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November 11, 2022
It’s becoming increasingly common for customers to ask about carbon emissions and sustainability before selecting a product or service. But they aren’t the only ones thinking about environmental impact. Manufacturers and distributors have also been closely monitoring various metrics tied to responsible technology lifecycles. For example, Ingram Micro has a team that collects, validates and analyzes data to ensure the company reaches its Environmental, Social and Governance (ESG) goals. As a result, Ingram Micro’s partners can more confidently understand how the products and services they implement will impact the world. Ingram Micro’s ESG group looks at a few key areas to measure impact.
In 2021, Ingram Micro reduced Scope 1 and Scope 2 emissions by 8.9%. In total, the company has reduced Scope 1 and Scope 2 emissions by 19.2% since 2016. Last year, Ingram Micro began developing a complete Scope 3 emissions inventory and will continue to track and report all relevant Scope 3 emissions, especially those where the company can have a direct impact to drive change. The company also looks at end-of-life treatment of sold products, employee commuting, operational waste, business travel, and so on.
Ingram Micro is working to streamline supply transportation by identifying efficient order quantities, improving shipment routing from vendors to its global distribution centers and end customers, and optimizing transportation modes for both inbound and outbound shipments. In 2021, Ingram Micro eliminated 6,000 short-haul moves by improving its cube utilization of small parcel line hauls by 25%. By cutting down on excess product movement, Ingram Micro reduced carbon emissions resulting from shipping and transportation activities.
In 2021, Ingram Micro completed its Global Renewable Energy Roadmap, which outlines strategies for its approach to procuring renewable electricity. In the near term, the distributor will focus on purchasing 100% renewable energy through retail markets where this option is available. The company procured more than 16 times as much renewable energy in 2021 compared to 2016.
In addition to implementing strategies to reduce the use of excess packaging materials, Ingram Micro is also looking at ways to reduce the total number of trips a product must take to reach the customer and to improve how orders are packaged for distribution. Drop shipping can play a crucial role here.
It is also important to reduce the amount of packaging used for each shipment. Therefore, Ingram Micro is continuously looking for innovative ways to minimize the amount of secondary packaging needed to ensure damage-free delivery, such as through carton optimization and carton on demand capabilities.
According to a report from the Platform for Accelerating the Circular Economy (PACE), e-waste is the fastest-growing waste stream in the world, with only 20% currently being recycled. This means that large volumes of e-waste end up in landfills, posing significant risks to human health and the environment while preventing the extraction and reuse of metals like gold, iron, copper and nickel.
Ingram Micro’s Lifecycle group offers IT Asset Disposition and Reverse Logistics services that give customers access to repair, parts reclamation and refurbishment solutions for their electronic assets. These solutions help make products available for resale and reuse, reducing the volume of recycled usable electronics before reaching the end-of-life stage and delaying the need to produce new devices. Ingram Micro also partners with multiple organizations and manufacturers that share its commitment to reducing the amount of e-waste generated and sent to landfills.
Each of these areas plays a critical role in helping us understand the overall impact a technology product or solution has on the environment. Ask your vendors and distributors what they’re tracking, and then share those findings with your customers.
This guest blog is part of a Channel Futures sponsorship.
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