Reutersby Sudev Kiyada, Richa Naidu, Han Huang, Vijdan Mohammad Kawoosa, Adolfo Arranz, Simon Scarr·May 28, 2024
A surge of attacks on ships traveling the waters of the Red Sea is forcing shippers to reroute their vessels, sending them on longer journeys that drive up their carbon dioxide emissions. For companies struggling to account for – and lower – the climate-warming emissions associated with their businesses, these rerouted journeys add to the challenge. Many companies had already revamped their supply chains as they navigated COVID-19 disruptions, extreme weather risks, trade protectionism that forced them to change suppliers, and rising freight costs. “Whether it’s the Red Sea, or the war in Ukraine or COVID or Brexit before that, we’ve had so many discontinuities in the last decade,” said Archana Jagannathan, who leads sustainability in Europe for PepsiCo <PEP.O>. She said the company will need to double down on efforts to cut emissions if it hopes to meet its 2030 and 2040 climate pledges. Reuters spoke to executives from five large consumer companies and analyzed data from 30 sustainability reports of major firms to show that third-party carbon emissions have broadly been on the rise in recent years amid supply chain disruptions. Since the attacks by Yemen’s Houthi rebel forces began in the Suez Canal last year, hundreds of
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