Brambles’ sustainable ‘share and reuse’ model places the business in a strong position in a decarbonising world.
Brambles accepts climate science and recognises that climate change is influencing both short-term weather events and longer-term climatic trends. Climate-related physical impacts are also influencing society and economies, which is translating into policy and investment decisions as well as shifts in consumer behaviours. Within this context, Brambles sought to respond to the recommendations of the 2017 Task Force on Climate‑related Financial Disclosures (TCFD), an initiative of the G20 Financial Stability Board, to provide its stakeholders with a consistent narrative on how these trends could positively or negatively impact the financial circumstances of Brambles’ business over different timescales.
Responding to the specific challenges of climate change is intimately linked to Brambles’ focus on its circular ‘share and reuse’ model. At their heart, circular business models design out waste and pollution, keeping products and materials in use rather than using them and seek to actively regenerate the natural systems they depend on. Through its efforts to connect people to life’s essentials, Brambles is focused on reducing demands on natural resources, regenerating forests and eliminating waste for customers.
These actions not only seek to preserve and enhance the natural capital we depend on but inherently reduce carbon emissions from the world’s supply chains. In their 2019 publication, ‘Completing the Picture: How the Circular Economy Tackles Climate Change’ the Ellen MacArthur Foundation highlighted how a circular economy is essential to global emissions reductions. As a leader in the circular economy, Brambles is well positioned to demonstrate its potential, helping to address climate change and is committed to creating a business environment more closely aligned to the Paris Agreement.
In response to the recommendations provided by the TCFD, Brambles progressed its assessment of the risks and opportunities from climate change using climate scenario analysis.
Brambles engaged in cross-functional TCFD workshops across all regions to identify climate-related risks and opportunities covering its entire value chain. Brambles selected three climate scenarios: a 1.5°C scenario to reflect government‑led ‘Rapid Decarbonisation’; ‘Middle Of The Road’ (2°C) with strong leadership from industry; and a ‘No Climate Action’ (4°C) scenario reflecting weak or poorly coordinated actions in terms of global social, political and economic responses to climate change.
In Brambles’ view, the outcomes associated with a 4°C scenario are neither desirable nor beneficial for economies, society or the natural environment and represent a scenario associated with physical impact, risk and outcomes which the world should aspire to avoid. Brambles is committed to working collaboratively with all stakeholders to accelerate progress towards a circular economy so it can play its part in achieving the more positive outcomes of the decarbonising climate scenarios.
Three key climate themes have emerged for Brambles
Brambles’ Low-carbon Advantage
The immediate and ongoing opportunities related to Brambles’ low-carbon, circular business model outweigh short‑term climate-related risks in the decarbonising 1.5°C and 2°C climate scenarios.
In decarbonising economies, efficient use of natural resources will become more important and the inherent advantage within Brambles’ circular business model presents clear and ongoing opportunities. This is enhanced through Brambles’ Transport Collaboration solutions and Zero Waste World programme. Brambles’ forthcoming 2025 Sustainability targets will further amplify market opportunities, help customers with their decarbonisation and circularity commitments, while preparing for future climate and waste regulation.
Brambles’ Network Resilience
The agility and scale of the Brambles network and asset pools create an inherent resilience to supply chain shock, enabling greater responsiveness to customers before and after severe climate-related weather events.
Adaptability will be increasingly important as exposure to supply chain shocks from physical climate-related weather events increases in all three climate scenarios. Brambles’ network resilience is a market differentiator and a key mitigant, enabling greater agility pre-weather event and reliability during the recovery phase. Current efficiency workstreams will further strengthen the resilience of Brambles’ networks.
Brambles’ response to the Covid-19 crisis has emphasised the ability to maintain a resilient network during a widespread supply chain crisis.
Raw Material Supply Security and Continuity
Longer-term climate-related risks relating to raw material supply security and continuity have been identified including physical impacts and carbon offsets. These risks are considered in the current strategic planning processes, including mitigations already underway as part of procurement and supply chain and asset efficiency programmes.
The price and availability of lumber supply as well as the potential impact of pests and disease were identified as climate‑related risks which are expected to evolve over a five to ten-year timescale and manifest differently under the three climate scenarios considered.
The next phase of Brambles’ TCFD response will look to embed the TCFD outcomes and apply monitoring and measurement processes to ensure the benefits are realised and risks continually mitigated.
Further information on Brambles’ response to the TCFD recommendations, including more detail on the risks and opportunities of climate change, is available on brambles.com