_ ](https://blog.google/outreach-\ninitiatives/sustainability/our-third-decade-climate-action-realizing-carbon-\nfree-future/) of progress, in 2020 we launched our third decade of climate\naction \u00e2\u0080\u0094 our most ambitious yet. We have a bold goal to reach net-zero\nemissions across all of our operations and value chain by 2030, supported by a\ngoal to run on 24/7 carbon-free energy (CFE) on every grid where we operate.\n\nWe also strive to build the world\u00e2\u0080\u0099s most energy-efficient computing\ninfrastructure, supported by responsible water use practices and a commitment\nto minimizing waste. Our data centers remain some of the most efficient in the\nworld, and we continue working to optimize their use of electricity, water,\nand materials. In 2023, the average annual power usage effectiveness (PUE) for\nour global fleet of data centers was 1.10, compared with the industry average\nof 1.58 \u00e2\u0080\u0094 meaning that Google data centers used about 5.8 times less\noverhead energy for every unit of IT equipment energy.\n\nFor more details, check out our latest [ _Environmental Report_\n](https://www.gstatic.com/gumdrop/sustainability/google-2024-environmental-\nreport.pdf) .\n\n##  How do you buy clean energy?\n\nWe buy electricity directly from new clean energy projects through various\nmethods depending on the market, including: contracting directly via long-term\npower purchase agreements (PPAs); working with utilities or developers to buy\nand deliver carbon-free energy (CFE); structuring energy supply contracts with\nenergy providers; and making targeted investments in renewable energy to\nenable additional projects on the grid. See the [ _2024 Google Environmental\nReport_\n](https://www.gstatic.com/gumdrop/sustainability/google-2024-environmental-\nreport.pdf) (p. 36) for more information.\n\n##  Who do you collaborate with?\n\nGoogle is committed to being an active member in the communities we call home.\nClose collaboration with community leaders, local utilities, and local\norganizations is a priority for us to identify opportunities for meaningful\ncommunity and global support.\n\n##  How do your data center energy needs impact your carbon footprint?\n\nScaling AI and using it to accelerate climate action are just as crucial as\naddressing the environmental impact associated with it. To help minimize our\nenvironmental footprint, we\u00e2\u0080\u0099ve built world-leading efficient infrastructure\nfor the AI era and use tested [ _practices_\n](https://ai.googleblog.com/2022/02/good-news-about-carbon-footprint-of.html)\nto reduce the carbon footprint of workloads. AI has the potential to [ help\nmitigate  ](https://www.bcg.com/publications/2021/ai-to-reduce-carbon-\nemissions) 5\u00e2\u0080\u009310% global greenhouse gas emissions by 2030.\n\n##  Why do data centers use water?\n\nWater plays an important role in our data centers \u00e2\u0080\u0094 cooling our servers,\nregulating indoor temperatures, and keeping our products up and running. In\nfact, water cooling has been shown to help reduce energy consumption and\nrelated carbon emissions when compared to air-based cooling. While it will\ntake more time for electricity grids to decarbonize, we\u00e2\u0080\u0099ll continue using\nwater cooling to improve our energy efficiency in certain geographies.\nRecognizing that this tradeoff will increase our data center water footprint,\nwe\u00e2\u0080\u0099re prioritizing responsible water use and water replenishment at new\nsites from the start.\n\n##  How does Google define responsible water use?\n\nIn consultation with a team of water experts, Google developed a peer-\nreviewed, context-based [ _Water Risk Framework_\n](https://www.gstatic.com/gumdrop/sustainability/2023-data-center-water-risk-\nframework-whitepaper.pdf) to evaluate local watershed risk at new sites to\nguide decision-making on whether to use a freshwater source for evaporative\ncooling.\n\n##  What is water replenishment?\n\nGoogle aims to \u00e2\u0080\u009creturn\u00e2\u0080\u009d or improve the water quality and ecosystem health\nin the watersheds and communities where we operate through investments in\nwater stewardship projects.\n\n* * *\n\n##  Discover more about our data centers\n\n  * [ Advancing security  ](https://datacenters.google/advancing-security)\n\n  * [ _Where the Internet Lives_ podcast  ](https://datacenters.google/discover-more/podcast)\n\n  * [ _Discovering Data Centers_ animated series  ](https://datacenters.google/discovering-data-centers)\n\n  * [ Photo gallery  ](https://datacenters.google/photo-gallery)\n\n##  Footer links\n\n[ ](https://www.google.com/ \"Google\")\n\n  * [ About Google ](https://about.google)\n  * [ Google products ](https://about.google/products)\n  * [ Privacy ](https://policies.google.com/privacy)\n  * [ Terms ](https://policies.google.com/terms)\n  * \n\n  * [ Help ](https://support.google.com/)\n  * \n\n",
                "url": "https://datacenters.google/operating-sustainably"
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                    "source": "https://nca2023.globalchange.gov/"
                },
                "page_content": "Skip to main content\n\n**Official websites use .gov**  \nA **.gov** website belongs to an official government organization in the\nUnited States.\n\n**Secure .gov websites use HTTPS**  \nA **lock** (  ) or **https://** means you\u00e2\u0080\u0099ve safely connected to the .gov\nwebsite. Share sensitive information only on official, secure websites.\n\n#  The Fifth National Climate Assessment\n\nThe Fifth National Climate Assessment is the US Government\u00e2\u0080\u0099s preeminent\nreport on climate change impacts, risks, and responses. It is a\ncongressionally mandated interagency effort that provides the scientific\nfoundation to support informed decision-making across the United States.\n\n__\n\n  *   *   *   *   * \n\n[ ](/art-climate/#art-Tammy-West)\n\n##  How the United States Is Addressing Climate Change\n\nThe effects of human-caused climate change are already far-reaching and\nworsening across every region of the United States. Rapidly reducing\ngreenhouse gas emissions can limit future warming and associated increases in\nmany risks. Across the country, efforts to adapt to climate change and reduce\nemissions have expanded since 2018, and US emissions have fallen since peaking\nin 2007. However, without deeper cuts in global net greenhouse gas emissions\nand accelerated adaptation efforts, severe climate risks to the United States\nwill continue to grow.\n\n###  Future climate change impacts depend on choices made today\n\nThe more the planet warms, the greater the impacts. Without rapid and deep\nreductions in global greenhouse gas emissions from human activities, the risks\nof accelerating sea level rise, intensifying extreme weather, and other\nharmful climate impacts will continue to grow. Each additional increment of\nwarming is expected to lead to more damage and greater economic losses\ncompared to previous increments of warming, while the risk of catastrophic or\nunforeseen consequences also increases. { [ 2.3 ](/chapter/2#key-message-3) ,\n[ 19.1 ](/chapter/19#key-message-1) }\n\nHowever, this also means that each increment of warming that the world\navoids\u00e2\u0080\u0094through actions that cut emissions or remove carbon dioxide (CO  2  )\nfrom the atmosphere\u00e2\u0080\u0094reduces the risks and harmful impacts of climate change.\nWhile there are still uncertainties about how the planet will react to rapid\nwarming, the degree to which climate change will continue to worsen is largely\nin human hands. { [ 2.3 ](/chapter/2#key-message-3) , [ 3.4 ](/chapter/3#key-\nmessage-4) }\n\nIn addition to reducing risks to future generations, rapid emissions cuts are\nexpected to have immediate health and economic benefits (Figure  1.1  ). At\nthe national scale, the benefits of deep emissions cuts\u00c2 for\u00c2 current and\nfuture generations are expected to far outweigh the costs. { [ 2.1\n](/chapter/2#key-message-1) , [ 2.3 ](/chapter/2#key-message-3) , [ 13.3\n](/chapter/13#key-message-3) , [ 14.5 ](/chapter/14#key-message-5) , [ 15.3\n](/chapter/15#key-message-3) , [ 32.4 ](/chapter/32#key-message-4) ; Ch. [ 2,\nIntroduction ](/chapter/2#section-1) }\n\n[ ](/img/figure/figure1_1.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-1)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_1.jpg)\n\nClimate change presents risks while action to limit warming and reduce risks\npresents opportunities for the US.\n\nFigure 1.1.  ( **top left** ) Changes in multiple aspects of climate are\napparent in every US region. The five maps present observed changes for five\ntemperature, precipitation, and sea level rise metrics: 1) warming is apparent\nin every region (based on changes in annual average temperature in 2002\u00e2\u0080\u00932021\ncompared to the 1901\u00e2\u0080\u00931960 average for the contiguous United States,\nHawai\u00ca\u00bbi, and Puerto Rico and to 1925\u00e2\u0080\u00931960 for Alaska); 2) the number of\nwarm nights per year (days with minimum temperatures at or above 70\u00c2\u00b0F in\n2002\u00e2\u0080\u00932021 compared to 1901\u00e2\u0080\u00931960) is increasing everywhere except the\nNorthern Great Plains, where they have decreased, and in Alaska, where nights\nabove 70\u00c2\u00b0F are not common; 3) average annual precipitation is increasing in\nmost regions, except in the Northwest, Southwest, and Hawai\u00e2\u0080\u0098i, where\nprecipitation has decreased (same time periods as annual average temperature);\n4) heavy precipitation events are increasing everywhere except Hawai\u00e2\u0080\u0098i and\nthe US Caribbean, where there has been a decrease (trends over the period\n1958\u00e2\u0080\u00932021); and 5) relative sea levels are increasing along much of the US\ncoast except in Oregon, Washington, and Alaska, where there is a mix of both\nincreases and decreases (trends over 1990\u00e2\u0080\u00932020). { [ 2.2 ](/chapter/2#key-\nmessage-2) , [ 9.1 ](/chapter/9#key-message-1) ; Figures [ 2.4\n](/chapter/2#fig-2-4) , [ 2.5 ](/chapter/2#fig-2-5) , [ 2.7\n](/chapter/2#fig-2-7) , [ 2.8 ](/chapter/2#fig-2-8) }  \n  \n( **top center** ) Every fraction of a degree of additional warming will lead\nto increasing risks across multiple sectors in the US (see Table  1.2  and\n\u00e2\u0080\u009cCurrent and Future Climate Risks to the United States\u00e2\u0080\u009d below). Without\nrapid, substantial reductions in the greenhouse gases that cause global\nwarming, these climate risks in the US are expected to increase.  \n  \n( **top right** ) People born in North America in 2020, on average, will be\nexposed to more climate-related hazards compared to people born in 1965. How\nmany more extreme climate events current generations experience compared to\nprevious generations will depend on the level of future warming. {Figure [\n15.4 ](/chapter/15#fig-15-4) }  \n  \n( **bottom left** ) This climate stripes chart shows the observed changes in\nUS annual average surface temperature for 1951\u00e2\u0080\u00932022 and projected changes in\ntemperature for 2023\u00e2\u0080\u00932095 for five climate scenarios, ranging from a very\nhigh scenario, where greenhouse gas emissions continue to increase through\nmost of the century, to a very low scenario, where emissions decline rapidly,\nreaching net zero by around midcentury (see Figure  1.4  and Table [ 3\n](/chapter/front-matter#table-front-matter-3) in the [ Guide to the Report\n](/chapter/front-matter#section-2) ). Each vertical stripe represents the\nobserved or projected change in temperature for a given year compared to the\n1951\u00e2\u0080\u00931980 average; changes are averaged over all 50 states and Puerto Rico\nbut do not include data for the US-Affiliated Pacific Islands and the US\nVirgin Islands (see also Figure  1.13  ).  \n  \n( **bottom right** ) Although climate benefits from even the most aggressive\nemissions cuts may not be detectable before the middle of the century, there\nare many other potential near-term benefits and opportunities from actions\nthat reduce greenhouse gas emissions. { [ 2.3 ](/chapter/2#key-message-3) , [\n8.3 ](/chapter/8#key-message-3) , [ 10.3 ](/chapter/10#key-message-3) , [ 13.3\n](/chapter/13#key-message-3) , [ 14.5 ](/chapter/14#key-message-5) , [ 15.3\n](/chapter/15#key-message-3) , [ 19.1 ](/chapter/19#key-message-1) , [ 31.3\n](/chapter/31#key-message-3) , [ 32.4 ](/chapter/32#key-message-4) }  \n  \nFigure credits: (top left, top center, top right, bottom right) USGCRP,\nUSGCRP/ICF, NOAA NCEI, and CISESS NC; (bottom left) adapted from panel (c) of\nFigure SPM.1 in [ IPCC 2023\n](https://doi.org/10.59327/IPCC/AR6-9789291691647.001) .\n\n###  US emissions have decreased, while the economy and population have grown\n\nAnnual US greenhouse gas emissions fell 12% between 2005 and 2019. This trend\nwas largely driven by changes in electricity generation: coal use has\ndeclined, while the use of natural gas and renewable technologies has\nincreased, leading to a 40% drop in emissions from the electricity sector.\nSince 2017, the transportation sector has overtaken electricity generation as\nthe largest emitter. { [ 11.1 ](/chapter/11#key-message-1) , [ 13.1\n](/chapter/13#key-message-1) , [ 32.1 ](/chapter/32#key-message-1) ; Figures [\n32.1 ](/chapter/32/#fig-32-1) , [ 32.3 ](/chapter/32#fig-32-3) }\n\nAs US emissions have declined from their peak in 2007, the country has also\nseen sustained reductions in the amount of energy required for a given\nquantity of economic activity and the emissions produced per unit of energy\nconsumed. Meanwhile, both population and per capita GDP have continued to\ngrow. { [ 32.1 ](/chapter/32#key-message-1) ; Figures [ 32.1\n](/chapter/32#fig-32-1) , [ 32.2 ](/chapter/32#fig-32-2) }\n\nRecent growth in the capacities of wind, solar, and battery storage\ntechnologies is supported by rapidly falling costs of zero- and low-carbon\nenergy technologies, which can support even deeper emissions reductions. For\nexample, wind and solar energy costs dropped 70% and 90%, respectively, over\nthe last decade, while 80% of new generation capacity in 2020 came from\nrenewable sources (Figures  1.2  ,  1.3  ). { [ 5.3 ](/chapter/5#key-\nmessage-3) , [ 12.3 ](/chapter/12#key-message-3) , [ 32.1 ](/chapter/32#key-\nmessage-1) , [ 32.2 ](/chapter/32#key-message-2) ; Figure [ A4.17\n](/chapter/appendix-4#fig-a4-17) }\n\nAcross all sectors, innovation is expanding options for reducing energy demand\nand increasing energy efficiency, moving to zero- and low-carbon electricity\nand fuels, electrifying energy use in buildings and transportation, and\nadopting practices that protect and improve natural carbon sinks that remove\nand store CO  2  from the atmosphere, such as sustainable agricultural and\nland-management practices. { [ 11.1 ](/chapter/11#key-message-1) , [ 32.2\n](/chapter/32#key-message-2) , [ 32.3 ](/chapter/32#key-message-3) ; Boxes [\n32.1 ](/chapter/32#box-32_1) , [ 32.2 ](/chapter/32#box-32_2) ; [ Focus on\nBlue Carbon ](/chapter/focus-on-5) }\n\n[ ](/img/figure/figure1_2.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-2)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_2.jpg)\n\nIncreasing capacities and decreasing costs of low-carbon energy technologies\nare supporting efforts to further reduce emissions.\n\nFigure 1.2.  Costs of onshore wind ( **a** ), solar photovoltaics ( **b** ),\nand electric vehicle (EV) batteries ( **c** ) have decreased sharply since\n2000 (data shown here start in 2010), as the cumulative capacities of wind and\nsolar generation ( **d** and **e** ) and the cumulative number of EVs sold (\n**f** ) have increased. {Figure [ 32.8 ](/chapter/32#fig-32-8) } Figure\ncredit: Electric Power Research Institute, National Renewable Energy\nLaboratory, NOAA NCEI, and CISESS NC.\n\n###  Accelerating advances in adaptation can help reduce rising climate risks\n\nAs more people face more severe climate impacts, individuals, organizations,\ncompanies, communities, and governments are taking advantage of adaptation\nopportunities that reduce risks. State climate assessments and online climate\nservices portals are providing communities with location- and sector-specific\ninformation on climate hazards to support adaptation planning and\nimplementation across the country. New tools, more data, advancements in\nsocial and behavioral sciences, and better consideration of practical\nexperiences are facilitating a range of actions (Figure  1.3  ). { [ 7.3\n](/chapter/7#key-message-3) , [ 12.3 ](/chapter/12/#key-message-3) , [ 21.4\n](/chapter/21#key-message-4) , [ 25.4 ](/chapter/25#key-message-4) , [ 31.1\n](/chapter/31#key-message-1) , [ 31.5 ](/chapter/31#key-message-5) , [ 32.5\n](/chapter/32#key-message-5) ; Table [ 31.1 ](/chapter/31#table-31-1) }\n\nActions include:\n\n  * Implementing nature-based solutions\u00e2\u0080\u0094such as restoring coastal wetlands or oyster reefs\u00e2\u0080\u0094to reduce shoreline erosion { [ 8.3 ](/chapter/8#key-message-3) , [ 9.3 ](/chapter/9#key-message-3) , [ 21.2 ](/chapter/21#key-message-2) , [ 23.5 ](/chapter/23#key-message-5) } \n\n  * Upgrading stormwater infrastructure to account for heavier rainfall { [ 4.2 ](/chapter/4#key-message-2) } \n\n  * Applying innovative agricultural practices to manage increasing drought risk { [ 11.1 ](/chapter/11#key-message-1) , [ 22.4 ](/chapter/22#key-message-4) , [ 25.5 ](/chapter/25#key-message-5) } \n\n  * Assessing climate risks to roads and public transit { [ 13.1 ](/chapter/13#key-message-1) } \n\n  * Managing vegetation to reduce wildfire risk { [ 5.3 ](/chapter/5#key-message-3) } \n\n  * Developing urban heat plans to reduce health risks from extreme heat { [ 12.3 ](/chapter/12#key-message-3) , [ 21.1 ](/chapter/21#key-message-1) , [ 28.4 ](/chapter/28#key-message-4) } \n\n  * Planning relocation from high-risk coastal areas { [ 9.3 ](/chapter/9#key-message-3) } \n\nDespite an increase in adaptation actions across the country, current\nadaptation efforts and investments are insufficient to reduce today\u00e2\u0080\u0099s\nclimate-related risks and keep pace with future changes in the climate.\nAccelerating current efforts and implementing new ones that involve more\nfundamental shifts in systems and practices can help address current risks and\nprepare for future impacts (see  \u00e2\u0080\u009cMitigation and adaptation actions can\nresult in systemic, cascading benefits\u00e2\u0080\u009d  below). { [ 31.1 ](/chapter/31#key-\nmessage-1) , [ 31.3 ](/chapter/31#key-message-3) }\n\n###  Climate action has increased in every region of the US\n\nEfforts to adapt to climate change and reduce net greenhouse gas emissions are\nunderway in every US region and have expanded since 2018 (Figure  1.3  ; Table\n1.1  ). Many actions can achieve both adaptation and mitigation goals. For\nexample, improved forest- or land-management strategies can both increase\ncarbon storage and protect ecosystems, and expanding renewable energy options\ncan reduce emissions while also improving resilience. { [ 31.1\n](/chapter/31#key-message-1) , [ 32.5 ](/chapter/32#key-message-5) }\n\n[ ](/img/figure/figure1_3.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-3)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_3.jpg)\n\nCities and states are acting on climate change, with a substantial increase in\nnew activities underway since 2018.\n\nFigure 1.3.  Since 2018, city- and state-level adaptation plans and actions (\n**green bars** , left) increased by 32%, complemented by a 14% increase in the\ntotal number of new state-level mitigation activities ( **blue bars** , right;\n69% have updated their policies). In 2021 there were 271 city-level mitigation\nactions in place ( **open circles** , right), according to the Global Climate\nAction Tracker. Renewable energy and energy efficiency projects on Tribal\nlands have also expanded (not shown). { [ 31.1, [ 32.5 ](/chapter/32#fig-32-5)\n; Figure [ 16.4 ](/chapter/16#fig-16-4) ; Table  1.1  } Figure credit: US Army\nCorps of Engineers, EPA, Pennsylvania State University, NOAA NCEI, and CISESS-\nNC. ](/chapter/31#fig-31-1)\n\nClimate adaptation and mitigation efforts involve trade-offs, as climate\nactions that benefit some or even most people can result in burdens to others.\nTo date, some communities have prioritized equitable and inclusive planning\nprocesses that consider the social impacts of these trade-offs and help ensure\nthat affected communities can participate in decision-making. As additional\nmeasures are implemented, more widespread consideration of their social impact\ncan help inform decisions around how to distribute the outcomes of\ninvestments. { [ 12.4 ](/chapter/12#key-message-4) , [ 13.4 ](/chapter/13#key-\nmessage-4) , [ 20.2 ](/chapter/20#key-message-2) , [ 21.3 ](/chapter/21#key-\nmessage-3) , [ 21.4 ](/chapter/21#key-message-4) , [ 26.4 ](/chapter/26#key-\nmessage-4) , [ 27.1 ](/chapter/27#key-message-1) , [ 31.2 ](/chapter/31#key-\nmessage-2) , [ 32.4 ](/chapter/32#key-message-4) , [ 32.5 ](/chapter/32#key-\nmessage-5) ; Box [ 20.1 ](/chapter/20#box-20_1) }\n\n* * *\n\nTable 1.1. Climate Actions Are Taking Place Across All US Regions\n\nExamples of recent local adaptation, resilience, and mitigation actions around\nthe country follow.\n\nRegion  |  Action   \n---|---  \nNortheast  |  The 2022 stormwater code in Pittsburgh, Pennsylvania, requires new developments to plan for projected increases in heavy rainfall under climate change rather than building to historical rainfall amounts. In 2021, the city also committed to achieve carbon neutrality by 2050. {Box [ 21.1 ](/chapter/21#box-21_1) }   \nSoutheast  |  Following repeated flooding from multiple hurricanes, measures to reduce flood risk in Princeville, North Carolina, include buyouts, elevating homes, and building housing that meets local flood standards. In Orlando, Florida, the city and businesses are adopting commercial building energy-efficiency requirements and electric vehicle readiness policies and have used wastewater and food scraps from parks and resorts to generate renewable biogas. {Boxes [ 22.1 ](/chapter/22#box-22_1) , [ 32.3 ](/chapter/32#box-32_3) }   \nUS Caribbean  |  Many community-based organizations in Puerto Rico have undertaken actions to advance adaptation, social transformation, and sustainable development. These organizations work to expand renewable energy and equitable access to energy resources, prepare for disasters, restore ecosystems, strengthen agriculture and food security, and protect public health. { [ 23.5 ](/chapter/23#key-message-5) }   \nMidwest  |  A wetland creation project in Ashtabula, Ohio, restored habitat displaced by shoreline development, improving coastal protection for the port on Lake Erie. In Michigan, some state forestlands are being managed to bolster carbon storage and to support recreation and wildlife habitat. { [ 24.2 ](/chapter/24#key-message-2) , [ 24.4 ](/chapter/24#key-message-4) ; Figure [ 24.9 ](/chapter/24#fig-24-9) }   \nNorthern Great Plains  |  The Nebraska Natural Resources Conservation Service supported farmers in testing soil health and evaluating soil management practices that promote climate adaptation. Across the region, wind electricity generation tripled between 2011 and 2021, with a growing number of Tribes leading the Nation\u00e2\u0080\u0099s renewable energy transition by installing wind, solar, and hydropower. { [ 25.3 ](/chapter/25#key-message-3) , [ 25.5 ](/chapter/25#key-message-5) ; Box [ 25.3 ](/chapter/25#box-25_3) }   \nSouthern Great Plains  |  Texas- and Kansas-based groups are supporting soil and land management practices that increase carbon storage while protecting important ecosystems. Wind and solar energy generation and battery storage capacities have also grown, with the region accounting for 42% of national wind-generated electricity in 2022. { [ 26.2 ](/chapter/26#key-message-2) }   \nNorthwest  |  The Confederated Tribes of the Colville Reservation are prioritizing carbon capture in their forest and timber management efforts, leading to improved air and water quality and wildlife habitat as well as preservation of cultural areas and practices. { [ 27.3 ](/chapter/27#key-message-3) }   \nSouthwest  |  In response to severe drought, seven Colorado River basin states, the US and Mexican governments, and Indigenous Peoples are collaborating to improve water conservation and develop adaptation solutions. Dozens of cities are committed to emissions reductions; for instance, Phoenix is on track to meet a 2030 goal of 50% reduction in greenhouse gas emissions from 2018 levels. {Ch. [ 28, Introduction ](/chapter/28#section-1) ; Box [ 28.1 ](/chapter/28#box-28_1) }   \nAlaska  |  To address climate threats to traditional foods, the Chugach Regional Resources Commission is integrating Indigenous Knowledge and Western scientific methods in its adaptation efforts, including weekly water sampling for harmful algal blooms and restoring clam populations. Kelp farming is also being developed to reduce the effects of ocean acidification, serve as a carbon sink, and generate income. { [ 29.7 ](/chapter/29#key-message-7) ; Box [ 29.7 ](/chapter/29#box-29_7) }   \nHawai\u00e2\u0080\u0098i and US-Affiliated Pacific Islands  |  The Kaua\u00ca\u00bbi Island Utility Cooperative achieved a 69.5% renewable portfolio standard in 2021, and the island is occasionally 100% renewably powered during midday hours; it is projected to achieve a 90% renewable portfolio by 2026. Guam, the Republic of the Marshall Islands, the Federated States of Micronesia, and Palau plan to use blue carbon ecosystems to offset emissions while also protecting coastal infrastructure. { [ 30.3 ](/chapter/30#key-message-3) ; Box [ 30.3 ](/chapter/30#box-30_3) }   \n  \n###  Meeting US mitigation targets means reaching net-zero emissions\n\nThe global warming observed over the industrial era is unequivocally caused by\ngreenhouse gas emissions from human activities\u00e2\u0080\u0094primarily burning fossil\nfuels. Atmospheric concentrations of carbon dioxide (CO  2  )\u00e2\u0080\u0094the primary\ngreenhouse gas produced by human activities\u00e2\u0080\u0094and other greenhouse gases\ncontinue to rise due to ongoing global emissions. Stopping global warming\nwould require both reducing emissions of CO  2  to net zero and rapid and deep\nreductions in other greenhouse gases. Net-zero CO  2  emissions means that CO\n2  emissions decline to zero or that any residual emissions are balanced by\nremoval from the atmosphere. { [ 2.3 ](/chapter/2#key-message-3) , [ 3.1\n](/chapter/3#key-message-1) ; Ch. [ 32 ](/chapter/32) }\n\nOnce CO  2  emissions reach net zero, the global warming driven by CO  2  is\nexpected to stop: additional warming over the next few centuries is not\nnecessarily \u00e2\u0080\u009clocked in\u00e2\u0080\u009d after net CO  2  emissions fall to zero. However,\nglobal average temperatures are not expected to fall for centuries unless CO\n2  emissions become net negative, which is when CO  2  removal from the\natmosphere exceeds CO  2  emissions from human activities. Regardless of when\nor if further warming is avoided, some long-term responses to the temperature\nchanges that have already occurred will continue. These responses include sea\nlevel rise, ice sheet losses, and associated disruptions to human health,\nsocial systems, and ecosystems. In addition, the ocean will continue to\nacidify after the world reaches net-zero CO  2  emissions, as it continues to\ngradually absorb CO  2  in the atmosphere from past emissions. { [ 2.1\n](/chapter/2#key-message-1) , [ 2.3 ](/chapter/2#key-message-3) , [ 3.1\n](/chapter/3#key-message-1) ; Ch. [ 2, Introduction ](/chapter/2#section-1) }\n\nNational and international commitments seek to limit global warming to well\nbelow 2\u00c2\u00b0C (3.6\u00c2\u00b0F), and preferably to 1.5\u00c2\u00b0C (2.7\u00c2\u00b0F), compared to\npreindustrial temperature conditions (defined as the 1850\u00e2\u0080\u00931900 average). To\nachieve this, global CO  2  emissions would have to reach net zero by around\n2050 (Figure  1.4  ); global emissions of all greenhouse gases would then have\nto reach net zero within the following few decades. { [ 2.3 ](/chapter/2#key-\nmessage-3) , [ 32.1 ](/chapter/32#key-message-1) }\n\n[ ](/img/figure/figure1_4.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-4)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_4.jpg)\n\nDifferent scenarios of future carbon dioxide emissions are used to explore the\nrange of possible climate futures.\n\nFigure 1.4.  The five scenarios shown (colored lines) demonstrate potential\nglobal carbon dioxide (CO  2  ) emissions pathways modeled from 2015 through\n2100, with the solid light gray line showing observed global CO  2  emissions\nfrom 2000 to 2015. See Table [ 3 ](/chapter/front-matter#table-front-matter-3)\nin the [ Guide to the Report ](/chapter/front-matter#section-2) for scenario\ndefinitions. Many projected impacts described in this report are based on a\npotential climate future defined by one or more of these scenarios for future\nCO  2  emissions from human activities, the largest long-term driver of\nclimate change. The vertical dashed line, labeled \u00e2\u0080\u009cToday,\u00e2\u0080\u009d marks the year\n2023; the solid horizontal black line marks net-zero CO  2  emissions. Adapted\nwith permission from Figure TS.4 in [ Arias et al. 2021\n](https://doi.org/10.1017/9781009157896.002) .\n\nWhile US greenhouse gas emissions are falling, the current rate of decline is\nnot sufficient to meet national and international climate commitments and\ngoals. US net greenhouse gas emissions remain substantial and would have to\ndecline by more than 6% per year on average, reaching net-zero emissions\naround midcentury, to meet current national mitigation targets and\ninternational temperature goals; by comparison, US greenhouse gas emissions\ndecreased by less than 1% per year on average between 2005 and 2019. { [ 32.1\n](/chapter/32#key-message-1) }\n\nMany cost-effective options that are feasible now have the potential to\nsubstantially reduce emissions over the next decade. Faster and more\nwidespread deployment of renewable energy and other zero- and low-carbon\nenergy options can accelerate the transition to a decarbonized economy and\nincrease the chances of meeting a 2050 national net-zero greenhouse gas\nemissions target for the US. However, to reach the US net-zero emissions\ntarget, additional mitigation options need to be explored and advanced (see\n\u00e2\u0080\u009cAvailable mitigation strategies can deliver substantial emissions\nreductions, but additional options are needed to reach net zero\u00e2\u0080\u009d  below). {\n[ 5.3 ](/chapter/5#key-message-5) , [ 6.3 ](/chapter/6#key-message-3) , [ 32.2\n](/chapter/32#key-message-2) , [ 32.3 ](/chapter/32#key-message-3) }\n\nAuthors\n\nFederal Coordinating Lead Author\n\n     Allison R. Crimmins  , US Global Change Research Program \nChapter Lead Author\n\n     Alexa K. Jay  , US Global Change Research Program / ICF \nChapter Authors\n\n     Christopher W. Avery  , US Global Change Research Program / ICF \n     Travis A. Dahl  , US Army Corps of Engineers \n     Rebecca S. Dodder  , US Environmental Protection Agency \n     Benjamin D. Hamlington  , NASA Jet Propulsion Laboratory \n     Allyza R. Lustig  , US Global Change Research Program / ICF \n     Kate Marvel  , Project Drawdown \n     Pablo A. M\u00c3\u00a9ndez-Lazaro  , University of Puerto Rico \n     Mark S. Osler  , National Oceanic and Atmospheric Administration \n     Adam Terando  , US Geological Survey \n     Emily Weeks  , US Agency for International Development \n     Ariela Zycherman  , NOAA Climate Program Office \nContributors\n\nReview Editor\n\n     Emily K. Laidlaw  , Laidlaw Scientific \nUSGCRP Coordinator\n\n     Christopher W. Avery  , US Global Change Research Program / ICF \nAbout the Overview\n\n     The Fifth National Climate Assessment documents observed and projected vulnerabilities, risks, and impacts associated with climate change across the United States and provides examples of response actions underway in many communities. This Overview presents highlights from the Assessment, providing summary findings and a synthesis of material from the underlying chapters. Curly brackets indicate cross-references to full chapters (e.g., {Ch. 2}), Key Messages (e.g., {2.1}), figures (e.g., {Figure 32.8}), and other text elements. \nRecommended Citation\n\nJay, A.K., A.R. Crimmins, C.W. Avery, T.A. Dahl, R.S. Dodder, B.D. Hamlington,\nA. Lustig, K. Marvel, P.A. M\u00c3\u00a9ndez-Lazaro, M.S. Osler, A. Terando, E.S. Weeks,\nand A. Zycherman, 2023: Ch. 1. Overview: Understanding risks, impacts, and\nresponses. In: _Fifth National Climate Assessment_ . Crimmins, A.R., C.W.\nAvery, D.R. Easterling, K.E. Kunkel, B.C. Stewart, and T.K. Maycock, Eds. U.S.\nGlobal Change Research Program, Washington, DC, USA. [\nhttps://doi.org/10.7930/NCA5.2023.CH1 ](https://doi.org/10.7930/NCA5.2023.CH1)\n\nDownload citation: [ BibTeX ](/downloads/NCA5_Ch1_Overview.bib) | [ RIS ](/downloads/NCA5_Ch1_Overview.ris)\n\n[ ](/art-climate/#art-Simona-Clausnitzer)\n\n##  How the United States Is Experiencing Climate Change\n\nAs extreme events and other climate hazards intensify, harmful impacts on\npeople across the United States are increasing. Climate impacts\u00e2\u0080\u0094combined\nwith other stressors\u00e2\u0080\u0094are leading to ripple effects across sectors and\nregions that multiply harms, with disproportionate effects on underserved and\noverburdened communities.\n\n###  Current climate changes are unprecedented over thousands of years\n\nGlobal greenhouse gas emissions from human activities continue to increase,\nresulting in rapid warming (Figure  1.5  ) and other large-scale changes,\nincluding rising sea levels, melting ice, ocean warming and acidification,\nchanging rainfall patterns, and shifts in timing of seasonal events. Many of\nthe climate conditions and impacts people are experiencing today are\nunprecedented for thousands of years (Figure  1.6  ). { [ 2.1\n](/chapter/2#key-message-1) , [ 3.1 ](/chapter/3#key-message-1) ; Figures [\nA4.6 ](/chapter/appendix-4#fig-a4-6) , [ A4.7 ](/chapter/appendix-4#fig-a4-7)\n, [ A4.10 ](/chapter/appendix-4#fig-a4-10) , [ A4.13\n](/chapter/appendix-4#fig-a4-13) }\n\n[ ](https://atlas.globalchange.gov/) [ ](/img/figure/figure1_5.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-5)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_5.jpg)\n\nThe US has warmed rapidly since the 1970s.\n\nFigure 1.5.  The graph shows the change in US annual average surface\ntemperature during 1895\u00e2\u0080\u00932022 compared to the 1951\u00e2\u0080\u00931980 average. The\ntemperature trend changes color as data become available for more regions of\nthe US, with Alaska data added to the average temperature for the contiguous\nUS (CONUS) beginning in 1926 (medium blue line) and Hawai\u00ca\u00bbi, Puerto Rico, and\nUS-Affiliated Pacific Islands data added beginning in 1951 (dark blue line).\nGlobal average surface temperature is shown by the black line. Figure credit:\nNOAA NCEI and CISESS NC.\n\n[ ](/img/figure/figure1_6.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-6)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_6.jpg)\n\nCurrent climate conditions are unprecedented for thousands of years.\n\nFigure 1.6.  Human activities since industrialization have led to increases in\natmospheric greenhouse gas concentrations that are unprecedented in records\nspanning hundreds of thousands of years. These are examples of some of the\nlarge and rapid changes in the climate system that are occurring as the planet\nwarms. (Greenhouse gas concentrations { [ 2.1 ](/chapter/2#key-message-1) };\nsea level rise { [ 3.4 ](/chapter/3#key-message-4) }; global temperature { [\n2.1 ](/chapter/2#key-message-1) }; drought { [ 2.2 ](/chapter/2#key-message-2)\n, [ 3.5 ](/chapter/3#key-message-5) }). Figure credit: USGCRP and ICF.\n\nAs the world\u00e2\u0080\u0099s climate has shifted toward warmer conditions, the frequency\nand intensity of extreme cold events have declined over much of the US, while\nthe frequency, intensity, and duration of extreme heat have increased. Across\nall regions of the US, people are experiencing warming temperatures and\nlonger-lasting heatwaves. Over much of the country, nighttime temperatures and\nwinter temperatures have warmed more rapidly than daytime and summer\ntemperatures. Many other extremes, including heavy precipitation, drought,\nflooding, wildfire, and hurricanes, are becoming more frequent and/or severe,\nwith a cascade of effects in every part of the country. { [ 2.1\n](/chapter/2#key-message-1) , [ 2.2 ](/chapter/2#key-message-2) , [ 3.4\n](/chapter/3#key-message-4) , [ 4.1 ](/chapter/4#key-message-1) , [ 4.2\n](/chapter/4#key-message-2) , [ 7.1 ](/chapter/7#key-message-1) , [ 9.1\n](/chapter/9#key-message-1) ; Ch. [ 2, Introduction ](/chapter/2#section-1) ;\nApp. [ 4 ](/chapter/appendix-4) ; [ Focus on Compound Events ](/chapter/focus-\non-1) }\n\n###  Risks from extreme events are increasing\n\nOne of the most direct ways that people experience climate change is through\nchanges in extreme events. Harmful impacts from more frequent and severe\nextremes are increasing across the country\u00e2\u0080\u0094including increases in heat-\nrelated illnesses and death, costlier storm damages, longer droughts that\nreduce agricultural productivity and strain water systems, and larger, more\nsevere wildfires that threaten homes and degrade air quality. { [ 2.2\n](/chapter/2#key-message-2) , [ 4.2 ](/chapter/4#key-message-2) , [ 12.2\n](/chapter/12#key-message-2) , [ 14.2 ](/chapter/14#key-message-2) , [ 15.1\n](/chapter/15#key-message-1) , [ 19.2 ](/chapter/19#key-message-2) ; [ Focus\non Western Wildfires ](/chapter/focus-on-2) }\n\nExtreme weather events cause direct economic losses through infrastructure\ndamage, disruptions in labor and public services, and losses in property\nvalues. The number and cost of weather-related disasters have increased\ndramatically over the past four decades, in part due to the increasing\nfrequency and intensity of extreme events and in part due to increases in\nassets at risk (through population growth, rising property values, and\ncontinued development in hazard-prone areas). Low-income communities,\ncommunities of color, and Tribes and Indigenous Peoples experience high\nexposure and vulnerability to extreme events due to both their proximity to\nhazard-prone areas and lack of adequate infrastructure or disaster management\nresources. { [ 2.2 ](/chapter/2#key-message-2) , [ 4.2 ](/chapter/4#key-\nmessage-2) , [ 17.3 ](/chapter/17#key-message-3) , [ 19.1 ](/chapter/19#key-\nmessage-1) ; [ Focus on Compound Events ](/chapter/focus-on-1) }\n\nIn the 1980s, the country experienced, on average, one (inflation-adjusted)\nbillion-dollar disaster every four months. Now, there is one every three\nweeks, on average. Between 2018 and 2022, the US experienced 89 billion-dollar\nevents (Figure  1.7  ). Extreme events cost the US close to $150 billion each\nyear\u00e2\u0080\u0094a conservative estimate that does not account for loss of life,\nhealthcare-related costs, or damages to ecosystem services. { [ 2.2\n](/chapter/2#key-message-2) , [ 19.1 ](/chapter/19#key-message-1) ; Ch. [ 2,\nIntroduction ](/chapter/2#section-1) ; Figures [ 4.1 ](/chapter/4#fig-4-1) , [\nA4.5 ](/chapter/appendix-4#fig-a4-5) }\n\n[ ](/img/figure/figure1_7.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-7)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_7.jpg)\n\nThe US now experiences, on average, a billion-dollar weather or climate\ndisaster every three weeks.\n\nFigure 1.7.  Billion-dollar weather and climate disasters are events where\ndamages/costs reach or exceed $1 billion, including adjustments for inflation.\nBetween 2018 and 2022, 89 such events affected the US, including 4 droughts, 6\nfloods, 52 severe storms, 18 tropical cyclones, 5 wildfires, and 4 winter\nstorm events (see Figure [ A4.5 ](/chapter/appendix-4#fig-a4-5) for the number\nof billion-dollar disasters per year). During this period, Florida had the\nhighest total damages ($140 billion) and experienced the highest damages from\na single event\u00e2\u0080\u0094Hurricane Ian ($113 billion). Over the 1980\u00e2\u0080\u00932022 period,\nTexas had the highest total damages ($375 billion). While similar data are not\navailable for the US-Affiliated Pacific Islands, Super Typhoon Yutu caused\n$500 million in property damage alone in Saipan and the northern Marianas in\n2018 ( [ NCEI 2019\n](https://www.ncdc.noaa.gov/stormevents/eventdetails.jsp?id=830028) ).\nIncreasing costs over time are driven by changes in the assets at risk and the\nincrease in frequency or intensity of extreme events caused by climate change.\nAdapted from [ NCEI 2023 ](https://www.ncei.noaa.gov/access/billions/) .\n\n###  Cascading and compounding impacts increase risks\n\nThe impacts and risks of climate change unfold across interacting sectors and\nregions. For example, wildfire in one region can affect air quality and human\nhealth in other regions, depending on where winds transport smoke. Further,\nclimate change impacts interact with other stressors, such as the COVID-19\npandemic, environmental degradation, or socioeconomic stressors like poverty\nand lack of adequate housing that disproportionately impact overburdened\ncommunities. These interactions and interdependencies can lead to cascading\nimpacts and sudden failures. For example, climate-related shocks to the food\nsupply chain have led to local to global impacts on food security and human\nmigration patterns that affect US economic and national security interests. {\n[ 11.3 ](/chapter/11#key-message-3) , [ 17.1 ](/chapter/17#key-message-1) , [\n17.2 ](/chapter/17#key-message-2) , [ 17.3 ](/chapter/17#key-message-3) , [\n18.1 ](/chapter/18#key-message-1) , [ 22.3 ](/chapter/22#key-message-3) , [\n23.4 ](/chapter/23#key-message-4) , [ 31.3 ](/chapter/31#key-message-3) ;\nIntroductions in Chs. [ 2 ](/chapter/2#section-1) , [ 17\n](/chapter/17#section-1) , [ 18 ](/chapter/18#section-1) ; [ Focus on Compound\nEvents ](/chapter/focus-on-1) ; [ Focus on Risks to Supply Chains\n](/chapter/focus-on-4) ; [ Focus on COVID-19 and Climate Change\n](/chapter/focus-on-3) }\n\nThe risk of two or more extreme events occurring simultaneously or in quick\nsuccession in the same region\u00e2\u0080\u0094known as compound events\u00e2\u0080\u0094is increasing.\nClimate change is also increasing the risk of multiple extremes occurring\nsimultaneously in different locations that are connected by complex human and\nnatural systems. For instance, simultaneous megafires across multiple western\nstates and record back-to-back Atlantic hurricanes in 2020 caused\nunprecedented demand on federal emergency response resources. { [ 2.2\n](/chapter/2#key-message-2) , [ 3.2 ](/chapter/3#key-message-2) , [ 15.1\n](/chapter/15#key-message-1) , [ 22.2 ](/chapter/22#key-message-2) , [ 26.4\n](/chapter/26#key-message-4) ; [ Focus on Compound Events ](/chapter/focus-\non-1) ; Ch. [ 4, Introduction ](/chapter/4#section-1) }\n\nCompound events often have cascading impacts that cause greater harm than\nindividual events. For example, in 2020, record-breaking heat and widespread\ndrought contributed to concurrent destructive wildfires across California,\nOregon, and Washington, exposing millions to health hazards and straining\nfirefighting resources. Ongoing drought amplified the record-breaking Pacific\nNorthwest heatwave of June 2021, which was made 2\u00c2\u00b0 to 4\u00c2\u00b0F hotter by climate\nchange. The heatwave led to more than 1,400 heat-related deaths, another\nsevere wildfire season, mass die-offs of fishery species important to the\nregion\u00e2\u0080\u0099s economy and Indigenous communities, and total damages exceeding\n$38.5 billion (in 2022 dollars). { [ 27.3 ](/chapter/27#key-message-3) ; Ch. [\n2, Introduction ](/chapter/2#section-1) ; [ Focus on Compound Events\n](/chapter/focus-on-1) , [ Focus on Western Wildfires ](/chapter/focus-on-2) }\n\n###  Climate change exacerbates inequities\n\nSome communities are at higher risk of negative impacts from climate change\ndue to social and economic inequities caused by ongoing systemic\ndiscrimination, exclusion, and under- or disinvestment. Many such communities\nare also already overburdened by the cumulative effects of adverse\nenvironmental, health, economic, or social conditions. Climate change worsens\nthese long-standing inequities, contributing to persistent disparities in the\nresources needed to prepare for, respond to, and recover from climate impacts.\n{ [ 4.2 ](/chapter/4#key-message-2) , [ 9.2 ](/chapter/9#key-message-2) , [\n12.2 ](/chapter/12#key-message-2) , [ 14.3 ](/chapter/14#key-message-3) , [\n15.2 ](/chapter/15#key-message-2) , [ 16.1 ](/chapter/16#key-message-1) , [\n16.2 ](/chapter/16#key-message-2) , [ 18.2 ](/chapter/18#key-message-2) , [\n19.1 ](/chapter/19#key-message-1) , [ 20.1 ](/chapter/20#key-message-1) , [\n20.3 ](/chapter/20#key-message-3) , [ 21.3 ](/chapter/21#key-message-3) , [\n22.1 ](/chapter/22#key-message-1) , [ 23.1 ](/chapter/23#key-message-1) , [\n26.4 ](/chapter/26#key-message-4) , [ 27.1 ](/chapter/27#key-message-1) , [\n31.2 ](/chapter/31#key-message-2) }\n\nFor example, low-income communities and communities of color often lack access\nto adequate flood infrastructure, green spaces, safe housing, and other\nresources that help protect people from climate impacts. In some areas,\npatterns of urban growth have led to the displacement of under-resourced\ncommunities to suburban and rural areas with less access to climate-ready\nhousing and infrastructure. Extreme heat can lead to higher rates of illness\nand death in low-income neighborhoods, which are hotter on average (Figure\n1.8  ). Neighborhoods that are home to racial minorities and low-income people\nhave the highest inland (riverine) flood exposures in the South, and Black\ncommunities nationwide are expected to bear a disproportionate share of future\nflood damages\u00e2\u0080\u0094both coastal and inland (Figure  1.9  ). { [ 4.2\n](/chapter/4#key-message-2) , [ 11.3 ](/chapter/11#key-message-3) , [ 12.2\n](/chapter/12#key-message-2) , [ 15.1 ](/chapter/15#key-message-1) , [ 22.1\n](/chapter/22#key-message-1) , [ 22.2 ](/chapter/22#key-message-2) , [ 26.4\n](/chapter/26#key-message-4) , [ 27.1 ](/chapter/27#key-message-1) ; Ch. [ 2,\nIntroduction ](/chapter/2#section-1) }\n\n[ ](/img/figure/figure1_8.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-8)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_8.jpg)\n\nLower-income urban neighborhoods experience higher surface temperatures.\n\nFigure 1.8.  The figure shows the spatial distribution of maximum land surface\ntemperature (LST) in 2020 for Atlanta ( **a** ), Houston ( **b** ), and\nMinneapolis ( **c** ). Graphs ( **d** ), ( **e** ), and ( **f** ) depict the\nrelationship between maximum LST and median household income across census\ntracts in each city (see also Figure [ A4.4 ](/chapter/appendix-4#fig-a4-4) ).\nA statistical trend analysis (the Theil-Sen estimator) returns negative values\nfor all three cities, indicating that LST decreases as income increases (solid\nred line). Dashed red lines indicate the 95% confidence interval, meaning that\nthe true slope of the trend is expected to fall within this range. Note that\nLST is measured at ground level and may differ from surface air temperature,\nwhich is measured at a height of 2 meters. {Figure [ 12.6\n](/chapter/12#fig-12-6) } Portions of this figure include intellectual\nproperty of Esri and its licensors and are used under license. Copyright \u00c2\u00a9\n2020 Esri and its licensors. All rights reserved. Figure credit: University of\nCalifornia, Davis; University of Texas at El Paso; Massachusetts Institute of\nTechnology; City of Phoenix, Arizona; and USGS.\n\nThese disproportionate impacts are partly due to exclusionary housing\npractices\u00e2\u0080\u0094both past and ongoing\u00e2\u0080\u0094that leave underserved communities with\nless access to heat and flood risk-reduction strategies and other economic,\nhealth, and social resources. For example, areas that were historically\nredlined\u00e2\u0080\u0094a practice in which lenders avoided providing services to\ncommunities, often based on their racial or ethnic makeup\u00e2\u0080\u0094continue to be\ndeprived of equitable access to environmental amenities like urban green\nspaces that reduce exposure to climate impacts. These neighborhoods can be as\nmuch as 12\u00c2\u00b0F hotter during a heatwave than nearby wealthier neighborhoods. {\n[ 8.3 ](/chapter/8#key-message-3) , [ 9.2 ](/chapter/9#key-message-2) , [ 12.2\n](/chapter/12#key-message-2) , [ 15.2 ](/chapter/15#key-message-2) , [ 20.3\n](/chapter/20#key-message-3) , [ 21.3 ](/chapter/21#key-message-3) , [ 22.1\n](/chapter/22#key-message-1) , [ 26.4 ](/chapter/26#key-message-4) , [ 27.1\n](/chapter/27#key-message-1) , [ 32.4 ](/chapter/32#key-message-4) ; Ch. [ 2,\nIntroduction ](/chapter/2#section-1) }\n\n[ ](/img/figure/figure1_9.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-9)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_9.jpg)\n\nLosses due to floods are projected to increase disproportionately in US Census\ntracts with higher percentages of Black residents.\n\nFigure 1.9.  The bars show that the average annual losses\u00e2\u0080\u0094or the economic\ndamage in a typical year\u00e2\u0080\u0094due to floods in census tracts with a Black\npopulation of at least 20% are projected to increase at roughly twice the rate\nof that in tracts where Black populations make up less than 1% of population.\n{Figure [ 4.14 ](/chapter/4#fig-4-14) } Adapted from [ Wing et al. 2022\n](https://doi.org/10.1038/s41558-021-01265-6) [ [ CC BY 4.0\n](https://creativecommons.org/licenses/by/4.0/legalcode.en) ].\n\n###  Harmful impacts will increase in the near term\n\nEven if greenhouse gas emissions fall substantially, the impacts of climate\nchange will continue to intensify over the next decade (see  \u00e2\u0080\u009cMeeting US\nmitigation targets means reaching net-zero emissions\u00e2\u0080\u009d  above; Box  1.4  ),\nand all US regions are already experiencing increasingly harmful impacts.\nAlthough a few US regions or sectors may experience limited or short-term\nbenefits from climate change, adverse impacts already far outweigh any\npositive effects and will increasingly eclipse benefits with additional\nwarming. { [ 2.3 ](/chapter/2#key-message-3) , [ 19.1 ](/chapter/19#key-\nmessage-1) ; Ch. [ 2, Introduction ](/chapter/2#section-1) ; Chs. 21\u00e2\u0080\u009330}\n\nTable  1.2  shows examples of critical impacts expected to affect people in\neach region between now and 2030, with disproportionate effects on\noverburdened communities. While these examples affect particular regions in\nthe near term, impacts often cascade through social and ecological systems and\nacross borders and may lead to longer-term losses. { [ 15.2 ](/chapter/15#key-\nmessage-3) , [ 18.2 ](/chapter/18#key-message-2) , [ 20.1 ](/chapter/20#key-\nmessage-1) ; Figure [ 15.5 ](/chapter/15#fig-15-5) ; Ch. [ 20, Introduction\n](/chapter/20#section-1) }\n\n* * *\n\nTable 1.2. Climate Change Is Already Affecting All US Regions and Will\nContinue to Have Impacts in the Near Term\n\nThe table shows three climate impacts of significant concern to each US region\nbetween now and 2030. Icons indicate general categories of impacts:\ninfrastructure, water supply, health and well-being, food security, economy,\nlivelihoods and heritage, and ecosystems. More information can be found in the\nregional chapters (Chs. 21\u00e2\u0080\u009330) via the Key Message links shown in the table.\n\n**Category Key:**\n\nInfrastructure Water Supply Health and Well-being Food Security Economy\n\nLivelihoods and Heritage Ecosystems\n\nRegion  |  Example Impacts   \n---|---  \nNortheast  |  Extreme weather events damage critical infrastructure.   \n{ [ 21.1 ](/chapter/21#key-message-1) }  |  Warming temperatures shift distributions of coastal and marine species and habitats.   \n{ [ 21.2 ](/chapter/21#key-message-2) }  |  Extreme heat and flooding disproportionately impact overburdened communities.   \n{ [ 21.3 ](/chapter/21#key-message-3) }  \nSoutheast  |  Sea level rise and coastal flooding harm rapidly growing communities.   \n{ [ 22.1 ](/chapter/22#key-message-1) }  |  Extreme heat threatens human health, especially stressing urban communities.   \n{ [ 22.2 ](/chapter/22#key-message-2) }  |  Heavy rain and longer dry spells reduce water supply and access.   \n{ [ 22.4 ](/chapter/22#key-message-4) }  \nUS Caribbean  |  Agricultural losses, especially from tropical cyclones, threaten food security.   \n{ [ 23.1 ](/chapter/23#key-message-1) }  |  Severe drought leads to large agricultural and economic losses.   \n{ [ 23.3 ](/chapter/23#key-message-3) }  |  Rising temperatures increase mortality and power demand; hurricanes and storms stress power grids.   \n{ [ 23.2 ](/chapter/23#key-message-2) , [ 23.4 ](/chapter/23#key-message-4) }  \nMidwest  |  Rising temperatures and extreme events threaten livelihoods and trades.   \n{ [ 24.2 ](/chapter/24#key-message-2) }  |  Extreme weather events harm public health.   \n{ [ 24.3 ](/chapter/24#key-message-3) }  |  Rising temperatures and extreme rainfall damage buildings, homes, and businesses.   \n{ [ 24.4 ](/chapter/24#key-message-4) }  \nNorthern Great Plains  |  Rising temperatures and decreasing snowpack reduce water supply.   \n{ [ 25.1 ](/chapter/25#key-message-1) }  |  Increases in extreme heat, wildfire, and flooding harm physical and mental health.   \n{ [ 25.1 ](/chapter/25#key-message-1) , [ 25.2 ](/chapter/25#key-message-2) }  |  Livelihoods are at greater risk, especially in agriculture, recreation, and energy sectors.   \n{ [ 25.3 ](/chapter/25#key-message-3) }  \nSouthern Great Plains  |  Drier conditions threaten agriculture, ecosystems, and water supplies.   \n{ [ 26.1 ](/chapter/26#key-message-1) , [ 26.2 ](/chapter/26#key-message-2) , [ 26.5 ](/chapter/26#key-message-5) }  |  Extreme heat and high humidity harm human health and exacerbate inequities.   \n{ [ 26.4 ](/chapter/26#key-message-4) }  |  Multiple stressors and extreme events disrupt business, outdoor recreation, and leisure activities.   \n{ [ 26.1 ](/chapter/26#key-message-1) , [ 26.2 ](/chapter/26#key-message-2) ,\n[ 26.3 ](/chapter/26#key-message-3) }  \nNorthwest  |  Less water is available for hydropower, rural communities, and aquatic ecosystems.   \n{ [ 27.1 ](/chapter/27#key-message-1) , [ 27.2 ](/chapter/27#key-message-2) , [ 27.4 ](/chapter/27#key-message-4) }  |  Extreme heat and wildfire smoke endanger at-risk urban, rural, and Tribal communities.   \n{ [ 27.1 ](/chapter/27#key-message-1) , [ 27.3 ](/chapter/27#key-message-3) , [ 27.5 ](/chapter/27#key-message-5) }  |  Wildfire, extreme heat, and floods threaten livelihoods and heritage tied to natural resources.   \n{ [ 27.1 ](/chapter/27#key-message-1) , [ 27.3 ](/chapter/27#key-message-3) ,\n[ 27.6 ](/chapter/27#key-message-6) }  \nSouthwest  |  Intensifying drought and decreases in groundwater recharge reduce water supply.   \n{ [ 28.1 ](/chapter/28#key-message-1) }  |  Economic losses to farmers and ranchers increase.   \n{ [ 28.3 ](/chapter/28#key-message-3) }  |  Extreme heat, drought, wildfire smoke, and coastal flooding harm physical and mental health.   \n{ [ 28.3 ](/chapter/28#key-message-3) , [ 28.4 ](/chapter/28#key-message-4) }  \nAlaska  |  Landscape degradation increases damage to private and municipal infrastructure.   \n{ [ 29.2 ](/chapter/29#key-message-2) , [ 29.4 ](/chapter/29#key-message-4) }  |  Reduced fish stocks harm local economies, Tribal sovereignty, and overall well-being.   \n{ [ 29.6 ](/chapter/29#key-message-6) , [ 29.7 ](/chapter/29#key-message-7) }  |  Diminished access to mammals, seabirds, fish, and vegetation decreases local food security.   \n{ [ 29.5 ](/chapter/29#key-message-5) }  \nHawai\u00e2\u0080\u0098i and US-Affiliated Pacific Islands  |  Sea level rise and saltwater intrusion reduce irrigation and drinking water supply.   \n{ [ 30.1 ](/chapter/30#key-message-1) }  |  Damages to the coastal built environment, including traditional structures, increase.   \n{ [ 30.3 ](/chapter/30#key-message-3) , [ 30.5 ](/chapter/30#key-message-5) }  |  Risks to unique and biodiverse flora and fauna continue to grow.   \n{ [ 30.4 ](/chapter/30#key-message-4) }  \n  \n[ ](/art-climate/#art-Katie-Shapiro)\n\n##  Current and Future Climate Risks to the United States\n\nClimate changes are making it harder to maintain safe homes and healthy\nfamilies; reliable public services; a sustainable economy; thriving\necosystems, cultures, and traditions; and strong communities. Many of the\nextreme events and harmful impacts that people are already experiencing will\nworsen as warming increases and new risks emerge.\n\n###  Safe, reliable water supplies are threatened by flooding, drought, and\nsea level rise\n\nMore frequent and intense heavy precipitation events are already evident,\nparticularly in the Northeast and Midwest. Urban and agricultural environments\nare especially vulnerable to runoff and flooding. Between 1981 and 2016, US\ncorn yield losses from flooding were comparable to those from extreme drought.\nRunoff and flooding also transport debris and contaminants that cause harmful\nalgal blooms and pollute drinking water supplies. Communities of color and\nlow-income communities face disproportionate flood risks. { [ 2.2\n](/chapter/2#key-message-2) , [ 4.2 ](/chapter/4#key-message-2) , [ 6.1\n](/chapter/6#key-message-1) , [ 9.2 ](/chapter/9#key-message-2) , [ 21.3\n](/chapter/21#key-message-3) , [ 24.1 ](/chapter/24#key-message-1) , [ 24.5\n](/chapter/24#key-message-5) , [ 26.4 ](/chapter/26#key-message-4) ; Figure [\nA4.8 ](/chapter/appendix-4#fig-a4-8) }\n\nBetween 1980 and 2022, drought and related heatwaves caused approximately $328\nbillion in damages (in 2022 dollars). Recent droughts have strained surface\nwater and groundwater supplies, reduced agricultural productivity, and lowered\nwater levels in major reservoirs, threatening hydropower generation. As higher\ntemperatures increase irrigation demand, increased pumping could endanger\ngroundwater supplies, which are already declining in many major aquifers. { [\n4.1, [ 4.2 ](/chapter/4#key-message-2) ; Figure [ A4.9\n](/chapter/appendix-4#fig-a4-9) } ](/chapter/4#key-message-1)\n\nDroughts are projected to increase in intensity, duration, and frequency,\nespecially in the Southwest, with implications for surface water and\ngroundwater supplies. Human and natural systems are threatened by rapid shifts\nbetween wet and dry periods that make water resources difficult to predict and\nmanage. { [ 2.2 ](/chapter/2#key-message-2) , [ 2.3 ](/chapter/2#key-\nmessage-3) , [ 4.1 ](/chapter/4#key-message-1) , [ 4.2 ](/chapter/4#key-\nmessage-2) , [ 5.1 ](/chapter/5#key-message-1) , [ 28.1 ](/chapter/28#key-\nmessage-1) }\n\nIn coastal environments, dry conditions, sea level rise, and saltwater\nintrusion endanger groundwater aquifers and stress aquatic ecosystems. Inland,\ndecreasing snowpack alters the volume and timing of streamflow and increases\nwildfire risk. Small rural water providers that often depend on a single water\nsource or have limited capacity are especially vulnerable. { [ 4.2\n](/chapter/4#key-message-2) , [ 7.2 ](/chapter/7#key-message-2) , [ 9.2\n](/chapter/9#key-message-2) , [ 21.2 ](/chapter/21#key-message-2) , [ 22.1\n](/chapter/22#key-message-1) , [ 23.1 ](/chapter/23#key-message-1) , [ 23.3\n](/chapter/23#key-message-1) , [ 25.1 ](/chapter/25#key-message-1) , [ 27.4\n](/chapter/27#key-message-4) , [ 28.1 ](/chapter/28#key-message-1) , [ 28.2\n](/chapter/28#key-message-2) , [ 28.5 ](/chapter/28#key-message-5) , [ 30.1\n](/chapter/30#key-message-1) ; Figure [ A4.7 ](/chapter/appendix-4#fig-a4-7) }\n\nMany options are available to protect water supplies, including reservoir\noptimization, nature-based solutions, and municipal management systems to\nconserve and reuse water. Collaboration on flood hazard management at regional\nscales is particularly important in areas where flood risk is increasing, as\ncooperation can provide solutions unavailable at local scales. { [ 4.3\n](/chapter/4#key-message-3) , [ 9.3 ](/chapter/9#key-message-3) , [ 26.5\n](/chapter/26#key-message-5) ; [ Focus on Blue Carbon ](/chapter/focus-on-5) }\n\n[ ](/img/figure/figure1_20.jpg)\n\n( **left** ; Toledo, Ohio) Rising temperatures are intensifying harmful algal\nblooms, negatively affecting human and animal health. ( **top right** ; Utah,\nArizona) Water levels on Lake Powell have fallen to historic lows in recent\nyears, affecting millions of people across the Southwest. ( **bottom right** )\nRain gardens, a form of green infrastructure, absorb excess stormwater. Photo\ncredits: (left) Aerial Associates Photography Inc. by Zachary Haslick; (top\nright) NASA Earth Observatory images by Lauren Dauphin, using Landsat data\nfrom the USGS; (bottom right) Alisha Goldstein, EPA.\n\n###  Disruptions to food systems are expected to increase\n\nAs the climate changes, increased instabilities in US and global food\nproduction and distribution systems are projected to make food less available\nand more expensive. These price increases and disruptions are expected to\ndisproportionately affect the nutrition and health of women, children, older\nadults, and low-wealth communities. { [ 11.2 ](/chapter/11#key-message-2) , [\n15.2 ](/chapter/15#key-message-2) }\n\nClimate change also disproportionately harms the livelihoods and health of\ncommunities that depend on agriculture, fishing, and subsistence lifestyles,\nincluding Indigenous Peoples reliant on traditional food sources. Heat-related\nstress and death are significantly greater for farmworkers than for all US\ncivilian workers. { [ 11.2 ](/chapter/11#key-message-2) , [ 11.3\n](/chapter/11#key-message-3) , [ 15.1 ](/chapter/15#key-message-1) , [ 15.2\n](/chapter/15#key-message-2) , [ 16.1 ](/chapter/16#key-message-1) ; [ Focus\non Risks to Supply Chains ](/chapter/focus-on-4) }\n\nWhile farmers, ranchers, and fishers have always faced unpredictable weather,\nclimate change heightens risks in many ways:\n\n  * Increasing temperatures, along with changes in precipitation, reduce productivity, yield, and nutritional content of many crops. These changes can introduce disease, disrupt pollination, and result in crop failure, outweighing potential benefits of longer growing seasons and increased CO  2  fertilization. { [ 11.1 ](/chapter/11#key-message-1) , [ 19.1 ](/chapter/19#key-message-1) , [ 21.1 ](/chapter/21#key-message-1) , [ 22.4 ](/chapter/222#key-message-4) , [ 23.3 ](/chapter/23#key-message-3) , [ 24.1 ](/chapter/24#key-message-1) , [ 26.2 ](/chapter/26#key-message-2) } \n\n  * Heavy rain and more frequent storms damage crops and property and contaminate water supplies. Longer-lasting droughts and larger wildfires reduce forage production and nutritional quality, diminish water supplies, and increase heat stress on livestock. { [ 23.2, [ 25.3 ](/chapter/25#key-message-3) , [ 28.3 ](/chapter/28#key-message-2) } ](/chapter/23#key-message-2)\n\n  * Increasing water temperatures, invasive aquatic species, harmful algal blooms, and ocean acidification and deoxygenation put fisheries at risk. Fishery collapses can result in large economic losses, as well as loss of cultural identity and ways of life. { [ 11.3 ](/chapter/11#key-message-3) , [ 29.3 ](/chapter/29#key-message-3) } \n\nIn response, some farmers and ranchers are adopting innovations\u00e2\u0080\u0094such as\nagroecological practices, data-driven precision agriculture, and carbon\nmonitoring\u00e2\u0080\u0094to improve resilience, enhance soil carbon storage, and reduce\nemissions. Across the Nation, Indigenous food security efforts are helping\nimprove community resilience to climate change while also improving cultural\nresilience. Some types of aquaculture have the potential to increase climate-\nsmart protein production, human nutrition, and food security, although some\ncommunities have raised concerns over issues such as conflict with traditional\nlivelihoods and the introduction of disease or pollution. { [ 10.2\n](/chapter/10#key-message-2) , [ 11.1 ](/chapter/11#key-message-1) , [ 29.6\n](/chapter/29#key-message-6) , [ 25.5 ](/chapter/25#key-message-5) ; Boxes [\n22.3 ](/chapter/22#box-22_3) , [ 27.2 ](/chapter/27#box-27_2) }\n\n[ ](/img/figure/figure1_21.jpg)\n\n( **left** ; Baltimore, Maryland) Urban farms offer the potential to reduce\ncarbon emissions while helping to improve community food security. ( **top\nright** ; California) A Northern California vineyard is affected by wildfire.\n( **bottom right** ; Kenai River, Alaska) Recent climate extremes have\ncontributed to declines in many salmon populations. Photo credits: (left)\nPreston Keres, USDA/FPAC; (top right) Ordinary Mario/iStock via Getty Images;\n(bottom right) Eric Vance, EPA.\n\n###  Homes and property are at risk from sea level rise and more intense\nextreme events\n\nHomes, property, and critical infrastructure are increasingly exposed to more\nfrequent and intense extreme events, increasing the cost of maintaining a safe\nand healthy place to live. Development in fire-prone areas and increases in\narea burned by wildfires have heightened risks of loss of life and property\ndamage in many areas across the US. Coastal communities across the\ncountry\u00e2\u0080\u0094home to 123 million people (40% of the total US population)\u00e2\u0080\u0094are\nexposed to sea level rise (Figure  1.10  ), with millions of people at risk of\nbeing displaced from their homes by the end of the century. { [ 2.3\n](/chapter/2#key-message-3) , [ 9.1 ](/chapter/9#key-message-1) , [ 12.2\n](/chapter/12#key-message-2) , [ 22.1 ](/chapter/22#key-message-1) , [ 27.4\n](/chapter/27#key-message-4) , [ 30.3 ](/chapter/30#key-message-3) ; Figures [\nA4.10 ](/chapter/2#fig-a4-10) , [ A4.14 ](/chapter/appendix-4#fig-a4-14) ; [\nFocus on Western Wildfires ](/chapter/focus-on-2) }\n\nPeople who regularly struggle to afford energy bills\u00e2\u0080\u0094such as rural, low-\nincome, and older fixed-income households and communities of color\u00e2\u0080\u0094are\nespecially vulnerable to more intense extreme heat events and associated\nhealth risks, particularly if they live in homes with poor insulation and\ninefficient cooling systems. For example, Black Americans are more likely to\nlive in older, less energy efficient homes and face disproportionate heat-\nrelated health risks. { [ 5.2 ](/chapter/5#key-message-2) , [ 15.2\n](/chapter/15#key-message-2) , [ 15.3 ](/chapter/15#key-message-3) , [ 22.2\n](/chapter/22#key-message-2) , [ 26.4 ](/chapter/26#key-message-4) , [ 32.4\n](/chapter/32#key-message-4) ; Figure [ A4.4 ](/chapter/appendix-4#fig-a4-4) }\n\nAccessible public cooling centers can help protect people who lack adequate\nair-conditioning on hot days. Strategic land-use planning in cities, urban\ngreenery, climate-smart building codes, and early warning communication can\nalso help neighborhoods adapt. However, other options at the household scale,\nsuch as hardening homes against weather extremes or relocation, may be out of\nreach for renters and low-income households without assistance. { [ 12.3\n](/chapter/12#key-message-3) , [ 15.3 ](/chapter/15#key-message-3) , [ 19.3\n](/chapter/19#key-message-3) , [ 22.2 ](/chapter/22#key-message-2) }\n\n[ ](/img/figure/figure1_10.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-10)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_10.jpg)\n\nIncreasing flooding puts more people and assets at risk.\n\nFigure 1.10.  ( **top row** ) Maps show ( **a** ) the average number of minor\nhigh tide flooding events per year in 2020 (with historical sea level rise)\nand ( **b** ) the expected number of events per year in 2050 (when driven by\nextrapolated sea level rise). ( **bottom row** ) Maps show ( **c** ) average\nannual loss (AAL) from all types of flooding in millions of dollars in 2020\nand ( **d** ) the projected changes in AAL in 2050 relative to 2020. AAL\nestimates were made only for the contiguous US. Over the next three decades,\nthe number of flooding days along all coastlines of the US is expected to\nincrease. These increases in the occurrence of flooding will drive greater\nAALs, especially in coastal areas of the US. (a, b) Adapted from [ Sweet et\nal. 2022 ](https://oceanservice.noaa.gov/hazards/sealevelrise/sealevelrise-\ntech-report-sections.html) ; (c, d) adapted from [ Wing et al. 2022\n](https://doi.org/10.1038/s41558-021-01265-6) [ [ CC BY 4.0\n](https://creativecommons.org/licenses/by/4.0/legalcode) ].\n\n[ ](/img/figure/figure1_22.jpg)\n\n( **left** ; Cedar Rapids, Iowa) More frequent and intense heavy precipitation\nevents are already evident, particularly in the Northeast and Midwest. (\n**right** ; Arizona) The 2021 Telegraph Fire destroyed homes and property.\nPhoto credits: (left) Don Becker, USGS; (right) Andrew Avitt, USDA Forest\nService.\n\n###  Infrastructure and services are increasingly damaged and disrupted by\nextreme weather and sea level rise\n\nClimate change threatens vital infrastructure that moves people and goods,\npowers homes and businesses, and delivers public services. Many infrastructure\nsystems across the country are at the end of their intended useful life and\nare not designed to cope with additional stress from climate change. For\nexample, extreme heat causes railways to buckle, severe storms overload\ndrainage systems, and wildfires result in roadway obstruction and debris\nflows. Risks to energy, water, healthcare, transportation, telecommunications,\nand waste management systems will continue to rise with further climate\nchange, with many infrastructure systems at risk of failing. { [ 12.2\n](/chapter/12#key-message-2) , [ 13.1 ](/chapter/13#key-message-1) , [ 15.2\n](/chapter/15#key-message-2) , [ 23.4 ](/chapter/23#key-message-4) , [ 26.5\n](/chapter/26#key-message-5) ; [ Focus on Risks to Supply Chains\n](/chapter/focus-on-4) }\n\nIn coastal areas, sea level rise threatens permanent inundation of\ninfrastructure, including roadways, railways, ports, tunnels, and bridges;\nwater treatment facilities and power plants; and hospitals, schools, and\nmilitary bases. More intense storms also disrupt critical services like access\nto medical care, as seen after Hurricanes Irma and Maria in the US Virgin\nIslands and Puerto Rico. { [ 9.2 ](/chapter/9#key-message-2) , [ 23.1\n](/chapter/23#key-message-1) , [ 28.2 ](/chapter/28#key-message-2) , [ 30.3\n](/chapter/30#key-message-3) }\n\nAt the same time, climate change is expected to place multiple demands on\ninfrastructure and public services. For example, higher temperatures and other\neffects of climate change, such as greater exposure to stormwater or\nwastewater, will increase demand for healthcare. Continued increases in\naverage temperatures and more intense heatwaves will heighten electricity and\nwater demand, while wetter storms and intensified hurricanes will strain\nwastewater and stormwater management systems. In the Midwest and other\nregions, aging energy grids are expected to be strained by disruptions and\ntransmission efficiency losses from climate change. { [ 23.4\n](/chapter/23#key-message-4) , [ 24.4 ](/chapter/24#key-message-4) , [ 30.2\n](/chapter/30#key-message-2) }\n\nForward-looking designs of infrastructure and services can help build\nresilience to climate change, offset costs from future damage to\ntransportation and electrical systems, and provide other benefits, including\nmeeting evolving standards to protect public health, safety, and welfare.\nMitigation and adaptation activities are advancing from planning stages to\ndeployment in many areas, including improved grid design and workforce\ntraining for electrification, building upgrades, and land-use choices. Grid\nmanagers are gaining experience planning and operating electricity systems\nwith growing shares of renewable generation and working toward understanding\nthe best approaches for dealing with the natural variability of wind and solar\nsources alongside increases in electrification. { [ 5.3 ](/chapter/5#key-\nmessage-3) , [ 12.3 ](/chapter/12#key-message-3) , [ 13.1 ](/chapter/13#key-\nmessage-1) , [ 13.2 ](/chapter/13#key-message-2) , [ 22.3 ](/chapter/22#key-\nmessage-3) , [ 24.4 ](/chapter/24#key-message-4) , [ 32.3 ](/chapter/32#key-\nmessage-3) ; Figure [ 22.17 ](/chapter/22#fig-22-17) }\n\n[ ](/img/figure/figure1_23.jpg)\n\n( **left** ; Oregon) The Hooskanaden Landslide, triggered by heavy rainfall,\ncaused substantial road damage. ( **right** ; Maunabo, Puerto Rico) Punta Tuna\nWetlands Nature Reserve, which helps buffer the coastline from extreme events,\nwas severely damaged during Hurricane Maria in 2017. Photo credits: (left)\nOregon Department of Transportation [ [ CC BY 2.0\n](https://creativecommons.org/licenses/by/2.0/legalcode) ]; (right) Kenneth\nWilsey, FEMA.\n\n###  Climate change exacerbates existing health challenges and creates new\nones\n\nClimate change is already harming human health across the US, and impacts are\nexpected to worsen with continued warming. Climate change harms individuals\nand communities by exposing them to a range of compounding health hazards,\nincluding the following:\n\n  * More severe and frequent extreme events { [ 2.2 ](/chapter/2#key-message-2) , [ 2.3 ](/chapter/2#key-message-3) , [ 15.1 ](/chapter/15#key-message-1) } \n\n  * Wider distribution of infectious and vector-borne pathogens { [ 15.1 ](/chapter/15#key-message-1) , [ 26.1 ](/chapter/26#key-message-1) ; Figure [ A4.16 ](/chapter/appendix-4#fig-a4-16) } \n\n  * Air quality worsened by smog, wildfire smoke, dust, and increased pollen { [ 14.1 ](/chapter/14#key-message-1) , [ 14.2 ](/chapter/14#key-message-2) , [ 14.4 ](/chapter/14#key-message-4) , [ 23.1 ](/chapter/23#key-message-1) , [ 26.1 ](/chapter/26#key-message-1) } \n\n  * Threats to food and water security { [ 11.2 ](/chapter/11#key-message-2) , [ 15.1 ](/chapter/15#key-messagae-1) } \n\n  * Mental and spiritual health stressors { [ 15.1 ](/chapter/15#key-message-1) } \n\nWhile climate change can harm everyone\u00e2\u0080\u0099s health, its impacts exacerbate\nlong-standing disparities that result in inequitable health outcomes for\nhistorically marginalized people, including people of color, Indigenous\nPeoples, low-income communities, and sexual and gender minorities, as well as\nolder adults, people with disabilities or chronic diseases, outdoor workers,\nand children.\u00c2 { [ 14.3 ](/chapter/14#key-message-3) , [ 15.2\n](/chapter/15#key-message-2) }\n\nThe disproportionate health impacts of climate change compound with similar\ndisparities in other health contexts. For example, climate-related disasters\nduring the COVID-19 pandemic, such as drought along the Colorado River basin,\nwestern wildfires, and Hurricane Laura, disproportionately magnified COVID-19\nexposure, transmission, and disease severity and contributed to worsened\nhealth conditions for essential workers, older adults, farmworkers, low-wealth\ncommunities, and communities of color. { [ 15.2 ](/chapter/15#key-message-2) ;\n[ Focus on COVID-19 and Climate Change ](/chapter/focus-on-3) }\n\nLarge reductions in greenhouse gas emissions are expected to result in\nwidespread health benefits and avoided death or illness that far outweigh the\ncosts of mitigation actions. Improving early warning, surveillance, and\ncommunication of health threats; strengthening the resilience of healthcare\nsystems; and supporting community-driven adaptation strategies can reduce\ninequities in the resources and capabilities needed to adapt as health threats\nfrom climate change continue to grow. { [ 14.5 ](/chapter/14#key-message-5) ,\n[ 15.3 ](/chapter/15#key-message-3) , [ 26.1 ](/chapter/26#key-message-1) , [\n30.2 ](/chapter/30#key-message-2) , [ 32.4 ](/chapter/32#key-message-4) }\n\n[ ](/img/figure/figure1_24.jpg)\n\n( **left** ; New York, New York) The Empire State Building is shrouded in a\nhaze caused by smoke from the 2023 Canadian wildfires. ( **top right** ;\nConway, South Carolina) An ambulance drives through floodwaters. ( **bottom\nright** ; Atlanta, Georgia) Heatwaves in the Southeast are happening more\nfrequently. Park amenities, such as trees and splash pads, help cool people on\nhot days. Photo credits: (left) Anthony Quintano [ [ CC BY 2.0\n](https://creativecommons.org/licenses/by/2.0/legalcode.en) ]; (top right) US\nAir National Guard photo by Tech. Sgt. Jorge Intriago; (bottom right) ucumari\nphotography [ [ CC BY-NC-ND 2.0 ](https://creativecommons.org/licenses/by-nc-\nnd/2.0/au/legalcode) ].\n\n###  Ecosystems are undergoing transformational changes\n\nTogether with other stressors, climate change is harming the health and\nresilience of ecosystems, leading to reductions in biodiversity and ecosystem\nservices. Increasing temperatures continue to shift habitat ranges as species\nexpand into new regions or disappear from unfavorable areas, altering where\npeople can hunt, catch, or gather economically important and traditional food\nsources. Degradation and extinction of local flora and fauna in vulnerable\necosystems like coral reefs and montane rainforests are expected in the near\nterm, especially where climate changes favor invasive species or increase\nsusceptibility to pests and pathogens. Without significant emissions\nreductions, rapid shifts in environmental conditions are expected to lead to\nirreversible ecological transformations by mid- to late century. { [ 2.3\n](/chapter/2#key-message-3) , [ 6.2 ](/chapter/6#key-message-2) , [ 7.1\n](/chapter/i7#key-message-1) , [ 7.2 ](/chapter/7#key-message-2) , [ 8.1\n](/chapter/8#key-message-1) , [ 8.2 ](/chapter/8#key-message-2) , [ 10.1\n](/chapter/10#key-message-1) , [ 10.2 ](/chapter/10#key-message-2) , [ 21.1\n](/chapter/21#key-message-1) , [ 24.2 ](/chapter/24#key-message-2) , [ 27.2\n](/chapter/27#key-message-2) , [ 28.5 ](/chapter/28#key-message-5) , [ 29.3\n](/chapter/29#key-message-3) , [ 29.5 ](/chapter/29#key-message-5) , [ 30.4\n](/chapter/30#key-message-4) ; Figure [ A4.12 ](/chapter/appendix-4#fig-a4-12)\n}\n\nChanges in ocean conditions and extreme events are already transforming\ncoastal, aquatic, and marine ecosystems. Coral reefs are being lost due to\nwarming and ocean acidification, harming important fisheries; coastal forests\nare converting to ghost forests, shrublands, and marsh due to sea level rise,\nreducing coastal protection; lake and stream habitats are being degraded by\nwarming, heavy rainfall, and invasive species, leading to declines in\neconomically important species. { [ 8.1 ](/chapter/8#key-message-1) , [ 10.1\n](/chapter/10#key-message-1) , [ 21.2 ](/chapter/21#key-message-2) , [ 23.2\n](/chapter/23#key-message-2) , [ 24.2 ](/chapter/24#key-message-2) , [ 27.2\n](/chapter/27#key-message-2) ; Figures [ 8.7 ](/chapter/8#fig-8-7) , [ A4.11\n](/chapter/appendix-4#fig-a4-11) }\n\nIncreased risks to ecosystems are expected with further climate change and\nother environmental changes, such as habitat fragmentation, pollution, and\noverfishing. For example, mass fish die-offs from extreme summertime heat are\nprojected to double by midcentury in northern temperate lakes under a very\nhigh scenario (RCP8.5). Continued climate changes are projected to exacerbate\nrunoff and erosion, promote harmful algal blooms, and expand the range of\ninvasive species. { [ 4.2 ](/chapter/4#key-message-4) , [ 7.1\n](/chapter/7#key-message-1) , [ 8.2 ](/chapter/8#key-message-2) , [ 10.1\n](/chapter/10#key-message-1) , [ 21.2 ](/chapter/21#key-message-2) , [ 23.2\n](/chapter/23#key-message-2) , [ 24.2 ](/chapter/24#key-message-2) , [ 27.2\n](/chapter/27_key-message-2) , [ 28.2 ](/chapter/28_key-message-2) , [ 30.4\n](/chapter/30#key-message-4) }\n\nWhile adaptation options to protect fragile ecosystems may be limited,\nparticularly under higher levels of warming, management and restoration\nmeasures can reduce stress on ecological systems and build resilience. These\nmeasures include migration assistance for vulnerable species and protection of\nessential habitats, such as establishing wildlife corridors or places where\nspecies can avoid heat. Opportunities for nature-based solutions that assist\nin mitigation exist across the US, particularly those focused on protecting\nexisting carbon sinks and increasing carbon storage by natural ecosystems. { [\n8.3 ](/chapter/8#key-message-3) , [ 10.3 ](/chapter/10#key-message-3) , [ 23.2\n](/chapter/23#key-message-2) , [ 27.2 ](/chapter/27#key-message-2) ; [ Focus\non Blue Carbon ](/chapter/focus-on-5) }\n\n[ ](/img/figure/figure1_25.jpg)\n\n( **top left** ; Nags Head Woods, North Carolina) Coastal ghost forests result\nwhen trees are killed by sea level rise and saltwater intrusion. ( **top\nright** ; Molokai Island, Hawai\u00ca\u00bbi) High island ecosystems are at risk due to\ninvasive species, habitat destruction, intensifying fire, and drought. (\n**bottom** ; Florida) A diver works on coral reef restoration around Florida\nKeys National Marine Sanctuary. Photo credits: (top left) NC Wetlands [ [ NC\nBY 2.0 ](https://creativecommons.org/licenses/by-nc/2.0/legalcode) ]; (top\nright) Lucas Fortini, USGS; (bottom) Mitchell Tartt, NOAA.\n\n###  Climate change slows economic growth, while climate action presents\nopportunities\n\nWith every additional increment of global warming, costly damages are expected\nto accelerate. For example, 2\u00c2\u00b0F of warming is projected to cause more than\ntwice the economic harm induced by 1\u00c2\u00b0F of warming. Damages from additional\nwarming pose significant risks to the US economy at multiple scales and can\ncompound to dampen economic growth. { [ 19.1 ](/chapter/19#key-message-1) }\n\n  * International impacts can disrupt trade, amplify costs along global supply chains, and affect domestic markets. { [ 17.3 ](/chapter/17#key-message-3) , [ 19.2 ](/chapter/19#key-message-2) ; [ Focus on Risks to Supply Chains ](/chapter/focus-on-4) } \n\n  * While some economic impacts of climate change are already being felt across the country, the impacts of future changes are projected to be more significant and apparent across the US economy. { [ 19.1 ](/chapter/19#key-message-1) } \n\n  * States, cities, and municipalities confront climate-driven pressures on public budgets and borrowing costs amid spending increases on healthcare and disaster relief. { [ 19.2 ](/chapter/19#key-message-2) } \n\n  * Household consumers face higher costs for goods and services, like groceries and health insurance premiums, as prices change to reflect both current and projected climate-related damages. { [ 19.2 ](/chapter/19#key-message-2) } \n\nMitigation and adaptation actions present economic opportunities. Public and\nprivate measures\u00e2\u0080\u0094such as climate financial risk disclosures, carbon offset\ncredit markets, and investments in green bonds\u00e2\u0080\u0094can avoid economic losses and\nimprove property values, resilience, and equity. However, climate responses\nare not without risk. As innovation and trade open further investment\nopportunities in renewable energy and the country continues to transition away\nfrom fossil fuels, loss and disposal costs of stranded capital assets such as\ncoal mines, oil and gas wells, and outdated power plants are expected. Climate\nsolutions designed without input from affected communities can also result in\nincreased vulnerability and cost burden. { [ 17.3 ](/chapter/17#key-message-3)\n, [ 19.2 ](/chapter/19#key-message-2) , [ 19.3 ](/chapter/19#key-message-3) ,\n[ 20.2 ](/chapter/20#key-message-2) , [ 20.3 ](/chapter/20#key-message-3) , [\n27.1 ](/chapter/27#key-message-1) , [ 31.6 ](/chapter/31#key-message-6) }\n\n###  Many regional economies and livelihoods are threatened by damages to\nnatural resources and intensifying extremes\n\nClimate change is projected to reduce US economic output and labor\nproductivity across many sectors, with effects differing based on local\nclimate and the industries unique to each region. Climate-driven damages to\nlocal economies especially disrupt heritage industries (e.g., fishing\ntraditions, trades passed down over generations, and cultural heritage\u00e2\u0080\u0093based\ntourism) and communities whose livelihoods depend on natural resources. { [\n11.3 ](/chapter/11#key-message-3) , [ 19.1 ](/chapter/19#key-message-1) , [\n19.3 ](/chapter/19#key-message-3) }\n\n  * As fish stocks in the Northeast move northward and to deeper waters in response to rapidly rising ocean temperatures, important fisheries like scallops, shrimp, and cod are at risk. In Alaska, climate change has already played a role in 18 major fishery disasters that were especially damaging for coastal Indigenous Peoples, subsistence fishers, and rural communities. { [ 10.2 ](/chapter/10#key-message-2) , [ 21.2 ](/chapter/21#key-message-2) , [ 29.3 ](/chapter/29#key-message-3) } \n\n  * While the Southeast and US Caribbean face high costs from projected labor losses and heat health risks to outdoor workers, small businesses are already confronting higher costs of goods and services and potential closures as they struggle to recover from the effects of compounding extreme weather events. { [ 22.3 ](/chapter/22#key-message-3) , [ 23.1 ](/chapter/23#key-message-1) } \n\n  * Agricultural losses in the Midwest, including lower corn yields and damages to specialty crops like apples, are linked to rapid shifts between wet and dry conditions and stresses from climate-induced increases in pests and pathogens. Extreme heat and more intense wildfire and drought in the Southwest are already threatening agricultural worker health, reducing cattle production, and damaging wineries. { [ 24.1 ](/chapter/24#key-message-1) , [ 28.5 ](/chapter/28#key-message-5) } \n\n  * In the Northern Great Plains, agriculture and recreation are expected to see primarily negative effects related to changing temperature and rainfall patterns. By 2070, the Southern Great Plains is expected to lose cropland acreage as lands transition to pasture or grassland. { [ 25.3 ](/chapter/25#key-message-3) , [ 26.2 ](/chapter/26#key-message-2) } \n\n  * Outdoor-dependent industries, such as tourism in Hawai\u00e2\u0080\u0098i and the US-Affiliated Pacific Islands and skiing in the Northwest, face significant economic loss from projected rises in park closures and reductions in workforce as continued warming leads to deterioration of coastal ecosystems and shorter winter seasons with less snowfall. { [ 7.2 ](/chapter/7#key-message-2) , [ 8.3 ](/chapter/8#key-message-3) , [ 10.1 ](/chapter/10#key-message-1) , [ 10.3 ](/chapter/10#key-message-3) , [ 19.1 ](/chapter/19#key-message-1) , [ 27.3 ](/chapter/27#key-message-3) , [ 30.4 ](/chapter/30#key-message-4) } \n\nMitigation and adaptation actions taken by businesses and industries promote\nresilience and offer long-term benefits to employers, employees, and\nsurrounding communities. For example, as commercial fisheries adapt,\ndiversifying harvest and livelihoods can help stabilize income or buffer risk.\nIn addition, regulators and investors are increasingly requiring businesses to\ndisclose climate risks and management strategies. { [ 10.2 ](/chapter/10#key-\nmessage-2) , [ 19.3 ](/chapter/19#key-message-3) , [ 26.2 ](/chapter/26#key-\nmessage-2) }\n\n[ ](/img/figure/figure1_26.jpg)\n\n( **top left** ; Fort Myers Beach, Florida) Shops and restaurants were\nseverely damaged or completed destroyed by Hurricane Ian in 2022. ( **bottom\nleft** ; Whatcom County, Washington) Snow-based recreational industries, such\nas skiing in the Pacific Northwest, are projected to lose revenue due to\ndeclining snowpack. ( **right** ; Maine) A causeway connecting Little Deer\nIsle to Deer Isle (the largest lobster port in the state) is threatened by sea\nlevel rise. Photo credits: (top left) Coast Guard Petty Officer 3rd Class\nGabriel Wisdom; (bottom left) US Forest Service\u00e2\u0080\u0093Pacific Northwest Region;\n(right) \u00c2\u00a9Jack Sullivan, Island Institute.\n\n###  Job opportunities are shifting due to climate change and climate action\n\nMany US households are already feeling the economic impacts of climate change.\nClimate change is projected to impose a variety of new or higher costs on most\nhouseholds as healthcare, food, insurance, building, and repair costs become\nmore expensive. Compounding climate stressors can increase segregation, income\ninequality, and reliance on social safety net programs. Quality of life is\nalso threatened by climate change in ways that can be more difficult to\nquantify, such as increased crime and domestic violence, harm to mental\nhealth, reduced happiness, and fewer opportunities for outdoor recreation and\nplay. { [ 11.3 ](/chapter/11#key-message-3) , [ 19.1, [ 19.3\n](/chapter/19#key-message-3) } ](/chapter/19#key-message-1)\n\nClimate change, and how the country responds, is expected to alter demand for\nworkers and shift where jobs are available. For example, energy-related\nlivelihoods in the Northern and Southern Great Plains are expected to shift as\nthe energy sector transforms toward more renewables, low-carbon technologies,\nand electrification of more sectors of the economy. Losses in fossil\nfuel\u00e2\u0080\u0093related jobs are projected to be completely offset by greater increases\nin mitigation-related jobs, as increased demand for renewable energy and low-\ncarbon technologies is expected to lead to long-term expansion in most\nstates\u00e2\u0080\u0099 energy and decarbonization workforce (Figure  1.12  ). Grid\nexpansion and energy efficiency efforts are already creating new jobs in\nplaces like Nevada, Vermont, and Alaska, and advancements in biofuels and\nagrivoltaics (combined renewable energy and agriculture) provide economic\nopportunities in rural communities. { [ 10.2 ](/chapter/10#key-message-2) , [\n11.3 ](/chapter/11#key-message-3) , [ 19.3 ](/chapter/19#key-message-3) , [\n25.3 ](/chapter/25#key-message-3) , [ 26.2 ](/chapter/26#key-message-2) , [\n29.3 ](/chapter/29#key-message-3) , [ 32.4 ](/chapter/32#key-message-4) }\n\nAdditional opportunities include jobs in ecosystem restoration and\nconstruction of energy-efficient and climate-resilient housing and\ninfrastructure. Workforce training and equitable access to clean energy jobs,\nwhich have tended to exclude women and people of color, are essential elements\nof a just transition to a decarbonized economy. { [ 5.3 ](/chapter/5#key-\nmessage-3) , [ 19.3 ](/chapter/19#key-message-3) , [ 20.3 ](/chapter/20#key-\nmessage-3) , [ 22.3 ](/chapter/22#key-message-3) , [ 25.3 ](/chapter/25#key-\nmessage-3) , [ 26.2 ](/chapter/26#key-message-2) , [ 27.3 ](/chapter/27#key-\nmessages-3) , [ 32.4 ](/chapter/32#key-messages-4) }\n\n[ ](/img/figure/figure1_12.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-12)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_12.jpg)\n\nEmployment gains in electrification and renewable energy industries are\nprojected to far outpace job losses in fossil fuel industries.\n\nFigure 1.12.  Despite decreases in the number of fossil fuel\u00e2\u0080\u0093related jobs,\nthe overall number of energy jobs (specifically those involved in the supply\nof energy) relative to 2019 is generally projected to increase in net-zero-\nemissions energy scenarios between 2020 and 2050, although by much more in\nsome scenarios than in others. {Figure [ 32.17 ](/chapter/32#fig-32-17) }\nAdapted with permission from [ Jenkins et al. 2021\n](https://doi.org/10.1016/j.joule.2021.10.016) .\n\n[ ](/img/figure/figure1_27.jpg)\n\n( **top** ; Golden, Colorado) Solar panels are pictured on the campus of the\nNational Renewable Energy Laboratory. ( **bottom left** ; San Antonio, Texas)\nParticipants in the 2022 Collegiate Wind Competition focus on offshore wind\nprojects. ( **bottom right** ; Lexington, Virginia) Workers install fiber-\noptic cables. Rural broadband deployment is associated with higher incomes and\nlower unemployment rates. Photo credits: (top and bottom left) Werner\nSlocum/NREL [ [ CC-BY-NC-ND 2.0 ](https://creativecommons.org/licenses/by-nc-\nnd/2.0/legalcode) ]; (bottom right) Preston Keres, USDA.\n\n###  Climate change is disrupting cultures, heritages, and traditions\n\nAs climate change transforms US landscapes and ecosystems, many deeply rooted\ncommunity ties, pastimes, Traditional Knowledges, and cultural or spiritual\nconnections to place are at risk. Cultural heritage\u00e2\u0080\u0094including buildings,\nmonuments, livelihoods, and practices\u00e2\u0080\u0094is threatened by impacts on natural\necosystems and the built environment. Damages to archaeological, cultural, and\nhistorical sites further reduce opportunities to transfer important knowledge\nand identity to future generations. { [ 6.1 ](/chapter/6#key-message-1) , [\n7.2 ](/chapter/7#key-message-2) , [ 8.3 ](/chapter/8#key-message-3) , [ 9.2\n](/chapter/9#key-message-2) , [ 10.1 ](/chapter/10#key-message-1) , [ 12.2\n](/chapter/12#key-message-2) , [ 16.1 ](/chapter/16#key-message-1) , [ 22.1\n](/chapter/22#key-message-1) , [ 23.1 ](/chapter/23#key-message-1) , [ 26.1\n](/chapter/26#key-message-1) , [ 27.6 ](/chapter/27#key-message-6) , [ 28.2\n](/chapter/28#key-message-2) ; Introductions in Chs. [ 10 ](/chapter/10) , [\n30 ](/chapter/30) }\n\nMany outdoor activities and traditions are already being affected by climate\nchange, with overall impacts projected to further hinder recreation, cultural\npractices, and the ability of communities to maintain local heritage and a\nsense of place. { [ 19.1 ](/chapter/19#key-message-1) }\n\nFor example:\n\n  * The prevalence of invasive species and harmful algal blooms is increasing as waters warm, threatening activities like swimming along Southeast beaches, boating and fishing for walleye in the Great Lakes, and viewing whooping cranes along the Gulf Coast. In the Northwest, water-based recreation demand is expected to increase in spring and summer months, but reduced water quality and harmful algal blooms are expected to restrict these opportunities. { [ 24.2 ](/chapter/24#key-message-2) , [ 24.5 ](/chapter/24#key-message-5) , [ 26.3 ](/chapter/26#key-message-3) , [ 27.6 ](/chapter/27#key-message-6) } \n\n  * Ranges of culturally important species are shifting as temperatures warm, making them harder to find in areas where Indigenous Peoples have access (see Box  1.3  ). { [ 11.2 ](/chapter/11#key-message-2) , [ 24.2 ](/chapter/24#key-message-2) , [ 26.1 ](/chapter/26#key-message-1) } \n\n  * Hikers, campers, athletes, and spectators face increasing threats from more severe heatwaves, wildfires, and floods and greater exposure to infectious disease. { [ 22.2 ](/chapter/22#key-message-2) , [ 15.1 ](/chapter/15#key-message-1) , [ 26.3 ](/chapter/26#key-message-3) , [ 27.6 ](/chapter/27#key-message-6) } \n\nNature-based solutions and ecosystem restoration can preserve cultural\nheritage while also providing valuable local benefits, such as flood\nprotection and new recreational opportunities. Cultural heritage can also play\na key role in climate solutions, as incorporating local values, Indigenous\nKnowledge, and equity into design and planning can help reaffirm a\ncommunity\u00e2\u0080\u0099s connection to place, strengthen social networks, and build new\ntraditions. { [ 7.3 ](/chapter/7#key-message-3) , [ 26.1 ](/chapter/26#key-\nmessage-1) , [ 26.3 ](/chapter/26#key-message-3) , [ 30.5 ](/chapter/30#key-\nmessage-5) }\n\n[ ](/img/figure/figure1_28.jpg)\n\n( **top left** ; Glacier National Park, Montana) Wildfire smoke jeopardizes\nparticipation in outdoor sports and recreation. ( **top right** ; Boston\nHarbor, Massachusetts) Sea level rise threatens historical and archaeological\nsites on the Boston Harbor Islands. ( **bottom** ; Goose Island, Texas)\nWhooping cranes, which draw birdwatchers to the Gulf of Mexico, are at risk\ndue to flooding, drought, and upstream water use. Photo credit: (top left)\nAndrew Parlette [ [ CC BY 2.0\n](https://creativecommons.org/licenses/by/2.0/legalcode) ]; (top right)\ncmh2315fl [ [ CC BY-NC 2.0 ](https://creativecommons.org/licenses/by-\nnc/2.0/legalcode) ]; (bottom) Alan Schmierer [ [ CC0 1.0\n](https://creativecommons.org/publicdomain/zero/1.0/legalcode) ].\n\n[ ](/art-climate/#art-Michele-Colburn)\n\n##  The Choices That Will Determine the Future\n\nWith each additional increment of warming, the consequences of climate change\nincrease. The faster and further the world cuts greenhouse gas emissions, the\nmore future warming will be avoided, increasing the chances of limiting or\navoiding harmful impacts to current and future generations.\n\n###  Societal choices drive greenhouse gas emissions\n\nThe choices people make on a day-to-day basis\u00e2\u0080\u0094how to power homes and\nbusinesses, get around, and produce and use food and other\ngoods\u00e2\u0080\u0094collectively determine the amount of greenhouse gases emitted. Human\nuse of fossil fuels for transportation and energy generation, along with\nactivities like manufacturing and agriculture, has increased atmospheric\nlevels of carbon dioxide (CO  2  ) and other heat-trapping greenhouse gases.\nSince 1850, CO  2  concentrations have increased by almost 50%, methane by\nmore than 156%, and nitrous oxide by 23%, resulting in long-term global\nwarming. { [ 2.1 ](/chapter/2#key-messages-1) , [ 3.1 ](/chapter/3#key-\nmessages-1) ; Ch. [ 2, Introduction ](/chapter/2#section-1) }\n\nThe CO  2  not removed from the atmosphere by natural sinks lingers for\nthousands of years. This means that CO  2  emitted long ago continues to\ncontribute to climate change today. Because of historical trends, cumulative\nCO  2  emissions from fossil fuels and industry in the US are higher than from\nany other country. To understand the total contributions of past actions to\nobserved climate change, additional warming from CO  2  emissions from land\nuse, land-use change, and forestry, as well as emissions of nitrous oxide and\nthe shorter-lived greenhouse gas methane, should also be taken into account.\nAccounting for all of these factors and emissions from 1850\u00e2\u0080\u00932021, emissions\nfrom the US are estimated to comprise approximately 17% of current global\nwarming. { [ 2.1 ](/chapter/2#key-message-1) }\n\nCarbon dioxide, along with other greenhouse gases like methane and nitrous\noxide, is well-mixed in the atmosphere. This means these gases warm the planet\nregardless of where they were emitted. For the first half of the 20th century,\nthe vast majority of greenhouse gas emissions came from the US and Europe. But\nas US and European emissions have been falling (US emissions in 2021 were 17%\nlower than 2005 levels), emissions from the rest of the world, particularly\nAsia, have been rising rapidly. The choices the US and other countries make\nnow will determine the trajectory of climate change and associated impacts for\nmany generations to come (Figure  1.13  ). { [ 2.1 ](/chapter/2#key-message-1)\n, [ 2.3 ](/chapter/2#key-message-3) ; Ch. [ 32 ](/chapter/32) }\n\n###  Rising global emissions are driving global warming, with faster warming\nin the US\n\nThe observed global warming of about 2\u00c2\u00b0F (1.1\u00c2\u00b0C) over the industrial era is\nunequivocally caused by greenhouse gas emissions from human activities, with\nonly very small effects from natural sources. About three-quarters of total\nemissions and warming (1.7\u00c2\u00b0F [0.95\u00c2\u00b0C]) have occurred since 1970. Warming\nwould have been even greater without the land and ocean carbon sinks, which\nhave absorbed more than half of the CO  2  emitted by humans. { [ 2.1\n](/chapter/2#key-message-1) , [ 3.1 ](/chapter/3#key-message-1) , [ 7.2\n](/chapter/7#key-message-2) ; Ch. [ 2, Introduction ](/chapter/2#section-1) ;\nFigures [ 3.1 ](/chapter/3#fig-3-1) , [ 3.8 ](/chapter/3#fig-3-8) }\n\nThe US is warming faster than the global average, reflecting a broader global\npattern: land areas are warming faster than the ocean, and higher latitudes\nare warming faster than lower latitudes. Additional global warming is expected\nto lead to even greater warming in some US regions, particularly Alaska\n(Figure  1.14  ). { [ 2.1 ](/chapter/2#key-message-1) , [ 3.4\n](/chapter/3#key-message-4) ; Ch. [ 2, Introduction ](/chapter/2#section-1) ;\nApp. [ 4 ](/chapter/appendix-4) }\n\n[ ](https://atlas.globalchange.gov/) [ ](/img/figure/figure1_14.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-14)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_14.jpg)\n\nWhat would 3.6\u00c2\u00b0F (2\u00c2\u00b0C) of global warming feel like in the United States?\n\nFigure 1.14.  As the world warms, the United States warms more on average. The\nmap shows projected changes in annual surface temperature compared to the\npresent day (1991\u00e2\u0080\u00932020) under a global warming level of 3.6\u00c2\u00b0F (2\u00c2\u00b0C) above\npreindustrial levels (see Figure [ 2.9 ](/chapter/2#fig-2-9) ). Regional\nexamples show how different temperature impacts would be experienced across\nthe country at this level of warming. Figure credit: USGCRP, NOAA NCEI, and\nCISESS NC.\n\n###  Warming increases risks to the US\n\nRising temperatures lead to many large-scale changes in Earth\u00e2\u0080\u0099s climate\nsystem, and the consequences increase with warming (Figure  1.15  ). Some of\nthese changes can be further amplified through feedback processes at higher\nlevels of warming, increasing the risk of potentially catastrophic outcomes.\nFor example, uncertainty in the stability of ice sheets at high warming levels\nmeans that increases in sea level along the continental US of 3\u00e2\u0080\u00937 feet by\n2100 and 5\u00e2\u0080\u009312 feet by 2150 are distinct possibilities that cannot be ruled\nout. The chance of reaching the upper end of these ranges increases as more\nwarming occurs. In addition to warming more, the Earth warms faster in high\nand very high scenarios (SSP3-7.0 and SSP5-8.5, respectively), making\nadaptation more challenging. { [ 2.3 ](/chapter/2#key-message-3) , [ 3.1\n](/chapter/3#key-message-1) , [ 3.4 ](/chapter/3#key-message-4) , [ 9.1\n](/chapter/9#key-message-1) }\n\n[ ](https://atlas.globalchange.gov/) [ ](/img/figure/figure1_15.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-15)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_15.jpg)\n\nAt higher global warming levels, the US will experience more severe climate\nimpacts.\n\nFigure 1.15.  With each additional increment of global warming, climate\nimpacts in the US are projected to be more severe: US average temperature\nwarms more than the global average ( **top left** ), and the number of days\nper year at or above 95\u00c2\u00b0F in the US increases ( **top right** ). Annual\naverage US rainfall increases rapidly in the North and more slowly in the\nSouth ( **center left** ), and more rain falls during the most extreme\nprecipitation events ( **center right** ). Sea level rise (range of projected\nincreases by 2100 compared to 2020) is higher ( **bottom left** ), driving an\nincrease in the number of major coastal flooding events per year due to high\ntides alone ( **bottom right** ). Temperature (averages and extremely hot\ndays; top row) and extreme rainfall projections (center right) are averages\nfor all 50 states and Puerto Rico. Average rainfall projections (center left)\nare shown for both the northern and southern US (above and below 37\u00c2\u00b0\nlatitude, respectively). Sea level rise (bottom left) and coastal flooding\n(bottom right) projections are averages for the contiguous United States. For\nsea level change estimates outside of the contiguous US, see Chapter [ 23\n](/chapter/23) (for Puerto Rico and the US Virgin Islands), Chapter [ 30\n](/chapter/30) (for Hawai\u00ca\u00bbi and the US-Affiliated Pacific Islands), and [\nSweet et al. 2022\n](https://oceanservice.noaa.gov/hazards/sealevelrise/sealevelrise-tech-report-\nsections.html) (for Alaska). Global warming levels refer to warming since\npreindustrial temperature conditions, defined as the 1851\u00e2\u0080\u00931900 average.\nFigure credit: USGCRP, NOAA NOS, NASA, NOAA NCEI, and CISESS NC.\n\n[ ](/art-climate/#art-Ritika_S.)\n\n##  How Climate Action Can Create a More Resilient and Just Nation\n\nLarge near-term cuts in greenhouse gas emissions are achievable through many\ncurrently available and cost-effective mitigation options. However, reaching\nnet-zero emissions by midcentury cannot be achieved without exploring\nadditional mitigation options. Even if the world decarbonizes rapidly, the\nNation will continue to face climate impacts and risks. Adequately and\nequitably addressing these risks involves longer-term inclusive planning,\ninvestments in transformative adaptation, and mitigation approaches that\nconsider equity and justice.\n\n###  Available mitigation strategies can deliver substantial emissions\nreductions, but additional options are needed to reach net zero\n\nLimiting global temperature change to well below 2\u00c2\u00b0C (3.6\u00c2\u00b0F) requires\nreaching net-zero CO  2  emissions globally by 2050 and net-zero emissions of\nall greenhouse gases from human activities within the following few decades\n(see  \u00e2\u0080\u009cMeeting US mitigation targets means reaching net-zero emissions\u00e2\u0080\u009d\nabove). Net-zero emissions pathways involve widespread implementation of\ncurrently available and cost-effective options for reducing emissions\nalongside rapid expansion of technologies and methods to remove carbon from\nthe atmosphere to balance remaining emissions. However, to reach net-zero\nemissions, additional mitigation options need to be explored (Figure  1.16  ).\nPathways to net zero involve large-scale technological, infrastructure, land-\nuse, and behavioral changes and shifts in governance structures. { [ 5.3\n](/chapter/5#key-message-3) , [ 6.3 ](/chapter/6#key-message-3) , [ 9.2\n](/chapter/9#key-message-2) , [ 9.3 ](/chapter/9#key-message-3) , [ 10.4\n](/chapter/10#key-message-4) , [ 13.2 ](/chapter/13#key-message-2) , [ 16.2\n](/chapter/16#key-message-2) , [ 18.4 ](/chapter/18#key-message-4) , [ 20.1\n](/chapter/20#key-message-1) , [ 24.1 ](/chapter/24#key-message-1) , [ 25.5\n](/chapter/25#key-message-5) , [ 30.5 ](/chapter/30#key-message-5) , [ 32.2\n](/chapter/32#key-message-2) , [ 32.3 ](/chapter/32#key-message-3) ; [ Focus\non Blue Carbon ](/chapter/focus-on-5) }\n\nScenarios that reach net-zero emissions include some of the following key\noptions:\n\n  * Decarbonizing the electricity sector, primarily through expansion of wind and solar energy, supported by energy storage { [ 32.2 ](/chapter/32#key-message-2) } \n\n  * Transitioning to transportation and heating systems that use zero-carbon electricity or low-carbon fuels, such as hydrogen { [ 5.3 ](/chapter/5#key-message-3) , [ 13.1 ](/chapter/13#key-message-1) , [ 32.2 ](/chapter/32#key-message-2) , [ 32.3 ](/chapter/32#key-message-3) } \n\n  * Improving energy efficiency in buildings, appliances, and light- and heavy-duty vehicles and other transportation modes { [ 5.3 ](/chapter/5#key-message-3) , [ 13.3 ](/chapter/13#key-message-3) , [ 32.2 ](/chapter/32#key-message-2) } \n\n  * Implementing urban planning and building design that reduces energy demands through more public transportation and active transportation and lower cooling demands for buildings { [ 12.3 ](/chapter/12#key-message-3) , [ 13.1 ](/chapter/13#key-message-1) , [ 32.2 ](/chapter/32#key-message-2) } \n\n  * Increasing the efficiency and sustainability of food production, distribution, and consumption { [ 11.1 ](/chapter/11#key-message-1) , [ 32.2 ](/chapter/32#key-message-2) } \n\n  * Improving land management to decrease greenhouse gas emissions and increase carbon removal and storage, with options ranging from afforestation, reforestation, and restoring coastal ecosystems to industrial processes that directly capture and store carbon from the air { [ 5.3 ](/chapter/5#key-message-3) , [ 6.3 ](/chapter/6#key-message-3) , [ 8.3 ](/chapter/8#key-message-3) , [ 32.2 ](/chapter/32#key-message-2) , [ 32.3 ](/chapter/32#key-message-3) ; [ Focus on Blue Carbon ](/chapter/focus-on-5) } \n\n[ ](/img/figure/figure1_16.jpg) [\n](/report/nca5/chapter/overview/figure/nca5-figure-1-16)\n\nURL\n\nAlternative text\n\n[ ](/img/figure/figure1_16.jpg)\n\nReaching net zero by 2050 in the US will involve a mix of reductions in\ngreenhouse gas emissions and increases in carbon dioxide removal.\n\nFigure 1.16.  Reaching net-zero emissions (horizontal white line) by\nmidcentury in the US would mean deep reductions in emissions of carbon dioxide\n(CO  2  ) and other greenhouse gases ( **top side of figure** ; red), with\nresidual emissions balanced by additional removal of CO  2  from the\natmosphere ( **bottom side of figure** ; blue). The dashed white line shows\nnet emissions to the atmosphere (the sum of carbon sources and carbon sinks).\nThe dots at 2050 show ranges of emissions and uptake for energy model\nscenarios explored in detail in Chapter [ 32 ](/chapter/32) . Model scenarios\nthat achieve these targets project a mix of established opportunities for\nreducing emissions and increasing carbon sinks. Among these, energy\nefficiency, decarbonized electricity (mainly renewables), and end-use\nelectrification are critical for the energy sector. While not exhaustive, the\nlist also includes additional opportunities, many of which are emerging\ntechnologies that will be integral to reaching net zero. These include options\nlike use of hydrogen and low-carbon fuels to further reduce emissions in\ndifficult-to-decarbonize sectors and greatly increasing CO  2  removal. Figure\ncredit: EPA; University of California, Irvine; NOAA NCEI; and CISESS NC.\n\nDue to large declines in technology and deployment costs over the last decade\n(Figure  1.2  ), decarbonizing the electricity sector is expected to be\nlargely driven by rapid growth in renewable energy. Recent legislation is also\nexpected to increase deployment rates of low- and zero-carbon technology. To\nreach net-zero targets, the US will need to add new electricity-generating\ncapacity, mostly wind and solar, faster than ever before. This infrastructure\nexpansion may drastically increase demand for products (batteries, solar\nphotovoltaics) and resources, such as metals and critical minerals. Near-term\nshortages in minerals and metals due to increased demand can be addressed by\nincreased recycling, for example, which can also reduce dependence on imported\nmaterials. { [ 5.2, [ 5.3 ](/chapter/5#key-message-3) , [ 17.2\n](/chapter/17#key-message-2) , [ 25.3 ](/chapter/25#key-message-3) , [ 32.2\n](/chapter/32#key-message-2) , [ 32.4 ](/chapter/32#key-message-4) ; [ Focus\non Risks to Supply Chains ](/chapter/focus-on-4) } ](/chapter/5#key-message-2)\n\nMost US net-zero scenarios require CO  2  removal from the atmosphere to\nbalance residual emissions, particularly from sectors where decarbonization is\ndifficult. In these scenarios, nuclear and hydropower capacity are maintained\nbut not greatly expanded; natural gas\u00e2\u0080\u0093fired generation declines, but more\nslowly if coupled with carbon capture and storage. { [ 32.2 ](/chapter/32#key-\nmessage-2) }\n\nNature-based solutions that restore degraded ecosystems and preserve or\nenhance carbon storage in natural systems like forests, oceans, and wetlands,\nas well as agricultural lands, are cost-effective mitigation strategies. For\nexample, with conservation and restoration, marine and coastal ecosystems\ncould capture and store enough atmospheric carbon each year to offset about 3%\nof global emissions (based on 2019 and 2020 emissions). Many nature-based\nsolutions can provide additional benefits, like improved ecosystem resilience,\nfood production, improved water quality, and recreational opportunities. { [\n8.3 ](/chapter/8#key-message-3) ; Boxes [ 7.2 ](/chapter/7#box-7_2) , [ 32.2\n](/chapter/32#box-32_2) ; [ Focus on Blue Carbon ](/chapter/focus-on-5) }\n\n###  Adequately addressing climate risks involves transformative adaptation\n\nWhile adaptation planning and implementation has advanced in the US, most\nadaptation actions to date have been incremental and small in scale (see Table\n1.3  ). In many cases, more transformative adaptation will be necessary to\nadequately address the risks of current and future climate change. { [ 31.1\n](/chapter/31#key-message-1) , [ 31.3 ](/chapter/31#key-message-3) }.\n\n* * *\n\nTable 1.3. Incremental Versus Transformative Adaptation Approaches\n\n|  Examples of incremental adaptation  |  Examples of transformative adaptation   \n---|---|---  \n|  Using air-conditioning during heatwaves  |  Redesigning cities and buildings to address heat   \n|  Reducing water consumption during droughts  |  Shifting water-intensive industry to match projected rainfall patterns   \n|  Elevating homes above flood waters  |  Directing new housing development to less flood-prone areas   \n  \nTransformative adaptation involves fundamental shifts in systems, values, and\npractices, including assessing potential trade-offs, intentionally integrating\nequity into adaptation processes, and making systemic changes to institutions\nand norms. While barriers to adaptation remain, many of these can be overcome\nwith financial, cultural, technological, legislative, or institutional\nchanges. { [ 31.1 ](/chapter/31#key-message-1) , [ 31.2 ](/chapter/31#key-\nmessage-2) , [ 31.3 ](/chapter/31#key-message-3) }.\n\nAdaptation planning can more effectively reduce climate risk when it\nidentifies not only disparities in how people are affected by climate change\nbut also the underlying causes of climate vulnerability. Transformative\nadaptation would involve consideration of both the physical and social drivers\nof vulnerability and how they interact to shape local experiences of\nvulnerability and disparities in risk. Examples include understanding how\ndiffering levels of access to disaster assistance constrain recovery outcomes\nor how disaster damage exacerbates long-term wealth inequality. Effective\nadaptation, both incremental and transformative, involves developing and\ninvesting in new monitoring and evaluation methods to understand the different\nvalues of, and impacts on, diverse individuals and communities. { [ 9.3\n](/chapter/9#key-message-3) , [ 19.3 ](/chapter/19#key-message-3) , [ 31.2\n](/chapter/31#key-message-2) , [ 31.3 ](/chapter/31#key-message-3) , [ 31.5\n](/chapter/31#key-message-5) }\n\nTransformative adaptation would require new and better-coordinated governance\nmechanisms and cooperation across all levels of government, the private\nsector, and society. A coordinated, systems-based approach can support\nconsideration of risks that cut across multiple sectors and scales, as well as\nthe development of context-specific adaptations. For example, California,\nFlorida, and other states have used informal regional collaborations to\ndevelop adaptation strategies tailored to their area. Adaptation measures that\nare designed and implemented using inclusive, participatory planning\napproaches and leverage coordinated governance and financing have the greatest\npotential for long-term benefits, such as improved quality of life and\nincreased economic productivity. { [ 10.3 ](/chapter/10#key-message-3) , [\n18.4 ](/chapter/18#key-message-4) , [ 20.2 ](/chapter/20#key-message-2) , [\n31.4 ](/chapter/31#key-message-4) }\n\n###  Mitigation and adaptation actions can result in systemic, cascading\nbenefits\n\nActions taken now to accelerate net emissions reductions and adapt to ongoing\nchanges can reduce risks to current and future generations. Mitigation and\nadaptation actions, from international to individual scales, can also result\nin a range of benefits beyond limiting harmful climate impacts, including some\nimmediate benefits (Figure  1.1  ). The benefits of mitigation and proactive\nadaptation investments are expected to outweigh the costs. { [ 2.3\n](/chapter/2#key-message-3) , [ 13.3 ](/chapter/13#key-message-3) , [ 14.5\n](/chapter/14#key-message-5) , [ 15.3 ](/chapter/15#key-message-3) , [ 17.4\n](/chapter/17#key-message-4) , [ 22.1 ](/chapter/22#key-message-1) , [ 31.6\n](/chapter/31#key-message-6) , [ 32.4 ](/chapter/32#key-message-4) ;\nIntroductions in Chs. [ 17 ](/chapter/17#section-1) , [ 31\n](/chapter/31#section-1) }\n\n  * Accelerating the deployment of low-carbon technologies, expanding renewable energy, and improving building efficiency can have significant near-term social and economic benefits like reducing energy costs and creating jobs. { [ 32.4 ](/chapter/32#key-message-4) } \n\n  * Transitioning to a carbon-free, sustainable, and resilient transportation system can lead to improvements in air quality, fewer traffic fatalities, lower costs to travelers, improved mental and physical health, and healthier ecosystems. { [ 13.3 ](/chapter/13#key-message-3) } \n\n  * Reducing emissions of short-lived climate pollutants like methane, black carbon, and ozone provides immediate air quality benefits that save lives and decrease the burden on healthcare systems while also slowing near-term warming. { [ 11.1 ](/chapter/11#key-message-1) , [ 14.5 ](/chapter/14#key-message-5) , [ 15.3 ](/chapter/15#key-message-3) } \n\n  * Green infrastructure and nature-based solutions that accelerate pathways to net-zero emissions through restoration and protection of ecological resources can improve water quality, strengthen biodiversity, provide protection from climate hazards like heat extremes or flooding, preserve cultural heritage and traditions, and support more equitable access to environmental amenities. { [ 8.3 ](/chapter/8#key-message-3) , [ 15.3 ](/chapter/15#key-message-3) , [ 20.3 ](/chapter/20#key-message-3) , [ 24.4 ](/chapter/24#key-message-4) , [ 30.4 ](/chapter/30#key-message-4) ; [ Focus on Blue Carbon ](/chapter/focus-on-5) } \n\n  * Strategic planning and investment in resilience can reduce the economic impacts of climate change, including costs to households and businesses, risks to markets and supply chains, and potential negative impacts on employment and income, while also providing opportunities for economic gain. { [ 9.2 ](/chapter/9#key-message-2) , [ 19.3 ](/chapter/19#key-message-3) , [ 26.2 ](/chapter/26#key-message-2) , [ 31.6 ](/chapter/31#key-message-6) ; [ Focus on Risks to Supply Chains ](/chapter/focus-on-4) } \n\n  * Improving cropland management and climate-smart agricultural practices can strengthen the resilience and profitability of farms while also increasing soil carbon uptake and storage, reducing emissions of nitrous oxide and methane, and enhancing agricultural efficiency and yields. { [ 11.1 ](/chapter/11#key-message-1) , [ 24.1 ](/chapter/24#key-messagae-1) , [ 32.2 ](/chapter/32#key-messaage-2) } \n\nClimate actions that incorporate inclusive and sustained engagement with\noverburdened and underserved communities in the design, planning, and\nimplementation of evidence-based strategies can also reduce existing\ndisparities and address social injustices. { [ 24.3 ](/chapter/24#key-\nmessage-3) , [ 31.2 ](/chapter/31#key-message-2) , [ 32.4 ](/chapter/32#key-\nmessage-4) }\n\n###  Transformative climate actions can strengthen resilience and advance\nequity\n\nFossil fuel\u00e2\u0080\u0093based energy systems have resulted in disproportionate public\nhealth burdens on communities of color and/or low-income communities. These\nsame communities are also disproportionately harmed by climate change impacts.\n{ [ 13.4 ](/chapter/13#key-message-4) , [ 15.2 ](/chapter/15#key-message-2) ,\n[ 32.4 ](/chapter/32#key-message-4) }\n\nA \u00e2\u0080\u009cjust transition\u00e2\u0080\u009d is the process of responding to climate change with\ntransformative actions that address the root causes of climate vulnerability\nwhile ensuring equitable access to jobs; affordable, low-carbon energy;\nenvironmental benefits such as reduced air pollution; and quality of life for\nall. This involves reducing impacts to overburdened communities, increasing\nresources to underserved communities, and integrating diverse worldviews,\ncultures, experiences, and capacities into mitigation and adaptation actions.\nAs the country shifts to low-carbon energy industries, a just transition would\ninclude job creation and training for displaced fossil fuel workers and\naddressing existing racial and gender disparities in energy workforces. For\nexample, Colorado agencies are creating plans to guide the state\u00e2\u0080\u0099s\ntransition away from coal, with a focus on economic diversification, job\ncreation, and workforce training for former coal workers. The state\u00e2\u0080\u0099s plan\nalso acknowledges a commitment to communities disproportionately impacted by\ncoal power pollution. { [ 5.3 ](/chapter/5#key-message-3) , [ 13.4\n](/chapter/13#key-message-4) , [ 14.3 ](/chapter/14#key-message-3) , [ 15.2\n](/chapter/15#key-message-2) , [ 16.2 ](/chapter/16#key-message-2) , [ 20.3\n](/chapter/20#key-message-3) , [ 31.2 ](/chapter/31#key-message-2) , [ 32.4\n](/chapter/32#key-message-4) ; Figure [ 20.1 ](/chapter/20#fig-20-1) }\n\nA just transition would take into account key aspects of environmental\njustice:\n\n  * Recognizing that certain people have borne disparate burdens related to current and historical social injustices and, thus, may have different needs \n\n  * Ensuring that people interested in and affected by outcomes of decision-making processes are included in those procedures through fair and meaningful engagement \n\n  * Distributing resources and opportunities over time, including access to data and information, so that no single group or set of individuals receives disproportionate benefits or burdens \n\n{ [ 20.3 ](/chapter/20#key-message-3) ; Figure [ 20.1 ](/chapter/20#fig-20-1)\n}\n\nAn equitable and sustainable US response to climate change has the potential\nto reduce climate impacts while improving well-being, strengthening\nresilience, benefiting the economy, and, in part, redressing legacies of\nracism and injustice. Transformative adaptation and the transition to a net-\nzero energy system come with challenges and trade-offs that would need to be\nconsidered to avoid exacerbating or creating new social injustices. For\nexample, transforming car-centric transportation systems to emphasize public\ntransit and walkability could increase accessibility for underserved\ncommunities and people with limited mobility\u00e2\u0080\u0094if user input and equity are\nintentionally considered. { [ 13.4 ](/chapter/13#key-message-4) , [ 20.3\n](/chapter/20#key-message-3) , [ 31.3 ](/chapter/31#key-message-3) , [ 32.4\n](/chapter/32#key-message-4) ; Ch. [ 31, Introduction ](/chapter/31#section-1)\n}\n\nEquitable responses that assess trade-offs strengthen community resilience and\nself-determination, often fostering innovative solutions. Engaging communities\nin identifying challenges and bringing together diverse voices to participate\nin decision-making allows for more inclusive, effective, and transparent\nplanning processes that account for the structural factors contributing to\ninequitable climate vulnerability. { [ 9.3 ](/chapter/9#key-message-3) , [\n12.4 ](/chapter/12#key-message-4) , [ 13.4 ](/chapter/13#key-message-4) , [\n20.2 ](/chapter/20#key-message-2) , [ 31.4 ](/chapter/31#key-message-4) }\n\n##  Cover image\n\nTwo volunteers help demonstrate and install solar panels in Highland Park,\nMichigan, in May 2021. The event was hosted by the local nonprofit\nSoulardarity, which teaches local residents about solar power, installs solar-\npowered streetlights that also provide wireless internet access, and helps\nlocal communities build a just and equitable energy system. Adopting energy\nstorage with decentralized solutions, such as microgrids or off-grid systems,\ncan promote energy equity in overburdened communities. Photo credit: Nick\nHagen.\n\n####  Likelihood\n\nVirtually Certain  |  Very Likely  |  Likely  |  As Likely as Not  |  Unlikely  |  Very Unikely  |  Exceptionally Unlikely   \n---|---|---|---|---|---|---  \n99%\u2013100%  |  90%\u2013100%  |  66%\u2013100%  |  33%\u201366%  |  0%\u201333%  |  0%\u201310%  |  0%\u20131%   \n  \n####  Confidence Level\n\nVery High  |  High  |  Medium  |  Low   \n---|---|---|---  \n  \n  * Strong evidence (established theory, multiple sources, well-documented and accepted methods, etc.) \n  * High consensus \n\n|\n\n  * Moderate evidence (several sources, some consistency, methods vary and/or documentation limited, etc.) \n  * Medium consensus \n\n|\n\n  * Suggestive evidence (a few sources, limited consistency, methods emerging, etc.) \n  * Competing schools of thought \n\n|\n\n  * Inconclusive evidence (limited sources, extrapolations, inconsistent findings, poor documentation and/or methods not tested, etc.) \n  * Disagreement or lack of opinions among experts \n\n  \n  \n**[ GlobalChange.gov ](https://globalchange.gov) ** is made possible by our\nparticipating agencies\n\n[ ](https://usda.gov) [ ](https://commerce.gov) [ ](https://defense.gov) [\n](https://energy.gov) [ ](https://hhs.gov) [ ](https://dhs.gov) [\n](https://doi.gov) [ ](https://state.gov) [ ](https://dot.gov) [\n](https://epa.gov) [ ](https://nasa.gov) [ ](https://nsf.gov) [\n](https://www.si.edu) [ ](https://usaid.gov)\n\nLooking for U.S. government information and services?\n\n[ Visit USA.gov ](https://www.usa.gov/)\n\n",
                "url": "https://nca2023.globalchange.gov/"
            },
            "reason": "This is the website for the Fifth National Climate Assessment, a US government report. It's a highly reliable source for climate science and impacts. It does not explicitly mention the target company.",
            "reliability_score": 0.9,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "This is the website for the Fifth National Climate Assessment, a US government report.",
            "url": "https://nca2023.globalchange.gov/"
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                    "source": "https://www.conocophillips.com/sustainability/sustainability-news/story/conocophillips-adopts-paris-aligned-climate-risk-framework-to-meet-net-zero-operational-emissions-ambition-by-2050/"
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                "page_content": "Sustainability News  | \n\nCategories\n\n  * [ Climate Change ](https://www.conocophillips.com/sustainability/sustainability-news/category/climate-change/)\n\n#  ConocoPhillips Adopts Paris-Aligned Climate Risk Framework to Meet Net-Zero\nOperational Emissions Ambition by 2050\n\nOctober 19, 2020\n\nShare\n\n  *   *   * \n\nPrint Article\n\nConocoPhillips has adopted a comprehensive framework that will guide the\ncompany on how it will manage climate-related risk, meet energy demand and\naddress the expectations of stakeholders through the energy transition.\n\n\u201cAs an exploration and production company, we recognize three significant\nissues facing our sector,\u201d said Ryan Lance, CEO, ConocoPhillips. \u201cFirst, the\nworld is increasingly demanding global action to address climate change.\nSecond, we need to play a part in sustainably helping meet global energy\ndemand. And third, we must do both while delivering competitive returns.\n\n\u201cWe are making clear our intent to address all three issues by laying out a\nclimate risk strategy that aims to reinforce our commitment to environmental,\nsocial and governance (ESG) excellence.\u201d\n\n[ Read more ](https://www.conocophillips.com/sustainability/managing-climate-\nrelated-risks/strategy/) about ConocoPhillips\u2019 Climate Risk Strategy.\n\n###  Addressing Climate Change\n\nThe company is responding to the first challenge by announcing more aggressive\ngreenhouse gas emissions targets and actions consistent with the Paris\nAgreement\u2019s aim to limit the rise of global temperature to well below 2\ndegrees Celsius, including:\n\n  * Setting an ambition to become a net-zero company for operational (scope 1 and 2) emissions by 2050. \n  * Revising its previous operational greenhouse gas emissions intensity reduction target to 35-45% by 2030, from the earlier 5-15% goal. \n  * Endorsing the [ World Bank ](https://www.worldbank.org/en/programs/zero-routine-flaring-by-2030#4) Zero Routine Flaring by 2030 initiative, with an ambition to meet that goal by 2025. \n  * Adding continuous methane monitoring devices to our operations, with a focus on the larger Lower 48 facilities, with the expectation that two-thirds of Lower 48 production will be monitored for emissions by 2021. \n  * Advocating for a U.S. carbon price to address end-use (scope 3) emissions through its membership in the Climate Leadership Council. \n  * Including ESG performance in executive and employee compensation programs. \n\n[ Read more ](https://www.conocophillips.com/sustainability/managing-climate-\nrelated-risks/metrics-targets/ghg-target/) about ConocoPhillips\u2019 GHG emissions\nintensity reduction targets.\n\nConocoPhillips was the first U.S. exploration and production (E&P) company to\nset a long-term emissions intensity reduction target. The company has already\naggressively and voluntarily reduced emissions intensity within its operations\nthrough improving energy efficiency, replacing equipment, electrifying plants\nand equipment, and detecting and repairing methane leaks. Since 2015 we have\nreduced our methane intensity by nearly 65%.\n\nAn annual Marginal Abatement Cost Curve (MACC) analysis proactively identifies\nand prioritizes emissions reduction opportunities from operations based on the\ncost per tonne of carbon dioxide abated. The company currently has over 100\nprojects in the MACC process.\n\n###  Meeting Global Energy Demand\n\nThe second challenge takes into account predicted oil and natural gas demand\nin a carbon-constrained world, such as the [ International Energy Agency\u2019s\n](https://www.iea.org/reports/world-energy-model/sustainable-development-\nscenario) Sustainable Development Scenario (IEA SDS).\n\nThat scenario, developed in 2019, would meet the Paris Agreement\u2019s aim, with\nworld oil demand still at about 65 million barrels per day in 2040. The IEA\nestimates about $13 trillion of investment in oil and natural gas would be\nrequired over the next 20 years to offset declining production and meet the\ngrowing population\u2019s energy demand during the transition.\n\n\u201cOn average that is a $650 billion annual investment, which is greater than\nthe average annual investment of the oil and gas industry over the last\ndecade,\u201d Lance said.\n\nConocoPhillips is committed to sustainably and affordably meeting global\nenergy demand.\n\n\u201cSeveral years ago, the company eliminated an explicit production growth\ntarget from its capital allocation criteria and established cost of supply as\nthe primary basis for capital allocation,\u201d Lance said. \u201cDoing so ensures we\ndevelop resources that are the most likely to be developed in any scenario\nthat meets the Paris Agreement\u2019s aim of a less-than-2 degrees Celsius\ntemperature increase.\n\nConocoPhillips currently has 15 billion BOE of resources below $40 per barrel\nWTI cost of supply, diversified geographically and across four megatrends,\nwith an average cost of supply of less than $30/bbl. The company publishes its\nquantified cost of supply curve annually so investors can develop their own\nview of the potential risk of stranded resources within the portfolio.\n\n\u201cMeeting the world\u2019s energy demand during a transition to a lower-carbon\nfuture requires an approach that recognizes the need to reduce emissions,\noperate responsibly and offer competitive returns,\u201d Lance said. \u201cAnd that\u2019s\nwhat our strategy is intended to do.\u201d\n\n###  Delivering Competitive Returns\n\nFor the third challenge, ConocoPhillips has instituted a planning process that\nprepares the company for the volatile, unpredictable business the E&P sector\nfaces.\n\nThe company uses a scenario-based strategic planning process to ensure its\nplans are sufficiently flexible to navigate through price cycles and the\nenergy transition. The planning process includes use of a proprietary global\nenergy model and simulations of numerous energy transition scenarios. The\nmodel is based on three main variables: technology advancement, government\npolicy actions and consumer preferences. For example, ConocoPhillips has\nmodeled the ranges and impacts on oil demand caused by the increased market\npenetration of electric vehicles, the adoption pace of carbon pricing, and the\nrates at which consumers could adopt ride sharing.\n\nThe strategic choices that ConocoPhillips makes for its business plans are\ninformed by a rigorous review of scenario outcomes and tests of possible paths\nacross market environments. The company provides a full review of its strategy\nand plans, including scenarios, to its board of directors annually. It also\nroutinely engages stakeholders and publishes an [ annual report\n](https://static.conocophillips.com/files/resources/conocophillips-2023-managing-\nclimate-related-risks.pdf) on how it manages climate-related risks.\n\n[ Read more ](https://www.conocophillips.com/sustainability/managing-climate-\nrelated-risks/strategy/scenario-analysis/) about ConocoPhillips\u2019 scenario\nplanning.\n\nConocoPhillips has expanded the scope of its planning process to include the\nevaluation of low-carbon opportunities and technologies that can closely\nintegrate with its global operations, markets and competencies.\n\nThis includes a feasibility assessment across three themes: carbon capture and\nutilization, the hydrogen economy, and alternative energy technologies that\ncan reduce the emissions intensity of current operations. Future decisions on\npotential investments in these options will be based on the disciplined\ncapital allocation criteria governing the company\u2019s strategy today, as well as\nthe impact of meeting the 2050 net-zero operational emissions ambition.\n\n\u201cWe are going to increase the work we are doing to better understand all\nopportunities to deliver effective emissions reduction projects while still\nproviding shareholders competitive returns,\u201d Lance said.\n\nAccording to Lance, the new climate risk strategy marks an important step to\ndemonstrate the commitment by ConocoPhillips to reduce emissions, safely\nprovide affordable energy and deliver competitive performance through cycles.\n\n\u201cAddressed comprehensively, our actions are consistent with our stated\ncorporate purpose: to create benefit for all our stakeholders,\u201d Lance said.\n\n[ Access investor slides\n](https://static.conocophillips.com/files/resources/climate-risk-strategy-\nslides-10-19-20.pdf) .\n\n##  Generating PDF\n\nLoading...\n\nPlease Wait\n\n##  Your PDF is Ready\n\nDownload PDF\n\nShare\n\n  *   *   * \n\n  * Print \n  * [ Sustainability Report Builder  ](https://www.conocophillips.com/sustainability/custom-sustainability-report-builder/)\n\n[ ConocoPhillips  ](https://www.conocophillips.com/)\n\n##  Social Navigation\n\n  * [ Instagram  ](https://www.instagram.com/conocophillips/)\n  * [ LinkedIn  ](https://www.linkedin.com/company/conocophillips)\n  * [ Twitter  ](https://twitter.com/conocophillips)\n  * [ Facebook  ](https://www.facebook.com/conocophillips)\n  * [ YouTube  ](https://www.youtube.com/ConocoPhillips)\n\n[ 925 N. Eldridge Parkway,  Houston,  TX  77079-2703\n](//www.google.com/maps/place/?q=place_id:ChIJbdLqYZbbQIYR7UO2REV6L2U)\n\nP.O. Box 2197,  Houston,  TX  77252-2197\n\n[ Contact Us ](https://www.conocophillips.com/contact-us/)\n\n[ Phone:  281-293-1000 ](tel:2812931000)\n\n\u00a9  2025  ConocoPhillips  .  All Rights Reserved.\n\n##  Site Menu\n\n##  Social Navigation\n\n  * [ Instagram  ](https://www.instagram.com/conocophillips/)\n  * [ LinkedIn  ](https://www.linkedin.com/company/conocophillips)\n  * [ Twitter  ](https://twitter.com/conocophillips)\n  * [ Facebook  ](https://www.facebook.com/conocophillips)\n  * [ YouTube  ](https://www.youtube.com/ConocoPhillips)\n\n",
                "url": "https://www.conocophillips.com/sustainability/sustainability-news/story/conocophillips-adopts-paris-aligned-climate-risk-framework-to-meet-net-zero-operational-emissions-ambition-by-2050/"
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            "reason": "This is a press release from ConocoPhillips about their climate risk framework. It's a primary source for their own activities, but may present a biased view. It does not explicitly mention the target company.",
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            "summary": "This is a press release from ConocoPhillips about their climate risk framework.",
            "url": "https://www.conocophillips.com/sustainability/sustainability-news/story/conocophillips-adopts-paris-aligned-climate-risk-framework-to-meet-net-zero-operational-emissions-ambition-by-2050/"
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                    "source": "https://e360.yale.edu/features/artificial-intelligence-climate-energy-emissions"
                },
                "page_content": "/\n\n\u2190  \u2192\n\n[ ](https://yale-threesixty.transforms.svdcdn.com/production/Guian-Data-\nCenter_Getty-2.jpg?w=1500&h=1500&q=80&auto=format&fit=clip&dm=1740245249&s=ae9cacd7cd446754f0474f9968f3fe7c)\n\nInside the Guian Data Center of China Unicom, which uses artificial\nintelligence in its operations.  Tao Liang / Xinhua via Getty Images\n\nTwo months after its release in November 2022, OpenAI\u2019s ChatGPT had [ 100\nmillion\n](https://www.theguardian.com/technology/2023/feb/02/chatgpt-100-million-\nusers-open-ai-fastest-growing-app) active users, and suddenly tech\ncorporations were racing to offer the public more \u201cgenerative A.I.\u201d Pundits\ncompared the new technology\u2019s impact to the Internet, or electrification, or\nthe Industrial Revolution \u2014 or [ the discovery of fire\n](https://www.marketwatch.com/story/artificial-intelligence-is-more-profound-\nthan-fire-electricity-or-the-internet-says-google-boss-11626202566) .\n\nTime will sort hype from reality, but one consequence of the explosion of\nartificial intelligence is clear: this technology\u2019s environmental footprint is\nlarge and growing.\n\nA.I. use is directly responsible for carbon emissions from non-renewable\nelectricity and for the consumption of millions of gallons of fresh water, and\nit indirectly boosts impacts from building and maintaining the power-hungry\nequipment on which A.I. runs. As tech companies seek to embed high-intensity\nA.I. into everything from resume-writing to kidney transplant medicine and\nfrom choosing dog food to climate modeling, they cite many ways A.I. could\nhelp _reduce_ humanity\u2019s environmental footprint. But legislators, regulators,\nactivists, and international organizations now want to make sure the benefits\naren\u2019t outweighed by A.I.\u2019s mounting hazards.\n\n> Right now, it\u2019s not possible to tell how your A.I. request for homework help\n> will affect carbon emissions or freshwater stocks.\n\n\u201cThe development of the next generation of A.I. tools cannot come at the\nexpense of the health of our planet,\u201d Massachusetts Senator Edward Markey (D)\n[ said last week ](https://www.markey.senate.gov/news/press-releases/markey-\nheinrich-eshoo-beyer-introduce-legislation-to-investigate-measure-\nenvironmental-impacts-of-artificial-intelligence) in Washington, after he and\nother senators and representatives introduced a bill that would require the\nfederal government to assess A.I.\u2019s current environmental footprint and\ndevelop a standardized system for reporting future impacts. Similarly, the\nEuropean Union\u2019s \u201cA.I. Act,\u201d [ approved\n](https://techcrunch.com/2024/02/02/eu-ai-act-coreper-vote/) by member states\nlast week, will require [ \u201chigh-risk A.I. systems\u201d\n](https://www.techpolicy.press/addressing-ai-energy-consumption-why-the-eu-\nmust-embrace-ecodesign-for-software/) (which include the powerful \u201cfoundation\nmodels\u201d that power ChatGPT and similar A.I.s) to report their energy\nconsumption, resource use, and other impacts throughout their systems\u2019\nlifecycle. The EU law takes effect next year.\n\nMeanwhile, the International Organization for Standardization, a global\nnetwork that develops standards for manufacturers, regulators, and others,\nsays it will issue [ criteria ](https://www.iec.ch/blog/importance-\nsustainable-ai) for \u201csustainable A.I.\u201d later this year. Those will include\nstandards for measuring energy efficiency, raw material use, transportation,\nand water consumption, as well as practices for reducing A.I. impacts\nthroughout its life cycle, from the process of mining materials and making\ncomputer components to the electricity consumed by its calculations. The ISO\nwants to enable A.I. users to make informed decisions about their A.I.\nconsumption.\n\n[ ](https://yale-threesixty.transforms.svdcdn.com/production/Loudoun-Data-\nCenter_Getty-2.jpg?w=1500&h=1500&q=80&auto=format&fit=clip&dm=1740245306&s=25b6a1a10b019f68fd7f0e8a062191ff)\n\nAn Amazon data center in a Northern Virginia suburb.  Jahi Chikwendiu / The\nWashington Post via Getty Images\n\nRight now, it\u2019s not possible to tell how your A.I. request for homework help\nor a picture of an astronaut riding a horse will affect carbon emissions or\nfreshwater stocks. This is why 2024\u2019s crop of \u201csustainable A.I.\u201d proposals\ndescribe ways to get more information about A.I. impacts.\n\nIn the absence of standards and regulations, tech companies have been\nreporting whatever they choose, however they choose, about their A.I. impact,\nsays Shaolei Ren, an associate professor of electrical and computer\nengineering at UC Riverside, who has been studying the water costs of\ncomputation for the past decade. Working from calculations of annual use of\nwater for cooling systems by Microsoft, Ren estimates that a person who\nengages in a session of questions and answers with GPT-3 (roughly 10 t0 50\nresponses) drives the consumption of a half-liter of fresh water. \u201cIt will\nvary by region, and with a bigger A.I., it could be more.\u201d But a great deal\nremains unrevealed about the millions of gallons of water used to cool\ncomputers running A.I., he says.\n\nThe same is true of carbon.\n\n\u201cData scientists today do not have easy or reliable access to measurements of\n[greenhouse gas impacts from A.I.], which precludes development of actionable\ntactics,\u201d a group of 10 prominent researchers on A.I. impacts wrote in a 2022\nconference [ paper ](https://dl.acm.org/doi/10.1145/3531146.3533234) . Since\nthey presented their article, A.I. applications and users have proliferated,\nbut the public is still in the dark about those data, says Jesse Dodge, a\nresearch scientist at the Allen Institute for Artificial Intelligence in\nSeattle, who was one of the paper\u2019s coauthors.\n\n> Data centers\u2019 electricity consumption in 2026 is projected to reach 1,000\n> terawatts, roughly Japan\u2019s total consumption.\n\nA.I. can run on many devices \u2014 the simple A.I. that autocorrects text messages\nwill run on a smartphone. But the kind of A.I. people most want to use is too\nbig for most personal devices, Dodge says. \u201cThe models that are able to write\na poem for you, or draft an email, those are very large,\u201d he says. \u201cSize is\nvital for them to have those capabilities.\u201d\n\nBig A.I.s need to run immense numbers of calculations very quickly, usually on\nspecialized Graphical Processing Units \u2014 processors originally designed for\nintense computation to render graphics on computer screens. Compared to other\nchips, GPUs are more energy-efficient for A.I., and they\u2019re most efficient\nwhen they\u2019re run in large \u201ccloud data centers\u201d \u2014 specialized buildings full of\ncomputers equipped with those chips. The larger the data center, the more\nenergy efficient it can be. Improvements in A.I.\u2019s energy efficiency in recent\nyears are partly due to the [ construction\n](https://venturebeat.com/business/why-hyperscale-modular-data-centers-\nimprove-efficiency/) of more \u201chyperscale data centers,\u201d which contain many\nmore computers and can quickly scale up. Where a typical cloud data center\noccupies about 100,000 square feet, a hyperscale center can be 1 or even 2\nmillion square feet.\n\nEstimates of the number of cloud data centers worldwide range from around [\n9,000 ](https://www.statista.com/statistics/1228433/data-centers-worldwide-by-\ncountry/) to nearly [ 11,000 ](https://brightlio.com/data-center-stats/#pp-\ntoc-huja89rng0qk-anchor-0) . More are under construction. The International\nEnergy Agency (IEA) projects that data centers\u2019 electricity consumption in\n2026 will be [ double\n](https://iea.blob.core.windows.net/assets/6b2fd954-2017-408e-bf08-952fdd62118a/Electricity2024-Analysisandforecastto2026.pdf)\nthat of 2022 \u2014 1,000 terawatts, roughly equivalent to Japan\u2019s current total\nconsumption.\n\n[ ](https://yale-threesixty.transforms.svdcdn.com/production/Arizona-Data-\nCenter_Getty.jpg?w=1500&h=1500&q=80&auto=format&fit=clip&dm=1740245268&s=0235b799200288aaa4c18dd897167d9d)\n\nA QTS data center under construction in Litchfield Park, Arizona last month.\nAsh Ponders / Bloomberg via Getty Images\n\nHowever, as an illustration of one problem with the way A.I. impacts are\nmeasured, that IEA estimate includes _all_ data center activity, which extends\nbeyond A.I. to many aspects of modern life. Running Amazon\u2019s store interface,\nserving up Apple TV\u2019s videos, storing millions of people\u2019s emails on Gmail,\nand \u201cmining\u201d Bitcoin are also performed by data centers. (Other IEA [ reports\n](https://www.iea.org/energy-system/buildings/data-centres-and-data-\ntransmission-networks) exclude crypto operations, but still lump all other\ndata-center activity together.)\n\nMost tech firms that run data centers don\u2019t reveal what percentage of their\nenergy use processes A.I. The exception is Google, which says \u201cmachine\nlearning\u201d \u2014 the basis for humanlike A.I. \u2014 accounts for somewhat less than [\n15 percent\n](https://dl.acm.org/action/downloadSupplement?doi=10.1145%2F3624719&file=3624719-vor.pdf)\nof its data centers\u2019 energy use.\n\nAnother complication is the fact that A.I., unlike Bitcoin mining or online\nshopping, can be used to _reduce_ humanity\u2019s impacts. A.I. can improve climate\nmodels, find more efficient ways to make digital tech, reduce waste in\ntransport, and otherwise cut carbon and water use. One estimate, for example,\nfound that A.I. -run smart homes could reduce households\u2019 CO\u2082 consumption by\nup to [ 40 percent ](https://theconversation.com/ai-is-supposed-to-make-us-\nmore-efficient-but-it-could-mean-we-waste-more-energy-220990) . And a recent\nGoogle [ project ](https://blog.google/technology/ai/ai-airlines-contrails-\nclimate-change/) found that an A.I. fast-crunching atmospheric data can guide\nairline pilots to flight paths that will leave the fewest contrails.\n\n> Google\u2019s data centers used 20 percent more water in 2022 than in 2021, while\n> Microsoft\u2019s water use rose by 34 percent.\n\nBecause contrails create more than a third of commercial aviation\u2019s\ncontribution to global warming, \u201cif the whole aviation industry took advantage\nof this single A.I. breakthrough,\u201d says Dave Patterson, a computer-science\nprofessor emeritus at UC Berkeley and a Google researcher, \u201cthis single\ndiscovery would save more CO\u2082e (CO\u2082 and other greenhouse gases) than the CO\u2082e\nfrom all A.I. in 2020.\u201d\n\nPatterson\u2019s analysis predicts that A.I.\u2019s carbon footprint will soon plateau\nand then begin to shrink, thanks to improvements in the efficiency with which\nA.I. software and hardware use energy. One reflection of that efficiency\nimprovement: as A.I. usage has increased since 2019, its percentage of Google\ndata-center energy use has held at less than 15 percent. And while global\ninternet traffic has increased more than twentyfold since 2010, the share of\nthe world\u2019s electricity used by data centers and networks increased [ far less\n](https://www.iea.org/energy-system/buildings/data-centres-and-data-\ntransmission-networks) , according to the IEA.\n\nHowever, data about improving efficiency doesn\u2019t convince some skeptics, who\ncite a social phenomenon called \u201cJevons paradox\u201d: Making a resource less\ncostly sometimes _increases_ its consumption in the long run. \u201cIt\u2019s a rebound\neffect,\u201d Ren says. \u201cYou make the freeway wider, people use less fuel because\ntraffic moves faster, but then you get more cars coming in. You get more fuel\nconsumption than before.\u201d If home heating is 40 percent more efficient due to\nA.I., one critic [ recently wrote ](https://theconversation.com/ai-is-\nsupposed-to-make-us-more-efficient-but-it-could-mean-we-waste-more-\nenergy-220990) , people could end up keeping their homes warmer for more hours\nof the day.\n\n[ ](https://yale-threesixty.transforms.svdcdn.com/production/Ai-Da-\nRobot_Getty-2.jpg?w=1500&h=1500&q=80&auto=format&fit=clip&dm=1740244485&s=62d2ef58695968a4d2b1b986322874a7)\n\nAi-Da Robot, an AI-powered robot artist, addressing the British House of\nLords, October 11, 2022.  Rob Pinney / Getty Images\n\n\u201cA.I. is an accelerant for everything,\u201d Dodge says. \u201cIt makes whatever you\u2019re\ndeveloping go faster.\u201d At the Allen Institute, A.I. has helped develop better\nprograms to model the climate, track endangered species, and curb overfishing,\nhe says. But globally A.I. could also support \u201ca lot of applications that\ncould accelerate climate change. This is where you get into ethical questions\nabout what kind of A.I. you want.\u201d\n\nIf global electricity use can feel a bit abstract, data centers\u2019 water use is\na more local and tangible issue \u2014 particularly in drought-afflicted areas. To\ncool delicate electronics in the clean interiors of the data centers, water\nhas to be free of bacteria and impurities that could gunk up the works. In\nother words, data centers often compete \u201cfor the same water people drink,\ncook, and wash with,\u201d says Ren.\n\nIn 2022, Ren says, Google\u2019s data centers consumed about [ 5 billion\n](https://arxiv.org/abs/2304.03271) gallons (nearly 20 billion liters) of\nfresh water for cooling. (\u201cConsumptive use\u201d does not include water that\u2019s run\nthrough a building and then returned to its source.) According to a recent\nstudy by Ren, Google\u2019s data centers used 20 percent more water in 2022 than\nthey did in 2021, and Microsoft\u2019s water use rose by 34 percent in the same\nperiod. (Google data centers host its Bard chatbot and other generative A.I.s;\nMicrosoft servers host ChatGPT as well as its bigger siblings GPT-3 and GPT-4.\nAll three are produced by OpenAI, in which Microsoft is a large investor.)\n\n> In Chile and Uruguay, protests have erupted over planned data centers that\n> would tap drinking water reservoirs.\n\nAs more data centers are built or expanded, their neighbors have been troubled\nto find out how much water they take. For example, in The Dalles, Oregon,\nwhere Google runs three data centers and plans two more, the city government\nfiled a lawsuit in 2022 to keep Google\u2019s water use a secret from farmers,\nenvironmentalists, and Native American tribes who were concerned about its\neffects on agriculture and on the region\u2019s animals and plants. The city\nwithdrew its suit early last year. The [ records\n](https://www.oregonlive.com/silicon-forest/2022/12/googles-water-use-is-\nsoaring-in-the-dalles-records-show-with-two-more-data-centers-to-come.html) it\nthen made public showed that Google\u2019s three extant data centers use more than\na quarter of the city\u2019s water supply. And in Chile and Uruguay, protests have\nerupted over planned Google data centers that would tap into the same\nreservoirs that supply drinking water.\n\nMost of all, researchers say, what\u2019s needed is a change of culture within the\nrarefied world of A.I. development. Generative A.I.\u2019s creators need to focus\nbeyond the technical leaps and bounds of their newest creations and be less\nguarded about the details of the data, software, and hardware they use to\ncreate it.\n\nSome day in the future, Dodge says, an A.I. might be able \u2014 or be legally\nobligated \u2014 to inform a user about the water and carbon impact of each\ndistinct request she makes. \u201cThat would be a fantastic tool that would help\nthe environment,\u201d he says. For now, though, individual users don\u2019t have much\ninformation or power to know their A.I. footprint, much less make decisions\nabout it.\n\n\u201cThere\u2019s not much individuals can do, unfortunately,\u201d Ren says. Right now, you\ncan \u201ctry to use the service judiciously,\u201d he says.\n\n**Correction, February 21, 2024** : _An earlier version of this article\nincorrectly quoted researcher Dave Patterson as referring to CO\u2082 emissions\nfrom global aviation. Patterson was_ _actually_ _referring to CO\u2082e (\u201ccarbon\ndioxide equivalent\u201d) emissions, a measurement that includes both CO\u2082 and other\ngreenhouse gases._  \n\n  * [ Facebook ](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fe360.yale.edu%2Ffeatures%2Fartificial-intelligence-climate-energy-emissions)\n  * [ Twitter ](https://twitter.com/intent/tweet?url=https%3A%2F%2Fe360.yale.edu%2Ffeatures%2Fartificial-intelligence-climate-energy-emissions&text=As%20Use%20of%20A.I.%20Soars%2C%20So%20Does%20the%20Energy%20and%20Water%20It%20Requires&via=YaleE360)\n  * [ Email ](mailto:?subject=Yale%20E360%20-%20As%20Use%20of%20A.I.%20Soars%2C%20So%20Does%20the%20Energy%20and%20Water%20It%20Requires&body=As%20Use%20of%20A.I.%20Soars%2C%20So%20Does%20the%20Energy%20and%20Water%20It%20Requires%0D%0ABy David%20Berreby%0D%0Ahttps%3A%2F%2Fe360.yale.edu%2Ffeatures%2Fartificial-intelligence-climate-energy-emissions%0D%0A)\n\n[ ](https://e360.yale.edu/authors/david-berreby)\n\n**David Berreby** writes the _[ Robots for the Rest of Us\n](https://robots4therestofus.substack.com/) _ newsletter. His work about AI\nand robotics has appeared in _The New York Times_ , _National Geographic_ ,\n_Slate_ , and other publications. His other science writing includes _[ Us and\nThem: The Science of Identity\n](https://press.uchicago.edu/ucp/books/book/chicago/U/bo5812106.html) _ and\nwork in _The New Yorker_ , _Nature_ , and many other publications. [ More\nabout David Berreby  \u2192 ](https://e360.yale.edu/authors/david-berreby)\n\n##  Topics\n\n[ Climate ](https://e360.yale.edu/topics/climate)\n\nJoin the conversation:  As Use of A.I. Soars, So Does the Energy and Water It\nRequires  Show comments \u2192\n\n[ Never miss an article. Subscribe to the E360 Newsletter \u2192 ](/newsletter)\n\n###  Related Articles\n\n  * [ ](https://e360.yale.edu/features/artificial-intelligence-weather-forecasting)\n\n##  [ A.I. Is Quietly Powering a Revolution in Weather Prediction\n](https://e360.yale.edu/features/artificial-intelligence-weather-forecasting)\n\nBy [ Nicola Jones ](/authors/nicola-jones)\n\n  * [ ](https://e360.yale.edu/features/freshwater-mussels)\n\n##  [ With the Great Mussel Die-Off, Scientists Scramble for Answers\n](https://e360.yale.edu/features/freshwater-mussels)\n\nBy [ Jim Robbins ](/authors/jim-robbins)\n\n  * [ ](https://e360.yale.edu/features/adam-sobel-noaa-opinion)\n\n####  Opinion\n\n##  [ With NOAA Cuts, a Proud Legacy and Vital Science Are at Risk\n](https://e360.yale.edu/features/adam-sobel-noaa-opinion)\n\nBy [ Adam Sobel ](/authors/adam-sobel)\n\n###  More From E360\n\n  * #####  [ Policy ](https://e360.yale.edu/features/usaid-cuts-conservation)\n\n####  [ U.S. Aid Cuts Are Hitting Global Conservation Projects Hard\n](https://e360.yale.edu/features/usaid-cuts-conservation)\n\n  * #####  [ INTERVIEW ](https://e360.yale.edu/features/batmunkh-luvsandash-interview)\n\n####  [ How a Former Herder Protected Mongolia\u2019s Vast Grasslands\n](https://e360.yale.edu/features/batmunkh-luvsandash-interview)\n\n  * #####  [ Solutions ](https://e360.yale.edu/features/artificial-intelligence-weather-forecasting)\n\n####  [ A.I. Is Quietly Powering a Revolution in Weather Prediction\n](https://e360.yale.edu/features/artificial-intelligence-weather-forecasting)\n\n  * #####  [ RIVERS ](https://e360.yale.edu/features/belo-monte-volta-grande-flows)\n\n####  [ On a Dammed River, Amazon Villagers Fight to Restore the Flow\n](https://e360.yale.edu/features/belo-monte-volta-grande-flows)\n\n  * #####  [ Biodiversity ](https://e360.yale.edu/features/freshwater-mussels)\n\n####  [ With the Great Mussel Die-Off, Scientists Scramble for Answers\n](https://e360.yale.edu/features/freshwater-mussels)\n\n  * #####  [ ANALYSIS ](https://e360.yale.edu/features/nuclear-waste-recycling)\n\n####  [ Recycling Nuclear Waste: A Win-Win or a Dangerous Gamble?\n](https://e360.yale.edu/features/nuclear-waste-recycling)\n\n  * #####  [ CONFLICT ](https://e360.yale.edu/features/sudan-war-gold-mining)\n\n####  [ In War-Torn Sudan, a Gold Mining Boom Takes a Human Toll\n](https://e360.yale.edu/features/sudan-war-gold-mining)\n\n  * #####  [ Opinion ](https://e360.yale.edu/features/adam-sobel-noaa-opinion)\n\n####  [ With NOAA Cuts, a Proud Legacy and Vital Science Are at Risk\n](https://e360.yale.edu/features/adam-sobel-noaa-opinion)\n\n  * #####  [ Biodiversity ](https://e360.yale.edu/features/plant-metacollections)\n\n####  [ Imperiled in the Wild, Many Plants May Survive Only in Gardens\n](https://e360.yale.edu/features/plant-metacollections)\n\n  * #####  [ Climate ](https://e360.yale.edu/features/asbestos-mine-tailings-carbon-removal-baie-verte)\n\n####  [ Can Toxic Mining Waste Help Remove CO2 from the Atmosphere?\n](https://e360.yale.edu/features/asbestos-mine-tailings-carbon-removal-baie-\nverte)\n\n  * #####  [ INTERVIEW ](https://e360.yale.edu/features/eric-nost-interview)\n\n####  [ Saving U.S. Climate and Environmental Data Before It Goes Away\n](https://e360.yale.edu/features/eric-nost-interview)\n\n  * #####  [ Biodiversity ](https://e360.yale.edu/features/south-africa-plant-poaching)\n\n####  [ A Craze for Tiny Plants Is Driving a Poaching Crisis in South Africa\n](https://e360.yale.edu/features/south-africa-plant-poaching)\n\n#  [ E360 ](/)\n\n  * [ About E360 ](/about#about-e360)\n  * [ Reprints ](/about#reprints)\n  * [ Contact ](/about#contact)\n  * [ Support E360 ](/about#support-e360)\n  * [ Privacy Policy ](/about#privacy-policy)\n  * [ Submission Guidelines ](/about#submission-guidelines)\n  * [ Newsletter ](https://e360.yale.edu/newsletter)\n\n##  Published at the [ Yale School of the Environment\n](http://environment.yale.edu/)\n\n",
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            "summary": "Yale Environment 360 is a reputable online magazine that publishes in-depth articles on environmental issues.",
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                    "source": "https://www.weforum.org/stories/2024/02/ai-combat-climate-change/"
                },
                "page_content": "Artificial intelligence can help to tackle climate change. Image:\nUnsplash/anniespratt\n\n#####  [ Victoria Masterson\n](https://www.weforum.org/stories/authors/victoria-masterson/)\n\nSenior Writer ,  Forum Stories\n\n_This article was originally published in January 2024 and updated in February\n2024._  \n\n  * The use of artificial intelligence (AI) can contribute to the fight against climate change. \n  * Existing AI systems include tools that predict weather, track icebergs and identify pollution. \n  * AI can also be used to improve agriculture and reduce its environmental impact, the World Economic Forum says. \n\nThe power of artificial intelligence (AI) to process huge amounts of data and\n[ help humans make decisions ](https://www.weforum.org/agenda/2023/04/ai-\nhelps-humans-make-informed-decisions/) is transforming industries.\n\nAs one of the world\u2019s toughest challenges, combating climate change is another\narea where AI has transformational potential.\n\nAlmost 4 billion people already [ live in areas highly vulnerable to climate\nchange ](https://www.who.int/news-room/fact-sheets/detail/climate-change-and-\nhealth) , according to the World Health Organization.\n\nAnd this is expected to lead to around 250,000 extra deaths a year between\n2030 and 2050, from undernutrition, malaria, diarrhoea and heat stress alone.\n\nHere are nine ways AI is already helping to tackle climate change.\n\nDiscover\n\n'Safeguarding the Planet' at Davos 2025\n\nHow can we catalyse climate and nature action through innovative partnerships,\nincreased financing and the deployment of frontier technologies?\n\n[ Safeguarding the Planet ](https://www.weforum.org/meetings/world-economic-\nforum-annual-meeting-2025/themes/safeguarding-the-planet/) is one of five\nthematic pillars at the [ Annual Meeting 2025\n](https://www.weforum.org/meetings/world-economic-forum-annual-meeting-2025/)\n.\n\n#####  Have you read?\n\nInnovative partnerships and dialogue that enable investments and the\ndeployment of climate and clean technologies will be critical to progress on\nglobal climate and nature goals, as well as to address the \u2018energy trilemma\u2019\nof ensuring an affordable, secure and sustainable energy supply.\n\nAccording to the International Energy Agency, the technology on the market\ntoday can allow us to achieve 66% of the global emissions reductions needed if\nwe are to reach net zero by 2050 \u2013 significantly up from two years prior but\nleaving much work to be done. A scaling up of ambition, governance,\npartnerships and capital is necessary to accelerate decarbonization efforts to\nreach net zero, invest in nature-positive transition pathways and ensure the\ncircularity and resilience of resource systems overall.\n\nIn this context, it's crucial for businesses, governments, and civil society\nto work together to find common solutions and take decisive action. Through\nits [ Centres ](https://www.weforum.org/centres/) , the World Economic Forum\nintegrates public-private efforts to achieve greater impact. Read more here\nabout this work:\n\n  * [ Centre for Energy and Materials ](https://centres.weforum.org/centre-for-energy-and-materials/home)\n  * [ Centre for Nature and Climate ](https://centres.weforum.org/centre-nature-and-climate/home)\n  * [ Centre for Urban Transformation ](https://centres.weforum.org/centre-for-urban-transformation/home)   \n\nLoading...\n\n##  1\\. Icebergs are melting \u2013 AI knows where and how fast\n\nAI has been trained to measure changes in icebergs 10,000 times faster than a\nhuman could do it.\n\nThis will help scientists understand how much meltwater icebergs release into\nthe ocean \u2013 a process [ accelerating as climate change warms the atmosphere\n](https://www.weforum.org/agenda/2023/03/antarctic-ice-sheet-is-melting-\nhumanity-climate/) .\n\nScientists at the University of Leeds in the United Kingdom say their [ AI can\nmap large Antarctic icebergs in satellite images\n](https://www.esa.int/Applications/Observing_the_Earth/Copernicus/Sentinel-1/AI_maps_icebergs_10_000_times_faster_than_humans)\nin just one-hundredth of a second, reports the European Space Agency.\n\nFor humans, this task is lengthy and time-consuming, and it\u2019s hard to identify\nicebergs amid the white of clouds and sea ice.\n\nLoading...\n\n##  2\\. Mapping deforestation with AI\n\nAI, satellite images and ecology expertise are also being used to map the\nimpact of deforestation on the climate crisis.\n\n[ Space Intelligence ](https://www.space-intelligence.com/) , a company based\nin Edinburgh, Scotland, says it is working in more than 30 countries and has\nmapped more than 1 million hectares of land from space using satellite data.\n\nThe company\u2019s technology remotely measures metrics, such as deforestation\nrates and how much carbon is stored in a forest.\n\n##  3\\. AI is helping communities facing climate risks in Africa\n\nIn Africa, [ AI is being used in a United Nations project\n](https://news.un.org/en/story/2023/11/1143187) to help communities vulnerable\nto climate change in Burundi, Chad and Sudan.\n\nThe [ IKI Project ](https://eecentre.org/2019/05/01/iki-project) uses AI\ntechnology to help predict weather patterns, so communities and authorities\ncan better plan how to adapt to climate change and mitigate its impact.\n\nThis includes improving access to clean energy, implementing proper waste\nmanagement systems and encouraging reforestation.\n\nLoading...\n\n##  4\\. Using AI to recycle more waste\n\nAnother AI system is helping to tackle climate change by making waste\nmanagement more efficient.\n\n[ Waste is a big producer of methane\n](https://www.weforum.org/agenda/2022/11/waste-emissions-methane-cities/) and\nis responsible for 16% of global greenhouse gas (GHG) emissions, according to\nthe United States Environmental Protection Agency.\n\n[ Greyparrot ](https://www.greyparrot.ai/) , a software startup based in\nLondon, United Kingdom, has developed an AI system that analyzes waste\nprocessing and recycling facilities to help them recover and recycle more\nwaste material.\n\nThe company tracked [ 32 billion waste items across 67 waste categories\n](https://www.greyparrot.ai/resource-hub/blog/wrapping-up-2022) in 2022, and\nsays it identifies 86 tonnes of material on average that could be recovered\nbut is being sent to landfill.\n\n[ ](https://theoceancleanup.com/updates/lasting-damage-why-cleanup-is-\nessential-to-tackle-microplastics/) AI is helping to fight climate change in\nsystems, including those that identify plastic pollution in the ocean.  Image:\nThe Ocean Cleanup\n\n##  5\\. AI is cleaning up the ocean\n\nIn the Netherlands, an environmental organization called [ The Ocean Cleanup\n](https://theoceancleanup.com/) is using AI and other technologies to help\nclear plastic pollution from the ocean.\n\nAI that detects objects is helping the organization create [ detailed maps of\nocean litter ](https://theoceancleanup.com/updates/using-artificial-\nintelligence-to-monitor-plastic-density-in-the-ocean/) in remote locations.\nThe [ ocean waste can then be gathered and removed\n](https://theoceancleanup.com/oceans/) , which is more efficient than previous\ncleanup methods using trawlers and aeroplanes.\n\n[ Plastic pollution contributes to climate change\n](https://www.weforum.org/agenda/2022/01/plastic-pollution-climate-change-\nsolution/) by emitting GHGs and harming nature.\n\nLoading...\n\n##  6\\. AI helps predict climate disasters\n\nIn S\u00e3o Paulo, Brazil, a company called [ Sipremo ](https://www.sipremo.com/)\nis using AI to predict where and when climate disasters will occur, and what\ntype of climate disasters they will be.\n\nThe aim is to help businesses and governments better prepare for climate\nchange and the growing challenges for communities that come with it.\n\nThe company works in industries including insurance, energy, logistics and\nsport, where its analysis of disaster conditions and factors such as air\nquality can inform decisions on whether to delay or suspend events.\n\nLoading...\n\n##  7\\. A wish list of AI climate tools\n\nGoogle DeepMind, Google\u2019s AI research laboratory, says it is [ applying AI to\nhelp fight climate change ](https://deepmind.google/discover/blog/using-ai-to-\nfight-climate-change/) in a number of areas.\n\nThis includes building a complete wish list of datasets that would advance\nglobal AI solutions for climate change. Google DeepMind is working on this\nwith [ Climate Change AI ](https://www.climatechange.ai/) , a non-profit\norganization set up by volunteers from academia and industry who see a key\nrole for machine learning in combating climate change.\n\nOther Google AI tools are focused on improving weather forecasting and\nincreasing the value of wind energy by better predicting the output from a\nwind farm.\n\nLoading...\n\n##  8\\. How AI can help industry decarbonize\n\nAI is being used to help companies in the metal and mining, oil, and gas\nindustries to decarbonize their operations.\n\n[ Eugenie.ai ](http://eugenie.ai/) , based in California, United States, has\ndeveloped an emissions-tracking platform that combines satellite imagery with\ndata from machines and processes.\n\nAI then analyzes this data to help companies [ track, trace and reduce their\nemissions ](https://blog.google/outreach-\ninitiatives/entrepreneurs/how-4-startups-are-using-ai-to-solve-climate-change-\nchallenges/) by 20-30%.\n\nIndustrial sectors generate around [ 30% of greenhouse gas emissions\n](https://www.weforum.org/agenda/2022/07/net-zero-tracker/) globally.\n\nDiscover\n\nHow is the World Economic Forum creating guardrails for Artificial\nIntelligence?\n\nIn response to the uncertainties surrounding generative AI and the need for\nrobust AI governance frameworks to ensure responsible and beneficial outcomes\nfor all, the Forum\u2019s Centre for the Fourth Industrial Revolution (C4IR) has\nlaunched the [ AI Governance Alliance ](https://initiatives.weforum.org/ai-\ngovernance-alliance/home) .\n\nThe Alliance unites industry leaders, governments, academic institutions, and\ncivil society organizations to champion responsible global design and release\nof transparent and inclusive AI systems.\n\nThis includes the workstreams part of the [ AI Transformation of Industries\ninitiative ](https://initiatives.weforum.org/ai-governance-\nalliance/responsibleapplications) , in collaboration with the Centre for\nEnergy and Materials, the Centre for Advanced Manufacturing and Supply Chains,\nthe Centre for Cybersecurity, the Centre for Nature and Climate, and the\nGlobal Industries team.\n\n##  9\\. Reforesting hills in Brazil using drones\n\n[ AI-powered computers are pairing up with drones in Brazil to reforest the\nhills ](https://www.reuters.com/world/americas/brazil-drones-take-flight-rio-\nhigh-tech-reforestation-push-2024-01-12/) around the coastal city of Rio de\nJaneiro, Reuters reports. The computers define the targets and number of seeds\nto be dropped.\n\nThe initiative, which launched in January 2024, is a partnership between Rio's\ncity hall and start-up Morfo, and aims to grow seeds in hard-to-reach areas.  \n\nA single drone can disperse 180 seed capsules per minute, which is 100 times\nfaster than using human hands for traditional reforestation, according to the\nlocal government.\n\nLoading...\n\n##  The potential of AI in the future\n\nAI is one of the key emerging technologies explored in the World Economic\nForum\u2019s [ Top 10 Emerging Technologies of 2023\n](https://www3.weforum.org/docs/WEF_Top_10_Emerging_Technologies_of_2023.pdf)\nreport.\n\nThe report specifically looks at generative AI \u2013 a type of AI that creates\ncontent including text, images and computer programming.\n\nLoading...\n\nIn the future, generative AI could be used in contexts such as drug design,\narchitecture and engineering, the Forum says.\n\nAI can also be used to improve agriculture and reduce its environmental impact\nby processing data from sensors placed on crops.\n\nThe technologies listed in the report, including sustainable aviation fuel,\ncan be used to help tackle global challenges like the climate crisis \u2013 but\nmore innovation is needed, the authors point out.\n\n#####  Have you read?\n\n  * #####  [ Without AI, we won\u2019t meet ESG goals and address climate change ](https://www.weforum.org/agenda/2023/01/ai-can-help-meet-esg-goals-and-climate-change)\n\n  * #####  [ How artificial intelligence can help us prepare for climate adaptation ](https://www.weforum.org/agenda/2022/11/how-artificial-intelligence-can-prepare-us-for-climate-adaptation)\n\n  * #####  [ This is the AI balancing act: between its huge potential and growing emissions ](https://www.weforum.org/agenda/2023/04/balancing-ais-carbon-footprint-and-its-potential-for-transformative-positive-climate-impact)\n\nLoading...\n\n#####  Don't miss any update on this topic\n\nCreate 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            },
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            "summary": "The World Economic Forum is a reputable organization.",
            "url": "https://www.weforum.org/stories/2024/02/ai-combat-climate-change/"
        },
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            "reliability_score": 0.7,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "Normative provides carbon accounting services.",
            "url": "https://normative.io/insight/esrs-e1/"
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                    "source": "https://corporate.walmart.com/purpose/esgreport/environmental/climate-change"
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                "page_content": "  * Skip to main \n  * Skip to footer \n\n[ ](/) [ ](/)\n\n  * [ About ](/about)\n    * [ Business of Better ](/about/business-of-better)\n    * [ Leadership ](/about/leadership)\n    * [ Board of Directors ](/about/board-of-directors)\n    * [ Sam Walton ](/about/sam-walton)\n    * [ Walmart Museum & History ](/about/walmart-museum)\n    * [ New Home Office ](/about/newhomeoffice)\n    * [ Working at Walmart ](/about/working-at-walmart)\n    * [ Sam's Club ](/about/samsclub)\n    * [ Walmart International ](/about/international)\n    * [ Location Facts ](/about/location-facts)\n    * [ Policies ](/about/policies)\n    * [ Contact Walmart ](/about/contact)\n  * [ Purpose ](/purpose)\n    * [ Opportunity ](/purpose/opportunity)\n    * [ Sustainability ](/purpose/sustainability)\n    * [ Community ](/purpose/community)\n    * [ Ethics & Integrity ](/purpose/ethics-integrity)\n    * [ Belonging ](/purpose/belonging)\n    * [ Philanthropy 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   * [ Investing In American Jobs ](/suppliers/investing-in-american-jobs)\n    * [ Sam's Club Suppliers ](/suppliers/sams-club-suppliers)\n    * [ Walmart Growth Summits ](/suppliers/walmart-growth-summit)\n  * [ Careers ](/careers)\n  * [ Ask Walmart ](/askwalmart)\n\n[ ESG  ](https://corporate.walmart.com/esgreport)\n\n[ Home ](/)\n\n[ Purpose ](/purpose)\n\n[ ESG Reporting ](/purpose/esgreport)\n\nEnvironmental\n\n#  Climate Change\n\n**SASB:** CG-MR-130a.1, CG-EC-410a.2; FB-FR-110b.1  \n**GRI:** 3-3, 201-2, 302-1, 302-4, 305-1, 305-2, 305-3, 305-4, 305-5\n\n**TCFD:** [ See table ](/content/corporate/en_us/purpose/esgreport/reporting-\ndata/tcfd.html)\n\n**UN SDGs:** 7, 11, 13\n\nE\n\n  \n\n_Published: Dec. 18, 2024_ __\n\n####  At a Glance\n\n  * As of the end of 2023, our operational emissions (Scopes 1 & 2) have decreased 19.3% relative to our 2015 baseline, while carbon intensity has declined by 45% in the same period.  3  However, in 2023, our annual year-over-year emissions increased 3.9% due to business growth and other factors. \n  * While we continue to work towards our aspirational goal of zero emissions by 2040, progress will not be linear; our trajectory and challenges related to energy policy, infrastructure and the availability of cost-effective low-carbon technologies will likely delay achievement of our interim 2025 and 2030 targets. \n  * We continue to expand our onsite and offsite renewable energy portfolio, with 48% of our global electricity needs supplied by renewable sources in 2023  2  \u2014in line with targets. \n  * We achieved our Project Gigaton goal six years early, with suppliers reporting projects that are expected to exceed 1 billion metric tons of cumulative emissions reduced, avoided, or sequestered in global value chains by 2030.  6  We continue to prioritize reductions in value chain emissions, including through the continuation of Project Gigaton. \n  * While we continue to work towards our goals, progress depends on many factors outside our control, including public policy, emergence and cost-effectiveness of low carbon technologies, and broad sectoral transitions in energy systems, transportation, materials, and agriculture. \n\n* Key Goals & Metrics \n* Relevance to Our Business and Society \n* Walmart's Approach \n* Key Strategies and Progress \n* Challenges \n\nClick Here To Navigate\n\nClose Navigation\n\nMain Navigation\n\nPage Navigation\n\nKey Goals & Metrics\n\nRelevance to Our Business and Society\n\nWalmart's Approach\n\nKey Strategies and Progress\n\nChallenges\n\nWe seek to strengthen the resilience of our business against the effects of\nclimate change while pursuing science-based targets for emissions reduction \u2013\nincluding our goal of achieving zero emissions in our operations by 2040 \u2013 and\ncatalyzing climate action across retail value chains through advocacy,\nsupplier engagement, philanthropy, and innovation.\n\nKey Goals & Metrics\n\n**Goal: Achieve zero emissions across global operations by 2040 (Scopes 1 &\n2): **  \n\n  * Sub-goal: Reduce absolute global Scope 1 & 2 greenhouse gas (GHG) emissions 35% by 2025 and 65% by 2030 from 2015 base year  1 \n  * Sub-goal: Power 50% of our global operations with renewable sources of energy  2  by 2025 and 100% by 2035 \n\n  \n---  \n  \n#####  Metric\n\n|\n\n#####  CY2021\n\n|\n\n#####  CY2022\n\n|\n\n#####  CY2023  \n  \nAnnual Scopes 1 & 2 GHG emissions (million metric tons carbon dioxide\nequivalent \u2013 MMT CO2e)  3  \n|  Total: 14.49  \nScope 1: 7.38  \nScope 2 (market-based): 7.11  \n|  Total: 14.49  \nScope 1: 7.76  \nScope 2 (market-based): 6.73  \n|  Total: 15.06  \nScope 1: 8.11  \nScope 2 (market-based): 6.95  \nPercent change in annual Scopes 1 & 2 emissions (vs 2015 baseline)  4  \n|  -23.0%  \n|  -22.3%  \n|  -19.3%  \nPercent change in annual Scopes 1 & 2 emissions (vs previous year)  4  |  -4.6%   \n|  +0.9%  \n|  +3.9%  \nEstimated percentage of global electricity needs supplied by renewable sources  5  |  46%   \n|  47%  \n|  48%  \n**Goal (achieved): Reduce, avoid, or sequester one billion metric tons (MT) of\nCO2e emissions in the global value chain by 2030 (Project Gigaton)** 6,7  \n  \n#####  Metric\n\n|\n\n#####  FY2022\n\n|\n\n#####  FY2023\n\n|\n\n#####  FY2024  8  \n  \nExpected reduced, avoided, or sequestered CO2e emissions by 2030 as reported by suppliers (cumulatively since CY2017)  |  >574 MMT  |  >750 MMT  |  1 billion MT   \nExpected reduced, avoided, or sequestered emissions as reported by suppliers in reporting year  |  >158 MMT  |  >175 MMT  |  >250 MMT   \nNumber of suppliers reporting  |  >2,500  |  >3,000  |  >3,500   \nPercentage of U.S. product net sales dollars represented by reporting suppliers  9  |  72%  |  74%  |  77%   \n  \nBack to Top\n\nRelevance to Our Business and Society\n\nAs an omni-channel retailer with operations in 19 countries, a global supply\nchain, and hundreds of millions of customers worldwide, a strong climate\nstrategy can help us manage risks associated with climate change, strengthen\nthe resilience of our business, and create competitive advantage. Our reach\nand relationships provide an opportunity to lead through reducing our\noperational emissions, supporting decarbonization of value chains, and\nexpanding access to clean energy.\n\nBack to Top\n\nWalmart's Approach\n\nOur approach includes:\n\n  \n\n  * **Governing** our climate strategy through management, executive leadership, and Board committee oversight \n  * **Assessing** physical and transition climate risk \n  * **Mitigating emissions** in our operations and supporting decarbonization of our value chain \n  * **Adapting our business** to enhance resilience to climate-related risk \n  * **Advocating** for 1.5  o  -C-aligned public policy \n  * **Transparently reporting** on our progress and challenges ****\n\nBack to Top\n\nKey Strategies and Progress\n\n###  In this section:  \n\n  * Governance \n  * Climate Risk Assessment \n  * Emissions Mitigation Strategy \n  * Adaptation \n  * Advocacy \n  * Reporting \n\n###  Governance\n\n  \n\n####  Board Committee **** Oversight\n\nBy [ charter\n](https://s201.q4cdn.com/262069030/files/doc_governance/CommitteeCharters/2023/04/legal-10614502-v1-wmt_ngc_charter_4_11_23.pdf)\n, the Nominating and Governance Committee (NGC) of the Walmart Inc. Board of\nDirectors (Board) reviews and advises management regarding the Company\u2019s\nsustainability initiatives, including those related to climate change. For\nadditional information, read our board-approved [ Statement on Climate Policy\n](https://corporate.walmart.com/policies#climate-policy) .\n\n  \n\n####  Management and Executive Leadership Oversight\n\nWalmart\u2019s corporate sustainability team leads the development of our climate\nstrategy, working with a cross-functional team across our business to ensure\nit is embedded in relevant business strategies (e.g., operations,\nmerchandising, real estate, energy transformation, finance, public policy).\n\nBack to Top  |  Back to Key Strategies and Progress \n\n###  Climate Risk Assessment\n\n  \n\nTo help inform our climate strategy, we periodically conduct a scenario-based\nclimate risk assessment (first completed in 2017, updated in 2020).\n\n  \n\nIn 2020, to assess physical risk, we used Representative Concentration Pathway\n(RCP) 8.5 and analyzed the impact of five associated climate effects (flood,\nheat, drought, extreme precipitation, and extreme winds) across five key\ngeographies (Canada, China, India, Mexico, and the United States) for 2030 and\n2050. We quantitatively evaluated the direct impacts of climate change on our\noperations (e.g., heating and cooling costs, damage), product supply chain\n(e.g., production and distribution disruption), and communities (e.g.,\ndisplacement, health, financial wellbeing). We also assessed transition risks\n(e.g., potential regulation/legislation, technology advancement, carbon\npricing, legal risk, market trends, reputation). For additional details, see [\n2020 Climate Risk Assessment\n](/content/dam/corporate/documents/esgreport/environmental/climate-\nchange/Climate-Change-Risk%20Assessment.pdf) .\n\n####  Key Findings\n\nUnder the modeled scenario:\n\n  \n\n**Operational impacts:** Our facilities could be affected by severe weather\nevents (e.g., flooding, extreme storms). Heating/cooling costs could also\npotentially increase in two-thirds of Walmart locations by 2030, and 80% of\nlocations by 2050.\n\n**  \nProduct supply chain impacts:  ** By 2050, climate change\u2019s impact on weather\npatterns is likely to affect production, distribution, and (in some cases) the\nviability of food and other consumer products, with some commodities (e.g.,\ncoffee, cocoa, and cotton) potentially facing significant challenges, while\nothers (e.g., animal feed, milk, and rice) potentially remaining largely\nunaffected. __\n\n  \n\n**Community impacts:** By 2050, ~50% of communities currently served by\nWalmart U.S. facilities could face significant, long-term disruption,\nincluding significant increases in household power costs.\n\n  \n\nPotential transition risks include:\n\n  \n\n  * Increased capital expenditures driven by legislation/regulation (e.g., adjustments to carbon pricing, energy/water efficiency standards), market forces (e.g., refrigerant pricing affected by supply volumes), and compliance (e.g., associated with lack of consistent national standards) \n  * Product mix shifts driven by changing consumer demands (e.g., gasoline/motor oil due to EV adoption) \n  * Asset depreciation driven by technology innovation (e.g., EV chargers underutilized if hydrogen becomes dominant for passenger vehicles). \n\n  \n\n####  Regular Monitoring of Climate-related Risks and Opportunities\n\nManagement is responsible for the annual Enterprise Risk Management (ERM)\nprocess and the day-to-day management of risks, including considering risks in\ncategories which include, but are not limited to: strategic; reputational;\nfinancial; legal, regulatory and compliance; and operational risks, including\nthe long-term impacts of climate change. The outputs of this process are\nshared with Walmart\u2019s Governance and Risk Committee and with the Audit\nCommittee of the Board. Relevant business segments also consider climate-\nrelated issues as part of their annual strategic and operating plan\ndevelopment.\n\n  \n\nWe also monitor for climate-related opportunities. For example, the [\nInflation Reduction Act\n](https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_one_page_summary.pdf)\n__ incentivized economy-wide action to prioritize the commercialization of\nclean energy and transportation technologies, the [ Infrastructure Investment\nand Jobs Act ](https://www.whitehouse.gov/briefing-room/statements-\nreleases/2021/08/02/updated-fact-sheet-bipartisan-infrastructure-investment-\nand-jobs-act/) helped enable the expansion of renewables and clean energy\n(including EV charging capacity), and the growth in electric vehicle ownership\nhas built and supported numerous businesses across multiple industries\n(including an opportunity to [ expand our EV charging network\n](https://corporate.walmart.com/news/2023/04/06/leading-the-charge-walmart-\nannounces-plan-to-expand-electric-vehicle-charging-network) to serve existing\ncustomers and draw in new ones).\n\nBack to Top  |  Back to Key Strategies and Progress \n\n###  Emissions Mitigation Strategy\n\nOur emissions mitigation strategy includes working towards zero operational\nemissions (GHG Protocol Scopes 1 & 2) and engaging suppliers and other\nstakeholders to reduce emissions in our product value chain (GHG Protocol\nScope 3).\n\n####  Operational Emissions (GHG Protocol Scopes 1 & 2)\n\nIn retail, operational emissions include emissions from onsite refrigeration,\ntransport fuels, stationary fuels (all considered \"Scope 1\") and from\nelectricity (\"Scope 2\").\n\n  \n\nWalmart\u2019s annual year-over-year operational emissions (Scopes 1 & 2) rose by\n3.91%  4  in 2023, while emissions intensity continued to decline, dropping 2%\nyear-over-year.  3,4  Scope 1 emissions rose by 4.6% and Scope 2 (market-\nbased) emissions rose by 3.1%, primarily due to:\n\n  \n\n  * Usage of aging, high-emitting refrigeration equipment \n  * Transportation-related emissions in the U.S., including shifting certain routes from third parties to Walmart and a growing fleet \n  * Renewable energy expansion slowing relative to business growth \n\n  \n\nAs a result, 2023 Scope 1 & 2 emissions are 19.3% lower than our 2015\nbaseline, while emissions intensity has dropped 45% over the same period\n(meaning dollar for dollar, our business is roughly half as emissions\nintensive as it was in FY2016).\n\n  \n\nWhile we continue to work toward our aspirational target of zero operational\nemissions by 2040, progress will not be linear\u2014both cumulatively and by key\nemissions source\u2014and depends not only on our own initiatives but also on\nfactors beyond our control. These factors include energy policy and\ninfrastructure in Walmart markets around the world, availability of more cost-\neffective low-GWP refrigeration and HVAC solutions, and timely emergence of\ncost-effective technologies for low-carbon heavy tractor transportation (which\ndoes not appear likely until the 2030s).\n\n  \n\nWhile we cannot predict the future, we anticipate challenges related to these\nfactors will delay achievement of our interim emissions reduction targets (35%\nreduction in emissions by 2025; 65% reduction by 2030). We will continue to\nreport progress and in 2025 will consider revising our targets based on the\nbest available information and assumptions at that time.\n\n#####  Walmart\u2019s CY2023 Operational Emissions (MMT CO  2  e)  [ 3 ](endnotes)\n\nMillion metric tons (MMT) CO  2  e\n\nScope 1:\n\n8.11 MMT*\n\nStationary Fuel\n\n19.2%\n\nTransport Fuel\n\n24.9%\n\nOnsite Refrigerants\n\n54.6%\n\nScope 2:\n\n6.95 MMT\n\nElectricity\n\n100%\n\n*Mobile refrigerants make up **1.3%** of Scope 1 emissions \n\n#####  Annual GHG Emissions (unadjusted)  3\n\n#####  Emissions Intensity (MT CO  2  e per $M revenue, unadjusted)  3,8\n\nThe five primary workstreams in our operational emissions reduction strategy\nare:\n\n  \n\n####  Renewable Energy\n\nEmissions from purchased electricity accounts for 100% of our Scope 2\nemissions and 46% of our overall 2023 operational emissions. In support of our\nzero emissions aspiration, we aim to power 50% of our global operations with\nrenewable sources of energy by 2025 and 100% by 2035.\n\n  \n\n  * In 2023, 48% of our global electricity needs were supplied by renewable sources  2,5 \n  * In 2023, Walmart directly procured 30% of our global electricity needs through renewable energy contracts  10 \n\nAchievement of our renewable energy goal is heavily dependent on our ability\nto secure access to sufficient renewable energy capacity. While we have a\nrobust pipeline of projects in the U.S. and capital commitments that position\nus well to achieve reductions in line with our target timeframe in that\nmarket, several of our international businesses are challenged due to the\nlocal market and regulatory conditions. We continue to pursue strategies to\nunlock capacity in those countries but cannot predict with certainty whether\nand when we will be able to do so.\n\n  \n\nStrategies contributing toward Scope 2 emissions reductions include:\n\n  \n\n  * **Onsite & offsite generation: ** At our facilities, we aim to [ add 1 GW ](https://corporate.walmart.com/news/2024/01/09/powering-an-emissions-free-future-for-walmart-and-our-communities) of new clean energy capacity, including solar and storage, by the end of 2030, supplementing the ~600 on- and off-site projects in operation or under development as of the end of 2023. \n  * **Power Purchase Agreements (PPAs):** From FY2020-FY2023, we executed PPAs that enabled construction of over 2 GW of new projects, with plans to further accelerate renewable energy purchases in the United States. We continue to explore ways to accelerate our strategy internationally as well, including how to overcome limits on private investment in some markets. \n\n####  Energy Efficiency\n\nWe are prioritizing energy efficiency as our energy needs increase due to\nbusiness growth, facility automation, and electrification. Strategies include:\n\n  * **Real-time monitoring and optimization of industrial systems** using installed meters at thousands of our facilities globally (including most U.S. stores). \n  * **New and remodeled facilities:** designing and constructing new and remodeled facilities with more efficient lighting, HVAC, and refrigeration, as well as replacing and upgrading older equipment with more efficient technology. \n\n####  Transportation\n\nIn 2023, our fleet (transport fuel, mobile refrigerants) contributed 26% of\nour Scope 1 emissions (14% of overall operational emissions).\n\nWhile we have prioritized achieving zero emissions from our vehicles and\ntransportation network, we have also been transparent that meaningfully\naddressing transportation-related emissions would take many years. Indeed,\nrelevant technologies for the highest-emitting sources\u2014including Class 8\ntractors, refrigerated trailers, and yard trucks\u2014are nascent. Additionally,\nour U.S. truck fleet has grown as our business grows and the number of U.S.\nfleet miles driven have grown as we brought certain third-party routes in\nhouse. These increases contributed to a 10% increase in our transportation\nfuel emissions (2023 vs. 2022).\n\nWhile the nascent state of scalable technology will mean that transportation-\nrelated emissions are unlikely to decline over the next few years, Walmart is\n[ employing several strategies to make headway.\n](https://corporate.walmart.com/news/2022/06/08/zero-sum-how-walmart-\ntransportation-is-working-to-reduce-emissions-now-and-in-the-future)\n\n**Operationalizing new technologies:** We are testing and operationalizing\ninnovative technologies, including heavy-duty battery electric vehicles and\nhydrogen fuel cell vehicles. Examples include [ transitioning to liquid\nhydrogen operated forklifts\n](https://corporate.walmart.com/news/2022/06/08/zero-sum-how-walmart-\ntransportation-is-working-to-reduce-emissions-now-and-in-the-future) and\nopening the [ first industrial-scale renewable hydrogen plant in Latin America\n](https://corporate.walmart.com/news/2023/08/15/walmart-chile-to-create-first-\nindustrial-use-green-hydrogen-production-plant-in-latin-america) which aims to\npower our hydrogen-powered forklifts in Chile.\n\n  \n\n[ ](https://corporate.walmart.com/news/2022/06/08/zero-sum-how-walmart-\ntransportation-is-working-to-reduce-emissions-now-and-in-the-future)\n\n[ ](https://corporate.walmart.com/news/2022/06/08/zero-sum-how-walmart-\ntransportation-is-working-to-reduce-emissions-now-and-in-the-future)\n\n**Class 8 heavy-duty and yard truck innovations:** While [ truck fleet\nefficiency remains a focus\n](https://corporate.walmart.com/newsroom/2015/11/17/walmart-marks-fulfillment-\nof-key-global-responsibility-commitments#:~:text=Doubled%20fleet%20efficiency)\n, new technologies will play a role in decarbonizing long-haul/heavy-duty\nClass 8 tractors and yard trucks, including renewable diesel  11  , battery\nelectric, and hydrogen fuels. We support the development of these technologies\nthrough feasibility testing and working with manufacturers to ensure vehicle\ntechnology meets industry needs. Walmart is actively deploying and piloting\nthese technologies. For example, we currently utilize electric yard trucks at\nsome of our facilities, estimated to provide approximately 50% emissions\nreduction compared to diesel trucks.\n\n[ ](https://corporate.walmart.com/news/2023/04/06/leading-the-charge-walmart-\nannounces-plan-to-expand-electric-vehicle-charging-network)\n\nFor more on our approach to public policy supporting our zero emissions\ntransportation objective, read [ Responsible Engagement in Public Policy\n](/content/corporate/en_us/purpose/esgreport/governance/engagement-in-public-\npolicy) .\n\n####  Stationary Fuels\n\nIn 2023, stationary fuels\u2014including fossil fuels used for heating, cooling,\nand backup power\u2014contributed approximately 19% of our Scope 1 emissions (10%\nof our overall operational emissions). Emissions related to stationary fuel\nuse decreased 5% year-over-year between 2022 and 2023 (10% increase against\nour 2015 baseline , largely due to a drop in natural gas usage as compared to\n2022, when usage peaked as a result of unseasonably cold weather in the U.S.\n\n####  Onsite Refrigerants\n\nDelivering fresh and frozen food safely to millions of people in pleasant\nshopping environments requires refrigeration and air-cooling equipment that\nutilizes refrigerants. In 2023, onsite refrigerant emissions contributed\napproximately 55% of our Scope 1 emissions (29% of our total operational\nemissions). Between 2022 and 2023, global onsite refrigerant emissions\nincreased by 5.3%, primarily due to leaks from aging equipment in the U.S. and\nMexico. We seek to reduce refrigerant emissions in three ways:  \n  \n\n1\\. **Managing refrigerant gas leaks:** Refrigerant gas leaks are one of the\nprimary drivers for our operational emissions increase. We focus on reducing\nthese emissions by:\n\n    * Enhancing preventive maintenance (e.g., in 2024 we transitioned from preventive maintenance every three years, to all Walmart U.S. stores undergoing preventive maintenance review annually) \n    * Improving technician training (e.g., in 2024 we hired and brought in-house more than 600 HVAC/refrigeration technicians) \n    * Using machine learning for early leak detection, and to address leaks \n    * Implementing solutions for reuse (e.g., banking used gas for reuse to reduce virgin gas needs) \n\nWe have committed capital to replace aging equipment in the U.S. (see below)\nand anticipate curbing leaks as newer equipment is brought online.\n\n  \n  \n\n2\\. **Implementing low Global Warming Potential (GWP) systems:** Most of our\nfacilities still use higher-GWP systems prevalent at the time of initial\nconstruction. We have earmarked significant capex towards replacing aging U.S.\nrefrigeration equipment with lower-GWP alternatives (including ultra-low GWP\nsystems) and installing lower-GWP systems in new builds where commercially\navailable. As of May 2024, we operate 290 U.S. facilities that fully or\npartially utilize ultra-low GWP refrigerants including CO2, glycol, and\nammonia. Because we aim to tie our U.S. conversion schedule to equipment end-\nof-life and local commercial availability of new technologies, we expect\nsteady but uneven progress in the U.S. year-over-year.\n\n  \n  \n\n3\\. **Advocacy to support scaled adoption of low-GWP technology:** Walmart\nsupports policies that promote phasing out high-GWP refrigerants, including in\nconnection with the American Innovation and Manufacturing (AIM) Act.\n\nWhile we are focused on mitigating emissions associated with onsite\nrefrigerants\u2015including increasing the number of pilot projects approved and\ncapitalized\u2015these technologies will take time to mature and scale, and\nunforeseen events may occur. Additionally, we anticipate that deployment\nacross our business may fluctuate from year to year as our business grows and\ntransforms.\n\n  \n  \n\nWhile we are focused on mitigating emissions associated with onsite\nrefrigerants\u2015including increasing the number of pilot projects approved and\ncapitalized\u2015these technologies will take time to mature and scale, the\nrelevant market and regulatory environment may change, and unforeseen events\nmay occur. Additionally, we anticipate that deployment across our business may\nfluctuate from year to year as our business grows and transforms.\n\n2024\n\n#1 Retail  #4 National\n\n[ Read more \u00bb\n](https://urldefense.com/v3/__https://www.epa.gov/greenpower/green-power-\npartnership-top-30-retail__;!!IfjTnhH9!X9-oRhdkZQCdiNH-\nIjHEjfMX3vV2UFp8p0kxTXLKQalILke0oM6ayu8mJr0zr6P5f4uvEqA5LpMPvAEFZDzRtAI$)\n\nSolar Means Business 2024\n\n5th Overall  #3 On-site Generation\n\n[ Read more \u00bb\n](https://urldefense.com/v3/__https://www.solarmeansbusiness.com/__;!!IfjTnhH9!X9-oRhdkZQCdiNH-\nIjHEjfMX3vV2UFp8p0kxTXLKQalILke0oM6ayu8mJr0zr6P5f4uvEqA5LpMPvAEFGEJE-eQ$)\n\n2024\n\nHigh Performer  \nCarbon Award  \n\n[ Read more \u00bb\n](https://urldefense.com/v3/__https://www.epa.gov/smartway/smartway-high-\nperformers-truck-carriers-carbon-metrics__;!!IfjTnhH9!X9-oRhdkZQCdiNH-\nIjHEjfMX3vV2UFp8p0kxTXLKQalILke0oM6ayu8mJr0zr6P5f4uvEqA5LpMPvAEFg6QKNnE$)\n\n####  Clean Energy Investments\n\nBetween 2024 and the end of 2030, we aim to enable up to [ 10 GW of new clean\nenergy projects ](https://corporate.walmart.com/news/2024/01/09/powering-an-\nemissions-free-future-for-walmart-and-our-communities) through on- and off-\nsite projects, building on strategies that have helped us meet 30% of our\nelectricity needs through renewable energy contracts (as of 2023).\n\n  \n\nOur approach to new clean energy commitments is aimed at identifying high\nimpact, high quality projects that drive positive outcomes, including\nexpanding access to clean energy, driving new tax revenue for the communities\nwe serve, creating local jobs, and helping our customers, members and local\ncommunities/organizations reduce energy costs.\n\n  \n\nAs of March 2024, we have [ made commitments\n](https://corporate.walmart.com/news/2024/03/26/walmart-accelerates-clean-\nenergy-purchases-and-investments-with-nearly-1-gm-of-new-projects-across-the-\nus) that will enable the construction of nearly 1 GW of new clean energy\nprojects (e.g., community solar, renewable energy purchase agreements) across\nthe country.\n\n  \n\nFor a discussion on our public policy approach supporting renewable energy\nefforts, read [ Responsible Engagement in Public Policy\n](/content/corporate/en_us/purpose/esgreport/governance/engagement-in-public-\npolicy.html) .\n\n###  Indirect Emissions (GHG Protocol Scope 3)\n\nIndirect\u2014or Scope 3\u2014emissions come from activities upstream and downstream of\na retailer's direct operations, not owned or controlled by the retailer but\nindirectly influenced. Upstream emissions come from suppliers and production\nactivities such as raw material processing, energy used in manufacturing\nfacilities, agricultural emissions, and transportation. Downstream emissions\ncome from customer use of products, such as appliances (e.g., emissions from\nhousehold electricity) and food (e.g., off-gassing of disposed, uneaten food).\n\n  \n\nSignificant reduction in indirect emissions requires transformation of energy,\nmaterials, transportation, and food systems through the efforts of many across\nthe public sector, civil society, and the private sector. Such emissions are\nalso difficult to estimate (let alone measure) because of the extensive scope\nand complexity of supply chains across hundreds of thousands of items.\n\n  \n\nAlthough the emissions associated with the production and use of products are\nbeyond our direct control, Walmart has engaged suppliers in efforts to reduce\nemissions and enhance the resilience of product value chains since 2010. Value\nchain initiatives that reduce emissions can also deliver business benefits\nsuch as surety of supply, cost efficiencies, and new growth opportunities.\n\n  \n\n  * **2010:** Walmart set a target to eliminate an estimated 20 million metric tons of GHG emissions from our global supply chain and announced achievement of this target in 2015. \n  * **2016:** Walmart became the first retailer to set a Scope 3 target approved by the SBTi through our Project Gigaton, committing to engage suppliers to reduce, avoid, or sequester one billion metric tons of GHG emissions in their product value chains from 2015 to 2030. We announced achievement of this goal in February 2024. \n\nWalmart reports on Scope 3 emissions and activities in two distinct but\nrelated ways:\n\n  \n\n  * **Project Gigaton:** Walmart engages suppliers to pursue projects\u2014such as enhancing factory efficiency or reducing packaging\u2014that have a measurable reduction on GHG emissions. We report on the cumulative emissions impact of these projects (as reported by our suppliers) using science-based \u201ccalculators\u201d to estimate the emissions impact of each project. \n  * **Scope 3 Footprint:** A broad estimate of indirect emissions produced at every stage of production and consumption of the products we sell globally in a given year, using high-level category sales data and industry average emissions factors. We expect our Scope 3 footprint to be positively impacted as Walmart continues to engage our supply chain to address key sources of Scope 3 emissions, and secures additional, and in some cases more accurate, data from suppliers. \n\n  \n\nWhile many projects that produce a positive result under Project Gigaton can\nalso positively impact Walmart\u2019s Scope 3 footprint, data gaps and immature\nScope 3 footprint estimation methodologies mean that these efforts and results\ncannot be fully reconciled.  \n\n  \n\n####  Project Gigaton\n\nIn 2016, Walmart became the [ first retailer\n](https://sciencebasedtargets.org/blog/walmarts-science-based-target-a-game-\nchanger) to set a SBTi-approved target for emissions reduction, which included\na goal\u2014which we called Project Gigaton\u2014to help reduce, avoid, or sequester 1\nbillion metric tons (a gigaton) of CO2e in global product value chains by\n2030. To catalyze immediate, significant, and sustained effort toward this\ngoal, we worked with [ World Wildlife Fund ](https://www.worldwildlife.org/)\n(WWF), [ Environmental Defense Fund ](https://www.edf.org/) (EDF), and [ CDP\n](https://www.cdp.net/) to develop programs to engage suppliers, NGOs, and\nothers in reducing major concentrations of emissions in global value chains,\nincluding actions with a specific focus on energy, transportation, product\ndesign, waste, packaging, and nature.\n\n  \n\nIn February 2024 we celebrated the successful completion of our initial\nProject Gigaton goal more than **six years ahead of our target date** \u2013 [\nannouncing ](https://corporate.walmart.com/news/2024/02/21/walmart-suppliers-\nlead-the-charge-help-deliver-project-gigaton-goal-more-than-six-years-early)\nthat our suppliers have reported projects that are expected to exceed 1\nbillion metric tons of cumulative emissions reduced, avoided, or sequestered\nby 2030.\n\nAlthough we achieved our 1 billion metric tons goal  12  , we are continuing\nto engage suppliers under the Project Gigaton banner to further accelerate\nemissions reduction across the value chain in ways that are positive for our\ncustomers, suppliers, farmers and other producers, and communities.\n\n#####  Project Gigaton Progress  6,7,13,14  \n(MMT CO2e Emissions Reported Reduced, Avoided, or Sequestered (supplier\nreported))\n\nExpected cumulative emissions reduced, avoided or sequestered by supplier\nactions (MMT CO  2  e) by 2030\n\n#####  Project Gigaton Action Areas (FY2024)\n\nMillion Metric Tons (MMT) CO2e expected to be reduced, avoided or sequestered\nby action area by 2030\n\n#####  Purpose of Project Gigaton\n\nWe designed Project Gigaton to accelerate mitigation of emissions in product\nvalue chains, with a focus on addressable sources of emissions that contribute\nto Scope 3 emissions in retail. Design principles include: ****\n\n  \n\n  * **Immediate, relevant action:** The program encourages suppliers to take immediate, science-based actions focused on the most relevant sources of emissions in product value chains, such as energy sources or agricultural practices. \n  * **Making it easy for all suppliers:** The program is designed to accommodate suppliers who vary in their readiness and capability of undertaking intensive GHG reduction efforts. For example, in 2023, suppliers that participated in Project Gigaton had annual sales to Walmart that ranged from <$1 million to $15 billion in U.S. product net sales  6  . We provide support to build confidence and capability in mitigating emissions, from goal setting to action to reporting. \n  * **Industry-wide innovation** : By engaging and supporting suppliers around the world who span product categories, we aim to facilitate connections and spark the innovation needed to accelerate and expand emissions reduction and avoidance. \n\n#####  Project Gigaton Actions & Retail Scope 3 Emissions Categories  7\n\n*Million Metric Tons (MMT) CO  2  e expected to be reduced, avoided, or sequestered by Project Gigaton Action Area by 2030. \n\n#####  How Project Gigaton Works\n\nThrough Project Gigaton, Walmart encourages and supports suppliers to set\nemissions goals, take action, and report results on emissions reduction,\navoidance, and sequestration efforts in their value chains (which include, but\nmay go beyond, Walmart\u2019s chain). See Project Gigaton Pillars & Action table\nbelow for additional details. ****\n\n  \n\n  * **Setting Goals** : Project Gigaton encourages suppliers to set goals across six action areas (pillars) that are among the most critical for mitigating emissions in product supply chains and relevant to our suppliers\u2019 businesses: energy use, nature, waste, packaging, transportation, and product use and design. We worked with WWF and EDF to develop emissions \" [ calculators ](https://walmartsustainabilityhub.emissionscalculators.walmart.com/main/home/GSF/eng/energy) \" that suggest opportunities for emissions reduction, avoidance, and sequestration as well as help suppliers calculate the estimated emissions impact of their initiatives. \n  * **Taking Action:** We engage our suppliers to understand and design interventions to help mitigate emissions generally and in challenging and GHG-intensive product categories (e.g., beef, dairy, soy supply chains). Actions and interventions include: \n    * [ **Providing calculators** ](https://walmartsustainabilityhub.emissionscalculators.walmart.com/main/home/GSF/eng/energy) to help suppliers identify relevant opportunities to mitigate emissions \n    * [ **Setting product standards and requirements** ](https://corporate.walmart.com/esgreport/environmental/regeneration-of-natural-resources-forests-land-oceans) , including certification requirements \n    * **[ Hosting webinars and summits ](https://www.walmartsustainabilityhub.com/reporting/trainings-and-webinars) ** to provide training and share best practices \n    * **Offering programs to help accelerate impact** _,_ such as the [ Gigaton PPA ](https://corporate.walmart.com/news/2022/10/18/gigaton-ppa-walmart-rsted-and-schneider-electric-announce-first-cohort-for-renewable-energy-supply-chain-program) and [ Circular Connector ](https://walmartsustainabilityhub.emissionscalculators.walmart.com/main/innovations/packaging)\n    * **Providing tools and playbooks** , such as the [ Place Based Projects Map ](https://walmartsustainabilityhub.emissionscalculators.walmart.com/main/innovations/report)\n    * **Helping suppliers secure financial support** by [ working with CDP and HSBC ](https://corporate.walmart.com/newsroom/2021/12/08/walmart-creates-industry-first-by-introducing-science-based-targets-for-supply-chain-finance-program) to provide an early-payment program for qualified suppliers \n  * **Reporting and Recognition:** Walmart encourages suppliers to increase their engagement, [ publicly recognizing ](https://walmartsustainabilityhub.emissionscalculators.walmart.com/main/recognition) them with \"Sparking Change\" or \"Giga Guru\" status based on increasing levels of ambition in goal-setting and reporting. To further facilitate reporting and transparency, Walmart allows suppliers to leverage their CDP disclosures to report to Project Gigaton. \n\n#####  Pillar\n\n|\n\n#####  Relevance for GHG Reduction\n\n|\n\n#####  Supplier Actions Encouraged\n\n|\n\n#####  Examples Support  \n  \n---|---|---|---  \n**[ Energy ](https://www.walmartsustainabilityhub.com/climate/project-gigaton/energy) ** |  Energy generation and procurement is often a key source of a business\u2019s GHG emissions.  |  Avoid energy-related emissions by reducing energy demand through optimization and efficiency and transitioning to renewable energy sources.  | \n\n  * Calculators to understand impacts of specific changes on GHG emissions \n  * Tools/playbooks (e.g., Factory Energy Efficiency tool) \n  * [ Gigaton PPA ](https://corporate.walmart.com/news/2022/10/18/gigaton-ppa-walmart-rsted-and-schneider-electric-announce-first-cohort-for-renewable-energy-supply-chain-program)\n  * Advocacy and engagement in consortia (e.g., [ Better Buildings Alliance ](https://betterbuildingssolutioncenter.energy.gov/alliance) , [ Clean Energy Buyers Association ](https://cebuyers.org/) ) \n\n  \n**[ Nature ](https://www.walmartsustainabilityhub.com/climate/project-gigaton/nature) ** |  Scientists estimate that restoring, renewing and replenishing nature can provide one-third of the solution to climate change.  |  Help protect and restore forests, grasslands and seascapes; adopt sustainable agriculture practices such as cover crops and manure management.  | \n\n  * Calculators to understand impacts of specific changes on GHG emissions \n  * Product specifications and standards (e.g., Forest Policy, Pollinator Health Position) \n  * Best practice forums (e.g., Beef Summit, Row Crop Summit, Seafood Summit) \n  * Philanthropic investments (e.g., forest traceability/monitoring tools) \n\n  \n**[ Waste ](https://www.walmartsustainabilityhub.com/climate/project-gigaton/waste) ** |  Reducing and diverting waste can have a significant impact on GHG emission.  |  Address food, product, and material waste from factories, warehouses, distribution centers, and farms.  | \n\n  * Calculators to understand impacts of specific changes on GHG emissions \n  * Advocacy and engagement in consortia (e.g., \u201c [ 10x20x30 ](https://champions123.org/10-20-30) \u201d initiative, Consumer Goods Forum Food Waste Coalition) \n  * Philanthropic investments (e.g., WRI training and technical assistance on reducing food waste and loss, Closed Loop Infrastructure Fund) \n\n  \n**[ Packaging ](https://www.walmartsustainabilityhub.com/climate/project-gigaton/packaging) ** |  The creation of packaging generates emissions; reducing packaging and using more efficient materials can reduce emissions.  |  Reduce unnecessary packaging, use better packaging materials, and increase packaging reuse and recycling.  | \n\n  * Calculators to understand impacts of specific changes on GHG emissions \n  * Packaging standards and specifications \n  * Best practice forums (e.g., Packaging Innovation Summit) \n  * Tools and playbooks (e.g., [ Walmart Recycling Playbook ](https://www.walmartsustainabilityhub.com/content/dam/walmart-sustainability-hub/documents/project-gigaton/packaging/walmart-recycling-playbook.pdf) , [ Plastic IQ ](https://plasticiq.org/) ) \n  * Programs (e.g., Circular Connector) \n  * Advocacy and engagement in consortia (e.g., Consumer Goods Forum\u2019s Plastics Coalition, Polypropylene Recycling Coalition, Closed Loop Partners\u2019 [ Beyond the Bag ](https://www.closedlooppartners.com/beyond-the-bag/) ) \n\n  \n**[ Transportation ](https://www.walmartsustainabilityhub.com/climate/project-gigaton/transportation) ** |  Fossil-fuel powered vehicles produce GHG emissions during their operation and are typically a major source of value chain emissions.  |  Improve fleet efficiencies, optimize routes, and introduce zero-emission vehicles.  | \n\n  * Calculators to understand impacts of specific changes on GHG emissions \n  * Advocacy (e.g., collaboration with PepsiCo on [ public policy principles ](https://www.linkedin.com/pulse/heres-how-policy-can-design-reliable-resilient-zero-emissions-cortes/?trackingId=YuF%2BG2xNRg2KRiYu8JfmHQ%3D%3D) for zero-emission commercial transportation fleets) \n\n  \n**[ Product Use & Design ](https://www.walmartsustainabilityhub.com/project-gigaton/product-use) ** |  Customer use of energy-consuming products and care and disposal of sold products results in the generation of GHG emissions.  |  Design products to reduce emissions throughout the product lifecycle, from use of raw materials in manufacturing the product (e.g., incorporating recycled content) through consumer use (e.g., LED lightbulbs).  | \n\n  * Calculators to understand impacts of specific changes on GHG emissions \n  * Tools and playbooks (e.g., [ Sustainable Packaging Playbook ](https://www.walmartsustainabilityhub.com/content/dam/walmart-sustainability-hub/documents/project-gigaton/packaging/sustainable-packaging-playbook.pdf) , [ Golden Design Rules ](https://www.theconsumergoodsforum.com/press_releases/cgf-plastic-waste-coalition-launches-full-set-of-golden-design-rules-to-tackle-plastic-waste/) ) \n  * Advocacy and engagement in consortia (e.g., CGF principles on Extended Producer Responsibility) \n  * Philanthropic investments (e.g., Accelerating Circularity - reduce textile waste) \n\n  \n  \n####  Scope 3 Footprint\n\nWalmart has reported broad estimates of our Scope 3 emissions footprint since\n2017. Just as the GHG Protocol methodology continues to evolve, so too has our\nmethodology (and comprehensiveness in terms of market coverage and included\nGHG \u201ccategories\u201d).  15\n\n  \n\nOur 2022 and 2023 Scope 3 emissions footprint estimates are aligned with the\ncurrent [ GHG Protocol Corporate Accounting and Reporting Standard\n](http://www.ghgprotocol.org/corporate-standard) . The metric represents a\nvery broad, order-of-magnitude estimate, based on aggregate product category\nsales and publicly available emissions factors for the production and\nconsumption of our assortment, including (based on the accounting protocol),\nthe lifetime emissions of energy-using products based on the electricity grids\npowering customer households around the world.  21  Our 2022 and 2023 scope\nincludes Walmart markets that individually account for at least 5% of the\nScope 3 emissions footprint and the GHG Protocol categories most relevant for\na multi-category retailer: Category 1 (purchased goods and services), Category\n2 (capital goods), Category 11 (estimated cumulative emissions from use of\nsold products over the lifetime of the product), and Category 12 (end of life\ntreatment of sold products). Cumulatively, these four categories represent\n~95% of Walmart\u2019s global Scope 3 emissions.\n\n#####  Metric\n\n|\n\n#####  CY2022\n\n|\n\n#####  CY2023  \n  \n---|---|---  \nEstimated Scope 3 footprint (MMT CO  2  e)  17,18  |  587.6  |  618.9   \nScope 3 intensity (MMT CO  2  e / $B net sales)  19  |  0.97  |  0.96   \nScope 3 intensity change vs. 2022 baseline  |    \n|  -0.7%  \n  \nBuilding on the success of our Project Gigaton initiatives, we seek to reduce\nthe emissions intensity of our product assortment (Scope 3 CO  2  e per net\nsales dollar) through the following initiatives:\n\n  \n\n  * Engaging suppliers through the continuation of Project Gigaton (see above), through which suppliers pursue efforts to decarbonize their supply chains \n  * Advocating for the adoption of policies intended to reduce emissions, expand availability of clean, renewable energy, and scale innovations (see Operational Emissions (GHG Protocol Scope 1 & 2, and Advocacy) \n  * Defining commodity sourcing expectations to help reduce/eliminate deforestation and land conversion (see [ Regeneration of Natural Resources ](/content/corporate/en_us/purpose/esgreport/environmental/regeneration-of-natural-resources-forests-land-oceans.html) and our [ Forest Policy ](https://corporate.walmart.com/policies#forests-policy) ) \n  * Supporting innovations in product design and packaging (see [ Waste: Circular Economy ](content/corporate/en_us/purpose/esgreport/environmental/waste-circular-economy) ) \n  * Supporting industry supply chain innovation and traceability tools through Walmart and Walmart Foundation grants (see  [ Regeneration of Natural Resources ](/content/corporate/en_us/purpose/esgreport/environmental/regeneration-of-natural-resources-forests-land-oceans.html) ) \n  * Offering our customers an assortment of products and services that enable them to reduce energy usage and save money \n\n  \n\nWe expect that our Scope 3 footprint will vary year-to-year and that\ndemonstrated progress will lag actual changes because of measurement\nchallenges. Recognizing improvements to our Scope 3 profile will depend on:\n\n  \n\n  * Factors beyond our control, including changes in energy grids (e.g., emissions to produce electricity) in regions from where we source and where our customers live, availability of emissions data, agricultural production methods, transportation methods and technologies, waste handling infrastructure, customer purchasing decisions and use patterns, inflation or deflation, government policy, and supplier ability to make meaningful changes \n  * Composition of Walmart\u2019s net sales (e.g., changes in product category mix, growth in net sales from strategic initiatives) \n  * Emissions measurement methodologies, which are subject to change. Changes in the reported Scope 3 emissions footprint may lag changes in Walmart\u2019s actual value chain emissions because of measurement constraints. For example, the Scope 3 estimation relies largely on industry average emissions factors; estimates may improve as more suppliers provide reliable information about their production methods, item attributes, and/or emissions allocations for Walmart. \n  * Accounting measurement methodologies, which are subject to change. Changes to the GHG Protocol or other widely adopted accounting methodologies may also have a material effect on our reported footprint. \n\n  \n\nBack to Top  |  Back to Key Strategies and Progress \n\n###  Adaptation\n\n  \n\nOur climate strategy includes adapting our operations and sourcing to enhance\nresilience in the face of factors related to climate change, including\nwarming, drought, and extreme weather events.\n\n  \n\n####  Disaster Risk Scanning\n\nWalmart\u2019s Global Emergency Management (GEM) team, staffed by Walmart\nassociates with experience in law enforcement, meteorology, emergency\nmanagement, and resilience planning, uses data to identify, assess, and manage\nevents that could affect our operations, supply chain, or associates. For\nexample:\n\n  \n\n  * We gather information from government authorities regarding emergency declarations at the federal, state, county, and city levels and make the information available to our business to evaluate whether action is necessary. \n\n  * Using data from the National Hurricane Center and Weather Prediction Center, we assess risks from developing events\u2014such as hurricanes and ice storms\u2014several days in advance of impact so that we can build and implement plans for the areas we anticipate will be most impacted. \n\n  * We use data from previous events to anticipate customer and community needs, help us determine where we may need to direct necessary supplies and personnel, prepare associates in the field with knowledge about available resources, and help inform plans to maintain or quickly restore operations if similar situations arise in the future. \n\n  \n\nRead more: [ Disaster Preparedness & Response\n](https://corporate.walmart.com/purpose/esgreport/social/disaster-\npreparedness-response) .\n\n  \n\n####  Energy-Efficient Operations ****\n\nTo control energy expenses\u2015one of our top operating expenses\u2015while mitigating\nemissions, we have prioritized incorporating energy efficiency into new store\ndesigns and upgrading older equipment where economically feasible with higher-\nefficiency technology. We also use technology to monitor and optimize energy\nuse in our buildings.\n\n  \n\n####  Sourcing: Surety of Supply ****\n\n**Managing Day-to-Day Disruptions:** Our merchants and sourcing teams use a\nvariety of tools to manage volatility and surety of supply day-to-day. Our\nsourcing teams manage food commodity supply risks by building upstream\ncapacity, diversifying our sourcing regions, and exploring new technology and\ninnovation. For example, our merchants use predictive weather data to adjust\nproduct deployment and replenishment rates in the short term, as well as\nleverage historical data on sales performance and customer buying patterns to\ninform product assortment shifts over time. This helps ensure that as the\nclimate changes, we continue to offer the right products for our customers at\nthe right time.\n\n  \n\n**Country of Origin Strategies:** While most products we sell are sourced\nlocally, we depend on globally-sourced products to complete our assortment.\nWalmart's sourcing team, leveraging our climate risk assessment and other\ntools, works with merchants to build a more resilient supply chain. __\n\n  \n\n**Transforming Product Supply Chains for Long-Term Sustainability:** Because\nagricultural commodities can be especially susceptible to severe weather\nevents and to climate change, Walmart has prioritized strategic initiatives to\nenhance commodity supply chain sustainability and resilience. Walmart\u2019s\nefforts include setting sourcing requirements and product specifications for\nsuppliers, engaging suppliers in measurement and best practice sharing,\nsupporting industry collaboration, engaging our customers, public policy\nadvocacy, and philanthropy (see our [ Regeneration of Natural Resources\n](https://corporate.walmart.com/purpose/esgreport/environmental/regeneration-\nof-natural-resources-forests-land-oceans) brief for more detail).\n\nBack to Top  |  Back to Key Strategies and Progress \n\n###  Advocacy\n\n  \n\nWalmart\u2019s Board-approved [ Statement on Climate Policy\n](https://corporate.walmart.com/policies#climate-policy) frames our advocacy\napproach to climate change. To accelerate emissions reductions while\nsupporting business and economic growth, we advocate for a range of policies\n(e.g., clean-energy transportation innovation, technology-neutral approaches\nfor hard-to-decarbonize sectors and industries).\n\n  \n\nFor further discussion on our approach to advocacy, read [ Responsible\nEngagement in Public Policy\n](/content/corporate/en_us/purpose/esgreport/governance/engagement-in-public-\npolicy.html) and [ Key Trade Associations and Member Organizations\n](https://corporate.walmart.com/content/dam/corporate/documents/esgreport/governance/engagement-\nin-public-policy/2024-Key-Trade-Associations-and-Member-Organizations.pdf) .\n\nBack to Top  |  Back to Key Strategies and Progress \n\n###  Reporting\n\nWe believe transparency in reporting risks, opportunities, priorities,\nstrategies, progress, and challenges is important. We estimate our Scope 1, 2,\nand 3 GHG emissions in accordance with the GHG Protocol Corporate Accounting\nand Reporting Standard, have disclosed emissions and other climate\u2010related\ninformation since 2006, and provide regular updates through our ESG reporting.\nWe report annually to CDP, and make our most recent responses and third-party\nassurance statements  [ public\n](https://corporate.walmart.com/purpose/esgreport/reporting-data/cdp-response-\narchive) .\n\nView the\n\n[ Walmart Response Archive\n](https://corporate.walmart.com/purpose/esgreport/reporting-data/cdp-response-\narchive)\n\nBack to Top  |  Back to Key Strategies and Progress \n\nChallenges\n\n  * While Walmart can play a substantial role in its own business, supply chain and beyond, achieving the Intergovernmental Panel on Climate Change (IPCC) goal of reducing global GHG emissions to net-zero by 2050 requires action from all parts of society. Walmart\u2019s ability to reduce emissions is dependent on the collaboration, cooperation, and performance of third parties (including governments, civil society, and industry, as well as our own suppliers and customers). \n  * Factors beyond Walmart\u2019s control impact our ability to achieve climate-related targets and aspirations, including changes to energy grids in every region where we operate or source; our physical presence in geographic areas without available necessary technology, equipment, or capabilities; and weather patterns. \n  * Achieving our targets and/or aspirations will require innovation and technology that is not available or economically viable, or fully scalable today, including the evolution, accessibility, and/or adoption of renewable energy, lower-GWP refrigeration systems, vehicles powered by renewable sources of energy, and regenerative agricultural technologies. A critical mass of potential consumers of new technologies is a necessary precondition to their development, deployment, and scaling. \n  * The capital and operating costs of implementing projects will remain a challenge for the foreseeable future (e.g., transitioning to low-GWP refrigerants, vehicles powered by renewable sources of energy). Low market prices and volatility of the price of fossil fuels can influence the cost/benefit analyses. \n  * Walmart\u2019s business will continue to evolve and grow. This growth and changes in our strategies and/or model may require additional facilities, an expansion of our footprint, and/or inclusion of new sources of GHG emissions, which creates additional challenges for absolute emissions reduction targets. \n  * Several factors can make it challenging to estimate emissions, present a consistent view of progress over time, and/or achieve our targets, including: standards for target-setting and calculating GHG emissions are not settled and change from time to time (which may cause calculations to shift dramatically although no changes to underlying practices have taken place \u2015e.g., the recent introduction of forests, land, and agriculture and land use/removal standards); regulatory calculation and reporting standards may be introduced and may differ from commonly used voluntary standards; and emissions factors and industry averages used to calculate emissions may change and may lag, leading to updates and restatements. \n  * Public policies may not support actions aligned with Walmart's targets and aspirations, including by not encouraging the development and deployment of low-carbon or low-emissions technologies at scale and/or that negatively impact the supply or cost of renewable energy projects at scale. \n  * Uncertainties around mandatory climate-related disclosures and shifting stakeholder expectations towards greater action and commitment create tensions that are difficult to reconcile and may leave some stakeholders unsatisfied. \n\n1\\. In 2020, we raised our aspiration to reduce emissions in our operations\n(Scopes 1 & 2) by realigning our science-based target to a 1.5o-C-aligned\ntrajectory. Our goal is to achieve zero emissions across Walmart\u2019s global\noperations by 2040, reducing absolute Scope 1 & 2 GHG emissions 35% by 2025\nand 65% by 2030 from our 2015 base year (interim targets approved as science-\nbased and classified as 1.5\u00b0C-aligned by the SBTi. We anticipate achieving our\nnear- and mid-term emissions reduction targets later than our 2025 and 2030\ntarget dates while working to achieve our 2040 zero emissions aspiration, as\nfurther discussed in this brief.\n\n  \n\n2\\. As used herein, \u201crenewable sources of energy\u201d means renewable sources of\n_electricity_ and is not intended to cover other sources of energy.\n\n  \n\n3\\. Annual Scope 1 & 2 GHG emissions and carbon intensity metrics are updated\nfrom time to time in this Climate Change brief to account for changes in\nemission factors or the availability of more accurate activity data. Our\nemissions footprint in CO2e and carbon intensity per revenue are calculated to\ninclude emissions for our operations for the period which we owned the\noperations in the reporting year. This may result in updated emissions\nreported in this Climate Change brief not corresponding to results reported to\nCDP for our annual Climate Change questionnaire. We engage Lucideon CICS to\nindependently verify Walmart\u2019s reported Scope 1 & 2 emissions as reported to\nCDP annually, pursuant to ISO 14064-3 (the international standard for\nverification of Greenhouse Gas inventories). We follow Walmart\u2019s Greenhouse\nGas Inventory Methodology in calculating our greenhouse gas (GHG) emissions,\nwhich is consistent with the principles and guidance of the World Resources\nInstitute and the World Business Council for Sustainable Development\u2019s\nGreenhouse Gas Protocol Initiative (the \u201cGHG Protocol\u201d) for corporate GHG\naccounting and reporting. We also define Scope 1, 2, and 3 emissions as per\nGHG Protocol guidance.\n\n  \n\n4\\. To account for structural changes in our business, we strive to adjust our\nemission reduction progress on Scope 1 & 2 emissions to add or subtract\nemissions for entities acquired or divested in the year the acquisition or\ndivestiture took place, including adjusting for previous years (including the\nbaseline year).\n\n  \n5\\. This includes generation from active renewable and low-carbon projects. It\nconsiders the combined contribution of power generated from on-site and off-\nsite projects as well as renewable energy generation feeding into the grids\nwhere our sites are located. The electricity procured from our renewable\nenergy projects and the most recent grid fuel mix information obtained from\nthe International Energy Agency for the regions where we operate. The CY2021\nestimate does not include energy data for our Flipkart business. We believe\nexcluding CY2021 Flipkart data will have a negligible impact on our estimate.\n\n  \n\n6\\. Calculated in accordance with Walmart\u2019s Project Gigaton Accounting\nMethodology, available on the Walmart Sustainability Hub. This result includes\nemissions that may only be avoided, reduced, or sequestered after FY2024. In\naccordance with Walmart\u2019s Project Gigaton Accounting Methodology, the\nemissions impact of projects and initiatives with an estimated lifespan of\nmore than one year are accounted for in the year they are reported, up to and\nincluding anticipated emissions impacts in 2030.\n\n  \n7\\. Because Walmart does not restrict suppliers to reporting only on emissions\navoidance and reduction efforts that are attributable to the suppliers\u2019\nbusiness with Walmart, actions taken and reported through Project Gigaton\ncannot be used to measure Walmart\u2019s Scope 3 emissions, either absolutely or in\nyear-over-year reductions.\n\n  \n\n8\\. Walmart fiscal years run from February 1 to January 31 and are denoted by\n\u201cFY\u201d in our reporting (e.g., FY2023 is the fiscal year ending January 31,\n2023). Calendar years are noted in four-digit format or by \u201cCY\u201d.\n\n  \n\n9\\. The U.S. product net sales used for the calculation includes Walmart U.S.\nand Sam\u2019s Club product net sales for the four preceding quarters prior to\nsurvey reporting window (Q3 through Q2). The percentage represents U.S.\nproduct net sales of suppliers that reported to Project Gigaton in the\nreporting year versus all U.S. product net sales. The calculation excludes\nWalmart International segment product net sales from the calculation.\nReporting suppliers represents suppliers who have answered one or more of the\nquestions in Project Gigaton in the reporting year.\n\n  \n\n10\\. Calculated in accordance with the [ RE100 technical criteria\n](https://www.there100.org/technical-guidance) . RE100 defines renewable\nelectricity consumption as the ability to make unique claims on the use of\nrenewable electricity generation and its attributes.\n\n  \n\n11\\. For further information, visit the U.S. Department of Energy\u2019s [\nAlternative Fuels Data Center ](https://afdc.energy.gov/fuels/renewable-\ndiesel)\n\n  \n\n12\\. Alongside our Project Gigaton 1 billion metric ton goal, in [ 2018\n](https://corporate.walmart.com/news/2018/03/29/walmart-commits-to-reduce-\nemissions-by-50-million-metric-tons-in-china) , Walmart set a sub-goal to\nreduce emissions by 50 MMT in our China value chain. In February 2024, we [\nannounced ](https://corporate.walmart.com/news/2024/02/21/walmart-suppliers-\nlead-the-charge-help-deliver-project-gigaton-goal-more-than-six-years-early)\nthat our suppliers have reported projects that are expected to exceed 1\nbillion metric tons of cumulative emissions reduced, avoided, or sequestered\nby 2030. We retired our China sub-goal upon achievement of our primary Project\nGigaton goal to enable a refocus of effort and attention on our Scope 3\nfootprint and work plan going forward.\n\n  \n\n13\\. Sum of single year reported emissions may not add up to cumulative\nreported emissions due to rounding.\n\n  \n\n14\\. WWF and EDF review select suppliers' submissions.\n\n  \n\n15\\. We caution against comparing year-over-year Scope 3 footprints from\n2017-2021, as the scope and methodology used to estimate those footprints has\nevolved. Scope 3 footprints beginning in 2022 allow for greater comparison, as\nthe methodology is consistent and includes the same GHG Protocol categories\n(1, 2, 11, and 12).\n\n  \n\n16\\. For additional information on the complexity of Scope 3 measurement,\naccounting and reporting challenges, please see [ Retailers\u2019 climate road map:\nCharting paths to decarbonized value chains\n](https://www.mckinsey.com/capabilities/sustainability/our-insights/retailers-\nclimate-road-map-charting-paths-to-decarbonized-value-chains)\n\n17\\. Estimated Scope 3 emissions for GHG Protocol Categories 1, 2, 11, and 12\ninclude key markets and represents >90% of Walmart\u2019s comprehensive Scope 3\nfootprint. Key markets include U.S., Mexico, India (Flipkart), Canada and\nChina.\n\n  \n\n18\\. Changes in disclosure regulations, carbon accounting methodologies (e.g.,\nGHG Protocol) and data availability may impact our footprint and progress\ntowards our target. GHG Protocol Category 11 includes the total lifetime\nemissions from products sold in the reporting year, not just the emissions\nfrom their use in that year.\n\n  \n\n19\\. Scope 3 carbon intensity (reported Scope 3 MMT CO2e emissions per $B net\nsales for Walmart Inc.) calculation is based on calendar year emissions\n(January 1-December 31) and normalized by total annual net sales as measured\nby Walmart\u2019s fiscal year (February 1-January 31).\n\nRead More:\n\n  * [ CDP Response Archive ](/content/corporate/en_us/purpose/esgreport/reporting-data/cdp-response-archive.html)\n  * Board-approved [ Climate Policy ](https://corporate.walmart.com/policies#climate-policy)\n  * [ Environmental Sustainability Statement ](https://corporate.walmart.com/policies#environmental-sustainability-statement)\n  * [ Project Gigaton ](https://www.walmartsustainabilityhub.com/project-gigaton) overview \n  * [ 2020 Climate Risk Assessment ](/content/dam/corporate/documents/esgreport/environmental/climate-change/Climate-Change-Risk%20Assessment.pdf)\n  * [ Retailers\u2019 climate road map: Charting paths to decarbonized value chains ](https://www.mckinsey.com/capabilities/sustainability/our-insights/retailers-climate-road-map-charting-paths-to-decarbonized-value-chains) (McKinsey) \n\nBack to Top\n\n#f2f2f2\n\n[ ](/)\n\nStock pricing delayed by 20 minutes.  \n\n\u00a9 2025 Walmart Inc. All Rights Reserved.  \n\n",
                "url": "https://corporate.walmart.com/purpose/esgreport/environmental/climate-change"
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                },
                "page_content": "  * [ HOME  ](/en)\n  * [ Sustainability  ](/en/csr/index.html)\n  * [ Environment  ](/en/csr/environment/index.html)\n  * Mitigating Climate Change \n\nMenu\n\n  * Our Approach \n  * Management System \n  * Risks and Opportunities Identified \n  * Strategy \n  * Risk Management \n  * Medium- to Long-term Goals (Long-term Vision and Milestones) \n  * Initiatives \n  * Life-cycle Assessment \n  * Product Initiatives \n  * Site Initiatives \n  * Sales Initiatives \n  * Logistics Initiatives \n  * Procurement Initiatives \n  * Other Climate Change Initiatives \n  * \uff08Carbon Pricing\uff09 \n  * \uff08External Partnerships\uff09 \n\n##  Our Approach\n\nSUBARU recognizes that climate change is one of the most pressing global\nissues. Toward its target of achieving carbon neutrality by 2050, SUBARU will\nreduce CO  2  emissions from its products, factories, and offices to help\ndecarbonize society. Accordingly, it has set long-term goals, and is working\nto achieve them with medium-term goals as intermediate milestones.\n\nIn addition, we believe that battery electric vehicles (BEVs) will eventually\nbecome a mainstay driver of carbon neutrality from a medium- to long-term\nperspective. As the environment surrounding electrification continues to\nchange drastically, and with difficulties foreseeing the future, SUBARU will\ncontinue to focus on the development of BEVs from 2025 to 2026, which is\npositioned as the early stage of the transition to BEVs, while keeping a close\neye on the trends in regulations and the market. We are taking various actions\nbased on the recognition that it is extremely important to ensure flexibility\nand expandability, using this concept to adapt to such changes flexibly and to\nscale at once when the direction of the shift becomes clear.\n\n##  Management System\n\nRecently, the business environment has been experiencing disruptive and non-\nlinear changes at an unprecedented pace. In response to these major changes in\nthe external environment, under our new organizational and officer system, we\naim to accelerate \"Monozukuri Innovation\" and \"Value Creation\" as stated in\nthe New Management Policies. Furthermore, by strengthening Company-wide cross-\norganizational functions, clarifying executive responsibility, and\nestablishing a system to bring our policies to fruition, we aim to accelerate\nour efforts to address the core priority themes and achieve overall\noptimization.\n\n####  Established Five New CXO (Chief X Officer) Positions in the Automotive\nBusiness Unit\n\nSUBARU has newly established five Chief Officers (CXOs) who will be\nresponsible for its five core priority themes: \"Monozukuri Innovation,\"\n\"battery business,\" \"digital car,\" \"connected business,\" and \"cost\ninnovation.\" These officers are engaged in cross-departmental action to break\ndown departmental barriers, restructure the organization, and accelerate our\n\"Monozukuri Innovation\" and \"Value Creation.\"\n\nCXO (Chief X Officer)  |  Mission   \n---|---  \nCMzO: Chief Monozukuri Officer  |  Lead efforts to halve the development process and lead time, halve the configuration and number of parts, and halve the production process and lead time.   \nDrive initiatives to achieve world-leading \"Monozukuri Innovation\"  \nCBBO: Chief Battery Business Officer  |  Lead the overall advancement of the battery business, including ensuring stable procurement, competitiveness, and business viability   \nCDCO: Chief Digital Car Officer  |  Drive initiatives to achieve world-leading \"Value Creation\" through the digitalization of automobiles   \nCCBO: Chief Connected Business Officer  |  Drive initiatives to achieve world-leading \"Value Creation,\" primarily in the \"out-car\" domain   \nCCIO: Chief Cost Innovation Officer  |  Lead and oversee Company-wide efforts to achieve cost competitiveness   \n  \n####  Reorganizing and strengthening the organization and functions related to\n\"Monozukuri Innovation\" and \"Value Creation\"\n\nIn order to reorganize and strengthen the organization and functions related\nto \"Monozukuri Innovation\" and \"Value Creation,\" SUBARU has established the\nValue Strategy Office within the Corporate Planning Division to enhance the\nproduct portfolio strategy function. Furthermore, we have renamed the Product\n& Portfolio Planning Division to the Product Business Division to engage in\nICE  *  -specialized (including hybrids) planning and development to maintain\nand improve product competitiveness, as well as to improve after-sales product\ncompetitiveness and promote planning for \"Retaining Value\" initiatives, etc.\n\n* \n     Internal combustion (e.g., gasoline) engines \n\n####  Climate Change-related Governance Harnessing our Environmental\nManagement System\n\nSUBARU has established the Environment Committee for the purpose of promoting\nthe sustainable growth of both society and the Company, and thereby\ncontributing to global environment conservation. The committee discusses\ntargets and measures from broad as well as medium- to long-term perspectives\nthat accommodate environmental standards required by future societies, and\nevaluates the progress of related implementations and achievements.  \nThe Environment Committee is chaired by the Executive Officer in charge of the\nSustainability Division appointed by the Board of Directors. Details of\ndiscussions by the Environment Committee are reported to the Sustainability\nCommittee. We also have a system for escalation and reporting to the Executive\nManagement Board Meeting and Board of Directors to be used as necessary.\nManagement of climate change-related activities is included in the\nresponsibilities of the environmental management structure. Environmental\nrisks and opportunities associated with climate change are assessed and\nmonitored, and undergo management review. Then, particularly critical\nproposals are deliberated and decided at the Board of Directors. Each of the\nfive bodies within the structure\u2014Production & Environment Subcommittee, Global\nWarming Prevention Working Group, Domestic Affiliated Companies\u2019 Environment\nSubcommittee, Sales and Service Environment Subcommittee, and Logistics\nEnvironment Subcommittee\u2014meet twice a year for the purpose of monitoring.\n\n#####  Governance Structure for Climate Change\n\n####  Climate Change Governance in the Entire Life Cycle\n\nIn order to contribute to the realization of a decarbonized society through\nthe reduction of CO  2  emissions throughout the life cycle of our business\nactivities, SUBARU holds monthly CN Promotion Meetings, bringing together\ndepartments representing the five areas of \u201cproduct use,\u201d \u201cmaterials and\ncomponents,\u201d \u201ctransportation,\u201d \u201cdisposal,\u201d and \u201cmanufacturing.\u201d In these CN\nPromotion Meetings, members from each area worked together and shared\ninformation, formulated a master plan from a medium- to long-term perspective,\nand took actions to visualize and mitigate emissions in each area in the\ninterest of achieving carbon neutrality by 2050. SUBARU operates cross-company\nforums whose aim is CO  2  reduction over the entire life cycle and whose\nactivities are subject to the overall supervision of the Environment Committee\nas part of carbon neutrality initiatives.\n\n##  Risks and Opportunities Identified\n\nSUBARU defines and identifies risks and opportunities associated with climate\nchange to achieve sustainable business activities.  \nWe have identified a number of risks associated with climate change.\nInitiatives to address climate change may be inadequate or abnormal weather\nmay cause delays in procurement, production, and distribution. In addition,\ntransition risks and physical risks may have impacts and outcomes that are\ncurrently extremely difficult to predict. Increased R&D expenses, lost sales\nopportunities due to reduced customer satisfaction and brand image, and delays\nin procurement, production, and distribution due to abnormal weather are among\nthe potential impacts of these risks. These risks could have a material impact\non the operating results and financial position of the SUBARU Group.  \nOn the other hand, effective initiatives to address climate change could lead\nto opportunities to create new markets and employment and also use capital and\nenergy more efficiently.\n\n###  Main Risks Identified\n\n####  Business Management in General\n\nReputational risk\n\n(1) If SUBARU fails to implement adequate initiatives to achieve low-\ncarbon/zero-carbon outcomes, its brand value could be harmed, which could\naffect the Company\u2019s sales and recruiting ability. Capital costs could also\nrise, due to increased difficulty in obtaining financing from medium- and\nlong-term investors.\n\nRegulatory risk\n\n(2) There is an argument that nationally determined contributions (NDCs) need\nto be expanded to be able to achieve the Paris Agreement\u2019s \u201cwell below 2\u00b0C\u201d\ntarget, and thus countries may revise their NDCs to set more stringent\ntargets. Such revisions could have a significant impact on SUBARU\u2019s business\nactivities.\n\nAcute physical risk\n\n(3) As an impact of climate change, extreme torrential rain will frequently\ncause floods in various locations, which could pose risks of SUBARU\u2019s\noperations being affected by disrupted supply of raw materials and submerged\nfactories.\n\n####  Products\n\nRegulatory risk\n\n(1) If SUBARU fails to meet fuel economy regulations imposed in Japan, the\nU.S., Europe, and China, the Company could incur additional costs or losses\nrelated to negative incentives, such as fines or non-penal fines for legal\nviolation, and credit purchase for unmet standards. Also, some of our products\ncould fail to satisfy certain fuel economy standards, resulting in restrained\nsales opportunities.\n\nMarket risk\n\n(2) At present, it is difficult to predict technological progress and price\noptimization for electrification, which will likely cause a substantial gap\nwith the real state of market needs. In such a situation, SUBARU could incur\nunnecessary and excessive R&D costs while facing a decline in customer\nsatisfaction, resulting in unexpected losses and reduced sales opportunities\nas well as hampered advancement of the Company\u2019s electrification efforts.\n\n(3) SUBARU views electrification as a steady medium- to long-term trend, and\nalso anticipates the possibility of its swift and sweeping penetration of the\nmarket at some stage. SUBARU could be unprepared for such prospect in terms of\ntechnology and timely product lineups, and thus suffer from a resultant loss\nof product sales opportunities.\n\nTechnology risk\n\n(4) To promote electrification, it is crucial to ensure profitability for the\nentire product cycle ranging from procurement and use to disposal. Thus, it is\nessential to involve SUBARU\u2019s upstream and downstream partners in exerting\nefforts toward this end. Failure to do this could render the Company unable to\nmeet the profitability goal for the entire product life cycle.\n\nChronic physical risk\n\n(5) There is a possibility that SUBARU might suffer from shortages of natural\nresources used for tires and metal resources, such as materials for automotive\nbatteries, for electrification technologies.\n\n####  Production Phase\n\nRegulatory risk\n\n(1) If SUBARU continues to use energy derived from fossil fuels, it could\nincur rising costs, due not only to geopolitical factors associated with\npetroleum and the like, but also to carbon taxes, emission quotas, and other\ngovernment policies and regulations.\n\nTechnology risk\n\n(2) If use of renewable energy does not grow as expected, SUBARU could face\nslower progress in achieving its Scope 1 and 2 emissions reduction goals.\n\n###  Main Opportunities Identified\n\nMarket opportunity\n\n(1) If SUBARU advances its efforts to make products more environmentally\nfriendly as planned and global climate change mitigation/adaptation efforts\nprogress adequately, the Company will be able to maintain its key markets\nwhile at the same time potentially expanding in markets receptive to its offer\nof \u201cEnjoyment and Peace of Mind.\u201d\n\n(2) Through contributing to addressing climate change issues, SUBARU could\nincrease its brand value, thereby enhancing its sales and recruiting ability.\nThis could make it easier for the Company to obtain financing from investors,\nthereby lowering capital costs.\n\nEnergy-related opportunity\n\n(3) Regarding energy use during the production phase, by transitioning to\nrenewable energy while at the same time giving due consideration to cost-\neffectiveness, SUBARU could overcome the risk of being exposed to price\nfluctuations involved in energy derived from fossil fuels, thereby preventing\nfuture cost increases.\n\nNote:\n\n     The risks and opportunities described above are based on past facts and currently available information, and may change significantly due to such factors as future economic trends and the business environment facing SUBARU. The opportunities described represent those for SUBARU\u2019s products to contribute to climate change adaptation and do not anticipate climate change-related deterioration. \n\n####  Examples of scenarios and their risks/measures\n\nAs an example measure, SUBARU has developed an electrification strategy that\nconsiders multiple scenarios, including one in which the percentage of EVs\nsold in the market increases significantly, as well as one in which the market\npenetration of EVs increases modestly. We are also advancing BCP* measures\nagainst water-related disaster risk for our business partners and against\nflooding during torrential rainfall. This action is in consideration of the\nrisk of increasingly severe natural disasters due to a lack of progress in\naddressing climate change.\n\n* \n     BCP: Business continuity plan \n\nScenario  |  Example scenario risks of particular importance  |  Measures   \n---|---|---  \nPenetration of BEVs  |  Products  |  Risk of limited product sales opportunities due to failure to meet certain fuel economy standards  | \n\n  * Building a production system that can dynamically adapt the production ratio between BEVs, hybrids, and ICE vehicles, keeping a close eye on environmental regulations and market trends \n  * Establishing an eight-model BEV lineup by the end of 2028 with 400,000 BEVs sold in the U.S. \n\n  \nRisk of market need diverging from electrification technology  \nIncreasing severity of natural disasters  |  Business management  |  Risk of operations being affected by disrupted supply of raw materials and submerged factories as a result of frequent flooding in various locations from extreme torrential rain  |  Taking measures against flooding by installing rainwater collection tanks and strengthening drainage capacity   \nOrganizing a system for restoration support activities in the event of a\ncontingency at business partners and assessing the risk of water-related\ndisasters  \n  \n  * [ Risk Management: BCP ](/en/csr/governance/risk/crisis.html)\n  * [ Water Resources ](/en/csr/environment/waterresources.html)\n\n##  Strategy\n\nAt this stage, it is difficult to foresee the future direction of\nelectrification. Therefore, while keeping a close eye on the trends in\nregulations and the market, SUBARU is taking various actions based on the\nrecognition that it is extremely important to ensure flexibility and\nexpandability, using this concept to adapt to such changes flexibly and to\nexpand at once when the direction of the shift becomes clear.  \nFrom a medium- to long-term perspective, we believe that BEVs will eventually\nbecome a core driver toward achieving carbon neutrality, but from 2025 to\n2026, when the transition to BEVs is in its early stages, we will ensure\nflexibility in adapting to environmental changes through initiatives in each\nof the areas of development, products, and production.  \nFurthermore, for the upcoming diffusion (or expansion) phase for BEVs, we will\nneed to harness the fruits of our work in \"Monozukuri Innovation\" and \"Value\nCreation\". At the Innovation Hub, which launched in January 2024, employees\nand business partners can gather and engage with each other without\ntraditional boundaries to talk about various aspects of development and\nproduction (Obeya activities), and through collaboration with other companies,\nwe are promoting activities to realize the aforementioned \"Monozukuri\nInnovation\" and \"Value Creation.\"  \nThrough these efforts, we will promote the \"One SUBARU\" approach, in which we\ndevelop highly dense connections between development, manufacturing, and the\nsupply chain, as we aim for in-house development of BEVs that we expect to\nlaunch by the end of 2028 through leveraging the insights of our alliance. In\naddition, various knowledge gained in the process of promoting \"Monozukuri\nInnovation\" and \"Value Creation\" will be utilized to strengthen ICE products.\n\n####  Battery EV Development\n\nAfter consideration various options for the development of BEVs, including\nsolely SUBARU-made BEVs and those developed through our alliance, we decided\nto jointly develop the four BEV models to be added to our lineup by the end of\n2026 with Toyota Motor Corporation (hereinafter, \u201cToyota\u201d) bringing together\nthe knowledge and expertise of both companies.\n\n####  Battery EV Production\n\nOur jointly-developed BEVs produced at the Yajima Plant will also be supplied\nto Toyota. Meanwhile, BEVs produced at Toyota's U.S. plant will be supplied to\nSUBARU, giving SUBARU a lineup of BEVs produced in the U.S. Through joint\ndevelopment, mutual production, and mutual supply alongside Toyota, we will\nmitigate risks and ensure flexibility in development and production areas in\nthese times when it is difficult to foresee the future.\n\n####  HEV Products and Production\n\nIn addition to the Forester, we will expand the rollout of the Next-generation\ne-BOXER, SUBARU's unique hybrid electric vehicle (HEV) with a horizontally-\nopposed engine based on the TOYOTA Hybrid System, to the Crosstrek as well. In\nthe early stage of the shift to BEVs, HEVs will be extremely important, and\nstrengthening HEV products will ensure product flexibility and expand customer\nchoices. For the next Forester models, both the gasoline model and the next-\ngeneration e-BOXER model will not only be produced at our plants in Japan, but\nwill also be produced at Subaru of Indiana Automotive, Inc., so that we can\nensure flexibility within production in both Japan and the U.S.\n\n####  Model Production Plan per Plant from 2025 to 2026\n\nProduction of transaxles, which will be a core unit of the next-generation\ne-BOXER, will begin at SUBARU\u2019s upgraded Kitamoto Plant in the fall of 2024.  \nThe next-generation e-BOXER will initially be installed in vehicles\nmanufactured at our plants in Japan, with plans to eventually install it in\nvehicles manufactured in the U.S. as well. In addition, the BEVs produced at\nthe Yajima Plant will be supplied to Toyota Motor Corporation, ensuring\nproduction flexibility adapted to demand.\n\n####  Aim to Halve Development Days, Production Processes, and Number of Parts\nwhile Implementing Planned CO  2  Emission Reduction Measures in Plants and\nOffices\n\nSUBARU will strive to achieve world-leading monozukuri by cutting the\ndevelopment lead time in half, the configuration and number of parts in half,\nand the production process in half. In our current operations, each segmented\nfunction, such as product planning, design, and production, waits for the\nprevious process to complete its work, and then passes the work on to the next\nprocess like a relay. Through our \"Monozukuri Innovation\" initiatives, we will\nmake the process agile, which will lead to a 50% reduction in monozukuri time.  \nAt the same time, by continuously advancing these initiatives, we will reduce\nthe process and lead time for product development and production in existing\ndomains and strengthen our ability to respond to domains experiencing non-\nlinear transformation in this age of uncertainty.  \nSUBARU aims to halve development lead times, the production process, and the\nconfiguration and number of parts, while also aiming to reduce CO  2\nemissions from plants and offices (Scope 1 and 2 emissions) by 60% in 2035\nversus FYE March 2017 levels on a total volume basis. SUBARU will take actions\ntoward energy self-sufficiency and efficiency and therefore accelerate the\nreduction of CO  2  emissions through streamlining in a dual approach for both\nthe manufacturing process and product structure.  \nThe SUBARU Group will systematically implement measures to reduce Scope 1 and\nScope 2 emissions by 2035, including energy-saving measures, the introduction\nof carbon-neutral fuel such as hydrogen and ammonia, and the use of in-house\nand purchased carbon-neutral power generation, with the aim of achieving its\ntargets.\n\n#####  Illustration of Scope 1 and 2 Emission Reduction Measures and Impact up\nto 2035\n\n*1 \n     Assuming the electricity emission coefficient in Japan decreases to 0.25 t-CO  2  per thousand kWh \n\n#####  FYE March 2024 Reduction Measures and Impact\n\nMeasure  |  CO  2  reduction impact (t-CO  2  )   \n---|---  \nGeneration of renewable energy (solar power generation)  |  4,445   \nPurchase of carbon-neutral electricity  |  51,388   \nIntroduction of high-efficiency air-conditioning systems  |  2,000   \nReplacement of Cogeneration Facilities  |  3,712   \nEnergy conservation through information and communications technology (ICT)/IoT  |  500   \nUse of Green Power and Green Heat Certificates  |  4,064   \nTotal  |  66,109   \n  \n##  Risk Management\n\nThe automotive industry is ushering in a major transformation, which only\noccurs once in a hundred years. The SUBARU Group, which operates businesses\nglobally, is aiming to enhance the resilience of its management infrastructure\nby ensuring the sustainability of its businesses by quickly tackling changes\nin world affairs. At the same time, the Group must boost its measures to\nminimize its human, social, and economic losses. Amid this environment, it is\nessential to strategically conduct risk management throughout the Group to\nconduct business activities. We therefore believe it is important to create a\nSUBARU Group that has an infrastructure that is resilient to risk to enhance\nour corporate value. As the environment surrounding the SUBARU Group continues\nto experience disruptive and non-linear changes at an unprecedented pace, we\nare working to further strengthen our risk management, including the use of a\nnew Risk Map formulated through management-level discussions that take into\naccount external changes and the current environment, in addition to the\nimportant risks of each division, in order to more reliably achieve the New\nManagement Policies.  \nTo address climate change-related transition risks in policy and regulation,\ntechnology, markets, and other items, dedicated departments at SUBARU gather\ninformation from a wide range of sources and work to identify uncertain\nclimate change-related risks from future projections. These transition risks\nare proposed and discussed during the Executive Meeting, and particularly\nsignificant matters are subject to deliberation within the Board of Directors\nbefore decisions are made.  \nThe physical risks associated with climate change include flooding and other\nnatural disasters. The Risk Management and Compliance Office plays a pivotal\nrole in establishing regulations in response to these operational risks as\npart of the BCP system. During emergencies, the office centrally grasps Group-\nwide information, establishing a system to manage company-wide response.\n\n[ Risk Management ](/en/csr/governance/risk/)\n\n##  Medium- to Long-term Goals (Long-term Vision and Milestones)\n\nIn order to contribute to a decarbonized society, SUBARU has set long-term\ngoals (long-term vision) for 2050 and medium-term goals (milestones) regarding\nproducts (Scope 3) and plants and offices (Scope 1 and 2). These medium-term\ngoals are reviewed as necessary according to the business environment, which\nis experiencing rapid, disruptive changes. In 2023, the medium-term goal for\nplants and offices (Scope 1 and 2) has been set as reducing CO  2  emissions\nby 60% in FYE March 2036 versus FYE March 2017. The medium-term goal for\nproducts (Scope 3) has been re-established as aiming to make BEVs 50% of all\nautomobiles sold in 2030.  \nSUBARU is investigating compliance with relevant policies including the fuel\nefficiency regulations of the countries it serves. We formulate our own\nscenarios and plans for achieving our medium- to long-term goals based on\npolicy trends and scenario-specific information published by the International\nEnergy Agency and others.\n\nCategory  |  Target Year  |  Goal   \n---|---|---  \nProducts  \n(Scope 3)  |  2050  |  Reduce average well-to-wheel CO  2  emissions from new vehicles (in operation) by 90% or more compared to 2010 levels   \nEarly 2030s  |  Apply electrification technologies to all SUBARU vehicles produced and sold worldwide   \n2030  |  Aim for 50% of global sales to be BEVs   \nPlants and offices  \n(Scope 1 and 2)  |  FYE March 2051  |  Achieve carbon neutrality   \nFYE March 2026  |  Reduce CO  2  emissions by 60% compared with FYE March 2017 (total volume basis)   \n  \n##  Initiatives\n\nFor FYE March 2024, SUBARU has reported a total of 39,914 thousand t-CO  2  of\nsupply chain greenhouse gas emissions (Scope 1, 2, and 3). Out of the total\namount, 98% is related to Scope 3, the majority of which stems from the use of\nsold products. Although the Group's direct CO  2  emissions (Scope 1 and 2)\nconstitute only a marginal portion of the total (including Scope 3), we are\nmaking proactive efforts to diminish direct emissions, which we believe will\nencourage the entire SUBARU value chain to work as a team and in greater\nearnest.\n\n  * Scope 1: Direct emissions of greenhouse gases from a company\u2019s own facilities. \n  * Scope 2: Indirect emissions of greenhouse gases from the use of purchased or acquired electricity, heat, and/or steam supplied by another company. \n  * Scope 3: All indirect emissions other than Scope 1 and 2 emissions, including those arising from the procurement of raw materials, transport, product use, and the disposal process, as well as arising from employee commuting, business travel, etc. \n\n####  CO  2  Emissions (Scope 3)\n\nCategory  |  Greenhouse Gas Emissions\uff08t-CO  2  \uff09   \n---|---  \nFYE March 2020  |  FYE March 2021  |  FYE March 2022  |  FYE March 2023  |  FYE March 2024   \n1  |  Purchased goods and services  |  6,181,341  |  5,136,697  |  4,339,656  |  5,018,874  |  5,861,321   \n2  |  Capital goods  |  413,287  |  282,713  |  260,566  |  402,915  |  549,384   \n3  |  Fuel- and energy-related activities not included in Scope 1 or Scope 2  |  103,772  |  91,851  |  89,627  |  95,352  |  54,958   \n4  |  Transport and delivery (upstream)  |  737,817  |  601,167  |  506,604  |  426,929  |  500,914   \n5  |  Waste generated in operations  |  32,095  |  26,446  |  24,888  |  28,733  |  8,608   \n6  |  Business travel  |  4,554  |  4,689  |  4,798  |  4,878  |  4,900   \n7  |  Employee commuting  |  13,835  |  14,245  |  14,576  |  14,818  |  14,885   \n8  |  Leased assets (upstream)  |  N/A  |  N/A  |  N/A  |  N/A  |  N/A   \n9  |  Transportation, distribution, and sales (downstream)  |  6,049  |  3,893  |  4,750  |  4,043  |  3,521   \n10  |  Processing of sold products  |  N/A  |  N/A  |  N/A  |  N/A  |  N/A   \n11  |  Use of sold products  |  34,029,045  |  27,455,302  |  23,102,609  |  27,453,385  |  31,864,033   \n12  |  End-of-life treatment of sold products  |  582,263  |  484,440  |  413,368  |  485,555  |  577,694   \n13  |  Leased assets (downstream)  |  2,463  |  1,998  |  2,065  |  1,984  |  1,562   \n14  |  Franchises  |  N/A  |  N/A  |  N/A  |  N/A  |  N/A   \n15  |  Investments  |  N/A  |  N/A  |  N/A  |  N/A  |  N/A   \n  \nSource:\n\n     The calculation method for SUBARU Scope 3 emissions has been revised in reference to the Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain Ver. 2.3 (December 2017) by the Ministry of the Environment and the Ministry of Economy, Trade and Industry; the Emissions Unit Value Database Ver. 3.0 by the Ministry of the Environment Database of emissions unit values; and SUBARU\u2019s life-cycle assessment (LCA) calculation standards.   \nRetroactive correction has been made to data from previous years due to\nrevisions to the calculation method for \u201c1 Purchased goods and services\u201d and\n\u201c12 End-of-life treatment of sold products.\u201d\n\n##  Life-cycle Assessment\n\nIn order to contribute to the realization of a decarbonized society through\nthe reduction of CO  2  emissions throughout the life cycle of our business\nactivities, SUBARU has designated departments in charge of the five areas of\n\u201cproduct use,\u201d \u201cmaterials and components,\u201d \u201ctransportation,\u201d \u201cdisposal,\u201d and\n\u201cmanufacturing.\u201d We now also hold monthly CN Promotion Meetings, bringing\ntogether representatives from the relevant departments in each area. In these\nCN Promotion Meetings, members share information from each area, formulate a\nmaster plan from a medium- to long-term perspective, and visualize the\ntransition of emissions in each area in the interest of achieving carbon\nneutrality by 2050.\n\n####  Approach to CO  2  emissions reduction from an LCA perspective\n\nSUBARU conducts LCA  *  to evaluate CO  2  emissions during the entire life\ncycle of automobiles. We will quantify the environmental impact of automobiles\nand proactively develop automobiles taking into account the need for\ndecarbonization from the design stage. When compared to the previous models,\nthe current Impreza achieved a 2.4% reduction in CO  2  emissions, and the\ncurrent Forester achieved an 8.7% reduction.\n\n* \n     Life-cycle assessment (LCA) is an environmental impact assessment method that comprehensively evaluates environmental load at every stage of the life cycle of products and services from raw material procurement to production, use, disposal, and recycling. For SUBARU, assessments are for cars built for the Japanese market. \n\n##  Product Initiatives\n\nThe percentage of SUBARU\u2019s EVs as a share of global sales (retail sales basis)\nin FYE March 2024 was 7.8%, and the percentage of BEVs was 1.5%. We will grow\nour earnings base in the BEV era by strengthening our supply capacity for EVs,\nincluding the start of in-house BEV production in the mid-2020s in conjunction\nwith the reorganization of our domestic production system, the launch of the\nnext-generation e-BOXER, and the addition of dedicated BEV production lines in\nthe late 2020s. As we do this, we will work to ensure a high level of\nfinancial soundness, taking actions in a sustainable structure toward our\nstated goal of aiming for 50% of SUBARU global sales to be BEVs in 2030.  \nAs an aircraft manufacturer, SUBARU has been developing technologies for\ndecarbonization to realize a sustainable society, and in March 2024, SUBARU\nsuccessfully conducted test flights using sustainable aviation fuel (SAF  *1\n) in a helicopter.\n\n*1 \n     Sustainable aviation fuel is produced from resources such as plants and waste oil. Plants, which are the main raw material, absorb carbon dioxide from the atmosphere during photosynthesis, thus achieving a balance between absorption and emission, offering reduction in greenhouse gas emissions compared to conventional fossil fuel-based aviation fuels. \n\n####  Results and future plan of percentage of EVs sold (retail sales basis)\n\n####  Efforts to Reduce CO  2  Emissions for New Models\n\nSUBARU is naturally working to improve the fuel efficiency of gasoline-powered\nvehicles while turning its attention to expanding its lineup of EV models,\nespecially the development and supply of BEVs. We believe it will be\nespecially important to steadily promote the expansion of the above\ninitiatives in order to reduce the amount of CO  2  emitted from automobiles.\n\n####  Battery Electric Vehicles (BEVs)\n\nIn May 2022, SUBARU launched the Solterra as another step toward the era of\nthe electric car. Its first global BEV, the Solterra is designed to achieve\ncoexistence with nature. It utilizes the e-SUBARU Global Platform, a dedicated\nEV platform we jointly developed with Toyota Motor Corporation (\u201cToyota\u201d), as\nwell as the AWD technology we have developed for many years and Toyota\u2019s\noutstanding electrification technology, thus bringing together the strengths\nof both companies and efficiently leveraging our development investments. In\naddition to the Solterra, we plan to launch three new BEVs to the SUV category\nby the end of 2026. Of these, one model will be produced at SUBARU's Yajima\nPlant and supplied to Toyota Motor Corporation as well. Like with our existing\nvehicles, we will bring SUVs featuring the unique appeal of SUBARU\u2019s BEVs to\nJapan, the U.S. and Canada, Europe, China, and other markets, aiming to\nfurther strengthen the value we offer with the goal of being a brand that is\n\u201cdifferent\u201d from others. We are also planning to add four more models to our\nBEV lineup by the end of 2028.  \nAt SUBARU, we will continue to help protect the environment as we consider\npractical functions and customer preferences in enhancing our lineup in the\nmarkets we serve with environmentally friendly vehicles that are unique to\nSUBARU.\n\n####  Hybrid Electric Vehicles (HEVs)\n\nSUBARU has been increasing the number of vehicles equipped with its mild\nhybrid e-BOXER engine that combines a horizontally-opposed engine and\nelectrification technology, and to reduce CO  2  emissions has implemented\ninitiatives such as creating its own PHEV using HEV expertise from Toyota. In\naddition, looking ahead to 2025, we will begin next-generation e-BOXER\nproduction that incorporates THS  *2  technology to deliver vehicles that\nfeature the SUBARU Difference while offering high-level environmental\nperformance. For the next-generation e-BOXER, we have evolved the model from a\nparallel system for transmitting engine and motor power in parallel to a more\nefficient series-parallel system. In addition, the power control unit is\nmounted on top of the engine to ensure a large fuel tank capacity and a\ncompetitive cruising range. This next-generation e-BOXER will be installed in\nthe Crosstrek and Forester. By steadily expanding our product lineup of EVs,\nwe will help reduce CO  2  emissions for new models.\n\n*2 \n     THS: TOYOTA Hybrid System \n\n####  Gasoline-Powered Vehicles\n\nWe will continue to meet demand for conventional gasoline-powered vehicles\nfrom customers. HEVs, which we are expanding to include more models, are made\nby combining gasoline engines with electrification technology, and engines\nneed further technological improvements to boost fuel efficiency. The\n1.8-liter BOXER DIT  *3  combines the unique driving pleasure of a SUBARU with\noutstanding environmental performance. Installed in the Levorg, Forester,\nOutback, and Layback models, it is a next-generation BOXER engine with a turbo\nsystem that generates high torque at low RPM. Its lean combustion technology\nproduces more energy with less fuel. Combined with the expanded Lineartronic\nshift range, this engine offers even more powerful acceleration off the line\nand superb fuel efficiency when cruising at high speed. In addition, SUBARU is\ncontinuing to pursue the potential offered by engines in the era of carbon\nneutrality by participating in races with vehicles that use carbon-neutral\nfuel, as well as participating in the Research Association of Biomass\nInnovation for Next Generation Automobile Fuels.\n\n*3 \n     Direct injection turbo \n\n###  **TOPICS**  \nResearch Association of Biomass Innovation for Next Generation Automobile\nFuels\n\nSUBARU, together with ENEOS Corporation, Suzuki Motor Corporation, Daihatsu\nMotor Co., Ltd., Toyota Motor Corporation, and Toyota Tsusho Corporation,\nestablished the Research Association of Biomass Innovation for Next Generation\nAutomobile Fuels to research efficiency improvements in processes to produce\nfuel. Currently, seven companies, including Mazda Motor Corporation, are\nparticipating in this association to advance technological research on the use\nof biomass and efficient production of bioethanol fuel for automobiles in\norder to realize a carbon-neutral society.\n\n###  **TOPICS**  \nConducted a Helicopter Test Flight Using Sustainable Aviation Fuel (SAF)\n\nIn March 2024, SUBARU successfully conducted a test flight using SAF in a\nGroup-owned helicopter. As an aircraft manufacturer, Subaru will continue to\ndevelop decarbonization technologies to contribute to the realization of a\nsustainable society.\n\nTest flight\n\n##  Site Initiatives\n\nSUBARU is reducing its CO  2  emissions by using renewable energy and\nupgrading to highly efficient machinery and equipment with the aim of\nachieving carbon neutrality by 2050. Scope 1 and 2 emissions in FYE March 2024\namounted to 471,854 tons (market-based), representing a decrease of 18,000\ntons from the previous year and a 20.9% reduction compared to FYE March 2017\n(The location-based Scope 1 and 2 emissions for FYE March 2024 were 545,917\ntons.).  \nRenewable energy in FYE March 2024 accounted for 7.2% of the energy\nconsumption of the entire SUBARU Group and 22.5% of its total electricity\nconsumption. All of the electricity purchased at the Gunma Main Plant,\nUtsunomiya South Plant and 2nd South Plant, the Ebisu Subaru Building, and the\nSUBARU Academy is carbon-neutral electric power. In addition, unit CO  2\nemissions improved by 24% year on year due to greater energy efficiency.\nToward the medium-term goals for FYE March 2036, the SUBARU Group will\ncontinue implementing energy-saving measures along with other initiatives,\nsuch as in-house generation or purchase of carbon-neutral electric power and\nintroduction of hydrogen, ammonia, and other carbon-neutral fuels, as part of\nsystematic Scope 1 and 2 emissions reduction. In addition, Subaru Kohsan Co.,\nLtd. sells solar generated from solar power generation facilities in Gunma and\nShiga prefectures.\n\n####  CO  2  Emissions by Organization\n\n####  CO  2  Emissions by Scope\n\nScope:\n\nSUBARU\uff1a\n\n     SUBARU CORPORATION \n\nDomestic Group companies:\n\n     52 domestic consolidated subsidiaries (including 33 SUBARU domestic dealerships that are consolidated subsidiaries) \n\nOverseas Group companies:\n\n     Subaru of Indiana Automotive, Inc., Subaru of America, Inc., Subaru Canada, Inc., Subaru Research & Development, Inc. \n\nSUBARU calculates CO  2  emissions based on the Act on Promotion of Global\nWarming Countermeasures. However, for emissions coefficients for electricity\nused at Group companies outside Japan, we use the most recent country-specific\nCO  2  emission intensities for all power sources published annually by the\nInternational Energy Agency (IEA).  \nThe scope of data for domestic Group companies is that for consolidated\nsubsidiaries, and the confirmation for Scope 1 and 2 emissions is 99% (based\non proportion of workforce). In addition, errors were found in the aggregated\ndata for FYE March 2023, and corrections were made.\n\n####  Energy use\n\nScope:\n\nSUBARU:\n\n     SUBARU CORPORATION \n\nDomestic Group companies:\n\n     52 domestic consolidated subsidiaries (including 33 SUBARU domestic dealerships that are consolidated subsidiaries) \n\nOverseas Group companies:\n\n     Subaru of Indiana Automotive, Inc., Subaru of America, Inc., Subaru Canada, Inc., Subaru Research & Development, Inc. \n\nSUBARU calculates energy consumption (GJ) based on the Act on the Rational Use\nof Energy.  \nIn addition, errors were found in the aggregated data for FYE March 2023, and\ncorrections were made.\n\n###  Gunma Plant\n\n####  Purchase of Carbon-Neutral Electricity (Gunma Main Plant, Oizumi Plant)\n\nThe Gunma Main Plant had been purchasing a portion of its electricity through\nthe Aqua Premium rate plan specifically for sales of hydropower, but switched\nto the Power Gunma Hydropower plan in November 2020. All of its electricity is\nnow derived from hydropower, which reduced CO  2  emissions by approximately\n24,500 tons in FYE March 2024.  \nWe also reduced CO  2  emissions by 8,394 tons by using non-fossil fuel\ncertificates for 21,524 MWh of electricity at the Oizumi Plant of Gunma\nManufacturing Co., Ltd. purchased in FYE March 2024, comprising 16% of\npurchased electricity.\n\n####  Introduction of High-efficiency Air-conditioning Systems (Gunma Yajima\nPlant)\n\nWe replaced the aging cooling water supply system of the 3rd Paint Plant. In\nApril 2022, the plant, which had previously used an absorption chiller with\ncity gas and hot water from the cogeneration facility as the heat source,\nintroduced a centrifugal chiller with an electrically operated heat pump. This\nhas essentially eliminated the use of city gas by updating the heat source of\nthe absorption refrigerator to only hot water from the cogeneration facility.  \nIn 2018, the 5th Paint Plant also introduced a high-efficiency heat source\nsystem, centered on heat pumps for cold and hot water supply to reduce CO  2\nemissions. SUBARU plans to roll out this system to the new Oizumi Plant, which\nis scheduled for future construction.\n\n####  Replacement of Cogeneration Facilities\n\nAt the Gunma Plant, we operate cogeneration facilities at the Main Plant,\nOizumi Plant, and Yajima Plant to promote efficient energy use. In FYE March\n2024, the Oizumi Plant continues operation after an update in the previous\nfiscal year of its aging facilities, which were updated after 16 years of\noperation. For the replacement, we selected equipment with specifications that\nmake a greater contribution to energy savings in light of the most recent\nenergy consumption profile. Compared to the previous facilities, the new\nfacilities offer annual emissions reduction of 3,712 t-CO  2  , according to\ntheir specifications.\n\n####  Introduction of solar power generation\n\nWe have introduced solar power generation facilities at the Gunma Main Plant\nand Oizumi Plant. These facilities achieved a CO  2  emissions reduction of\napproximately 2,732 t-CO  2  in FYE March 2024. Solar power generation\nequipment will be incorporated into new building rooftops from the\nspecification stage, and we are considering expanding this to existing\nbuildings and parking lots over time.  \nAt the Yajima Plant, we also installed solar power generation equipment with\nan output of 850 kW in the No. 3 final vehicle inspection wing in September\n2023, in addition to the installation of similar facilities in 2022, the\nmultistory parking garage and No. 5 final vehicle inspection wing, resulting\nin an overall reduction of 591 t-CO  2  of emissions at the plant overall.\n\n###  Aerospace Company (Utsunomiya Plant and Handa Plant)\n\n####  Purchase of carbon-neutral electricity  \n(Tochigi Furusato Denki Program for regional production and consumption)\n\nIn FYE March 2019, SUBARU\u2019s Aerospace Company adopted the Tochigi Furusato\nDenki program  *1  to provide electricity to its Utsunomiya South and 2nd\nSouth Plants. The program offers electricity from hydropower generation\nprojects owned by Tochigi Prefecture, and represents Japan\u2019s first-ever power\nsupply program themed on the \u201clocal production for local consumption\u201d concept.  \nThe above program enables the two plants to reduce emissions by an average of\n4,000-plus t-CO  2  per year. This program also includes a scheme to spend\npart of the funds from bill payment, including from SUBARU, on environmental\nconservation projects promoted in Tochigi Prefecture.\n\n*1 \n     Electricity service program co-hosted by the Tochigi Public Enterprise Bureau and TEPCO Energy Partner, Inc. Supplies electricity generated by eight hydroelectric power stations run by the Tochigi prefectural government. Hydropower users can claim to be emitting no CO  2  from using the electricity, on the grounds of its CO  2  -free generation process. \n\n####  Acquisition of Nearly ZEB Certification at the Main Administration\nBuilding\n\nThe Aerospace Company's Main Administration Building, built at the Utsunomiya\nPlant and with operations started in September 2023, is the first building in\nthe SUBARU Group to receive Nearly ZEB  *2  certification under the Building-\nHousing Energy-efficiency Labeling System (BELS) in Japan. In addition, the\nsolar power generation facilities installed on the roof of the Main\nAdministration Building reduces CO  2  emissions by approximately 130 tons per\nyear.\n\n*2 \n     Nearly ZEB is a building that achieves at least a 75% reduction in primary energy consumption compared to a reference building and is very close to achieving Net Zero Energy Building certification. \n\nThe Main Administration Building\n\n####  Replacement of Cogeneration Facilities\n\nIn addition to reducing CO  2  emissions, since March 2021 the cogeneration\nsystem has enhanced community and employee safety with its blackout start\nfunction that can initiate power generation if the power grid goes down for an\nextended period.\n\n####  IoT Enables Stable Supply of Factory Air and Improved Energy Efficiency\n\nSUBARU is moving forward with Digital Transformation (DX) driven by ICT and\nthe IoT beginning the systemization of air factory analysis, data analysis,\nand the introduction of countermeasures in November 2019. We have implemented\nthree measures: investigating and repairing air leaks, restricting air supply,\nand improving operating efficiency. We expect energy savings to reduce CO  2\nemissions by 500 tons per year.\n\nAir leak investigation\n\n####  Improve Compressor Operating Efficiency\n\n###  Tokyo Office\n\nThe Tokyo Office is in Mitaka City, Tokyo. It is subject to the Tokyo Cap-and-\nTrade Program for large facilities as per the Tokyo Metropolitan Environmental\nSecurity Ordinance. The Tokyo Office is therefore reducing CO  2  emissions\nwith two priority initiatives: promoting energy conservation by improving\nfacilities and by proactively adopting energy-saving equipment.  \nWe are also working to utilize renewable energy, and have installed rooftop\nsolar power generation equipment (total rated output of 140 kW) at our\nfacilities. In FYE March 2024, the facilities generated 199 MWh of electricity\nfor use in-house, achieving a CO  2  emissions reduction of 37 t-CO  2  . In\naddition, we began to utilize Japan's Green Power Certification System in\n2019, and in FYE March 2024 we purchased certificates equivalent to 8,535 MWh\nof electric power, equivalent to 3,329 t-CO  2  of emissions, during the\nfiscal year. The Main Building in Tokyo Office, completed in September 2022,\nis designed to be environmentally friendly, employing energy-saving\ntechnologies such as solar power generation, LED lighting throughout the\nbuilding, shielded and insulated glass, and building materials with heat\nshielding and high thermal insulation. In addition, creating cold mix asphalt\nduring construction has contributed to a 38.5 t-CO  2  reduction in emissions.\nWe are also progressively converting fixtures in existing buildings to LED\nlighting.\n\nTokyo Office\n\n###  Offices\n\n####  Head Office (Ebisu Subaru Building) and SUBARU Training Center\n\nSince FYE March 2022, we have switched to contract options with zero\nelectricity emission coefficients, and we make use of the Green Heat\nCertificate system. In FYE March 2024, we achieved net-zero emissions for the\noffice, carbon-neutralizing emissions equivalent to 881 t-CO  2  . In\naddition, from April 2023, all electricity used in the entire Ebisu Subaru\nBuilding has been switched to sources with zero CO  2  emissions.\n\n####  SUBARU Accessory Center\n\nIn FYE March 2024, the use of 1,153 MWh of electric power generated by solar\npower facilities installed in March 2020 resulted in a yearly CO  2  emissions\nreduction of 450 t-CO  2  .\n\n####  SUBARU Research and Experiment Center\n\nThe SUBARU Research and Experiment Center installed solar power generation\nequipment in FYE March 2018, and generated 82 MWh in FYE March 2024, resulting\nin a yearly CO  2  emissions reduction of 32 t-CO  2  .\n\nSUBARU Research and Experiment Center\n\n###  Group Companies in Japan\n\n####  Fuji Machinery Co., Ltd.\n\nIn FYE March 2024, we reduced annual CO  2  emissions by approximately 1,016\nt-CO  2  by using non-fossil certificates for a total of 2,605 MWh, comprising\n20% of purchased electricity at the head office/plant and 100% at the Isesaki\nPlant.  \nThe Oizumi Plant of Fuji Machinery Co., Ltd. also installed solar power\ngeneration equipment in FYE March 2018. In FYE March 2024, this equipment\ngenerated 38.5 MWh of electricity, resulting in an annual CO  2  emissions\nreduction of 15 t-CO  2  .\n\nFuji Machinery Co., Ltd. Oizumi Plant\n\n####  Ichitan Co., Ltd.\n\nIchitan Co., Ltd. has been achieving annual emissions reductions of 3,400 t-CO\n2  by purchasing CO  2  -free electricity. In addition, we introduced solar\npower generation in September 2023 and began generating our own power.\nInformation on power generation and other data is displayed on a monitor in\nthe lobby of the company entrance, offering utilization status at a glance. In\norder to promote the transition from gasoline-powered to electric vehicles for\ncompany cars, the Kyushu Plant has introduced the Solterra BEV and is working\nto reduce CO  2  emissions.\n\nAfter introduction of solar power generation facilities\n\n####  Subaru Kohsan Co., Ltd.\n\nSubaru Kohsan Co., Ltd. entered the business of marketing electricity from\nsolar power generation operations. It sells electricity generated from solar\npower equipment with a rated output of 420 kW (equivalent to 100 detached\nhouses) installed in Kiryu, Gunma Prefecture and equipment with a rated output\nof 1,470 kW (equivalent to 350 detached houses) installed in Konan, Shiga\nPrefecture. The company has also promoted the use of renewable energy by\ninstalling solar power generation facilities at its Ota S Building and the new\nwing of its Higashi-Nagaoka company dormitory.  \nSubaru Kohsan Co., Ltd. has been certified as an excellent operator with\nrespect to energy conservation (Class S) for five consecutive years since FYE\nMarch 2020 in accordance with the Act on the Rational Use of Energy. This\nevaluation is given to excellent operators that have met the five-year average\nper-unit emission reduction target of 1% or more in electricity and gas\nconsumption.\n\n###  Overseas Group Companies\n\n####  Subaru of Indiana Automotive, Inc.\n\nSubaru of Indiana Automotive, Inc. is implementing CO  2  reduction\ninitiatives in its production processes and Technical Training Center.  \nIn the production process, we are implementing various measures aimed at\nreducing energy consumption, which include upgrading to LED lights, and\ninstalling control valves in the air conditioning systems of air handling\nunits (AHUs) and makeup air units (MAUs).  \nIn addition, at the Technical Training Center, we took measures such as\ninstalling solar power generation equipment while upgrading to LED lighting\nfor all indoor lighting and introducing motion sensors.\n\n##  Sales Initiatives\n\n####  Dealerships\n\nDealerships in Japan, like the SUBARU Group, have set the goal of reducing CO\n2  emissions by 60% from the FYE March 2017 level by FYE March 2036, and are\nprogressively purchasing carbon-neutral electricity. By FYE March 2024, this\nconversion has progressed to approximately 50% of electric power consumption,\nand we intend to further increase the ratio in the future.\n\n####  Subaru of America, Inc.\n\nSubaru of America, Inc.\u2019s headquarters and National Service Training Center\nhave acquired silver LEED certification,  *  which is higher than standard\ncertification. In 2021, the company enhanced energy efficiency by installing\nautomated equipment and comprehensive air conditioning systems at its\nheadquarters building and National Service Training Center.  \nIn addition, at the headquarters building, the company utilizes 100% renewable\nenergy and has upgraded to LED lighting. In 2021, the headquarters lobby was\ndesigned to efficiently incorporate natural light, thereby reducing the\nelectricity consumption for lighting.\n\n* \n     Leadership in Energy and Environmental Design (LEED) certification is a green building certification system developed and operated by the U.S. Green Building Council (USGBC). It provides objective environmental performance data on buildings through evaluation of energy conservation and environmental impact reduction abilities for a range of project stages from overall planning and design to construction, management, and maintenance. Acquisition of the certification is becoming popular in the U.S. and in other countries. \n\nSubaru of America, Inc.\u2019s headquarters and training center  \nSubaru of America, Inc.\u2019s headquarters foyer, which harnesses sunlight with\nnew daylight harvesting technology\n\n####  Subaru Canada, Inc.\n\nThe building that houses Scott Subaru, a retailer in Canada, is designed for\nhigh energy efficiency, which includes eliminating the need for heating and\ncooling facilities. It has received certification as a \u201cpassive house,\u201d or\nenergy-efficient building.\n\n##  Logistics Initiatives\n\nSUBARU is collaborating across the entire Group, including with logistics\ncompanies, dealerships, as well as with other automotive industry players to\nreduce CO  2  emissions in logistics operations by an annual 1% through\nincreased transport efficiency for finished vehicles and export parts.  \nIn FYE March 2024, all logistics-related departments within SUBARU gathered\ntogether to introduce their reduction activities, creating a forum for\nhorizontally sharing and encouraging best practices. In addition, SUBARU\nbelieves that strengthening its supply chain will lead to achieving carbon\nneutrality by 2050, and we will continue efforts to increase the accuracy of\nCO  2  emissions calculations and expanding their calculation scope, in\naddition to our reduction activities.\n\n####  SUBARU\u2019s logistics system\n\n####  Transport of Finished Vehicles\n\nSUBARU is establishing optimal standard routes for finished vehicles, flexibly\naccommodating shipping of a wide range of vehicle types and sizes\n(particularly large cars), improving loading efficiency, and promoting modal\nshift.  *1  We also request that our logistics partners minimize the\nenvironmental impact of their transport operations, taking actions such as\npracticing eco-conscious driving by installing digital tachographs  *2  and\ndash cams, as well as improving fuel efficiency by fitting aerodynamic panels\nand other devices.  \nAs a result of expanded efforts for consolidated and standardized\ntransportation routes, per unit CO  2  emissions from transportation of SUBARU\nvehicles in FYE March 2024 declined 25.7% from the FYE March 2007 level,\nagainst the target of a 17% reduction from the base year. We will continue\nwith our efforts to pursue further reductions.\n\n*1 \n     For cargo transportation, switching transportation modes from trucks to those imposing less environmental burden, such as railway and seaborne systems. \n\n*2 \n     Fitted to a vehicle to automatically record its journey information, including driving time and speed, and store the information in the installed recording medium, such as a memory card. The device is employed broadly by industries involving the commercial operation of vehicles as a tool for driving management. As the system can present clear data of recorded events, including sudden acceleration and deceleration, fuel-wasting engine idling, and dangerous driving, it is expected to help drivers increase their awareness of safe driving and fuel economy. \n\n####  Export Parts\n\nIn the transport of parts for overseas SUBARU vehicle production, we are\nmaking efforts to improve the container fill rate through measures such as\nutilizing unused upper space in high cube containers, improving packing modes,\nand employing lighter-weight packaging materials. As a result, we achieved a\nfill rate of 98% in FYE March 2024. We will continue to actively work toward\nreducing CO  2  emissions through other initiatives such as round use  *5  to\nstreamline container transportation, utilization of inland container depots\n*6  , and the reuse of import containers used by other companies in the Gunma\narea.\n\n*3 \n     Using import containers for export instead of returning them empty to port, thereby reducing the transport of empty containers from ports. \n\n*4 \n     Depot located inland for consolidation of container cargo. \n\n####  Parts and Accessories\n\n  * Joint distribution initiative with Toyota Mobility Parts Co., Ltd.   \nTo resolve complexities and inefficiencies in parts of our transport system,\nwe began joint distribution of maintenance parts with Toyota Mobility Parts\nCo., Ltd. in FYE March 2021. As of the end of FYE March 2024, we had started\njoint distribution to 12 dealerships (26 locations and sales partners in\nvarious regions). We aim to work toward joint distribution in other regions\ngoing forward.  \nBy switching to joint distribution, we have in the case of some dealerships\nachieved a reduction of lead time by one day and a cut in transport costs of\napproximately 25\uff05.\n\n  * Switch to forklift trucks with electric drive option   \nThe Accessory Center in Gunma is making a phased switch from liquefied\npetroleum gas (LPG)-operated forklift trucks to models that can be operated\nelectrically. We will also equip the electric forklift trucks to make them\navailable for use as storage batteries in the event of a disaster or power\noutage so that they can be used in times of emergency for instance to maintain\ntelecommunications functions.\n\n####  Subaru of America, Inc.\n\nThe company is promoting the use of rail to reduce CO  2  emissions in the\ndistribution process. We are also working to reduce emissions from marine\ntransportation to dealerships in Alaska through the use of LNG. These efforts\nhave resulted in a 25% reduction in CO  2  , a 95% reduction in NOx, and a 99%\nreduction in SOx. In 2023, we reduced transportation-related emissions by\nabout 50% to 80% depending on the product. In addition, we are working to\nachieve sustainability in our supply chain by reducing greenhouse gas (GHG)\nemissions by up to 21% through LNG vessels operated by our shipping partners,\nand by preparing a system that exceeds the 2030 emissions standards of the\nInternational Maritime Organization.\n\n##  Procurement Initiatives\n\nWe have set out a code of conduct that requires supplier selection and\nmanagement mechanisms relating to climate change issues, and share the code\nwith our suppliers, asking them to take appropriate actions when providing\norientation sessions.  \nBy encouraging business partners to obtain ISO 14001 certification, we are\nworking to prevent environmental accidents and mismanagement events in the\nsupply chain and reduce the risk of infringement of environmental laws and\nregulations.  \nIn addition, we request that business partners cooperate in decarbonization\nduring our procurement policy briefings. We will share our reduction targets\nfor FYE March 2025 with our suppliers and spread awareness of working in\nunison to achieve these.\n\n##  Other Climate Change Initiatives\n\n###  Carbon Pricing\n\n####  Emissions Trading Systems\n\nAs businesses operating in the jurisdictions of the Tokyo metropolitan and\nSaitama prefectural governments, our Tokyo Office, Kitamoto Plant, and Stellar\nTown Omiya are covered by the Tokyo Metropolitan Environmental Security\nOrdinance, which promotes greenhouse gas reduction and emissions trading for\nlarge businesses, and the Saitama Prefecture regulation on target-based\nemissions trading. Our business sites are responding through compliance with\nthe relevant emissions trading systems.  \nIn addition, SUBARU has endorsed the GX League Basic Concept announced by\nJapan\u2019s Ministry of Economy, Trade and Industry. In line with this\nendorsement, we will participate in the GX League Emissions Trading Scheme\n(GX-ETS) from 2024.\n\n####  Internal Carbon Pricing\n\nSUBARU introduced internal carbon pricing in FYE March 2023. In the internal\nconsultative plan on capital expenditures at business sites, the monetary\nvalue of the CO  2  reduction accompanying the introduction of the relevant\nfacilities is set at 6,000 yen/ton. By accounting for CO  2  reduction impact\nin terms of its cost reduction impact, we ensure its inclusion as a factor in\nassessing capital expenditures. The introduction of internal carbon pricing,\nwhich comes under the category of shadow pricing, is intended not only to\nraise awareness of CO  2  reduction among facility managers but also to\npromote investment in facilities with a high CO  2  reduction impact.\n\n###  External Partnerships\n\nSUBARU is tackling the climate change challenge through partnerships with\nsuppliers, customers, and industry groups.\n\n####  Alliance with Toyota\n\nSUBARU and Toyota have agreed to jointly develop EV platforms and vehicles\napplying SUBARU\u2019s AWD technologies and Toyota\u2019s electrification technologies.\nThis agreement is designed to enable the two automakers to multiply their\ntechnical strengths with the goal of creating attractive EV products. As a\ndedicated BEV platform, they have jointly developed the e-SUBARU Global\nPlatform.\n\n####  Industry Groups\n\nSUBARU is a member of the climate change committee of Japan Automobile\nManufacturers Association, Inc. (JAMA). Also, the President and Executive Vice\nPresidents are JAMA directors responsible for the body\u2019s executive decision\nmaking, and decisions made by JAMA are reflected in SUBARU\u2019s management.\n\n####  Declaration of Support for the TCFD Recommendations\n\nSUBARU recognizes that climate change is one of the most pressing global\nissues, and has been working to disclose information on climate change.\nAccordingly, we have declared support for the recommendations of the Task\nForce on Climate-related Financial Disclosures (TCFD). For more information on\nSUBARU\u2019s disclosure of the TCFD\u2019s recommended items, please see our TCFD\nContent Index ( [ https://www.subaru.co.jp/en/csr/tcfd/\n](https://www.subaru.co.jp/en/csr/tcfd/) ).\n\n###  **TOPICS**  \nA Three-Company Commitment to Develop New Engines for the Electrification Era\n\nSUBARU, along with Toyota Motor Corporation and Mazda Motor Corporation, have\neach committed to developing new engines tailored to electrification and the\npursuit of carbon neutrality. With these engines, each of the three companies\nwill aim to optimize integration with motors, batteries, and other electric\ndrive units. While transforming vehicle packaging with more compact engines,\nthese efforts will also decarbonize internal combustion engines by making them\ncompatible with various carbon-neutral fuels  *  .\n\n* \n     Fuels with net zero CO  2  emissions into the atmosphere across their lifecycle, from manufacture to use. These include e-fuel, made from hydrogen and carbon dioxide, and biofuels derived from biomass (plants, etc.). \n\n###  Sustainability > Environment\n\n[ Environmental Management ](/en/csr/environment/management.html)\n\n[ Mitigating Climate Change ](/en/csr/environment/climaticvariation.html)\n\n[ Achieving a Circular Economy ](/en/csr/environment/recyclingsociety.html)\n\n[ Coexistence with Nature ](/en/csr/environment/biodiversity.html)\n\n[ Water Resources ](/en/csr/environment/waterresources.html)\n\n[ Prevention of Pollution ](/en/csr/environment/prevention.html)\n\n[ FYE March 2024 Environmental Performance Data for Plants and Offices\n](/en/csr/environment/data.html)\n\n  * [ Privacy Policy ](/en/privacy.html)\n  * [ Cookie Policy ](/en/assistance.html)\n  * [ Media ](/en/media/)\n\nPAGE TOP\n\nPAGE TOP\n\n[ \u00a9SUBARU CORPORATION  ](/en/copyright/)\n\n",
                "url": "https://www.subaru.co.jp/en/csr/environment/climaticvariation.html"
            },
            "reason": "This is Subaru's page on climate variation. It's a primary source for their own activities, but may present a biased view. It does not explicitly mention the target company.",
            "reliability_score": 0.6,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "This is Subaru's page on climate variation.",
            "url": "https://www.subaru.co.jp/en/csr/environment/climaticvariation.html"
        },
        {
            "content": {
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                    "origin": "public",
                    "resource_location": "web",
                    "resource_type": "webpage",
                    "source": "https://city.milwaukee.gov/eco/Climate-Action/Climate-Change-in-Milwaukee"
                },
                "page_content": "\n\n",
                "url": "https://city.milwaukee.gov/eco/Climate-Action/Climate-Change-in-Milwaukee"
            },
            "reason": "This is the City of Milwaukee's climate action page. Government websites are generally reliable sources of information. It does not explicitly mention the target company.",
            "reliability_score": 0.8,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "This is the City of Milwaukee's climate action page.",
            "url": "https://city.milwaukee.gov/eco/Climate-Action/Climate-Change-in-Milwaukee"
        },
        {
            "content": {
                "metadata": {
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                    "origin": "public",
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                    "resource_type": "webpage",
                    "source": "https://www.berryglobal.com/en/sustainability/sustainability-strategy/key-issues/climate-change"
                },
                "page_content": "  * Skip to main content \n\n#  Climate Change\n\n##  Significance\n\n** Importance To Berry Global and our Stakeholders  **\n\nThe management of our energy usage and subsequent emissions is vital to meet\nour commitments to sustainability, operational efficiency, and environmental\nstewardship. By adopting efficient energy practices and reducing emissions, we\nnot only lower operational costs, but also reduce the carbon footprint of our\nbusiness and aid the transition to net-zero. By embracing renewable energy\nsources and optimizing energy consumption, we foster operational resilience to\nclimate risk and facilitate responsible growth opportunities.\n\n**Our Customers:** Many of our customers have committed to net-zero. This\nrequires they eliminate both their operational emissions and value chain\nemissions. As a critical part of our customers\u2019 value chains, they have made\nit clear that they want us to support their emissions reductions goals by\nreducing our own operational emissions as well as offering them lower-carbon\nproducts.\n\n**Our Investors:** Climate change presents many risks and opportunities. By\ndemonstrating an effective energy and emissions management strategy, we\nreflect our dedication to responsible business practices and assure that we\nare not only aligned with global sustainability goals but also actively\nmanaging potential risks and opportunities.\n\n* * *\n\n##  Our Approach\n\nBerry is committed to helping address climate change by advancing\ndecarbonization in our products, operations, and value chain. We act on this\nthrough strong climate governance, a robust risk management methodology, and\nstrategic planning. Our climate strategy centers on Berry\u2019s commitment to\nachieving net-zero emissions across our global operations and value chain by\n2050. As part of this, we have set science-based targets to reduce our total\nScope 1, 2, and 3 emissions over 90% and neutralize our remaining residual GHG\nemissions by 2050. Meeting these goals helps ensure Berry is aligned with a\n1.5\u00b0C warming scenario and supports the Paris Agreement\u2019s goal of limiting\nglobal warming to well-below 2\u00b0C. To achieve net-zero, Berry is working to\ndevelop more circular plastics, engaging partners in our value chain to\ndevelop low-carbon solutions, and investing in renewable energy. We also had a\nnear-term goal of reducing our emissions by 25% by 2025, approved by the\nScience Based Targets initiative (SBTi). Berry achieved our Scopes 1 and 2\nemissions reductions early and we remain on track to achieve our Scope 3\ntarget in 2025. We implement an annual climate change risk management process,\nincluding the Berry Global Enterprise Risk Assessment (ERA), a carbon risk\nassessment in line with the Task Force on Climate-Related Financial\nDisclosures (TCFD) guidelines. We also collaborate with our suppliers and\ncustomers to commercialize products made with low-carbon raw materials to\nreduce our value chain emissions. Other activities for lowering the carbon\nintensity of our operations include reducing our use of fossil-based energy\nand increasing circular plastics in accordance with the International Energy\nAgency (IEA) Net Zero Emissions (NZE) by 2050 Scenario.\n\nWe use an operational control approach as our reporting boundary, in line with\nthe GHG Reporting Protocol and with guidance from the GHG Protocol\u2019s Corporate\nValue Chain (Scope 3) Reporting and Accounting Standard. To increase the ease\nof reporting and quality of the information reported, we exclude several minor\nemissions sources, including minor quantities of liquefied petroleum gas\n(LPG), Heavy Fuel Oil (HFO), kerosene, gasoline, and diesel at U.S.\nfacilities, and energy use in offices and non-production facilities.\n\nAdditionally, we do not report emissions of Sulfur Oxides (SOx), Nitrogen\nOxides (NOx), and Volatile Organic Compounds (VOCs) from the use of\nrefrigerants and welding gases. These are only tracked at the site level, and\nthey have repeatedly been confirmed to be a de minimis contributor to our\noverall emissions. During screening, six Scope 3 categories were considered\nnot applicable to our reporting and have also been excluded: Use of Sold\nProducts, Processing of Sold Products, Upstream Leased Assets, Downstream\nLeased Assets, Franchises, and Investments. We estimate the total exclusions\nfrom our reporting amount to less than 5% of our potential total operational\nand value-chain emissions footprint.\n\nWe report our emissions data in carbon dioxide equivalents (CO\u2082e), a metric\nthat allows us to measure emissions from all GHG emissions as one number by\nconverting the amounts of other greenhouse gases to the equivalent amount of\ncarbon dioxide. The Global Warming Potential (GWP) used in calculations of\nCO\u2082e is taken from the Intergovernmental Panel on Climate Change (IPCC) Fifth\nAssessment Report (AR5). When calculating our market-based GHG emissions,\ncarbon offsets are not included as offsets are not used to measure progress\ntowards targets. Historical data may be recalculated to align with updated\nmethodology.\n\n* * *\n\n##  Highlights and Target Progress\n\n**Priority** |  **2024 Update**  \n---|---  \nReduce Scope 1 & 2 absolute emissions 25% by 2025 from a 2019 baseline  |  We have reduced our Scope 1 and 2 absolute emissions by 28.3%, continuing to surpass our 2025 target of 25% reduction in Scope 1 and 2 emissions versus 2019 one year early   \nReduce Scope 3 absolute emissions 25% by 2025 from a 2019 baseline  |  We have achieved a 22% reduction in Scope 3 emissions since 2019, and are on track for achieving a 25% reduction by 2025.   \nNet-zero greenhouse gas emissions by 2050  |  We have reduced our total emissions 23% since 2019   \nIncrease renewable energy use year on year  |  We increased the amount of renewable energy used annually by 30%.   \n  \nReduce Energy Consumption Intensity 1% per year  |  Energy intensity increased by 0.4%. However, Berry implemented CapEx initiatives to eliminate over 40,000 Mwh of energy usage annually. We continue to work to implement further initiatives to improve energy efficiency   \n  \n* * *\n\n##  Key Metrics\n\n**Energy**  \n---  \n|  **2022** |  **2023** |  **2024**  \n**Absolute Energy Consumption** |  Amount and Percentage of Energy Consumption   \nMWh  |  Percentage  |  MWh  |  Percentage  |  MWh  |  Percentage   \nElectricity  |  Renewable  |  184,548  |  3%  |  306,696  |  6%  |  400,459  |  7%   \nNon-Renewable  |  4,723,544  |  79%  |  4,2349,920  |  76%  |  4,086,343  |  74%   \nTotal  |  4,908,091  |  83%  |  4,556,616  |  82%  |  4,486,802  |  82%   \nNatural Gas  |  |  667,416  |  11%  |  700,857  |  13%  |  720,387  |  13%   \nSteam  |  |  257,483  |  4%  |  199,163  |  4%  |  186,762  |  3%   \nOther Energy Sources  1  |  |  111,468  |  2%  |  109,569  |  2%  |  106,880  |  2%   \nTotal Energy  |  Renewable  |  184,548  |  3%  |  306,696  |  6%  |  400,459  |  7%   \nNon-Renewable  |  5,759,910  |  97%  |  5,259,523  |  94%  |  5,100,402  |  93%   \nTotal  |  5,944,457  |  100%  |  5,566,219  |  100%  |  5,500,861  |  100%   \n|  Amount and Percentage of Energy Consumption by Division  \nMWh  |  Percentage  |  MWh  |  Percentage  |  MWh  |  Percentage   \nConsumer Packaging International (CPI) Division  |  1,556,875  |  26%  |  1,462,143  |  26%  |  1,466,260  |  27%   \nConsumer Packaging North America (CPNA) Division  |  1,387,316  |  23%  |  1,335,899  |  24%  |  1,298,924  |  24%   \nFlexibles (FLEX) Division  |  1,163,385  |  20%  |  1,075,877  |  19%  |  1,056,034  |  19%   \nHealth, Hygiene & Specialties (HHS) Division  |  1,794,100  |  30%  |  1,645,625  |  30%  |  1,638,283  |  30%   \nTransport Fleet  |  42,781  |  1%  |  46,676  |  1%  |  41,359  |  1%   \n|  Percentage  \nPercentage of Reported Electricity supplied via Electricity Grid  |  >99%  |  >99%  |  >99%   \n|  Energy consumption per MT of Production (MWh/MT)  \nElectricity  |  1.255  |  1.277  |  1.277   \nNatural Gas  |  0.071  |  0.196  |  0.205   \nSteam  |  0.066  |  0.056  |  0.053   \nOther Energy Sources  1  |  0.028  |  0.031  |  0.03   \nTotal Energy  |  1.52  |  1.559  |  1.565   \n|  Energy Intensity by Division (MWh/MT)  \nConsumer Packaging International (CPI) Division  |  2.081  |  2.168  |  2.196   \nConsumer Packaging North America (CPNA) Division  |  1.507  |  1.514  |  1.486   \nFlexibles Division  |  0.876  |  0.913  |  0.922   \nHealth, Hygiene & Specialties (HHS) Division  |  1.962  |  1.973  |  1.979   \n**Renewable Energy** |  MWh   \nRenewable Energy Consumption  |  184,548  |  306,696  |  400,459   \n|  Percentage  \nRenewable Energy as a percentage of Total Electricity Consumption  |  3.80%  |  6.70%  |  8.90%   \nRenewable Energy as a percentage of Total Energy Consumption  |  3.10%  |  5.50%  |  7.30%   \n|  Amount and Percentage of Renewable Energy Procurement, by Division  \nMWh  |  Percentage  |  MWh  |  Percentage  |  MWh  |  Percentage   \nConsumer Packaging International (CPI) Division  |  61,991  |  34%  |  110,068  |  36%  |  126,934  |  32%   \nConsumer Packaging North America (CPNA) Division  |  676  |  0%  |  2927  |  1%  |  4,051  |  1%   \nFlexibles (FLEX) Division  |  25,548  |  14%  |  28,203  |  9%  |  28,966  |  7%   \nHealth, Hygiene & Specialties (HHS) Division  |  89,332  |  48%  |  165,498  |  54%  |  145,059  |  36%   \nCorporate  2  |  7,000  |  4%  |  0  |  0%  |  95,000  |  24%   \n**Energy Reduction Programs** |  Energy Requirement reductions due to CapEx Initiatives (MWh)  3   \nConsumer Packaging International (CPI) Division  |  33,775  |  42,265  |  15,299   \nConsumer Packaging North America (CPNA) Division  |  20,106  |  2,250  |  2,177   \nFlexibles (FLEX) Division  |  11,809  |  2,756  |  15,586   \nHealth, Hygiene & Specialties (HHS) Division  |  9,981  |  5,258  |  6,980   \nBerry Global Total  |  75,671  |  52,529  |  40,042   \n**Greenhouse Gas Emissions**  \n**Absolute Operational Emissions** |  **2019 Baseline** |  **2022** |  **2023** |  **2024**  \nAmount and Percentage of Emissions  \nMT CO\u2082e  |  MT CO\u2082e  |  MT CO\u2082e  |  MT CO\u2082e  |  Percentage   \nScope 1  4  |  143,927  |  141,821  |  145,839  |  147,662  |  9%   \nScope 2 (Market-Based)  5  |  2,106,565  |  1,659,224  |  1,567,296  |  1,612,979  |  91%   \nTotal Market-Based Emissions  |  2,250,492  |  1,801,045  |  1,713,135  |  1,612,979  |  100%   \nScope 2 (Location Based)  5  |  2,122,646  |  1,706,321  |  1,655,577  |  1,611,077  |  92%   \nTotal Location-Based Emissions  |  2,266,573  |  1,848,142  |  1,801,416  |  1,758,739  |  100%   \n|  Amount and Percentage of Emissions by Division (Market-Based)  \n|  MT CO\u2082e  |  MT CO\u2082e  |  MT CO\u2082e  |  MT CO\u2082e  |  Percentage   \nConsumer Packaging International (CPI) Division  |  Scope 1  |  12,112  |  15,776  |  19,097  |  24,133  |  16%   \nScope 2 (Market-Based)  |  558,415  |  444,107  |  407,181  |  402,006  |  27%   \nTotal Market-Based Emissions  |  570,527  |  459,883  |  426,278  |  426,139  |  26%   \nScope 2 (Location-Based)  |  563,486  |  461,271  |  436,781  |  435,719  |  27%   \nTotal Location-Based Emissions  |  575,598  |  477,046  |  455,879  |  459,852  |  26%   \nConsumer Packaging North America (CPNA) Division  |  Scope 1  |  12,328  |  11,844  |  11,328  |  10,268  |  7%   \nScope 2 (Market-Based)  |  658,208  |  519,181  |  528,532  |  497,575  |  34%   \nTotal Market-Based Emissions  |  670,536  |  531,025  |  539,860  |  507,843  |  31%   \nScope 2 (Location-Based)  |  658,208  |  519,373  |  529,659  |  499,310  |  31%   \nTotal Location-Based Emissions  |  670,536  |  531,217  |  540,986  |  509,578  |  29%   \nFlexibles (FLEX) Division  |  Scope 1  |  42,217  |  44,866  |  42,528  |  40,941  |  28%   \nScope 2 (Market-Based)  |  421,988  |  306,042  |  294,885  |  285,449  |  19%   \nTotal Market-Based Emissions  |  464,205  |  350,908  |  337,414  |  326,390  |  20%   \nScope 2 (Location-Based)  |  432,998  |  314,706  |  305,137  |  295,558  |  18%   \nTotal Location-Based Emissions  |  475,214  |  359,572  |  347,665  |  336,498  |  19%   \nHealth, Hygiene & Specialties (HHS) Division  |  Scope 1  |  63,000  |  58,486  |  61,054  |  61,840  |  42%   \nScope 2 (Market-Based)  |  467,955  |  394,218  |  336,697  |  338,493  |  23%   \nTotal Market-Based Emissions  |  530,955  |  452,704  |  397,751  |  400,333  |  25%   \nScope 2 (Location-Based)  |  467,955  |  410,972  |  384,000  |  380,490  |  24%   \nTotal Location-Based Emissions  |  530,955  |  469,458  |  445,053  |  442,330  |  25%   \nTransport Fleet  |  Scope 1  |  14,269  |  10,849  |  11,832  |  10,480  |  7%   \nCorporate reductions  6  |  Scope 2 (Market-Based)  |  0  |  -4,323  |  0  |  -58,207  |  -4%   \n|  **2024**  \n**2023 Greenhouse Gas types 7  ** |  Amount, by Greenhouse Gas type   \nMT CO\u2082  |  MT CH\u2084  |  MT N\u2082O   \nScope 1  |  147,528  |  2,458  |  246   \nScope 2 (Market-Based)  |  1,457,289  |  759  |  2,301   \nTotal Market-Based Emissions  |  1,604,817  |  3,217  |  2,457   \nScope 2 (Location-Based)  |  1,602,372  |  929  |  2,793   \nTotal Location-Based Emissions  |  1,749,900  |  3,387  |  3,055   \n|  **2019  \nBaseline ** |  **2022** |  **2023** |  **2024**  \n**Operational Emissions Intensity** |  Emissions produced per MT of Production (MT CO\u2082e/MT)   \nScope 1  |  0.037  |  0.036  |  0.041  |  0.042   \nScope 2 (Market-Based)  |  0.54  |  0.424  |  0.439  |  0.417   \nTotal Market-Based Emissions  |  0.577  |  0.461  |  0.48  |  0.459   \nScope 2 (Location-Based)  |  0.544  |  0.436  |  0.464  |  0.458   \nTotal Location-Based Emissions  |  0.581  |  0.473  |  0.50  |  0.5   \n|  Market-Based Emissions produced per MT of Production by Division (MT\nCO\u2082e/MT)  \nConsumer Packaging International (CPI) Division  |  0.717  |  0.615  |  0.632  |  0.638   \nConsumer Packaging North America (CPNA) Division  |  0.793  |  0.577  |  0.612  |  0.581   \nFlexibles (FLEX) Division  |  0.328  |  0.264  |  0.286  |  0.285   \nHealth, Hygiene & Specialties (HHS) Division  |  0.628  |  0.495  |  0.477  |  0.484   \nTransport Fleet  |  n/a  |  n/a  |  n/a  |  n/a   \nBerry Global Total  |  0.577  |  0.461  |  0.48  |  0.459   \n|  **2019  \nBaseline ** |  **2022** |  **2023** |  **2024**  \n**Absolute Value Chain Emissions** |  Amount and Percentage of Value Chain Emissions   \nMT CO\u2082e  |  MT CO\u2082e  |  MT CO\u2082e  |  MT CO\u2082e  |  Percentage   \nTotal Scope 3  \nEmissions  8  |  11,019,575  |  9,879,620  |  8,628,530  |  8,602,616  |  100%   \nPurchased Goods and Services  |  7,539,027  |  6,333,350  |  5,586,825  |  5,593,642  |  65%   \nFuel & Energy  |  445,786  |  442,180  |  352,866  |  348,208  |  4%   \nCapital Goods  |  70,783  |  69,299  |  66,753  |  51,883  |  1%   \nWaste in Operations  |  31,189  |  27,873  |  28,512  |  31,031  |  0%   \nBusiness Travel  |  20,992  |  11,980  |  12,360  |  17,345  |  0%   \nEmployee Commuting  |  225,109  |  208,467  |  182,272  |  175,701  |  2%   \nDownstream T&D  |  243,231  |  177,495  |  177,567  |  192,429  |  2%   \nUpstream T&D  |  466,643  |  478,091  |  386,052  |  404,147  |  5%   \nEnd of Life of Sold Products  |  1,976,816  |  2,130,884  |  1,835,324  |  1,788,230  |  21%   \n1  Other energy sources, including LPG, Kerosene, HFO, and Coal are tracked\nfor sites in our CPI division and at sites where usage has been identified as\nhigh. For all other sites, energy usage from other sources has been deemed de\nminimis (<1% of total energy).  \n2  Renewable Energy Certificates (RECs) are sometimes purchased at a corporate\nlevel to complement division-led renewable projects.  \n3  Reported numbers represent calculated annual savings from energy reduction\nand efficiency CapEx Projects implemented during the reported year, and does\nnot represent the total changes in energy requirements for that year. Data\ndoes not include savings achieved through non-CapEx projects.  \n4  Scope 1 emissions are emissions from sources that our organization owns or\ncontrols directly \u2013 for example, combustion of fuel.  \n5  Scope 2 emissions are emissions from purchased energy - such as electricity\nand steam. Location-based emissions are calculated based on the average\nemission factor to produce electricity in the region where that electricity is\nused. Market-based emissions are calculated using our specific contracts,\nwhere available, including specific Renewable Energy Certificate (REC)\npurchases.  \n6  Renewable Energy Certificates (RECs) are proactively purchased at corporate\nlevel outside of the divisional structure and then assigned to relevant\nfacilities, reducing their emissions.  \n7  Internal investigations have determined NOx (Nitrous Oxides), SOx (Sulfur\nOxides), and VOC emissions are insignificant and therefore we do not report a\ncompany-wide number. Emissions from these sources are tracked at site level\nand, if applicable, are documented and reported in-line with site air\noperating permits.  \n8  Scope 3 emissions are indirect emissions resulting from upstream and\ndownstream activities within our value chain.  \n\n* * *\n\n##  Key Strategies\n\n** Climate Governance  **\n\n** Board-Level Oversight  **\n\nCreating positive environmental change is fundamental to Berry Global's\nculture and permeates all organizational levels. Our Board of Directors\nintegrates sustainability into our core strategy and risk management\nframework.\n\nThe Board holds ultimate responsibility for our environmental strategy,\nincluding climate initiatives. It oversees climate-related risk management,\nensures adherence to the highest governance standards, and annually reviews\nour sustainability plans and potential future challenges.\n\n** Executive Leadership  **\n\nOur CEO bears overall accountability for:\n\n  * Risk management, including climate-related concerns \n  * Corporate sustainability goals achievement \n  * GHG emissions reduction targets \n  * Other climate-related metrics \n\n** Committee Structure  **\n\nThe **Nominating and Governance Committee** primarily oversees:\n\n  * ESG strategy development \n  * Initiative implementation \n  * Climate risk and opportunity disclosure \n\nThe **Audit Committee** supports the Board by:\n\n  * Reviewing major risk exposures \n  * Evaluating annual corporate-wide risk assessments \n  * Examining risk management policies, including those related to climate \n\n** Operational Management  **\n\nClimate risks are continuously monitored through:\n\n  1. The CEO and Board's direct oversight \n  2. Annual Enterprise Risk Assessment (ERA) process \n  3. Independent risk identification by the SVP of Sustainability \n\nThe **SVP of Sustainability** :\n\n  * Reports to the CEO \n  * Manages GHG targets, reporting, and compliance \n  * Conducts annual carbon and physical climate risk assessments \n  * Communicates assessment results to senior leadership \n\nKevin Kwilinski, Chief Executive Officer (CEO)\n\n  * Holds overall responsibility for corporate strategy governance, performance, internal controls, and risk management, with oversight by the Berry Global Board. \n  * Monitors climate-related issues identified by the Company\u2019s annual Enterprise Risk Assessment process. \n\n  \n\n* * *\n\nRodgers Greenawalt, Executive Vice President Operations\n\n  * Oversees all of Berry Global\u2019s worldwide operations and reports directly to the CEO. \n  * Oversees and monitors climate-related issues, such as the company\u2019s GHG emissions reduction strategy and supports the development and drives the execution of operational and climate goals. \n\n  \n\n* * *\n\nJason Greene, Chief Legal Officer\n\n  * Reports directly to the CEO and is responsible for the annual ERA, a company-wide risk analysis that monitors, among other topics, climate-related issues, and associated risks. \n\n  \n  \n  \n  \n\n* * *\n\n** Climate Strategy and Risk Management  **\n\n** Scenario Analysis  **\n\nWe employ multiple climate scenarios to understand potential business impacts\nand guide our strategy. These scenarios include both current policy benchmarks\nand pathways to achieve specific global warming targets.\n\n**Impact 2025 Development (2\u00b0C Pathway)**\n\nWhen crafting our original Impact 2025 Sustainability Strategy, we conducted\ncomparative modeling using:\n\n  * Target Scenario: IEA ETP 2DS (2\u00b0C Scenario) \n  * Baseline: IEA 2016 STEPS (Stated Policies Scenario) \n\nThis analysis informed our initial GHG emissions intensity reduction targets\naligned with limiting warming to 2\u00b0C. As a direct result, we:\n\n  * Established global reduction targets \n  * Allocated capital for energy reduction projects \n  * Prioritized renewable energy sourcing \n  * Created company-wide focus on energy management \n\n**Strategic Enhancement (1.5\u00b0C Pathway)**\n\nIn 2021, we strengthened our commitment by expanding Impact 2025 based on the\nIEA NZE2050 (Net-Zero Emissions by 2050) pathway, compatible with limiting\nwarming to 1.5\u00b0C by 2100.\n\nThis led to setting new SBTi-approved science-based targets:\n\n  * 25% reduction in Scope 1 & 2 emissions by 2025 (2019 baseline) \n  * 25% reduction in Scope 3 emissions by 2025 (2019 baseline) \n\n**Long-Term Commitment**\n\nIn 2023, we formalized our pledge to achieve net-zero emissions by 2050. These\nGHG reduction targets form the cornerstone of our climate strategy,\ncomplemented by additional Impact 2025 initiatives that support our transition\nto a net-zero world.\n\n**IEA Stated Policies Scenario (STEPS)**\n\nThe STEPS (Stated Policies) Scenario projects future outcomes based on\ncurrently enacted and announced government policies worldwide. This forward-\nlooking assessment evolves as policy landscapes change, with the most recent\nupdate released in 2021.\n\n**_Climate Trajectory_ **\n\nUnder STEPS, global temperatures would exceed 1.5\u00b0C before 2030 and continue\nrising to reach 2.6\u00b0C by 2100. This warming trajectory would significantly\nincrease the frequency and intensity of climate-related disasters, creating\nsubstantial climate risks to our business operations and industry as a whole.\n\n**_Industry-Specific Impacts_ **\n\nFor the plastics sector, STEPS projects global plastics recycling rates\nreaching only 20% by 2030. This persistent shortage of recycled feedstock\nalternatives would force continued dependence on virgin material-based product\nportfolios, limiting our ability to transition to more sustainable options.\n\n**_Economic Consequences_ **\n\nThe scenario forecasts increased petrochemical sector demand for oil, driving\nrising prices as new supply sources become necessary. Our industry would face\ncontinued reliance on crude oil as the primary plastic feedstock, creating\nsignificant price pressures throughout our supply chain. These market dynamics\nwould constrain innovation and sustainability efforts.\n\n**_Business Assessment_ **\n\nRemaining on a STEPS trajectory would be universally detrimental to our\nbusiness sustainability and long-term viability. The combination of\nenvironmental impacts, resource constraints, and economic pressures makes this\nscenario particularly challenging for our operations and strategic objectives.\n\n**IEA ETP 2DS Scenario**\n\nThe IEA ETP 2DS Scenario charts a potential pathway with at least a 50% chance\nof limiting global warming to 2\u00b0C by 2100. Unlike the more conservative STEPS\nscenario, 2DS demands a fundamental transformation of global energy production\nand consumption patterns.\n\n**_Energy Transition Requirements_ **\n\nWhile energy demand continues to rise under 2DS, emissions from the energy\nsector must decline dramatically to one-quarter of 2017 levels by 2060. This\ntransition would reduce fossil fuels to just 35% of primary energy demand,\nrequiring substantial shifts toward renewable and low-carbon alternatives.\n\n**_Chemical and Petrochemical Sector Challenges_ **\n\nFor our industry to thrive in a 2DS world, we face a critical balancing act:\nannual direct CO\u2082 emissions increases must remain below 3.6% through 2025 even\nas product demand surges by 47%. This requires significant innovation in\nproduction methods and materials.\n\n**_Decarbonization Pathways_ **\n\nTwo essential approaches to sector decarbonization emerge under 2DS:\n\n  1. Expanded pre- and post-consumer recycling offers more energy-efficient process pathways compared to conventional virgin resin production. \n  2. Bio-based alternatives for downstream plastic products provide additional decarbonization opportunities. \n\n**_Strategic Impact_ **\n\nOur analysis of this scenario in 2019 fundamentally shaped our Impact 2025\nsustainability strategy, accelerating our business transition toward a lower-\ncarbon future. These insights continue to guide our investment decisions,\ninnovation priorities, and operational transformations.\n\n**IEA NZE Scenario**\n\n**_A Blueprint for Energy Transformation_ **\n\nThe IEA Net Zero Emissions (NZE) scenario outlines a realistic pathway to\nachieve net-zero emissions by 2050. It provides a detailed timeline and\nrequirements for the global energy transition, establishing clear milestones\nfor decarbonization across all sectors.\n\n**_Fossil Fuel Transformation_ **\n\nUnder NZE, fossil fuel usage would decline dramatically. By 2050, remaining\nfossil fuels would primarily serve two purposes: as feedstock for carbon-\nembedded products like plastics, or in facilities equipped with Carbon Capture\nUtilization & Storage (CCUS) technology.\n\n**_Chemical Industry Evolution_ **\n\nDespite slower growth compared to recent decades, global demand for primary\nchemicals would still rise 30% by 2050 from 2020 levels, ensuring continued\ngrowth opportunities for appropriate plastic solutions. However, the chemicals\nsector must undergo a profound emissions reduction\u2014from 1.3 Gt in 2020 to just\n65 Mt by 2050.\n\n**_Recycling Revolution_ **\n\nA critical component of this transition is dramatically increased recycling\nrates. The NZE scenario projects global plastic recycling collection reaching\n27% by 2030 and 54% by 2050, facilitating the shift from virgin-based to\nrecycled and reused plastics while eliminating significant GHG emissions from\nchemical production.\n\n**_Implications for Our Business_ **\n\nThis scenario requires our business to substantially increase recycled resin\nusage. Any remaining virgin resin production would need to utilize:\n\n  * CCUS applications \n  * Hydrogen-based solutions \n  * Electrolysis processes \n\nThese technologies would effectively eliminate carbon emissions from\nproduction.\n\n**_Strategic Direction_ **\n\nThe IEA NZE Scenario serves as our roadmap for successfully navigating the\ntransition to a zero-carbon, circular economy\u2014revealing both the challenges we\nface and the opportunities that await.\n\n** Identifying and Classifying Risks and Opportunities  **\n\nBerry Global performs multiple risk management processes annually in relation\nto climate change risk:\n\n  1. The multi-disciplinary Berry Global Enterprise Risk Assessment (ERA) \n  2. An annual carbon risk assessment in line with TCFD guidelines \n  3. Double Materiality Assessment \n\n**Berry Global ERA**\n\nThe Berry Global Enterprise Risk Assessment (ERA) operates on an annual cycle,\nemploying multiple processes to identify risks across the organization.\nApproximately 35 senior management team members participate in interviews\ndesigned to uncover risks relevant to the business. These interviews span\nvarious geographies and functional areas including legal, division leadership,\nfinance, human resources, purchasing, and sustainability, ensuring results\nreflect Berry's global operations.\n\nThe assessment extends beyond interviews through a questionnaire distributed\nto approximately 100 management employees representing diverse job functions\nand locations, capturing additional risk perspectives. All gathered\ninformation flows into a central database where risks are organized into\napproximately fifteen thematic categories such as supply chain (upstream),\nproduction (direct operations), infrastructure, and external market forces\n(downstream). Climate change is intrinsically connected to several of these\nthemes, particularly resin purchases in the supply chain and energy usage and\nproduct design in production.\n\nEach identified risk undergoes evaluation based on three dimensions: potential\nimpact (ranging from insignificant to catastrophic), likelihood of occurrence\n(from unlikely to almost certain), and speed of onset (from immediate to long-\nterm). These ratings generate a risk score\u2014higher ratings for impact,\nlikelihood, or speed of onset produce correspondingly higher risk scores.\n\nThe assessment culminates in a focused report detailing the top five risk\nthemes extracted from the database. This report articulates both the inherent\nrisks and key mitigation activities for each theme. The Audit Committee and\nBoard receive this report, enabling them to implement appropriate mitigation\nplans addressing the most significant risks revealed through the process.\n\n**Annual Carbon Risk Assessment**\n\nIn addition to and contributory to the ERA, Berry Global conducts annual\ncarbon risk and physical risk assessments following Task Force on Climate\nRelated Financial Disclosures (TCFD) guidelines. These assessments evaluate\nrisks on a country-by-country basis, encompassing the UK and other global\nlocations.\n\nThe carbon risk assessment leverages Berry Global's GHG inventory to estimate\ncurrent energy costs based on the latest regulatory information and calculate\nassociated transitional risks. These transitional carbon risks are then\nprojected across various scenarios using different carbon prices, geographies,\nand time horizons.\n\nFor physical risks, the assessment analyzes locational data and historic\nclimatic events to identify potential vulnerabilities. Mirroring the ERA\nmethodology, each identified risk receives ratings for impact, likelihood of\noccurrence, and speed of onset. Assessment results flow directly to the CFO\nand CEO.\n\nBeyond these annual evaluations, Berry Global monitors transitional risks\ncontinuously through automated, real-time dashboards that track energy use and\nGHG emissions at both site and divisional levels. This ongoing surveillance\nenables the identification of localized risks when usage data exceeds\noperational norms, with escalation pathways through the climate governance\nteam when necessary. This real-time monitoring system provides more frequent\nrisk and opportunity responses than the annual Enterprise Risk Assessment\nalone could deliver.\n\n**Double Materiality Assessment**\n\nWe recently completed a Double Materiality Assessment (DMA) for the first time\nto comprehensively identify, assess, and manage our environmental\ndependencies, impacts, risks, and opportunities. The DMA approach allows us to\nview sustainability from two critical perspectives: financial materiality and\nimpact materiality. From the financial perspective, we are able to assess how\nenvironmental factors, such as climate change, water availability, plastics,\nand biodiversity loss, directly influence our operations and financial\nperformance. Simultaneously, from an impact materiality standpoint, we analyze\nhow our operations affect the environment, understanding our impact from\nfactors such as emissions, water usage, and plastic waste generation. By\nrecognizing both how the environment influences us and how we influence it, we\nare able to better identify and assess our material impacts and dependencies,\nand furthermore those areas where our business might face risks or uncover\nopportunities for innovation and improvement.\n\n** Identified Risks and Opportunities  **\n\nClimate risk can be categorized into several different risk types that are\nincluded within our climate risk assessments and considered relevant to our\nbusiness. Forward looking climate risks are grouped into time horizons which\nare defined as follows:\n\n**Short-term** |  0-3 years   \n---|---  \n**Medium-term** |  3-6 years   \n**Long-term** |  6+ years   \n  \n\nBerry\u2019s environmental (Climate-related) time horizons (Short 0-3, Medium 3-6,\nLong >6) are intentionally longer than our financial planning periods (Short\n0-1, Medium 2-3, Long >3) due to the complex and long-term nature of\nenvironmental challenges. Strategic environmental planning must account for\nsignificant but slow-moving changes, such as those presented by climate change\nand resource depletion. Longer time horizons are critical to managing risks\nassociated with evolving regulations, longer payback periods for investments\nin sustainable technologies, and the acute and chronic physical risks\nassociated with a changing climate. Longer environmental time horizons allow\nus to take a proactive approach to climate risk, ensuring that our business\nremains viable and responsible over the long term, while still aligning with\nour overall financial objectives.\n\nOnce identified, the required risk management plan is dependent on the\npotential risk impact level and risk type, and the targeted risk source.\nRegulatory transitional risks generally require a chance to our direct\noperations, such investments in renewable energy and carbon offsets, and the\nimplementation of energy efficiency projects, while transitional market risks\nmanagement plans emphasize changes to our product portfolio. Management plans\nfor acute physical risk mitigation focus on minimizing the personal cost-\nimpact on our business in addition to generalized prevention through\nstakeholder interaction.\n\nClimate risk types are set out below with a brief description of each.\n\n**Current Regulation**\n\nAs we operate in the manufacturing sector, with energy making up a significant\nportion of operational spend, current climate change regulations can\nsignificantly affect the company.\n\n**Emerging Regulation**\n\nCurrent and future carbon prices as called for by regulation can significantly\naffect the company, with projections for large increases expected in carbon\nprices globally.\n\n**Technology**\n\nTechnology is a key climate related risk considered by Berry\u2019s risk assessment\nprocess. Technology is an important lever for reducing both energy intensity\nin Berry Global\u2019s operations as well as the emissions intensity of the energy\nwe purchase. Risks related to energy cost management are identified during\nsite risk assessments and the development of energy efficiency programs is\nactioned to mitigate risks in this area.\n\n**Legal**\n\nThe Berry risk assessment process is all encompassing, and we stay up to date\non climate-related issues, including lawsuits.\n\n**Market**\n\nMarket shifts and forecasts around fossil fuels are closely monitored since\nfossil fuels represent not just our primary energy sources, but also the\nprimary source for most of our raw materials.\n\n**Reputation**\n\nBerry Global has identified increased risk associated with general perception\nof the products, including adverse publicity regarding plastic waste on the\nenvironment. The company already produces a considerable number of recyclable\nproducts and through innovation will continue to collaborate with customers to\nmeet any change in demands and to reduce the carbon footprint and therefore\nthe climate impact of products supplied.\n\n**Acute Physical**\n\nBerry Global businesses face the potential risk of operations being affected\nby disruption due to loss of supply, failures with technology, industrial\ndisputes and physical damage arising from extreme weather events, such as\nflooding. The occurrence of these events might be significantly influenced by\nclimate change. The loss of essential services or supplies could have a\nsignificant impact on Berry\u2019s ability to service its customers.\n\n**Chronic Physical**\n\nChronic physical risks are considered in the analysis of external risks.\nExternal risks occur in the environment outside the company and these risks\ntend to be those where the company has little or no control over the cause\nincluding the physical environment, political, legal, economic, social,\ncultural, and demographic factors.\n\nThe results of the above noted risk assessment processes have highlighted the\nbelow as examples of the most prevalent climate risks and opportunities\nimpacting our business.\n\n**Risks:**\n\n**Risk Type**  \n|  Current/emerging regulation  \n  \n---|---  \n**Risk Driver Summary**  \n|  Carbon Pricing Mechanisms  \n**Value chain location** |  Direct Operations   \n**Primary Impact** |  Increased Operating Costs   \n**Time Horizon** |  Medium-term   \n**Likelihood** |  Likely   \n**Magnitude** |  High   \n**Risk Description** |  Berry Global uses over 4.6 million MWh of energy annually and has a Scope 1 & 2 CO2e footprint of almost 1.73 million MT. With the increased use of carbon pricing, this has the potential to increase our direct cost of energy. This increase in price is expected to be far higher than the typical price of inflation, and therefore it is considered to have a substantive fiscal impact on every facility that currently uses non-renewable energy, and a medium magnitude on our business as a whole.   \n**Expected Risk Impact** |  Anticipating of an average global Carbon Tax of $120 USD/MT CO2e in 2030, and factoring in that we have sites in many different regions; some sites that lie in areas that have already implemented a carbon pricing structure, while others operate in jurisdictions that do not currently have carbon pricing, we can estimate a potential total annual Carbon Tax risk of $208 million in 2030, compared to $23 million currently, which is an increased risk of $185 million.   \n**Risk mitigation** |  In order to completely mitigate the potential impact of carbon taxes, we would need to offset our direct use of energy onsite; our Scope 1 emissions and purchase renewable energy to eliminate Scope 2 emissions. Based on our 2023 Fiscal year Scope 1 emissions of 144k MT CO2e, and a current cost to offset these emissions of 30 USD/MT CO2e, we estimate the annual cost of offsetting these emissions to be 5 million USD. Based on our 2023 Fiscal Scope 2 electricity usage of 4.5 million MWh, and an average REC price of $2.3USD per MWh in NA, $0.95 USD per MWh in China and $3USD per MWh in ROW, we estimate the annual cost of purchasing 100% renewable electricity to be 11 million USD. This gives the total response as 15 million USA. This should be considered a conservative, worst-case scenario estimate; in-practice, more cost-effective methods would be used to reduce energy usage.   \n  \n**Risk Type** |  Emerging regulation   \n---|---  \n**Risk Driver Summary**  \n|  Carbon Pricing Mechanisms  \n**Value chain location**  \n|  Upstream Value Chain  \n**Primary Impact** |  Increased raw material costs   \n**Time Horizon** |  Medium-term   \n**Likelihood** |  Likely   \n**Magnitude** |  High   \n**Risk Description** |  Increased use of carbon pricing has the potential to increase energy costs for Berry\u2019s raw material suppliers, when this cost is passed down the supply chain it therefore becomes a risk for Berry Global related to increased raw material costs. Where raw material suppliers are exposed to increased/new carbon prices, we expect to have raw material cost increases above typical inflation; a substantive fiscal impact for impacted facilities, and a medium magnitude on our business as a whole.   \n**Expected Risk Impact** |  Berry Global has committed to net-zero by 2050, with an SBti approved, short-term target of a 25% reduction in Scope 3 emissions by 2025 from a 2019 baseline. In-line to achieving net-zero, we would be working towards a 50% reduction by 2030 from a 2019 baseline. Although we expect to be on-track to hit these goals as part of our net zero strategy, under a worst-case scenario we can assume no further reduction in GHG Emissions relating to purchased resin from our 2022 total of 4.28 million MT CO2e. If all carbon tax increases are passed on to us, with an anticipation of an average Carbon Tax of $120 USD/MT CO2e in 2030 under NZE Scenario. This results in an increased Medium risk in 2030 of $514 million USD annually, based on the assumptions listed above.   \n**Risk mitigation** |  Historically, we have been able to successfully manage the impact of higher raw material costs by increasing our selling prices. Sales contracts have cost pass-through clauses wherever possible. Additionally, we meet with our critical resin suppliers on a quarterly basis to drive them to reduce their emissions, through energy efficiency and the procurement of renewable energy to replace conventional energy sources. This would therefore reduce the impact of carbon pricing on their business, and associated cost impacts passed on to us. Over the last 10 years we have seen emissions factors associated with resin production falling substantially; US produced PP has fallen 18% over a 10-year period for example. If this trend continues, it will mitigate a large portion of the Potential Impact Figure.   \n  \n**Risk Type** |  Market   \n---|---  \n**Risk Driver Summary**  \n|  Changing Consumer Behavior  \n**Value chain location**  \n|  Direct Operations  \n**Primary Impact** |  Decreased Revenues   \n**Time Horizon** |  Long-term   \n**Likelihood** |  Unlikely   \n**Magnitude** |  Medium-high   \n**Risk Description** |  As the world shifts to a low-carbon economy and consumers become more aware and educated about climate change, it has the potential to negatively impact consumers' view of fossil fuels and cause them to move away from the purchase of products that utilize fossil fuels in their manufacture. The primary raw material of Berry is polymer resin derived from fossil fuels therefore posing a risk to the products that Berry manufactures.   \n**Expected Risk Impact** |  As identified by studies such as by the UK and European Plastics Pacts, consumer perception of packaging's sustainability will be a key driver over the next 10 years. In some cases, other material substrates may be considered by consumers as more sustainable, and therefore there is potential to have a decrease in revenue. The CPI & CPNA divisions of Berry manufacture fast moving consumer goods packaging where numerous other substrates are available from competitors that could be perceived as more environmentally conscious materials, despite the fact that plastic packaging often has a lower carbon footprint than alternative materials. Therefore, we have estimated the risk of a potential loss of 1% of total sales of fast-moving consumer goods (FMCGs). A 1% loss in sales from these would be in the order of magnitude of $71.5 million USD.   \n**Risk mitigation** |  As part of our materiality assessment, we ask our key customers about their long-term vision for their products and partner with them to realize that vision. We would therefore not be blindsided by a large-scale shift. We also regularly monitor market trends, based on both external research, internal consumer research, and ultimately sales data - we would be one of the first to know if the market was shifting away from plastics. Additionally, we work with customers to educate them on the benefits of plastics and our products. We also work in our communities as well as with trade associations to educate end-consumers on the benefits of plastics.   \n  \n  \n**Risk Type** |  Acute Physical   \n---|---  \n**Risk Driver Summary**  \n|  Loss of production capacity  \n**Value chain location**  \n|  Direct Operations  \n**Primary Impact** |  Decreased Revenues   \n**Time Horizon** |  Short-term   \n**Likelihood** |  About as likely as not   \n**Magnitude** |  Medium-Low   \n**Risk Description** |  Berry Global operates in some geographic regions that are at acute physical climate risk from extreme weather events such as flooding e.g., mainland European manufacturing facilities, drought e.g., African manufacturing facilities, or storm/hurricane impacts e.g., South East USA. In many cases where this risk is apparent, some continuity of supply can be maintained by transferring business to alternative Berry sites, reducing the risk.   \n**Expected Risk Impact** |  Any loss of business due to extreme weather events would adversely affect profit, depending on the size of the event and the number of sites that are affected. Excluding deductibles, the impact of Hurricane Laura in 2020 lead to total insurance claims over $10 million USD for business interruption & property damage, CBI, and incremental costs - relating to a resin shortage. The impact of Winter Storm Uri in 2021 on our business sat in the region of between $10 million USD and $20 million USD. Based on the data above, we can estimate that the potential upper limit impact on our business as a result of each extreme weather event lies around $20 million USD. There have been a number of smaller-impact extreme weather events over the last 10 years where costs have been in the region of $2-5million USD, so $2million USD will be used as a lower limit.   \n**Risk mitigation** |  The primary method to manage this risk is through insurance. Potential insurance deductibles for each extreme weather invent lie in the region of $1 million USD for business interruption, property insurance and other incremental costs. This is the minimum cost to any response to mitigate the impact of an extreme event that has a substantial effect on our business. Additionally, we pay annual premiums for this insurance which are not included in our Cost of Response figure.   \n  \n  \n**Risk Type** |  Emerging Regulation   \n---|---  \n**Risk Driver Summary**  \n|  Regulation of existing products and services  \n**Value chain location**  \n|  Downstream  \n**Primary Impact** |  Decreased Revenues   \n**Time Horizon** |  Medium-Term   \n**Likelihood** |  Likely   \n**Magnitude** |  Low   \n**Risk Description** |  The effects of climate change are leading to the potential introduction of new regulatory changes including mandates on plastic packaging. The current proposal of the Packaging and Packaging Waste Directive from the European Commission proposes a requirement to allow only packaging that is designed for recyclability by 2030. Companies are now looking for materials that can offer the same benefits as PVC film but demonstrate an improved environmental profile.   \n**Expected Risk Impact** |  The current proposal of the Packaging and Packaging Waste Directive from the European Commission that is now under review proposes a requirement to allow only packaging that is designed for recyclability by 2030. As a result of these developments, food companies are now looking for alternative materials that can offer the same benefits as PVC film but demonstrate an improved environmental profile. If we are unable to adapt and design reformulated products that are considered recyclable, then there is significant risk of losing that business. Our PVC film business in Europe, which is considered unrecyclable under potential incoming mandates, is between 3 \u2013 4 million dollars per annum. The business accounts for over 50% of one site\u2019s total business, and could mean site closure if the business was lost.   \n**Risk mitigation** |  The primary method to manage this risk is through development of a new, recyclable, alternative solution. This requires research and development spend and the purchase of new lines for production. For development of a replacement for this business, we estimate this will require one-off costs of $500,000 in R&D and around $3,000,000 in new equipment. Once in place, additional extra costs will be negligible.   \n  \n  \n**Opportunities:**\n\n**Opportunity Type** |  Products and Services   \n---|---  \n****Opportunity** Driver Summary **  \n|  Development of New Products  \n**Value chain location**  \n|  Downstream Value Chain  \n**Primary Impact** |  Increased Revenues   \n**Time Horizon** |  Short-term   \n**Likelihood** |  Likely   \n**Magnitude** |  High   \n**Opportunity Description** |  For most of Berry Global\u2019s customers, Scope 3 GHG emissions represent the largest portion of their total GHG emissions. We anticipate that will drive demand for products with lower emissions intensity. Plastics are already very well positioned since they typically have lower GHG emissions per functional unit than alternatives. Furthermore, Berry has a long history of light-weighting our products - further reducing their carbon intensity, and we working to increase our use of recycled content, which has lower associated GHG emissions than virgin resin.   \n  \n**Expected Opportunity Impact** |  Factoring in the likelihood of this opportunity to be realized, we estimate that new business as a result of our ability to provide low-carbon products could lead to around a 1% increase in revenue. We do not expect all of our customers to change at once. We anticipate the transition may be relatively slow. A 1% increase in revenue would result in an opportunity in the region of $126,600,000 USD.   \n  \n****Opportunity** Type ** |  Energy Source   \n---|---  \n****Opportunity** Driver Summary **  \n|  Direct emissions reduction  \n**Value chain location**  \n|  Direct Operations  \n**Primary Impact** |  Returns on investment in low-emission technology   \n**Time Horizon** |  Short-term   \n**Likelihood** |  Virtually Certain   \n**Magnitude** |  Low   \n**Opportunity Description** |  To aid our commitment to reducing our greenhouse gas emissions, we have the opportunity to enter into Purchase Power Agreements (PPAs) or Virtual Purchase Power Agreements (VPPAs). These would allow us to increase our renewable energy consumption, whether it be via a physical connection, or ownership of RECs, to reach our environmental goals, whilst also having the potential to save capital when electricity rates fluctuate.   \n**Expected Opportunity Impact** |  A VPPA exchanges the variable OMIP market price for electricity against a fixed price per MWh based on our purchase annually. Therefore, the exact gains that will be realized will depend upon the actual market prices experienced during this period. The VPPA contract opportunity we are currently realizing had an estimated value of around $1 million, which it has far exceeded - while future ventures might not be as profitable. Based on this, we have set a Potential Impact figure of $0-$5m USD. As we investigate other VPPA opportunities we anticipate similar expected returns within this range.   \n  \n****Opportunity** Type ** |  Energy Source   \n---|---  \n****Opportunity** Driver Summary **  \n|  Direct Emissions Reduction  \n**Value chain location**  \n|  Direct Operations  \n**Primary Impact** |  Reduced exposure to Carbon Pricing   \n**Time Horizon** |  Long-term   \n**Likelihood** |  Virtually Certain   \n**Magnitude** |  High   \n**Opportunity Description** |  Berry Global is committed to reducing our energy consumption and lowering our carbon footprint by procuring more low-carbon energy, as well as implementing energy reduction initiatives. For example, we have an internal program to reduce 100,000,000KWh of energy use annually, and are looking into avenues to increase our current share of renewable energy. Taking this action gives us the additional opportunity to have reduced exposure to the current carbon taxes that are in place, and any future risk from carbon tax increases.   \n**Expected Opportunity Impact** |  We have committed to net-zero by 2050, with an SBti approved, short-term target reduction in place for 2025. In-line to achieving net zero, we would be working towards a 50% reduction by 2030 from a 2019 baseline. Although we expect to hit these goals, under a worst-case scenario we can assume no further reduction in GHG Emissions, To calculate the potential opportunity figure by eliminating emission versus this worst-case scenario we have calculated the total costs under an anticipation of an average Carbon Tax of $120 USD/MT CO2e in 2030 under NZE Scenario using current emissions. This results in an increased long-term risk in 2030 of $185 million USD annually.   \n  \n****Opportunity** Type ** |  Products and Services   \n---|---  \n****Opportunity** Driver Summary **  \n|  Development of New Products  \n**Value chain location**  \n|  Downstream Value Chain  \n**Primary Impact** |  Increased Revenues   \n**Time Horizon** |  Medium-Term   \n**Likelihood** |  Likely   \n**Magnitude** |  Low   \n**Opportunity Description** |  The effects of climate change are leading to the potential introduction of new regulatory changes including mandates on plastic packaging. The current proposal of the Packaging and Packaging Waste Directive from the European Commission proposes a requirement to allow only packaging that is designed for recyclability by 2030. Companies are now looking for alternative materials that can offer the same benefits as PVC film but demonstrate an improved environmental profile. We have the opportunity to develop new products that align with these mandates to replace current business and potentially capture new businesses if peers are unable to adapt.   \n**Expected Opportunity Impact** |  Our current PVC film business in Europe, which is considered unrecyclable under potential incoming mandates, is between 3 \u2013 4 million dollars per annum, so as a worst-case scenario we have the opportunity to retain this value. However, we have a larger opportunity to potentially capture new businesses if peers are unable to adapt.   \n  \n\n** **Metrics and Targets** **\n\n** Greenhouse Gas Emission Targets  **\n\nWe have established ambitious climate action targets, committing to reduce\nboth Scope 1 & 2 emissions and Scope 3 emissions by 25% by 2025 from our 2019\nbaseline. These short-term greenhouse gas reduction targets have received\nofficial validation from the Science Based Targets initiative (SBTi) as\nconsistent with limiting global warming to 1.5\u00b0C and advancing toward a net-\nzero future.\n\nLooking ahead, we have announced our commitment to achieve net-zero emissions\nby 2050. This long-term goal involves reducing our total emissions by over 90%\nfrom our 2019 baseline, with any residual emissions addressed through\nappropriate offsetting mechanisms. All these targets apply group-wide,\nadhering to our established reporting boundaries.\n\n**Methodological Approach**\n\nOur GHG emissions reporting follows the operational control method in\naccordance with the GHG Reporting Protocol and the GHG Protocol's Corporate\nValue Chain (Scope 3) Reporting and Accounting Standard. Under this approach,\nwe report 100% of emissions from operations where we maintain full operational\ncontrol, encompassing all manufacturing sites.\n\nTo enhance reporting efficiency and data quality, our scope reports exclude\nenergy consumed in offices and non-production facilities, as well as emissions\nfrom refrigerants and welding gases. We estimate these exclusions represent\nless than 5% of our potential total operational and value-chain emissions\nfootprint.\n\nIn our calculations, we apply Global Warming Potential values from the\nIntergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report\n(AR5). Importantly, when determining our market-based GHG emissions, we do not\ninclude carbon offsets, as these are not considered when measuring progress\ntoward our reduction targets.\n\n**Non-GHG Reporting**\n\nFor non-GHG emissions data reporting and targets, we maintain consistent\noperational control boundaries, collecting comprehensive group-wide data for\neach fiscal year. Energy-related data points and targets specifically exclude\ninformation from non-production facilities, maintaining focus on our primary\noperational impacts.\n\n** Other Emissions-related Targets  **\n\nTo achieve our GHG emissions targets, mitigate our climate risks and work\ntowards achieving climate opportunities, we have targets relating to a number\nof key performance indicators (KPI\u2019s). These KPIs all have an effect on either\nour operational or value chain emissions.\n\n  * 1% year-over-year reduction in annual energy intensity \n  * Increase renewable energy year-over-year \n  * 100% reusable, recyclable, or compostable packaging by 2025 \n  * Lightweight products \n  * Increase use of circular plastics \n  * 10% recycled content across our packaging by 2025 \n\n** Operational Greenhouse Gas Emissions  **\n\nEfforts to manage and reduce our operational emissions primarily fall under\nthree categories: electrification of combustion sources, reduction in energy\ndemand, and the use of cleaner energy. We continue to work on projects in all\nthree areas to realize our short-term and long-term operational GHG emissions\ngoals. As of 2024, 25% of our North American facilities use electric\nforklifts.\n\nAbsolute Scope 1 and 2 market-based GHG emissions were 1.61 Million Metric\nTonnes (Mmt) in 2024, 5.8% lower than 2023, and 28.3% lower than our 2019\nbaseline emissions of 2.25 Mmt. As such, we continue to further exceed our 25%\nreduction target as we enter our 2025 target year. This was driven by our\nenergy management processes, increased procurement of renewable electricity,\nan overall reduction in grid emission factors, and a decrease in production.\nWe are now in the process of setting a new short-term operational greenhouse\ngas target for 2030.\n\n** Value Chain Greenhouse Gas Emissions  **\n\nOur net-zero commitment also applies to our value chain emissions.\nFurthermore, in 2022 we set a near-term science-based target to reduce Scope 3\nemissions 25% by 2025 versus our 2019 baseline, in line with limiting global\nwarming to 1.5\u00b0C.\n\nThe majority of our overall GHG emissions reside in our value chain,\nrepresenting 85% of our total emissions. The majority (65%) of our Scope 3\nemissions occur from purchased goods and services. To minimize our Scope 3\nemissions, we encourage our suppliers to develop low-carbon raw materials. We\nthen collaborate with our customers to commercialize products we have made\nfrom those low-carbon raw materials.\n\nIn 2024, we calculated our Scope 3 GHG emissions to be just over 8.60 Mmt.\nThis is slightly lower than our 2023 emissions, and was 22% lower than our\n2019 baseline of 10.91 Mmt. We are on track to achieve a 25% reduction by\n2025.\n\nTotal emissions from across our operations and value chain fell to under 10.22\nMmt in 2024, 12% lower than in 2022, and 23% lower than in 2019. This\nrepresents continued progress towards our recent commitment of net-zero by\n2050. We fully anticipate achieving our first milestone on that journey, a 25%\nreduction by 2025.\n\n** Upstream & Downstream Transportation and Distribution  **\n\nTo understand the readiness of our over-the-road logistics partners to enable\nour mutual transition to net-zero, we request relevant energy and emissions\ninformation from current and potential providers. This includes information on\nfleet efficiency, progress on exploring zero-emission alternative transport\nmethods, and commitment timelines for a net-zero fleet.\n\nOur current focus is working with providers that manage their fleets most\nefficiently. We anticipate in the future that to maintain progress toward our\nnet-zero commitment, we will either need to preferentially choose providers\nthat offer zero-emission/lower emission transportation solutions or implement\nsuch requirements for our existing transportation providers. In 2024, we had a\nsmall number of shipments transported via our carriers in vehicles using\nrenewable natural gas for the first time. We will continue to work with our\ntransportation partners to investigate low-carbon logistics solutions going\nforward.\n\n** Air Quality  **\n\nAs a global company that cares deeply about the communities in which we\noperate, we are committed to minimizing our impact on air quality by operating\nour manufacturing facilities in accordance with state, federal, and\ninternational requirements. We do this by tracking, monitoring, and reporting\nto the agencies regulating our emissions. While our annual reporting scope\nincludes only the major greenhouses gases, carbon dioxide (CO\u2082), nitrous oxide\n(N\u2082O), and methane (CH4), a broader range of air emissions are monitored and\ntracked at the facility level, as required.\n\nRefrigerants and other Ozone Depleting Substances (ODS) are regulated as\nhazardous materials by the U.S. Environmental Protection Agency due to their\nozone depleting ability and powerful greenhouse gas potential. Our sites\ncomply with regulatory requirements by creating an inventory of units\ncontaining refrigerants above the regulated quantity, monitoring releases, and\ndocumenting associated leak rates. Other air emissions, such as NOx, SOx, and\nVOCs, are evaluated for applicability and relevance to the site operation and\nprocesses. If applicable to the site, they are tracked, documented, and\nreported via the site\u2019s air operating permits and emissions inventory, where\nthe applicability and limits are established and monitored.\n\nDepending on each site\u2019s local requirements for monitoring and tracking other\nair emissions, our facilities may be required to control the release of these\nemissions according to established permit limits. This helps to protect the\nenvironment and reduces our impact on the communities in which we operate. For\nthe vast majority of our facilities, NOx, SOx, and VOCs are not a significant\nsource and we are not required to report or mitigate these emissions.\n\n** Energy Management  **\n\nWe track our operational energy metrics for all manufacturing facilities for\nwhich we have operational control. This excludes energy from non-manufacturing\nfacilities, such as offices and warehouses. A full list of exclusions is\noutlined in the Greenhouse Gas Emissions section. The majority of our energy\nuse is derived from electricity, with over 99% of the electricity we use\nsourced from the electrical grid. We do not currently calculate or report\nannually the energy associated with value-chain emissions.\n\nAbsolute energy use in 2024 fell by 1.2% from 2023, to 5.50 million megawatt\nhours (MWh), mainly due to a similar decrease in overall production. Although\nabsolute energy reduction is key to achieving our GHG emissions goals, we use\nenergy intensity as our key performance indicator (KPI), MWhs per metric ton\nprocessed \u2013 with the goal of reducing energy intensity 1% per year.\nUnfortunately, despite the implementation of numerous energy efficiency\nprojects and achieving our 100 Million kWh goal, our energy intensity remained\nflat, with less than a 0.1% change compared to 2023. While in-depth analysis\nis still ongoing, the lack of reduction can be mainly attributed to the energy\ninefficiencies of reduced production offsetting the improvements made through\nenergy efficiency projects.\n\n** 100 Million KWh Challenge  **\n\nIn 2024, through the continued efforts of the Berry Energy & Sustainability\nCouncil and the hundreds of energy leaders in each division, Berry saved over\n99 million kWh with over 300 approved capital projects and continuous\nimprovement projects\u2014falling just shy of our 100 million kWh reduction goal.\nCollectively, these projects contributed to our 1.2% reduction in energy use.\n\nThe 100 million kWh Challenge was implemented across our company through the\ncombined efforts of our engineers, plant technical staff, and maintenance\npersonnel at all manufacturing sites and accomplished through hundreds of\nsmall projects. We focused on LED retrofits, compressed air, electric motors,\nheating and cooling systems, water management, and energy management systems\nand practices. For example, as part of the challenge, printing operators at\nour Steinfeld, Germany facility reduced the drying process temperature of our\nprinters to a lower set point to reduce energy consumption. As a result, gas\nusage was cut by 50%, eliminating an estimated 109,200 kWh of gas consumption\nand 21.95 tons of CO\u2082. As another example, team members at our Evansville,\nIndiana, plant identified a lighting opportunity, leading to the retrofitting\nof nearly 2,500 metal halide and fluorescent bulbs, replacing them with modern\nLEDs. This lighting retrofit project eliminated more than 7.56 million kWh and\nreduced associated energy consumption by 60%.\n\n** Renewable Energy  **\n\nBecause manufacturing is energy-intensive, effective energy management is one\nof our top priorities to minimize climate impact. We have a dual strategy to\nreduce our energy intensity and increase the use of renewable energy year over\nyear.\n\nIn 2024 we used over 398,000 MWh of renewable electricity \u2013 8.9% of our total\nelectricity use and 7.2% of our total energy use. This represents both an\nincrease in absolute usage and percent usage versus 2023, achieving our Impact\n2025 target, with absolute renewable energy used increasing by 30%.\n\n* * *\n\n##  Disclosures\n\n** Contribution to the Sustainable Development Goals (SDGs)  **\n\n** DG 7: Affordable and Clean Energy  **\n\nAn effective energy management program drives the growth of clean energy\ninfrastructure, which in turn can accelerate the global transition to a\nsustainable energy system. We work to identify innovative clean energy\nsolutions to reduce our emissions and promote a future with more sustainable\nenergy.\n\n** SDG 8: Decent Work and Economic Growth  **\n\nTo achieve sustainable economic growth of our business, in line with a net-\nzero and circular economy, we strive for continuous energy efficiency\nimprovements, reducing operational costs and increasing the economic viability\nof our industry.\n\n** SDG 9: Industry, Innovation, and Infrastructure  **\n\nThrough innovation in sustainable energy solutions and efficient industrial\npractices we drive the development of resilient infrastructure and promote\nsustainable industrialization as part of the transition towards a net-zero\neconomy.\n\n** SDG 11: Sustainable Cities and Communities  **\n\nThe adoption of sustainable energy practices reduces the amount of air\npollution in urban environments. Through an increase in clean energy\ninfrastructure, we are working to accelerate the transition to a sustainable,\nnet-zero, energy system and improve the quality of our communities.\n\n** SDG 12: Responsible Consumption and Production  **\n\nBy working to improve our energy efficiency and reduce emissions, we help\nminimize our environmental impact and create responsible production and\nconsumption patterns.\n\n** SDG 13: Climate Action  **\n\nOur focus on energy efficiency and management directly addresses the call for\nclimate action. By implementing strategies to minimize energy consumption and\ntransition to renewable energy sources, we help reduce greenhouse gas\nemissions, combat climate change, and facilitate a net-zero world.\n\n** SDG 17: Partnerships for the Goals  **\n\nAchieving the global goal of net-zero emissions requires technological and\nindustrial solutions from across the value chain, the implementation of\npositive government policies, and consumer behavioral changes. We collaborate\nwith stakeholders to deliver a circular, net-zero future.\n\n** GRI and SASB Alignment  **\n\n**  \nGRI 2-5 ** External Assurance **  \nGRI 2-27 ** Compliance With Laws and Regulations  \n**GRI 201-2** Financial Implications and Other Risks and Opportunities Due to\nClimate Change  \n**GRI 302 (3-3)** Energy **  \nGRI 302-1 ** Energy Consumption Within the Organization  \n**GRI 302-2** Energy Consumption Outside of the Organization  \n**GRI 302-3** Energy Intensity  \n**GRI 302-4** Reduction of Energy Consumption  \n**GRI 302-5** Reductions in Energy Requirements of Products and Services  \n**GRI 305 (3-3)** Emissions **  \nGRI 305-1 ** Direct (Scope 1) Green House Gas (GHG) Emissions  \n**GRI 305-2** Energy Indirect (Scope 2) GHG Emissions  \n**GRI 305-3** Other Indirect (Scope 3) GHG Emissions  \n**GRI 305-4** GHG Emissions Intensity  \n**GRI 305-5** Reduction of GHG Emissions **  \nGRI 305-6 ** Emissions of Ozone-Depleting Substances (ODS) **  \nGRI 305-7 ** Nitrogen Oxides (NOx), Sulfur Oxides (SOx), and Other Significant\nAir Emissions  \n**SASB RT-CP-110a.1** Gross Total Scope 1 Emissions, Percentage Covered Under\nEmissions-Limiting Regulations  \n**SASB RT-CP-110a.2** Discussion of Long-Term and Short-Term Strategy, or Plan\nto Manage Scope 1 Emissions, Emissions Reduction Targets, and an Analysis of\nPerformance Against Those Targets  \n**SASB RT-CP-120a.1** Air Emissions of the Following Pollutants: (1) NOx\n(excluding N2O) (2) SOx (3) Volatile Organic Compounds (VOCs) (4) Particulate\nMatter (PM) **  \nSASB RT-CP-130a.1 ** (1) Total Energy Consumed (2) Percentage Grid Electricity\n(3) Percentage Renewable (4) Total Self-Generated Energy\n\n_Last updated: March 17, 2025_\n\n##  Quick Links\n\n[ Key Issues ](/en/sustainability/sustainability-strategy/key-issues)\n\n[ Sustainability Strategy & Approach ](/en/sustainability/sustainability-\nstrategy/approach)\n\n[ Policies ](/en/sustainability/sustainability-strategy/policies)\n\n##  How We Perform\n\nExplore our library of current and historic sustainability performance\nreports, including our Impact Report, UNSDG Alignment Report, GRI Index, and\nmore.  \n\n[ View Reports  ](/en/sustainability/sustainability-strategy/how-we-perform)\n\n##  News & Insights\n\n### [ Berry Global\u2019s Versalite\u2122 Cups Receive the APR Design\u00ae for Recyclability\nRecognition  Berry Global Group, Inc. is pleased to announce they have been\nformally recognized by the Association of Plastic Recyclers (APR) for their\nVersalite\u2122 cups.  ](/en/news/articles/berry-versalite-cups-receive-the-apr-\ndesign-for-recyclability-recognition)\n\n### [ Berry\u2019s Reusable Cups Support Returnable Cup Initiative  Berry Global\u2019s\nrange of reusable plastic cups has been selected for the pioneering Borrow Cup\n\u2019collaborative returnable cup initiative\u2019, which was launched in Glasgow, UK,\nat the end of January.  ](/en/news/articles/berry-reusable-cups-support-\nreturnable-cup-initiative)\n\n### [ Berry Introduces High-Quality PCR Plastic for Homecare and Industrial\nPacks  Berry Global is introducing a high-quality post-consumer recycled (PCR)\nplastic polymer for non-contact-sensitive packaging, specifically aimed at the\nhomecare and industrial sectors.  ](/en/news/articles/berry-introduces-high-\nquality-pcr-plastic-for-homecare-and-industrial-packs)\n\n### [ Berry Global and Mars Announce Packaging with 100% Recycled Content\nBerry Global Group, Inc. collaborated with snacks and treats leader Mars to\ntransition its pantry jars for M&M\u2019S\u00ae, SKITTLES\u00ae and STARBURST\u00ae brands to 100%\nrecycled plastic packaging, exclusive of jar lids.  ](/en/news/articles/berry-\nglobal-and-mars-announce-packaging-with-100-percent-recycled-content)\n\nConnect\n\n[ ](https://www.linkedin.com/company/berryglobal \"Opens LinkedIn In new\nwindow\") [ ](https://www.youtube.com/c/BerryGlobal \"Opens Youtube in new\nwindow\") [ ](https://twitter.com/berryglobalinc \"Opens X in new window\") [\n](https://www.facebook.com/BerryGlobalInc \"Opens Facebook in new window\")\n\nCopyright \u00a9 2025 Berry Global Inc. All rights reserved.\n\n",
                "url": "https://www.berryglobal.com/en/sustainability/sustainability-strategy/key-issues/climate-change"
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            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "This is Berry Global's climate change page.",
            "url": "https://www.berryglobal.com/en/sustainability/sustainability-strategy/key-issues/climate-change"
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                    "source": "https://www.gov.ca.gov/2022/11/16/california-releases-worlds-first-plan-to-achieve-net-zero-carbon-pollution/"
                },
                "page_content": "Los Angeles fires:  [ Go to CA.gov/LAfires for latest information and\nresources ](https://www.ca.gov/LAfires/)\n\n#  California Releases World\u2019s First Plan to Achieve Net Zero Carbon Pollution\n\n_Following Governor Newsom\u2019s call for more ambitious climate action, state\u2019s\nclimate plan would create 4 million new jobs, slash greenhouse gas emissions\nby 85%, and cut oil usage by 94%_\n\n_Amid global climate talks, the Scoping Plan lays out world\u2019s first detailed\npathway to carbon neutrality by 2045, as signed into law by Governor Newsom\nearlier this year_\n\nToday, the California Air Resources Board (CARB) [ released its updated\nproposal ](https://mclist.us7.list-\nmanage.com/track/click?u=afffa58af0d1d42fee9a20e55&id=13c707ce61&e=0b26ba1b5c)\nto implement the most ambitious climate action of any jurisdiction in the\nworld, taking unprecedented steps to drastically slash pollution and\naccelerate the transition to clean energy. No economy in the world, much less\nthe soon-to-be [ 4th largest ](https://mclist.us7.list-\nmanage.com/track/click?u=afffa58af0d1d42fee9a20e55&id=300d130fd5&e=0b26ba1b5c)\n, has put forth such a comprehensive roadmap to reach carbon neutrality.\n\nThis updated plan follows Governor Gavin Newsom\u2019s [ push to move faster\n](https://mclist.us7.list-\nmanage.com/track/click?u=afffa58af0d1d42fee9a20e55&id=0a2ba2c4df&e=0b26ba1b5c)\nto achieve new, ambitious climate goals, setting new targets for renewable\nenergy, clean buildings, carbon removal, and clean fuels in the transportation\nsector. If adopted by CARB, this plan will be a critical component of Governor\nNewsom\u2019s [ California Climate Commitment ](https://mclist.us7.list-\nmanage.com/track/click?u=afffa58af0d1d42fee9a20e55&id=12cf62e0f0&e=0b26ba1b5c)\n\u2013 a set of world-leading actions to build out a 100% clean energy grid,\nachieve carbon neutrality by 2045, ramp up carbon removal and sequestration,\nprotect Californians from harmful oil drilling, and invest $54 billion to\nforge an oil-free future while building sustainable communities throughout the\nstate.\n\nThe updated Scoping Plan would achieve carbon neutrality by 2045, in addition\nto:\n\n  * Cutting air pollution by 71%; \n  * Slashing greenhouse gas emissions 85% by 2045; \n    * That includes a 48% reduction of greenhouse gasses by 2030, surpassing the statutory mandate to reduce emissions 40% below 1990 levels in 2030; \n  * Reducing fossil fuel consumption to less than one-tenth of what we use today, a 94% drop in demand for oil and 86% drop in demand for all fossil fuels; \n  * Creating 4 million new jobs; \n  * Saving Californians $200 billion in health costs due to pollution. \n\n\u201cCalifornia is drastically cutting our dependence on fossil fuels and cleaning\nour air \u2013 this plan is a comprehensive roadmap to achieve a pollution-free\nfuture,\u201d said Governor Newsom. \u201cIt\u2019s the most ambitious set of climate goals\nof any jurisdiction in the world, and if adopted, it\u2019ll spur an economic\ntransformation akin to the industrial revolution. While big polluters focus on\nincreasing their profits at our expense, California is protecting communities,\ncreating jobs and accelerating our transition to clean energy.\u201d\n\nThe plan would also raise the stakes for clean energy and climate resiliency,\ncalling for:\n\n  * At least 20 GW offshore wind capacity built by 2045; \n  * 3 million climate-friendly homes by 2030 and 7 million by 2035; \n  * 6 million heat pumps deployed by 2030; \n  * Carbon removal/capture targets of 20 million metric tons CO2 equivalent (MMTCO2e) by 2030 and 100 MMTCO2e by 2045; \n  * Achieve 20% non-combustion in the aviation sector by 2045, with the remaining demand met with sustainable aviation fuel; \n  * Light-duty vehicle miles traveled (VMT) target of 25% per capita below 1990 levels by 2030 and 30% per capita below 1990 levels by 2045. \n\nToday\u2019s release follows the latest [ Greenhouse Gas Inventory\n](https://mclist.us7.list-\nmanage.com/track/click?u=afffa58af0d1d42fee9a20e55&id=283d7dffc6&e=0b26ba1b5c)\n, showing that 2020 had the steepest recorded drop in pollution in California\nhistory due to the pandemic, and including updated data showing California\nreached its 2020 climate targets six years ahead of schedule in 2014 rather\nthan the initially estimated four.\n\nThroughout California, leaders from the environmental, clean energy, academic,\nlabor, and business communities have weighed in on the proposal:\n\n_\u201cFinally there is a climate action plan that has the potential to bend the\nwarming curve in time. The plan contains all of the essential ingredients of\nclimate resilience: fossil free energy generation; reduction of short lived\nsuper pollutants; air pollution abatement; climate justice; restoration of\nnature\u2019s role as carbon sink. It integrates effortlessly mitigation,\nadaptation and transformation. This is the new way to address the climate\ncrisis. The health benefits of these actions alone will pay for the huge\ninvestment by the state. Having worked on climate change science since 1975, I\nam finally seeing a climate solutions plan that recognizes the grave risks\nposed by the climate crisis; I hope the rest of the planet will follow the\nCalifornia example.\u201d_ \u2013 **V. Ram Ramanathan, Distinguished Professor Emeritus,\nUniversity of California at San Diego**\n\n_\u201cThe science is clear: to avoid the worst impacts of climate change, the\nworld must rapidly cut greenhouse gas emissions in the current decade.\nGovernor Newsom understands the importance of near-term ambition, and his\nAdministration is to be commended for delivering a Scoping Plan that exceeds\nCalifornia\u2019s 2030 emissions reduction goal while providing necessary air\nquality and public health benefits for all Californians. EDF looks forward to\nworking with the Air Resources Board and partner agencies to adopt policy in\nthe coming year \u2013 including a more ambitious emissions cap \u2013 that locks in\nthese necessary reductions.\u201d_ \u2013 **Katelyn Roedner Sutter, California State\nDirector, Environmental Defense Fund (EDF)**\n\n_\u201cWe stand ready to partner with the Governor on implementing this ambitious\nplan while growing living-wage clean energy jobs. IBEW\u2019s close partnership\nwith the state will help California lead the world in building a clean energy\nfuture for decades to come.\u201d_ \u2013 **Joel Barton, Secretary Treasurer of the\nState Association of Electrical Workers**\n\n_\u201cThe Yurok Tribe applauds CARB for establishing a progressive Scoping Plan to\nimplement the state\u2019s climate goals. We especially appreciate efforts to\ninclude Tribal voices in the development of the plan. We now look forward to\nmoving to implementation of the plan in the years ahead.\u201d_ \u2013 **Chairman James,\nThe Yurok Tribe**\n\n_\u201cThe Scoping Plan contains many ambitious goals that will create major\nbenefits for California and the world if we succeed in reaching them. But\nuntil we take action, it is just a report. It is our job as an advocacy\ncommunity to turn seemingly impossible goals into realities and to prevent\noutcomes that continue the legacy of environmental racism at the hands of\npolluting fossil fuel companies. NextGen stands ready to work with the State\nto build a California that we can all be proud of.\u201d_ \u2013 **David Weiskopf,\nSenior Policy Advisor, NextGen Policy**\n\n_\u201cWe have an urgent call to action and unless we act decisively, many of our\ncommunities will continue to experience severe impacts of a worsening climate.\nWe know smart land management across California is essential to every region\nin the state. To advance a healthier and thriving California, we must double\ndown on our efforts to accelerate nature-based climate solutions that increase\naccess to nature and protect our public health. The Trust for Public Land, in\npartnership with the State of California, is ready to advance and deliver on\nthis agenda.\u201d_ \u2013 **Juan Altamirano, Director of Government Affairs, Trust for\nPublic Land**\n\n_\u201cThe California Hydrogen Coalition supports the Scoping Plan\u2019s bold framework\nof action that is inclusive of clean and renewable hydrogen. Paired with\nGovernor Newsom\u2019s and the Legislature\u2019s creation of ARCHES to leverage federal\nfunding opportunities, the Scoping Plan supports hydrogen as a mitigation tool\nfor short-lived but potent methane emissions and the management of biomass\nwithout combustion in addition to enabling deeper penetration of renewable\nelectricity by providing greater grid resiliency and reliability. Decarbonized\nand renewable hydrogen in fuel cells for zero-emission transportation,\ntransit, goods movement, industrial activities, and power will enable\nCalifornia to cost-effectively achieve carbon neutrality. We look forward to\nCARB adopting the Scoping Plan.\u201d_ \u2013 **Teresa Cooke, Executive Director,\nCalifornia Hydrogen Coalition**\n\n_\u201cNothing could be more important to community resilience, improved air\nquality, public health, and economic prosperity in the rural regions of the\nstate than the 2022 Scoping Plan proposal to conserve 30% of the California\u2019s\nnatural and working lands by 2030 and treat more than 2 million acres a year\nto reduce the risk of wildfire and capture carbon in our soils. This strategy\nwill drive innovation in rural regions and create thousands of good jobs in\nrural communities.\u201d_ \u2013 **Steve Frisch, President, Sierra Business Council**\n\n_\u201cThe landmark ambition of the Scoping Plan and 2022 legislative actions sets\nCalifornia on a course to build energy, transportation, and decarbonization\ninfrastructure that will rival the new deal in terms of scale. Ambition\ndemands action \u2013 CCEEB\u2019s membership is ready to build the necessary\ninfrastructure to achieve our shared climate goals. We will work diligently\nwith the Governor, Legislature, local governments, and CARB to permit and\nbuild a carbon neutral future for all Californians with strong economic and\nlabor protections that support a thriving middle class.\u201d_ \u2013 **Tim Carmichael,\nPresident and CEO, California Council for Environmental and Economic Balance\n(CCEEB)**\n\n_\u201cThe Los Angeles Business Council commends CARB for crafting a Scoping Plan\nthat will allow the state to meet its necessary climate targets, while\ncreating clear guidelines for industry to follow. The Scoping Plan lays out a\ncrucial roadmap to achieve carbon neutrality by 2045 and 100% zero emission\nvehicle sales by 2035 that are critical to climate, public health, and\neconomic goals. California has proven time and time again that science-based\npublic policy can and will reduce the adverse impacts of climate change,\nimprove health outcomes for Californians, and spur in-state investment and job\ncreation that has allowed California to be the number one clean energy job\ncreator in the nation.\u201d_ \u2013 **Mary Leslie, President, Los Angeles Business\nCouncil**\n\n_\u201cPG &E commends CARB for its robust public process to develop the Scoping\nPlan. It establishes the right framework to achieve the Governor\u2019s and the\nState\u2019s ambitious climate goals, while minimizing costs to customers. The Plan\nallows for a wide range of decarbonization strategies, and will help deliver\ncarbon neutrality through significant economy-wide emissions reductions and\ncarbon removal. It\u2019s aligned with PG&E\u2019s decarbonization strategy, and\nsupports the nation\u2019s clean energy strategy.\u201d _ \u2013 **Carla Peterman, Executive\nVice President of Corporate Affairs and Chief Sustainability Officer, PG &E **\n\n_\u201cBy recognizing the essential role of natural climate solutions in its\nScoping Plan update, California is again taking the lead in addressing climate\nchange. Working with nature acts to both reduce harmful emissions and promote\nadaptation, a necessity underscored at COP 27. California, with its highly\nproductive and biodiverse forests \u2013 which store vast amounts of carbon but\nalso are the state\u2019s water source and biodiversity treasure house \u2013 is\nuniquely poised to model new approaches to climate smart land management.\u201d_ \u2013\n**Laurie Wayburn, President, Pacific Forest Trust**\n\n_\u201cThe Scoping Plan reinforces the need to urgently increase tree canopy by 10%\nabove current levels as called for in AB 2251 in order to sequester carbon,\nreduce climate risks, support canopy equity, and protect public health and\nsafety in California\u2019s most vulnerable communities. TreePeople appreciates\nthis recognition of the critical role urban forestry plays in California\u2019s\nlandscape and stands ready to work with the state and partners across\nCalifornia to achieve these targets as a first step and elevate the role of\nall natural and working lands in the Scoping Plan.\u201d_ \u2013 **Cindy Montanez, Chief\nExecutive Officer, TreePeople**\n\n_\u201cCalifornia\u2019s path to achieving carbon neutrality by 2045 depends on strong\nstatewide action to decarbonize our homes and buildings through immediate and\ndirect cuts to pollution with policies developed in partnership with\nenvironmental justice communities. CARB\u2019s commitment in its Scoping Plan to\nachieving Governor\u2019s Newsom\u2019s goal of deploying six million heat pumps and\ncreating three million climate-ready homes by 2030, and seven million climate-\nready homes by 2035 is a significant step in the right direction. Overall, it\nis vital that California pursue strategies that will clean the air in front-\nline communities long over-burdened by pollution. We look forward to creating\na healthier, safer future for Californians by ensuring decarbonization\nstrategies are led by communities and prioritize high-road jobs.\u201d_ \u2013 **Jose\nTorres, California Director, Building Decarbonization Coalition**\n\n###  Website Publishing Information\n\nPowered by: CAWeb Publishing Service\n\n\u00a9 Copyright\n\n",
                "url": "https://www.gov.ca.gov/2022/11/16/california-releases-worlds-first-plan-to-achieve-net-zero-carbon-pollution/"
            },
            "reason": "This is the California government's website announcing their plan to achieve net-zero carbon pollution. Government websites are generally reliable sources of information. It does not explicitly mention the target company.",
            "reliability_score": 0.9,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "This is the California government's website announcing their plan to achieve net-zero carbon pollution.",
            "url": "https://www.gov.ca.gov/2022/11/16/california-releases-worlds-first-plan-to-achieve-net-zero-carbon-pollution/"
        },
        {
            "content": {
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                    "origin": "public",
                    "resource_location": "web",
                    "resource_type": "webpage",
                    "source": "https://esg.tsmc.com/en/resources/ClimateChangeManagementFramework.html"
                },
                "page_content": "Enable JavaScript and cookies to continue\n\n",
                "url": "https://esg.tsmc.com/en/resources/ClimateChangeManagementFramework.html"
            },
            "reason": "This is TSMC's (Taiwan Semiconductor Manufacturing Company) climate change management framework. It's a primary source for their own activities, but may present a biased view. It does not explicitly mention the target company.",
            "reliability_score": 0.6,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "This is TSMC's (Taiwan Semiconductor Manufacturing Company) climate change management framework.",
            "url": "https://esg.tsmc.com/en/resources/ClimateChangeManagementFramework.html"
        },
        {
            "content": {
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                    "resource_location": "web",
                    "resource_type": "webpage",
                    "source": "https://www.msci.com/our-solutions/esg-investing/esg-ratings-climate-search-tool"
                },
                "page_content": "ESG Ratings & Climate Search Tool\n\n##  Hero 2025 - MSCI ESG Ratings Search\n\n#  ESG Ratings & Climate Search Tool\n\nExplore potential sustainability and climate risks and opportunities for over\n10,000 companies.\n\n##  Intro 2025 - MSCI ESG Ratings Search tool\n\n##  Access a broader sustainability and climate data universe\n\nSustainability and climate data covering over 10,000 companies is now\navailable through MSCI ONE for subscribers.\n\nTo learn more about how to access MSCI ONE, please connect with us.\n\n[ Get in touch ](/contact-us#/contact-sales)\n\n  \n\n##  Horizontal bar\n\n  \n\n##  Heading Gated Content - ESG Ratings & Climate Search 2025\n\n##  Unmatched industry insight across over 65 sectors\n\nOur research team publishes over 65 in-depth industry reports annually, each\ncovering a distinct industry. Every report provides a clear market overview\nand snapshot, highlights industry key issues, identifies emerging and\nfinancially relevant trends and includes a performance ranking against a\ncompetitive set of peers.\n\nClients receive full access to all reports. Want to see the value for\nyourself? Download three redacted sample reports below.\n\n  * ###  Utilities \n\nIn the past year, a high cost of debt, inflation and supply chain bottlenecks\nhave pushed many utilities to lower their renewable capacity growth targets,\nsell their renewable assets, and/or increase the share of transmission and\ndistribution networks in their investment plans. However, capital expenditures\nfor renewables still exceeded those for thermal energy sources globally.\n\n  * ###  Investment Banking & Brokerage \n\nInvestment banks may face increased scrutiny over their underwriting\nactivities for carbon-intensive sectors in capital markets. Yet only 8% of\ncompanies in the investment banking & brokerage industry disclosed a formal\nmanagement system to assess ESG risks associated with both credit and\ninvestment banking activities and only a few investment banks included\nfacilitated emissions in their interim decarbonization targets, as of June\n2024.\n\n  * ###  Semiconductors & Semiconductor Equipment \n\nThe production of semiconductors and solar panels is both energy-intensive and\nwater-intensive. As production expands to meet the growing demand for more\nadvanced chips and solar devices, the SSE industry's carbon emissions may\ncontinue to rise, and freshwater withdraws may also increase significantly.\nThe SSE industry lagged behind MSCI ACWI constituents in adopting climate\ntargets. Additionally, water constraints could potentially hinder the\nindustry\u2019s ambitious expansion plans.\n\n  \n\n##  MSCI Page Gating Form\n\n0  incomplete fields\n\n1  of 2\n\nPlease complete the following\n\n##  Gated Content Display\n\n##  Horizontal bar bottom\n\n  \n\n##  how we can support you - ESG Ratings and Climate Search tool\n\n###  How we can support you\n\n####  Sustainability leaders\n\n  * ####  Sustainability leaders \n\n  * ####  Rated issuers \n\n  * ####  Advisors and consultants \n\n  * ####  Investors \n\n  * ####  Media \n\nSustainability leaders at companies need tools to measure, benchmark and\nmonitor sustainability and climate risks and opportunities versus peers while\nmanaging and reporting data to align with disclosures. Get access to our full\nuniverse of sustainability and climate data of over 10,000 corporate issuers.\nConnect with us to learn more.\n\n[ Corporate Sustainability Insights ](/corporate-sustainability)\n\nBetter understand your own sustainability and climate assessment from MSCI. As\na company that receives an ESG Rating or another assessment from MSCI ESG\nResearch, you can access our \u201cResources for Issuers\u201d library for information\ndesigned to help both equity and fixed-income issuers better understand their\nsustainability and climate data and assessments.\n\n[ Resources for Issuers ](/resources-for-issuers)\n\nAdvisors need insightful data and analytics to help clients navigate\nsustainability challenges and opportunities. Our sustainability and climate\ndata provides the insights needed to understand risks and opportunities,\nbenchmark client performance against industry peers and navigate the complex\nglobal reporting landscape.\n\nWith robust metrics, you can guide clients in strengthening their offerings to\nattract debt and equity investors. Find out how we can support you to drive\ninformed decisions and create long-term value for your clients. Connect with\nus to learn more.\n\n[ Connect with us ](/contact-us)\n\nGet greater clarity and actionable insights to help guide your investment\nstrategies. With our tools and solutions on MSCI ONE, you can analyze ESG\nRatings in greater detail, viewing environmental, social, and governance\npillar scores alongside key issue scores. You can track rating changes by\nidentifying primary drivers using weighted average key issue scores and\nindustry peer comparisons.\n\n[ Connect with us ](/contact-us)\n\nIf you are a journalist looking for sustainability and climate data for\nresearch or articles, please contact the MSCI PR Team for further information.\n\n[ MSCI PR Team ](mailto:pr@msci.com)\n\n##  Related content - ESG Ratings & Climate Search 2025\n\n###  Related content\n\n###  ESG Ratings\n\nESG Ratings aim to measure a company\u2019s resilience to long-term, financially\nrelevant sustainability risks. We leverage artificial intelligence (AI) and\nalternative data to deliver dynamic investment-relevant insights.\n\n[ Explore now ](/sustainable-investing/esg-ratings)\n\n###  Implied Temperature Rise\n\nDesigned to show the temperature alignment of your investments with global\nclimate targets.\n\n[ Learn more ](/our-solutions/climate-investing/implied-temperature-rise)\n\n###  Corporate Sustainability Insights\n\nGain insights into the most important sustainability and climate data to help\nyou track progress and generate results.\n\n[ Learn more ](/corporate-sustainability)\n\n  * [ Terms of Use ](/terms-of-use)\n  * [ Legal ](/terms-of-use)\n  * [ Modern Slavery Statement ](/modern-slavery-statement)\n  * [ Privacy notice ](/privacy-pledge)\n  * [ Index regulation ](/index-regulation)\n  * [ Locations ](/contact-us#/locate-msci-office)\n  * [ Cookies ](/cookie-policy)\n  * [ Use of ISO standards ](/legal/use-of-iso-standards)\n  * [ Site map ](/sitemap)\n\n[ Subscribe ](javascript:void\\(0\\)) [ Contact us ](/contact-us)\n\n[ ](https://www.linkedin.com/company/msci-inc/) [\n](https://twitter.com/MSCI_Inc) [ ](https://www.youtube.com/user/MSCIChannel)\n\n\u00a9 2025 MSCI Inc. All rights reserved\n\n##  UtmAnalytics\n\n",
                "url": "https://www.msci.com/our-solutions/esg-investing/esg-ratings-climate-search-tool"
            },
            "reason": "MSCI is a financial services company that provides ESG ratings. Their climate search tool can be valuable, but should be considered in the context of their business objectives. It does not explicitly mention the target company.",
            "reliability_score": 0.7,
            "search_query": "company 'Trafic' climate risk energy usage",
            "summary": "MSCI is a financial services company that provides ESG ratings.",
            "url": "https://www.msci.com/our-solutions/esg-investing/esg-ratings-climate-search-tool"
        },
        {
            "content": {
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                    "origin": "public",
                    "resource_location": "web",
                    "resource_type": "webpage",
                    "source": "https://www.trafficplan.com/life-at-traffic-plan/diversity-inclusion/"
                },
                "page_content": "#  Our Commitment to Diversity & Inclusion\n\nAs a women-owned business and equal opportunity employer, Traffic Plan is\ndedicated to creating a workplace culture built on diversity and inclusion. We\nbelieve the unique backgrounds, perspectives, and experiences of each team\nmember contribute to our collective success, so we strive to foster an\nenvironment where everyone \u2014 regardless of race, ethnicity, gender, sexual\norientation, age, or religion \u2014 feels valued and heard.\n\nThis commitment goes beyond the workplace as well, to the communities we\nserve. As a vital part of local infrastructure projects, we not only manage\ntraffic but actively engage with our customers and the public every day. In\nall aspects of our business, from project planning to daily operations, we\nprioritize treating every individual with fairness, dignity, and respect.\n\nAt Traffic Plan, we are partners in progress, united by purpose. By\nchampioning diversity and inclusion, we not only build a stronger company but\nalso play a vital role in building stronger, more resilient communities.\n\n##  Start Your Journey Today\n\nStarting a career at Traffic Plan means joining a team that empowers you to\nmake a difference and further your career. From dedicated flaggers to aspiring\nleaders, our commitment to career advancement is strong. If you\u2019re eager to\nmake a difference in your community, reach out today and explore the exciting\npossibilities that await you at Traffic Plan.\n\n[ Download Our Brochure ](https://www.trafficplan.com/wp-\ncontent/uploads/2019/03/Traffic-Plan-Overview-Brochure.pdf \"Download Traffic\nPlans Traffic Control Services Brochure\")\n\nCopyright \u00a9 2025 Traffic Control Company | Professional Traffic Safety Services Site created and managed by the strategic brand positioning, marketing communications, and public relations firm - [ Alpha Dog Advertising | [ Sitemap ](https://www.trafficplan.com/sitemap \"Sitemap\") ](https://alphadogadv.com/ \"Alpha Dog Advertising\")\n\n###  Download Brochure\n\n###  Apply Online\n\n###  Get a Quote\n\n",
                "url": "https://www.trafficplan.com/life-at-traffic-plan/diversity-inclusion/"
            },
            "reason": "This is the official website of Traffic Plan, a traffic management company. The page explicitly discusses their diversity and inclusion initiatives, providing direct information from the source.",
            "reliability_score": 1.0,
            "search_query": "company 'Trafic' governance diversity inclusion",
            "summary": "This page is the official diversity and inclusion page for Traffic Plan.",
            "url": "https://www.trafficplan.com/life-at-traffic-plan/diversity-inclusion/"
        },
        {
            "content": {
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                    "origin": "public",
                    "resource_location": "web",
                    "resource_type": "webpage",
                    "source": "https://www2.deloitte.com/us/en/pages/regulatory/solutions/regulatory-compliance-services.html"
                },
                "page_content": "Please enable JavaScript to view the site.\n\n#####  **Viewing offline content**\n\nLimited functionality available\n\n**Dismiss**\n\n**We have your back, and the way forward** has been saved\n\n[ ](https://my.deloitte.com/index.html#/dashboard?requestedBy=dcom&site=us-en)\n\n**We have your back, and the way forward** has been removed\n\n[ ](https://my.deloitte.com/index.html#/dashboard?requestedBy=dcom&site=us-en)\n\nAn Article Titled  **We have your back, and the way forward** already exists\nin Saved items\n\n[ ](https://my.deloitte.com/index.html#/dashboard?requestedBy=dcom&site=us-en)\n\nServices\n\n#  We have your back, and the way forward\n\n##  Regulatory compliance and legal services that help you lean in\n\nChanging regulations shift the ground beneath your feet. Let us help you\nreimagine your response. One where planning isn\u2019t a luxury, but a steady,\nempowering capability. Where intelligent detection of risk fosters opportunity\nand mitigation. And with the imminent arrival of new legal issues, you\u2019re\nalready prepared.\n\n  *   *   *   *   * \n\n###  What challenges do you face?\n\nOur conversations with legal and compliance clients reveal that many are\nconfronting issues in three areas:\n\n**Increasing strategic and matter-specific demands on their departments**\ndriven by rapidly changing challenges and obligations and exacerbated by\nCOVID-19. The resulting call to do more with the same or fewer resources\nhighlights the need for greater focus on transformation\u2014advanced contract\nlifecycle management being a prime example.\n\n**Accelerating financial crime risk and related regulatory requirements for\nfinancial services institutions** and fintech organizations driven by\nincreasingly tech-savvy bad actors, rapidly expanded technology use by\nauthorities, shifting political landscapes, and growing adoption of new\ntechnologies and data analytics by all related parties.\n\n**More complex business and marketplace issues requiring expanded AI\ncapabilities.** Hurdles faced often include the inability of current legal and\ncompliance infrastructures to keep pace with changes; a shortage of in-house\nresources to implement needed systems; and the management of high volumes of\nstructured and unstructured data.\n\n###  How we can help\n\nDeloitte Regulatory & Legal services is dedicated to helping organizations in\ntheir efforts to achieve regulatory and legal compliance and transform their\ndepartments to add greater value to the business. It\u2019s not just about managing\nrisk and vulnerabilities; our regulatory and legal services put threats on\ndefense\u2014from global corruption to fraud. Our in-depth experience takes the\ncomplexity out of enterprise compliance. And we combine highly specialized\nskills in discovery and data management, corporate investigations, Foreign\nCorrupt Practices Act, and anti-fraud with financial acumen and advanced\nanalytics to produce transformative insights.\n\nWe\u2019re behind you\u2014and always looking ahead. Helping you move forward with\nconfidence in a rapidly changing global environment. Stay resilient amidst\never-changing regulation. Turn critical opportunities into your long-term\nadvantage.\n\n###  Client stories: Staying ahead of what\u2019s next\n\nWhere does your organization want to go? Explore our latest case studies to\nsee how we can help get you there. And check back for more stories as we add\nto the collection.\n\n###  Learn more about our services\n\n###\n\n####  Let\u2019s make this work.\n\nChange your strictly necessary cookie settings  to access this feature.\n\n#  This section is an infogram\n\nThis message and the space it occupies will not be displayed when viewing this\npage either in Live, Preview, or \"View as published\" modes\n\n###  Get in touch\n\n####  [ Gina Primeaux ](/us/en/profiles/gprimeaux.html)\n\n#####  Principal | Deloitte & Touche LLP \n\n[ gprimeaux@deloitte.com ](mailto:gprimeaux@deloitte.com)\n\n[ +1 714 436 7341 ](tel:+17144367341)\n\n  * [ ](https://www.linkedin.com/in/gina-primeaux-90b9787 \"LinkedIn\")\n\nGina is the US Regulatory, Risk & Forensics offering portfolio leader. In this\nrole, she and her team advise clients across industries to help them bolster\nand protect their business strategy, investm... [ More\n](/us/en/profiles/gprimeaux.html)\n\n####  [ Chris May ](/us/en/profiles/chrismay.html)\n\n#####  Principal | Deloitte Risk & Financial Advisory \n\n[ chrismay@deloitte.com ](mailto:chrismay@deloitte.com)\n\n[ +1 512 498 7408 ](tel:+15124987408)\n\n  * [ ](https://www.linkedin.com/in/chris-may-5b223a6/ \"LinkedIn\")\n  * [ ](https://twitter.com/DeloitteRiskFin \"Twitter\")\n\nAs the national leader, Chris is responsible for leading and building the\nDiscovery practice of Deloitte Transactions and Business Analytics LLP. He has\nmore than 25 years of experience in designing a... [ More\n](/us/en/profiles/chrismay.html)\n\n####  [ Amy Kroll ](/us/en/profiles/amykroll.html)\n\n#####  Principal | Risk & Financial Advisory \n\n[ amykroll@deloitte.com ](mailto:amykroll@deloitte.com)\n\n[ +1 612 817 1209 ](tel:+16128171209)\n\n  * [ ](https://www.linkedin.com/in/amykroll/ \"LinkedIn\")\n\nAmy is the Corporate Compliance and Operations Offering Leader within\nDeloitte\u2019s Risk and Financial Advisory practice. She has over 30 years of\nexperience assisting clients by improving their governan... [ More\n](/us/en/profiles/amykroll.html)\n\n###\n\n####  [ Alex Brady ](/us/en/profiles/alex-brady.html)\n\n#####  Principal | Deloitte & Touche LLP \n\n[ alebrady@deloitte.com ](mailto:alebrady@deloitte.com)\n\n[ +1 415 783 5413 ](tel:+14157835413)\n\n  * [ ](https://www.linkedin.com/in/alex-brady-31903741/%20 \"LinkedIn\")\n  * [ ](https://twitter.com/deloitteriskfin?lang=en \"Twitter\")\n\nAlex is a Risk & Financial Advisory principal in Deloitte & Touche LLP's\nRegulatory & Operations Risk market offering. He provides services to clients\naround regulatory capital implementation and fram... [ More\n](/us/en/profiles/alex-brady.html)\n\n####  [ Jessica Anderson ](/us/en/profiles/janderson.html)\n\n#####  Principal\n\n[ jessicaanderson@deloitte.com ](mailto:jessicaanderson@deloitte.com)\n\n[ +1 615 738 3274 ](tel:+16157383274)\n\n  * [ ](https://www.linkedin.com/in/jessica-anderson-9512634 \"LinkedIn\")\n\nJessica leads the Discovery & Data Management practice of Deloitte\nTransactions & Business Analytics LLP with more than 20 years of experience\nleading complex data management and analytics projects. T... [ More\n](/us/en/profiles/janderson.html)\n\n[ ](https://twitter.com/@DeloitteRiskFin)\n\n###  Latest news from @DeloitteRiskFin\n\n####  Sharing insights, events, research, and more\n\n[ Join the conversation ](https://www.twitter.com/@DeloitteRiskFin)\n\n###\n\nFullwidth SCC. Do not delete! This box/component contains JavaScript that is\nneeded on this page. 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See [ Terms of Use ](/us/en/legal/terms-of-use.html) for more\ninformation.\n\nDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK\nprivate company limited by guarantee (\"DTTL\"), its network of member firms,\nand their related entities. DTTL and each of its member firms are legally\nseparate and independent entities. DTTL (also referred to as \"Deloitte\nGlobal\") does not provide services to clients. In the United States, Deloitte\nrefers to one or more of the US member firms of DTTL, their related entities\nthat operate using the \"Deloitte\" name in the United States and their\nrespective affiliates. Certain services may not be available to attest clients\nunder the rules and regulations of public accounting. Please see [\nwww.deloitte.com/about ](/us/en/pages/about-deloitte/articles/about-\ndeloitte.html) to learn more about our global network of member firms.\n\n",
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