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Summary report Working group session summaries 25Value chainThe networked nature of business operations means that effectiveaction to reduce climate impacts will require working through thedense value chains upon which all companies and consumers rely.There is significant opportunity to accelerate anddeepen action to combat climate change by focusing oncomprehensive approaches to value chains. These buildon existing business models that can enable effectiveaction across national borders, promote innovation, andcapture opportunities for efficiency. Supply chains inmost businesses are currently managed for cost, timeand quality, and exclude parameters such as impacts onclimate, water, and waste. Furthermore, existing policiesthat relate to supply chain management have coveredstandards for labor, factories, and poverty alleviation atsource.“We [...] have a carbon imprint of cirka3 million tons […] out of a total supplychain that we influence of 300 milliontons – nearly a factor of 100 more.And it is very clear to us that we area pivotal part of that supply chain todrive changes far bigger than whatwe can save in our own shop.”Paul Polman, Chief Executive Officer,UnileverThe complex interactions between stakeholders implythat partnerships and cooperation along entire valuechains may be necessary. For example, cellulosic ethanol(a form of biomass composed primarily of inedibleplant fibers such as grass, stalks and straw) has the potentialto provide enough biofuel to replace 25% of roadtransport in the US and EU. However, to capture this opportunitywould require engagement of the entire valuechain, including farming, biomass collection, refineries,and engine design. The lack of support from any onepartner could be enough to ‘block’ progress in this area.value chain approaches and that this will greatly improvethe likelihood of meeting targets set by the agreement.This working group was developed and organized byBusiness for Social Responsibility. For more information,please go to www.bsr.org or contact Aron Cramer atacramer@bsr.org.Participants suggested that gaining visibility for climatechange and greenhouse gas emissions would requireimproved measurement and monitoring, better technology,stronger partnerships with suppliers and customers,and greater understanding of consumer needs.Participants at the Summit recognized that a globalagreement should include measures to incorporateFocus areas for business• Redesign value chain strategies to emphasizea collaborative approach to the development ofnew processes, products, and services.• Support the development of cross-industrymeasurement standards that will cover wholevalue chains, including downstream and endof-life.• Provide more transparency to consumers, andincrease engagement and education with consumersand citizens about steps they can taketo reduce climate impacts of consumption.Recommendations to policymakers• Establish a transparent international standardfor greenhouse gas measurement ofproducts and services across value chains.Any standard needs to be simple, consistent,but unrestrictive, for example setting minimumstandards and common measurementmethods.• Increase the quality and information availableto the public, including providing education toand increasing awareness of consumers, businessesand students.• When considering the adoption of low-carboninnovations, include focus on disseminatingthese technologies along supply chains andconsider the complex interactions betweendifferent stakeholders along each chain.