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November 7, 2023How California Manufacturers are Rising to Supply Chain Sustainability Challenges
How California Manufacturers are Rising to Supply Chain Sustainability Challenges
California commercial manufacturing has become more complex as society and technology has grown, with ripple effects from one end of a supply chain reaching all the way to the other end, this is where sustainability comes into play. This has become especially true as powerhouse companies such as Boeing, Walmart, Frito Lay, Costco and many more are pushing for more sustainable practices from their suppliers. For California manufacturers, these changing dynamics in the supply chain landscape are providing both new challenges and unique opportunities.
New legislation will pressure businesses even more, as California’s Climate Corporate Data Accountability Act (SB-253) and Greenhouse gases – climate-related financial risk legislation (SB-261), will require large companies to disclose greenhouse gas (GHG) emissions through their supply chain and detail climate change-related financial risks.
The Growing Relevance of ESG Frameworks
Environmental, social, and governance (ESG) frameworks are transforming from a ‘nice-to-have’ into a ‘must-have’ for businesses worldwide. While the promise of sustainable value is a significant draw, the driving force behind the rapid adoption of ESGs is twofold: the tightening grip of laws and regulations, and the consumer’s growing awareness and demand for sustainable products and services.
For California manufacturers, this means adapting to sustainability frameworks isn’t just about ticking a box; it’s about staying competitive in an increasingly discerning marketplace and supply chain. California, as one of the world’s largest economies, has always been a trendsetter in environmental regulations and sustainable initiatives. The state’s commitment to reducing carbon emissions and promoting clean energy places its manufacturers in a unique position.
While the immediate challenges might seem formidable, the long-term benefits of being ahead of the curve, especially when it comes to sustainable practices, cannot be overstated.
Ripple Effects for Supply Chain Sustainability
When giants like Walmart or Costco prioritize sustainability, it’s not just their immediate suppliers that feel the impact. This ethos trickles down the supply chain, affecting every player, big or small. For manufacturers, this means that even if they don’t directly supply to these behemoths, the changing landscape necessitates a shift towards sustainable practices. The silver lining? A sustainable supply chain is often synonymous with resilience and long-term profitability.
Through programs like Walmart’s Project Gigaton, more than 4,500 suppliers have already committed to more sustainable operations.
Growing ESG values are set to transition from a differentiator to the norm in global business practices. As public awareness of environmental challenges, social disparities, and the need for ethical governance continues to grow, so will the demand for businesses to incorporate these principles at their core.
Investors, consumers, and regulatory bodies are increasingly prioritizing companies that demonstrate a genuine commitment to ESG values, understanding that long-term profitability is closely intertwined with responsible stewardship of resources, fair societal practices, and transparent governance. As data accessibility improves, enabling stakeholders to easily assess a company’s adherence to ESG criteria, businesses that fail to integrate these values risk obsolescence, while those that champion them stand to thrive in a more conscious, interconnected global economy.
Manufacturers Can Create Capital Through Sustainability
It’s clear that the days of viewing sustainability as a secondary concern are over. For California supply chain manufacturers, the future lies in embracing the new sustainability challenges, leveraging the state’s unique position, and adopting clean energy solutions that promise not just short-term savings but long-term value for these facilities.
Revel Energy has had the privilege of collaborating with numerous California businesses, helping them transition to more sustainable energy solutions. Two game changers have been commercial solar and energy storage systems.
Commercial Solar: California’s abundant sunshine is more than just a tourism selling point, it’s a potent energy source that many manufacturers are already harnessing to reduce electricity costs. By transitioning to solar energy, manufacturers not only enjoy reduced utility bills but also position themselves as an eco-friendly businesses, aligning with the ethos of their eco-conscious partners and customers.
Energy Storage Systems: With the growing unpredictability of the power grid and fluctuating energy prices, energy storage systems have become indispensable. These systems allow businesses to store excess solar energy and deploy it when needed, further optimizing their energy consumption and costs.
As we continue to navigate this evolving landscape, the convergence of economic viability and environmental responsibility isn’t just a possibility—it’s a promise that many businesses are already fulfilling. Contact our expert team today to learn how your business can access true sustainability through commercial solar and energy storage.
Commercial grade rooftop solar is ideal for: manufacturing, warehousing, logistics, industrial, retail, hospitality buildings and more with over 10,000 sq. ft. rooftops.
CARPORT SOLAR
Free standing carport solar generates added solar power for properties with limited rooftop space. Added benefits include shading and protection for employees vehicles.
Crucial for reducing peak demand charges. Automated to supply electricity when your panels won’t. Energy storage is ideal for businesses that incur significant peak charges.
As the popularity of electric vehicles increase, so does the demand for on-site charging. This sustainable amenity has become a parking lot fixture for competitive employers.
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Client Testimonial: Kelemen Company
Corporate Business Park in Irvine, CA has created significant electricity cost savings through commercial solar installed across the 5-building business park.
Client Testimonial: Tice Gardner & Fujimoto LLP
See how this CPA firm saved on electricity and gained valuable tax credits through commercial solar that they used to keep cash in the businesses.
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