Ingram Micro, the global IT distributor and cloud marketplace provider, has submitted its proposed emissions reduction targets to the Science Based Targets initiative (SBTi), and now awaits SBTi's validation, Ingram said in its 2023 ESG report.
We'll be watching to see if the strategy requires certain Ingram channel partners and selected suppliers to align with Ingram's Scope 3 carbon reduction efforts.
Within the ESG report, Ingram Micro CEO Paul Bay wrote: "As the world continues to navigate a wide array of challenges, we remain committed to fostering long-term, sustainable, and inclusive growth by advancing our employee resource groups, investing in anything-as-a service offerings, and expanding our IT asset disposition services to promote a circular economy, among many other actions."
ITAD services typically help organizations to effectively manage their hardware infrastructure from cradle to grave. The services often include reuse, recycling and refurbishing capabilities -- which reduce e-waste and often extend the life of hardware. Keep an eye on the Ingram Micro One 2024 conference (November 6-8, Washington, D.C.) for potential ITAD updates.
Ingram Micro: IPO Speculation, Environmental Progress Report
Ingram Micro, backed by private equity firm Platinum Equity since July 2021, has been exploring a potential IPO (initial public offering) in 2024. However, the IPO window has only partially reopened amid the U.S. Federal Reserve's efforts to get inflation under control.
Ingram, based in Irvine, California, has a massive global presence. As a result, the distributor will likely need to comply with various California and European Union sustainability mandates -- though some mandates face legal challenges from ESG critics in various regions.
Regardless of the regulatory climate, Ingram is striving to cut emissions. According to the ESG report, Ingram Micro's environmental achievements for 2023 included:
- Refurbishing and/or repairing more than 9.5 million devices.
- Reducing absolute Scope 1 and Scope 2 emissions by 19%.
- Piloting a proprietary cube utilization technology to optimize packaging and reduce corrugate volume.
- Converting plastic padded mailers to paper in the company's Advanced Logistics Centers.
- Increasing consumption of renewable energy by 74%.
- Diverting 81% of non-hazardous waste from landfills.
Staff education also is a priority. Through monthly meetings, Ingram Micro associates representing 12 different countries acquired knowledge in topics such as energy efficiency, plastics reduction, air quality, and biodiversity, the company said.
Carbon Reduction and Data Management
Ingram is striving to achieve zero greenhouse gas (GHG) emissions in its operations by 2030. Also, the company has been measuring the climate impact in its value chain through its full Scope 3 inventory since 2021.
Ingram in 2022 implemented a new data management platform to better centralize and improve the quality of data -- though we don't know if the platform involves custom code or a third-party commercial system.
Bottom line? Ingram has submitted its proposed emissions reduction targets to the Science Based Targets initiative (SBTi), and is awaiting SBTi's validation, the distributor said.
Rival TD Synnex has SBTi Approved Sustainability Targets
TD Synnex, a major Ingram Micro rival, received SBTi plan approval around May 2024. Poke around that TD Synnex plan, and you'll notice some key partner-related commitments. For instance:
- TD Synnex will call for 90% of its suppliers by spend (covering purchased goods and services) to have science-based targets by FY2028.
- Also, TD SYNNEX further commits that 58% of its customers by revenue covering use of sold products, will have science-based targets by FY2028.
We'll be watching to see if Ingram announces similar partner-focused requirements in its sustainability plan.
SBTi Progress and Challenges
As of November 2023, more than 500 companies had set net-zero targets through the SBTi’s Corporate Net-Zero Standard -- though SBTi has faced some criticism in 2024.
Former SBTi CEO Luiz Amaral stepped down in July 2024. His departure arrived roughly three months after SBTi's board essentially said it would allow companies to leverage carbon credits to offset Scope 3 (supply chain) emissions. Some employees and SBTi advisors said they were shocked by the announcement, and called for the organization to abandon the carbon offset recognition plan, Reuters reported.
