Asia's Carbon Markets Strategic Imperatives for Corporations 2025

Decarbonization along the value chain for manufacturers FIGURE 13Value chain for manufactur erActionsC U S T O M E R S S U P P L I E R S How to optimize supply chain management to reduce carbon footprint? Shar e carbon emissions reduction responsibility with suppliers. Allocate higher procurement volume to suppliers with competitive carbon market performance. Co-cr eate new products, solutions and decarbonization plans with suppliers.Define drivers of benefit to customers with green products. Educate customers on price, quality and sustainability of offerings. Help customers develop differentiated offerings for their own customers. Promote partnerships and structural moves across value chain.How to captur e the green premium with better customer education and segmentation?Upstream: potentially covered by the compliance market Downstream: carries carbon costs passed from upstream Consumer Retailer Brand owner Manufactur erIngredient productionRefiningExtraction of raw materials Source: Bain & Company analysis. Top purchasing criteria of B2B customers FIGURE 14 Source: Bain & Company survey, 2024.42 M Y T H B2B customers do not and will not consider sustainability as one of their key purchasing criteria F A C T Top purchasing criteria, ranked by order of importance QualityToday In 3 years 1 Price2 Sustainability of operations 3 Service levels 4 Sustainability of offers 5Quality1 Sustainability of operations 1 2 1 Price3 1 Sustainability of offers 4 1 Service levels 5 Asia’s Carbon Markets: Strategic Imperatives for Corporations 32