Fjordkraft has been a climate neutral organisation within the Norwegian energy sector since 2007. In 2016 the company utilized its supply chain program to create a climate neutral portfolio of suppliers called the Klimanjaro initiative.
Like the African peak it is named after, "Klimanjaro" is an ambitious but fully feasible climate initiative. It requires companies wishing to do business with Fjordkraft to become climate neutral by 2019. It requires suppliers to track their own emissions through annual climate accounting, including the creation and implementation of a plan to maximise emissions reduction, as well as one to compensate for actual emissions incurred through the purchase of climate quotas. Although this is an ambitious initiative, we see its potential as having a domino effect that far exceeds the effect of the climate measures we can do on our own. We want this to be an example to follow.
Since becoming climate neutral in 2007, Fjordkraft had been eager to make an impact on the global challenge of carbon emissions reduction. At the same time, the Executive Management Team at Fjordkraft was waiting for the right moment to take action. With the adoption of the Paris Agreement in 2015, and the establishment of the United Nations Climate Neutral Now, Fjordkraft was given a golden opportunity to act: climate neutrality had now been officially defined by the international community and Fjorkraft could now base its standard of Climate Neutrality on the United Nations (UN) methodology administered by Climate Neutral Now.
Despite good intentions, when Fjordkraft adopted the UN climate neutrality methodology it found that its direct emissions were low, which prevented it from making a significant impact on the global reduction of carbon emissions. Through the Klimanjaro initiative Fjordkraft decided to use its purchasing power to help make a difference, requiring all its suppliers to become climate neutral by 2019.
As of November 2021, Fjordkraft has managed to enable 198 companies to become climate neutral. Through dialogue and guidance Fjordkraft has guided its suppliers forward on this journey to climate neutrality. Together, these companies represent more than 30 000 employees from small Norwegian businesses to large international corporations. As an example of the scalability of the project, companies in Fjordkraft’s supply chain and outside of its supply chain have now adopted the project, and are requesting climate neutrality targets amongst their own suppliers.
But what has the road to a climate neutral portfolio of suppliers been like? What challenges has the project met along the way since its implementation? And what future challenges does the project stand to face in the months and years to come?
These are questions I will aim to answer on behalf of Fjordkraft on the 17th November, during the upcoming S-HUB CPO & Supply Chain Sustainability (S-CPO) Network meeting in Oslo.
To find out more about the S-CPO network and to register for the 17th November session, please email Marc Jourdan, S-HUB Director of Partnerships, Networks & Engagement on firstname.lastname@example.org.
On the 9th of September, S-HUB launched the S- CPO network building on the idea that managers and decision makers in the field of supply chain management and purchasing are key resources in the sustainable business agenda. Working with some of the most ambitious companies (e.g. DNB,Scatec, Lyse, ATEA, Sodexo and more) the network provides a safe space through the network meetings, roundtables and conferences it organises to help integrate sustainability into core business strategies across the Norwegian business landscape.
The S-CPO network offers:
The S-CPO network offers:
- Practical knowledge and useful tools for how to better overcome key challenges, integrate sustainability into the daily work and responsibilities of supply chain and purchasing professionals.
- Insights into relevant sustainability trends, new research and inspiring examples from leading experts and companies in the field.
- Cross learning and peer discussions of solutions, best practices and how to strengthen your company’s strategic work with sustainability.
About the author:
Gisle Hauge, Head of Procurement at the Fjordkraft Group, Vice Chair of the S-HUB CPO & Supply Chain Sustainability Network Strategic Board.
Gisle has been Head of Procurement since 2017 whereas he has been responsible for implementing the Klimanjaro Project amongst the company suppliers. Furthermore, he is responsible for the overall strategical procurement in the Fjordkraft Group. Gisle has a Law Degree from the University of Bergen and has experience from working in law firms and management consulting.