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EMS: Re-selling product carbon footprints as a value-added service
EMS: Re-selling product carbon footprints as a value-added service
Timon Ruban avatar
Written by Timon Ruban
Updated over 4 months ago

Our early access program starts in July 2024 and is limited to a few select customers. Interested in joining? Reach out to [email protected].

Score more points on your next supplier evaluation

More and more OEMs are adding sustainability as a dimension for evaluating and selecting their suppliers. What used to be QLTC (quality, logistics, technology, cost) is now QLTCS. Today the S (for sustainability) is often ignored, but by offering carbon footprint data, you can get ahead of the curve, attract new customers and become the preferred partner for sustainability-conscious OEMs and those with emerging sustainability risk.

Generate extra profits by re-selling carbon footprint estimates and verified EPDs to your customers

Many EMS already offer value-added services at extra cost like a compliance (RoHS, REACH) or lifecycle check. True to the spirit of being the “one-stop shop” for the supply chain of your customers, you can offer OEMs a streamlined, cost-effective alternative to traditional sustainability consulting. Companies with NetZero ambitions already allocate 6-8 figure budgets to gather sustainability data. By re-selling them CO2e estimates or verified EPDs you can add directly to your bottom line.

Get involved with your customers earlier in the lifecycle of their products

By providing CO2e hotspot estimates you can give your customers a quick snapshot of the carbon emissions associated with different components and assemblies. Identifying high-emission areas is particularly valuable early in the design phase. You can use this angle to get involved earlier and build stronger relationships than ever before.

Position yourself as an innovator and trusted partner

Even if your customers didn’t add sustainability to their procurement criteria yet, they are most likely still worrying about the future: “When will new regulations affect me? And how will I ever go about collecting the necessary data when they do?” You can allay their fears by adding sustainability services to your offering and demonstrating your commitment to future-proof your customers’ supply chains. ”Work with us and you’ll be in safe hands no matter what happens.”

Ok, but isn’t this whole sustainability thing just hot air?

Putting compliance to new regulations (some of which will only come into effect over the next years) aside, there are two keywords that make the handwavy specific: internal cost of carbon and carbon avoidance credits.

  • Reduce Internal Cost of Carbon. Already in 2021, nearly half of the world’s largest companies had implemented an internal cost of carbon. This cost is typically tied to the internal abatement cost of reducing one ton of carbon emissions and can range from $20/ton (VW Group, 2023) to $300/ton (Delta Electronics, 2022). By helping customers make informed decisions and lowering their product carbon footprint, you can drive substantial economic value for your clients.

  • Potential to Create Carbon Avoidance Credits. Carbon avoidance credits are issued for actions that prevent or reduce greenhouse gas emissions that would otherwise occur in a business-as-usual scenario. Through your help, your customers can reduce emissions and create these credits and trade them on carbon trading exchanges or sell directly to companies looking to offset their emissions. The price of one ton of carbon is projected to reach $25-$30 by 2030.

I have a customer that’s interested, but struggle to explain what we can do for them. Can you help?

Feel free to just reach out to [email protected] and we’ll be happy to support you and your customer with explanations, training and technical assistance.

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