Iconic companies across industries rise together to the urgent challenge of mobilizing suppliers on climate change

Guidehouse, a leading global provider of consulting and managed services to commercial and public sector clients, announced the addition of three of the world’s most iconic brands: McDonald’s, Post Holdings, and PUMA to the Supplier Leadership on Climate Transition (Supplier LOCT), a collaborative program launched in 2021 to accelerate progress towards science-based greenhouse gas (GHG) reduction targets across supply chains. Twenty-four partner companies are now members of the diverse partnership, which provides organizations with a scalable, cost-effective solution to the challenge of addressing supply chain or Scope 3 emissions.

“Accelerating climate action requires stronger collaboration,” said Jan Vrins, Partner and Sustainability Lead at Guidehouse. “Supplier LOCT is a one-of-a-kind program that offers the world’s leading brands a chance to come together in partnership and drive rapid supply chain decarbonization as we transition to a clean and more sustainable ecosystem. We are all in this together, and must take collective action to protect our planet for future generations.”

In 2018, the Intergovernmental Panel on Climate Change warned that global warming must not exceed 1.5°C to avoid the catastrophic impacts of climate change. To achieve this, GHG emissions must halve by 2030 – and drop to net-zero by 2050. According to the Science Based Targets initiative (SBTi), organizations with these targets are already cutting emissions at scale.

A key measure for gauging a company’s commitment to climate transition is SBTi-alignment. Supplier LOCT supports the climate goals and efforts of the partners’ suppliers by training them on how to set and reach these targets. One of the first major climate milestones that place companies on the climate progress map is when they commit to, or formally set an approved science-based target. A recent Supplier LOCT survey shows that of the 119 commitments that have been set by Supplier LOCT participants, 87% were submitted for approval after participating in the program.

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“McDonald’s is proud to be supporting our suppliers in their climate action efforts,” said Bob Stewart, SVP and North America Chief Supply Chain Officer at McDonald’s. “We have the privilege and responsibility to drive progress on issues that matter in the communities we serve, and protecting our planet for generations to come is the most globally urgent and locally impactful issue we could address. Partnership through our supply chains and across the industry is essential so that we may all effectively do our parts to limit global warming to 1.5°C.”

“At PUMA, we work closely with our supply chain partners on decarbonization including data collection, training and capacity-building, financial support for feasibility studies or support in setting their own SBT,” said Veronique Rochet, Senior Head of Sustainability at PUMA. “Currently PUMA has identified 20 supplier groups, representing 40-50% of our sourcing volume, for which we have rolled out the SBT setting process. We are looking forward to further enhancing these efforts through our participation in the Supplier Leadership on Climate Transition program.

Supplier LOCT works within the supply chain, helping suppliers become part of the climate solution. Partners in Supplier LOCT sponsor the participation of their suppliers in a seasonal series of six instructional seminars on developing a GHG footprint, setting a science-based target, adopting GHG abatement measures, and disclosing progress and renewable energy options. Guidehouse subject matter experts provide supplier participants with direct mentoring and actionable steps on how to build internal capacity. Supplier LOCT is a global movement of leading brands to advance supplier action by 2025.

“The Supplier LOCT program gives our organization the ability to provide meaningful support to our strategic suppliers and significantly accelerate their climate journey,” said Nick Martin, Senior Director of ESG at Post Holdings. “Leveraging the collective experience of partner companies, we can provide effective tools, guidance, and technical support to suppliers tailored to the current stage of their journey.”

In addition to these new brand members, Supplier LOCT Partners include Ocean Spray, DS Smith, Neiman Marcus Group, MHI, Atlantic Packaging, The Clorox Company, The Coca-Cola Company, The Estée Lauder Companies, General Mills, Guidehouse, Keurig Dr Pepper, Mars, Incorporated, McCormick & Company, Mondelēz International, Nestlé, PepsiCo, Restaurant Brands International, and Yum! Brands.