Supply Chain Sustainability
Contribution to a climate resilient future
New Zealand is on the path to a low emission, climate resilient future. Government has set into law a target for net zero greenhouse gas emissions by 2050 (other than for biogenic methane). The Emissions Reduction Plan is one mechanism we are using to focus our collective efforts toward transitioning to a more resilient, low emissions economy.
https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/low-emissions-economy/emissions-reduction-plan/
Southern Link TAA will undertake a measurable Emission Reduction Plan that incorporates International and New Zealand transport requirements (Sea Air Road). Thus, ensuring sustainable Transport choices and services.
International Examples:
- A more direct route between China-New Zealand to South America can provide the quickest link into South America by two or three days faster, which is more economical and reduces the carbon footprint.
- Cross border movements from a Southern Link TAA will minimize Global to Regional (Australia and Pacific Islands) shipping deliveries by reducing movements through goods Consolidation particularly sea over air,
- Keep abreast International best practices.
New Zealand Examples:
- The Southern TAA will be focused on meeting our New Zealand Governments Emission Reduction Plan
- The Southern Link TAA Blockchain can support supply chain emission by providing transparency and accountability of the supply chain of goods and services.
Greenhouse Gas Protocol Corporate Accounting and Reporting Standard.
The Southern Link Te Aoutanga Aotearoa will align with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard.
Emissions are typically split into three scopes:
Scope 1 covers the emissions from operations under a facility’s control, including onsite fuel combustion.
Scope 2 covers the emissions from usage of electricity, steam, heat and/or cooling purchased from third parties.
Scope 3 covers upstream and downstream value chain emissions.
For the purpose of our report, we refer to Scope 3 upstream emissions as supply-chain emissions, covering procured products, transport of suppliers and business travel.
Scope 3 downstream emissions cover transport of products, usage of sold products and product disposal.
This report focuses on the supply-chain emissions that happen upstream from a company, often in the course of creating products or services that the company buys as well as on the Scope 1 and 2 emissions of the respective end consumer-facing companies.
In response to offshoring, nearshoring and onshoring is the concept of moving the supply base closer to the point of need, although the foreign supplier manufacturing facility may still be thousands of miles away.
Here kiwi businesses would have access to foreign supplier products that use the Southern Link Te Aoutanga Aotearoa for a Southern Hemisphere hub.
Normally kiwi businesses have to cope with far shore supply chain access.
Having geographically closer suppliers would reduce transit times and lower the threat of supply chain disruption.
Improving transit times can speed up inventory turn times for less inventory and lower working capital outlays.
During the pandemic what became as a severe shortage of personal protective equipment and health supplies in New Zealand, materialized into a full-blown crisis of shortages of both consumer and industrial products resulting into major disruptions of essential services.
This led to an incredible reliance on direct airfreight from China to New Zealand with the single content of light volumetric equipment with a carbon footprint that was significant.
Normally this type of equipment would be shipped by sea.
The pandemic/climate change and the war in the Ukraine has clearly shown to Aotearoa New Zealand, that we are in a new world of external and internal disruptions that impact the lively hood of all kiwis.
The agility of sourcing foreign inventory for both New Zealand business and Government essential services onshore, transforms our society from a position of supply chain weakness into a position of "Economic Supply Chain Resilience'.
This resilience in terms of lower transport distances will reduce our kiwi businesses and Aotearoa New Zealand overall carbon emissions significantly.
UNCTAD Global Alliance of Special Economic Zones
The Southern Link Te Aoutanga would join with UNCTAD Global Alliance of Special Economic Zones
Which constitute seven global, regional and national associations representing over 7,000 special economic zones (SEZs) including:
- Africa Economic Zones Organization (AEZO).
- Free Trade Zones Association of the Americas (AZFA).
- Green Partnership for Industrial Parks of China (GPIPC).
- International Association of Science Parks and Areas of Innovation (IASP).
- National Association of Foreign-Trade Zones, United States of America (NAFTZ).
- United Nations Conference on Trade and Development (UNCTAD).
- World Free and Special Economic Zones Federation (FEMOZA).
- World Free Zones Organization (World FZO).
SEZs are geographically delimited areas within which governments promote industrial activity through fiscal and regulatory incentives and infrastructure support.
The Global Alliance of Special Economic Zones (GASEZ) seeks to drive the modernization of these zones across the world and maximize their contribution to the UN Sustainable Development Goals (SDGs).
UNCTAD Secretary-General Rebeca Grynspan said: “The United Nations 2030 Agenda for Sustainable Development provides an opportunity for special economic zones to attract investment by putting SDGs at the forefront of their value proposition.
A new model of sustainable special economic zones is therefore rapidly taking shape and they are contributing to more inclusive, resilient and sustainable economies in the countries where they operate".
The Southern Link Te Aoutanga Aotearoa ethos in alignment with (GASEZ)will be:
- Facilitating cross-border and cross-industry collaboration between SEZs in trade and investment promotion for sustainable development.
- Collective policy advocacy for sound enabling frameworks for SEZs at the national, regional and global levels.
- Promoting awareness of the contributions of SEZs to sustainable development.
- Peer learning through the exchange of experiences, best practices and lessons learned among SEZs.
- Undertaking joint technical cooperation programmes for modernizing SEZs and promoting SDG model zones
The consequences of this alliance could lead to shorter and closer supply chains, which can improve regional economies and Industrial upgrading.
This is intern supports:
- NZ focus on reduced emissions.
- Greenhouse Gas Protocol Corporate Accounting and Reporting Standard.
[1] https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/low-emissions-economy/emissions-reduction-plan/