“..it’s not easy for a supplier to just say ‘yes’ when its big-name customer asks it to buy renewable power or lower its emissions,” Craig said. “We would like suppliers and customers to have more open, shared information about these realities, so they can plot a way through together.”
Erin Craig, chief sustainability officer and vice president of customer solutions and innovation at 3Degrees, was recently featured in an interview by Carbon Pulse, where she shared her insights on supply chain emissions and 3Degrees’ innovative SupplierREach platform. SupplierREach is an action-oriented renewable energy portal designed to assist large companies and their suppliers in transitioning to renewable energy.
In the interview, Craig highlighted the financial realities faced by suppliers in shifting to renewables. “The data makes clear that most suppliers will have to pay to shift to renewables,” she stated. “Out of the 150-plus combinations of countries and options that 3Degrees has priced, fewer than five would likely save the company money. However, all of those are through PPAs, which are complex and not available to all companies.”
Craig emphasized that while the additional costs may not be substantial, they are significant for suppliers operating on thin margins. “In most places, it adds roughly 5% gross value to a customer’s energy bill. But the companies we are talking about are suppliers with thin margins and substantial expertise in keeping costs down.” Thus, Craig stressed the importance of open communication and collaboration between suppliers and their customers.
The interview, ‘For suppliers under pressure to cut emissions, renewables still come at a cost,’ underscores the critical role of SupplierREach in facilitating this dialogue and providing actionable solutions to help companies and their suppliers achieve their renewable energy goals.
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