Exploring Initiatives to Measure and Reduce Carbon Footprints Across Indian FMCG Supply Chain

Abstract

The present paper describes an empirical analysis conducted over the supply chains of some Indian FMCG companies with the objective to assess the extent of initiatives towards measuring and reducing carbon footprints throughout the supply chains. The Indian FMCG sector is the fourth largest sector in the economy with an estimated size of Rs. 1,300 billion, which has shown significant annual growth of about 11% per annum over the last decade. In order to reduce the overall carbon footprints of industry and thereby minimise the generation of greenhouse gases so as to address climate change, this research is intended to identify the initiatives to reduce carbon footprints throughout the integrated supply chains of FMCG companies, which pervade all strata of society and all verticals of industry. Collecting the data over the supply chains of five major FMCG companies in India, the research carried on a data analysis coming up with the conclusion that in the current landscape there are significant initiatives to reduce carbon footprints in the areas of inbound logistics and production. The initiatives on outbound logistics, storage & distribution, and packaging are still not significant enough. However, the system of measuring the carbon footprints, if implemented, would significantly achieve reduction of carbon footprints in all of the five areas considered: inbound logistics, production, outbound logistics, storage & distribution, and packaging logistics.

Keywords: Carbon Footprints, Fast Moving Consumer Goods, Supply Chain, Indian

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