The fight against climate change demands more than just reducing emissions, it requires reversing them – Martin C. Schleper of NEOMA Business School believes carbon-negative supply chains could be the answer
As climate change accelerates, the urgency to find innovative solutions has never been greater. While businesses have traditionally focused on adaptation and mitigation strategies to curb emissions, these approaches alone are insufficient to meet global climate goals, according to the latest IPCC reports. As important innovations, Negative Emissions Technologies (NETs) could provide a groundbreaking avenue that not only slows down climate change, but potentially reverses it.
Research conducted alongside my colleagues at Surrey Business School, the University of Sussex Business School, and Aarhus University, explores how Operations and Supply Chain Management (OSCM) must evolve to integrate NETs. Our study finds this would address fundamental challenges in supply chain configurations, policy support, and commercial viability.
“The world’s largest corporations are said to account for over 20% of global emissions”
Supply chains are vital to the global economy, yet they also contribute significantly to greenhouse gas emissions. The world’s largest corporations are said to account for over 20% of global emissions, with industries such as food, construction, and freight making up the bulk of them. While many firms are making efforts to cut emissions, they are simultaneously dealing with climate-induced disruptions in their supply chains, from extreme weather events, such as floods, wildfires or hurricanes, to shifting and more severe regulations.
Businesses typically respond to climate risks through two main strategies:
- Adaptation – Actions taken to cope with the effects of climate change by adjusting social, economic, and environmental systems to minimise damage and take advantage of potential benefits. Examples are adjusting operations and supply chains to withstand climate impacts, such as relocating facilities away from flood-prone areas or diversifying suppliers to mitigate risks.
- Mitigation – Efforts to reduce or prevent the emission of greenhouse gases (GHGs) in order to slow down global warming and limit the severity of climate change. It focuses on tackling the root causes of climate change. Companies are implementing sustainable practices, such as investing in renewable energy, enhancing energy efficiency, and optimising logistics to lower emissions, to reduce their carbon footprint.
While these strategies are necessary, they are not sufficient to meet the 1.5°C target set by the Paris Agreement. A more transformative approach is required: one that reimagines OSCM to facilitate large-scale deployment of NETs.
What are Negative Emissions Technologies?
NETs encompass various methods of removing carbon dioxide from the atmosphere and storing it in durable forms. These technologies range from nature-based solutions like afforestation to engineered approaches such as direct air carbon capture and storage (DACCS). Recent research identifies three promising NETs with distinct supply chain implications:
- Biochar – A biological method that converts organic waste into a carbon-rich material used to enhance soil quality and lock away carbon.
- Direct Air Carbon Capture and Storage (DACCS) – A chemical process that extracts CO2 directly from the atmosphere and stores it underground or converts it into useful materials.
- Ocean Alkalinity Enhancement (OAE) – A geoengineering approach that adds alkaline substances to seawater to increase carbon absorption and counteract ocean acidification.
Each of these technologies presents unique challenges and opportunities in terms of supply chain configuration, infrastructure, and regulatory frameworks. So, how do we imagine our supply chains for implementation of NETs. Let’s highlight some key areas and outcomes:
Infrastructure challenges and policy support
NETs require entirely new supply chain structures. For instance, biochar can be integrated into existing agricultural supply chains, but DACCS and OAE need dedicated infrastructure for carbon transport and storage. DACCS, in particular, demands co-location with renewable energy sources to maximise sustainability. The challenge is not just developing this infrastructure but ensuring it operates in a sustainable, cost-effective manner. Investments in carbon transportation, storage facilities, and processing plants must be made at scale to ensure economic viability.
The success of NETs depends heavily on policy incentives, carbon pricing, and regulatory frameworks. Governments must create favourable conditions for NET adoption by offering subsidies, setting up carbon markets, and establishing clear guidelines for carbon accounting and verification. Without regulatory clarity, businesses face uncertainty in long-term planning. Policymakers must work collaboratively with industry leaders to define clear roadmaps for NET implementation, ensuring that investment in carbon-negative supply chains remains attractive and feasible.
Unlike traditional industries, NETs lack established commercial demand. Companies investing in these technologies must navigate uncertain markets, relying initially on government support and voluntary carbon markets. Biochar, for example, has viable commercial applications in agriculture, whereas DACCS requires a long-term vision to scale economically. The question remains: who will pay for negative emissions? Companies must develop creative financial models, including carbon credit trading, corporate sustainability pledges, and private-public partnerships, to fund the transition to carbon-negative supply chains.
Addressing unintended consequences
Large-scale NET deployment carries potential risks. Biochar’s impact on soil chemistry, DACCS’s reliance on secure carbon storage sites, and OAE’s potential effects on marine ecosystems must be carefully assessed. Sustainable OSCM practices are essential to mitigate these risks and ensure that NETs do not cause unintended harm. For instance, large-scale biochar use must be monitored to prevent unintended alterations in soil microbiology, and OAE must be studied for its long-term effects on marine biodiversity. Scaling up NETs without understanding their full environmental impact could lead to unintended ecological trade-offs.
Public perception plays a crucial role in the acceptance of NETs. Companies must establish socio-political legitimacy by demonstrating transparency, engaging stakeholders, and ensuring environmental integrity. Collaborations with trusted institutions and compliance with rigorous sustainability standards will be key to gaining market acceptance. Furthermore, businesses should actively communicate the tangible benefits of NETs, not just as an environmental necessity but as an economic opportunity. Carbon-negative supply chains must be framed as not only responsible but also profitable, ensuring long-term corporate commitment to sustainable practices.
“Businesses can turn climate challenges into economic opportunities”
The path forward
NETs represent a paradigm shift in OSCM, requiring businesses, policymakers, and investors to rethink conventional approaches. While adaptation and mitigation remain important, they must be complemented by transformative strategies that actively remove carbon from the atmosphere.
For businesses and investors, NETs offer both challenges and opportunities. Early adopters stand to benefit from emerging carbon markets and policy incentives, positioning themselves as leaders in the green economy. However, scaling these technologies requires bold investments, regulatory alignment, and innovative supply chain models. Companies must also work to create industry-wide standards for measuring and verifying negative emissions, ensuring consistency and reliability in carbon accounting.
Governments, too, must step up by creating the right conditions for NETs to flourish. This includes funding R&D, implementing carbon pricing mechanisms, and integrating NETs into national climate strategies. Policymakers should prioritise collaboration between industries, academia, and research institutions to drive innovation in carbon removal technologies. Additionally, establishing international agreements on carbon-negative supply chains could create a more cohesive and scalable approach to implementation.
The fight against climate change demands more than just reducing emissions – it requires reversing them. NETs provide a viable pathway to achieving this goal, but their success hinges on the transformation of supply chains, policy frameworks, and market mechanisms. By embracing innovative OSCM strategies, businesses can turn climate challenges into economic opportunities, contributing to a sustainable and resilient future.
As the world races to meet its climate targets, the time to act is now. Companies, investors, and policymakers must collaborate to develop and scale NETs, ensuring that supply chains are not just sustainable but regenerative. The next decade will be critical in determining whether we can move beyond the “new normal” towards a climate-positive future. A shift towards carbon-negative supply chains represents not just an environmental imperative but a strategic advantage for forward-thinking businesses ready to lead the green revolution.
About the author
Martin C. Schleper is Professor of Supply Chain Management and Sustainability at NEOMA Business School. The research was conducted alongside Stelvia V. Matos, Jeremy K. Hall, Chad M. Baum, Sean Low, and Benjamin K. Sovacool. The full research can be read at: doi.org/10.1108/IJOPM-06-2024-0487
Further reading
This article was first published in Business 4.0