Net Zero Emissions by 2050 – Orion’s Supply Chain Sustainability Starts with Choosing the Right Partners

Choose partners with transparent, verifiable emissions data and aligned decarbonization roadmaps. For every location you consider, demand shared metrics and independent audits. A partner that is driven by measurable outcomes will reduce scope 3 risk and accelerate progress toward 2050 targets. The question you must answer is where heat, materials and products originate; identify the imported components and assess their source quality, price volatility and reliability.

Evaluate 멀티모달 transporters and exchange data across systems. A multimodal approach reduces reliance on single-mode trucking and improves resilience. It takes into account the location of facilities: a supplier in one city can substitute to a nearer distribution center without increasing emissions. Ensure contractual clauses require emission reporting, shared lifecycle data, and a plan for phaseouts of high-emission transporters. Where imported inputs were handled in silos, push for cross-network exchange of data and benchmarks.

As you move toward Net Zero, Orion’s network should be seen as a supergrid of connected nodes. Take a data-driven approach to replacement of polluting equipment with modern, energy-efficient assets and shift to low- and zero-emission components where feasible. The metalmorphosis in logistics requires everyone to become more agile: development teams align with suppliers to ensure ready capacity and location flexibility. A partner that can become a reliable power in the chain goes beyond procurement and helps shape resilient operations going forward.

Concrete steps you can take now: map every node in your supply chain by emissions, set time-bound targets for Scope 1-3, and run pilots on 멀티모달 corridors. Require partners to report on energy use, transport modes, and the efficiencies they can produce; use data exchanges to compare routes and optimize logistics. Although upfront collaboration costs exist, the long-term savings from reduced transport emissions and improved resilience are clear. When a partner demonstrates consistent reductions, let it scale to additional regions and products, creating a modular exchange of best practices that supports a zero-emission transition.

Orion’s strategy anchors decisions in place and data: choose partner networks that can deliver improved carbon intensity for every link in the chain, from inbound shipments of imported materials to outbound finished goods. By keeping the focus on driven metrics and real-world performance, you ensure that net-zero targets stay on track as costs stay predictable as consumer demand shifts toward sustainability.

Practical partner selection framework for Orion’s net-zero supply chain

Adopt a data-driven partner scoring framework that prioritizes environmental performance, feedstock transparency, and scalable infrastructure to unlock immediate gains in emissions and cost efficiency.

1. Define main criteria and weighting. Example: environmental impact, production efficiency, materials integrity, governance alignment with government standards, and risk resilience. Assign transparent weights and lock them in contracts to ensure consistent decision-making.
2. Segment suppliers into tiers. Create preferred, core, and watchlist categories based on performance data, long-term commitments, and readiness to scale. Target the majority of critical inputs from preferred partners to reduce variability in emissions.
3. Standardize data requirements. Collect environmental intensity per tonne, energy mix, recycled content in materials, feedstock origin, processing energy, and transport emissions. Require traceability from feedstock suppliers to steelmakers and downstream processors, then review data through independent verifiers.
4. Assess both direct and upstream factors. Evaluate production efficiency, waste handling, water use, and safety records. Include materials quality and metallurgy compatibility with Orion’s specifications to prevent rework and reduce scrap.
5. Incorporate scenario planning. Run models for diverse feedstock mixes–including scrap-heavy processing and primary production–to compare emissions trajectories, cost implications, and infrastructure needs. Use scenario outputs to guide supplier selection and investment choices.
6. Embed governance and incentives. Attach contract clauses that reward improvements in environmental metrics, data transparency, and on-time delivery. Collaborate on infrastructure upgrades with transporters and logistics providers to cut transportation emissions and improve reliability.

Through a structured approach, Orion can become more resilient under fluctuating energy markets while advancing a low-emission feedstock strategy. When suppliers become reliable in data and performance, they transform from transactional partners into strategic collaborators across the supply chain.

• Findings show that transparent feedstock provenance reduces risk in processing and supports optimistic targets for steelmakers integrating scrap and recycled metals into production lines with very high efficiency.
• Infrastructure investments with transporters and processing centers enable leaner logistics and lower emissions per tonne of output.
• In a metalmorphosis of the sector, collaborations with government-aligned suppliers can unlock multi-billion opportunities in efficiency gains and capital expenditure optimization.
• Key inputs–environmental data, materials quality, and feedstock traceability–drive superior supplier performance and enable rapid, data-backed decisions among core partners and major suppliers.

Operational steps include launching two pilots with steelmakers and scrap processors to quantify savings and verify data quality, aiming for very concrete milestones within 12–18 months. Findings from these pilots will inform ongoing renegotiations and the expansion of the preferred tier to additional feedstock suppliers, ensuring Orion stays ahead in the net-zero curve.

Map emissions hotspots across the supplier network and prioritize high-impact items

Begin with a data-backed emissions heatmap for all suppliers, focusing on the top 20% of spend and emissions to capture the majority of impact across the chains. Pull data from supplier surveys, site audits, and third-party sources, and ensure data is stored securely and consistently. Clearly attribute emissions to activity types: production, transport, storage, and packaging, and flag which items produce the majority of emissions.

Identify hotspots by geography and horizons; in the pharmaceutical chains, cold-chain segments often serve as a driver of energy use in manufacturing and transport. Nearly all emissions concentrate in a handful of items, so prioritize those with the largest potential impact. Use legislation and government signals as a guide for compliance and opportunities to unlock incentives; in australia, policy can steer supplier behavior and improve the outlook for emissions reductions.

Prioritize items with the highest impact using a simple scoring framework: emissions potential, spend share, feasibility of change, and supplier readiness. Build an implementation plan with clear ownership, timelines, and required investments. Coordinate with suppliers to set joint targets and share best practices; the value of collaboration increases when they understand common goals and the path to transformation.

Actions by hotspot:

• Manufacturing hotspots: upgrade energy systems, recover waste heat, switch to lower-carbon fuels where feasible, and audit energy intensity (kWh per unit) to track transformation progress.
• Cold-chain and pharmaceuticals transport: optimize insulation, maintain tight temperature bands, adopt energy-efficient refrigerants, and consolidate routes to reduce miles stored and moved.
• Packaging and labeling: reduce weight, choose recycled content where possible, and standardize packaging to cut logistics load and carbon produced per shipment.
• Logistics and distribution: shift to rail or sea where feasible, optimize routing with real-time data, and implement cross-docking to minimize storage time.
• Data and governance: establish a common data model, ensure data preservation within the system, and provide suppliers with a copy of the heatmap to align expectations.

Monitoring, learning, and accountability keep momentum visible. Track carbon intensity by supplier, monitor spend-weighted emissions, and report year-over-year reductions across the entire network. Set horizons for 2025, 2030, and 2035 that align with the Net Zero by 2050 outlook and inform ongoing transition investments; theyve shown that focused data sharing drives early reductions. Communicate progress to people inside Orion and to government stakeholders, and adjust contracts and collaboration terms as needed. theyve demonstrated that a focused, data-driven approach yields value across every touchpoint in the chains and helps us move the entire network toward sustainable growth.

Define clear, measurable supplier targets and cadence for progress reporting

Recommendation: Launch a 3-year plan for each supplier anchored by a triad of targets: reduce GHG (Scope 1-3) intensity, increase the share of energy from renewables, and improve energy efficiency, all measured in a standardized CO2e framework. Establish a baseline using a defined calendar period and set auditable milestones with concrete deadlines. Use a single, mandatory reporting template to collect quarterly data from every supplier, enabling apples-to-apples comparison across the entire supplier base.

Cadence: Require quarterly data submissions, with mid-cycle reviews and a concise executive summary for leadership. Implement a rolling timetable that defines data submission windows, validation steps, and escalation for missing data, ensuring steady momentum throughout the roll-out.

Data integrity: Apply consistent data definitions (GHG Protocol Scope 1-3; CO2e), track energy sourcing, and require independent verification for high-priority suppliers. Maintain an auditable trail in a secure portal to support transparency and accountability across the network.

Engagement: Involve stakeholders across the supply chain, including manufacturers located in EU-regulated markets, to provide input and adjust targets. Use a structured feedback loop during the roll-out to capture practical constraints and opportunities, strengthening collaboration with partners and the entire ecosystem.

Regulatory alignment and horizons: Align targets with current regulatory requirements and the evolving rulebook for the coming horizons. Update targets in response to new rules and market dynamics, building a business case that demonstrates reduced exposure to regulatory shifts and favorable implications for the economy over time.

Source tagging: In each report, cite a источник for the data and tag the source in the portal to simplify audits and traceability.

Audit data quality, methodologies, and verification processes for decarbonization plans

First, establish a standardized data quality framework for decarbonization plans across suppliers, facilities, and transport modes. Define a single data dictionary, assign data owners, and set target levels for completeness, accuracy, timeliness, and consistency across every dataset. Tie this framework to onboarding, contracts, and cargo planning to ensure audit readiness from day one. This data quality framework can become the single source of truth for decarbonization decisions around operations and procurement.

Within the framework, collect data from the same sources used in the survey of emissions and materials tracking. Only trusted data sources feed the framework. Leverage digitalisation and technologies such as APIs and sensors to pull data from supplier portals, EDI, and cargo tracking systems. Build a clear connection between operations data and decarbonization targets, so each measurement becomes traceable to a specific material, route, or tariff, around each supplier.

Set a three-layer verification approach: internal validation, external audits, and periodic re-surveys. Capture issue notes and findings with root-cause details and link them to data sources for rapid remediation. Use scenarios to stress test decarbonization plans against tariffs, energy prices, and supply disruptions, and publish nearly real-time dashboards that keep teams aligned.

Engage suppliers with a targeted survey to fill gaps in data around materials and transport footprints. Keep the needs of government and policy in view, but evaluate data quality in the same way across huge suppliers and small vendors. Borrowed templates and mackenzie benchmarks can accelerate maturity without compromising trust.

Roll out a data quality scorecard for decarbonization plans, with the first milestone to reach 95% completeness on critical fields and 90% data accuracy within six months. Use tools that automate data lineage, issue tracking, and findings reporting. Ensure documentation supports verification by government bodies and third-party auditors, and keep a clear audit trail around every data point, from scrap rates in materials to cargo movements.

Evaluate ESG credentials, certifications, and alignment with Orion’s standards

Require science-based ESG credentials from every partner and validate them against recognised standards within 30 days. Demand a current disclosure package that includes a policy statement, third-party audits, and a plan to close gaps, with the source of data clearly cited and the country of operation identified. Rely on independent audits to bolster credibility. Maintain a living reference list of approved credentials to ensure alignment with Orion’s standards. Expect this framework to accelerate supplier improvements.

Map each supplier against environmental, social, and governance expectations. Prioritize credentials that cover emissions, energy use, water stewardship, worker safety, and human rights. Look for ISO 14001 (environmental management), ISO 45001 (occupational safety), SA8000 (social accountability), GRI Standards (ESG reporting), and TCFD-aligned disclosures. Require site-level evidence in logistics operations, including driver training, transporters’ safety programs, and route optimization to lower emissions. Ensure transparent exchange of data with Orion accounts and systems. Such alignment is recognised and likely reduces impacts under globalization and cross-country operating contexts.

These findings help Orion decide which partner could produce the best operating performance with lower risk, while enabling reliable logistics across a country network and beyond. Implement a standardized onboarding checklist that cross-references findings with Orion’s expectations, ensuring partners build capacity in the required technologies and data-sharing practices. This approach yields a transparent, proactive supply chain that could deliver less risk and greater resilience, while supporting Net Zero by 2050.

Design collaboration models with incentives, pilots, and risk-sharing for joint decarbonization

Adopt a three-part design framework: incentives, pilots, and risk-sharing to drive joint decarbonisation across every node of Orion’s supply chain. Ground targets in science-based decarbonisation pathways and attach contract milestones to verified carbon reductions in production and processing steps. Start with key hubs and cargo corridors to demonstrate value before expanding across the industry.

Incentives should mix upfront support, milestone payments, and long-term preferred terms that reward good performance and growing capacity for low-carbon inputs. Tie payments to verifiable emissions reductions per tonne of product you produce, with target ranges such as 15–30% cuts in scope 3 emissions within 2–3 years for pharmaceuticals and related cargo flows. Align value creation with decarbonisation, not merely cost, but more than price-based gains, so every company in the chain can expect benefits when their operations reduce carbon intensity, which is good for customers and trade partners. Moreover, this structure reduces supplier risk and supports sustainable cash flow.

Pilots should be designed with clear go/no-go criteria and 6–12 month horizons in high-impact hubs. Select 2–3 routes or production sites to test energy switching, process optimization, and packaging changes. Use data-sharing agreements, standardized metrics, and digital twins to compare patterns across worlds and adjusting plans quickly. Establish baselines and publish progress dashboards to keep every stakeholder informed.

Risk-sharing mechanisms align incentives and limit downside. Create joint investment vehicles for capital expenditure in low-carbon equipment, share a portion of savings, and include climate risk insurance or liability-sharing terms. Use price adjustments tied to performance, so if decarbonisation targets are not met, terms adjust in a fair, transparent manner. This approach makes supply partners more willing to commit to longer cycles and co-create value beyond carbon reductions. Regards to collaboration, this framework builds long-term trust across the value chain.

Governance should standardize data exchange, metrics, and reporting. Agree on patterns for emissions accounting, energy use, and cargo. Run monthly dashboards and quarterly reviews that track carbon intensity per unit of production, costs, and delivery times. Protect sensitive data and regard supplier confidentiality as a priority to foster trust across every trade route and industry segment.

Partner selection and contracting should reflect shared decarbonisation goals. Look for suppliers and logistics partners that have credible decarbonisation roadmaps, invest in low-carbon production and processing, and participate in joint R&D. Use agreements that lock in long-term collaboration while permitting adjustments as science-based targets evolve. In this way, the value of collaboration extends beyond price to include resilience, speed to market, and sustainable cargo handling. Every company can expect to produce measurable carbon reductions while strengthening their competitive position in a growing industry.

To implement, map the value chain, identify key partners, and draft collaboration terms that articulate incentives, pilots, and risk-sharing. Place emphasis on pharmaceutical and biotech sectors where patient value and regulatory timelines demand predictable decarbonisation progress. By applying this design framework across industry, Orion can accelerate decarbonisation, turn pilots into scalable programs, and build a sustainable network of partners that produce tangible carbon reductions while keeping cargo flowing smoothly and cost-efficiently.