We’re making our way through the first 100 days of the Biden Administration, and two things are certain (even beyond death and taxes).
First, President Biden is flipping the switch—and the narrative—on many decisions and choices that the previous Administration instituted.
Second, the President is showing action, progress and a way forward to ensure the narrative is on-point.
On February 24, we saw what one of the actions looks and feels like. You may or may not have seen that the President put forth an Executive Order that seeks to fortify existing supply chains. Keeping with his “100 day” mantra, the President ordered the heads of appropriate agencies to complete a review of supply chain risks.
What caught our eyes was a specific request made to Jennifer Granholm, the recently sworn-in Secretary of Energy, requesting that her report include risks in the supply chain for high-capacity batteries, including electric vehicle batteries, and policy recommendations to address these risks. And if that was not enough, her report will include recommendations on supply chains for the energy sector industrial base and how the climate and environment will be impacted in the short- and long-term.
Reading each line of this Order is as important as reading between the lines of it. Team Silverline did both.
On the surface, engineers, technologists and scientists in the battery and storage industry just had a second Christmas. We’re seeing scores of organizations—both clients and non-clients, alike—who are pushing envelopes to get legislators, policy makers and venture capitalists (you can decide the order of importance) educated about the supply chains behind their solutions. We’re intrigued about new technologies and the ways that tech providers are increasing supply chain transparency through the innovative efforts to trace mineral/material origin.
Looking between the lines is where we see the real opportunity. The day before the Executive Action was issued, we saw a news release from the Association of Supply Chain Management (ASCM) highlighting a gap between rhetoric and reality on the relationship between climate change and supply chain initiatives. ASCM cites that climate change is among the biggest risk factors, but addressing that risk poses a challenge.
Consider these comments from the report:
“Making the supply chain more socially and environmentally sustainable is the top way that companies across sectors plan to build resilience over the next 3 to 5 years, yet less than half (42%) of companies have set targets to reduce supply chain-related…carbon emissions.”
“Target-setting is followed by more difficult tasks, such as establishing baselines and monitoring performance. Climate risk awareness – including scenario planning, understanding the impact of climate change on suppliers and readiness for carbon pricing – is one of the lower performing categories in the benchmark.”
To be sure, the onus is on those who “know” battery tech, energy and storage to help connect the dots. But the real power comes from how these sector leaders can educate their customers NOT in the energy or climate sectors to help create more efficient and environmentally sound supply chains.
Pushing forward so that supply chains, energy and climate are coming together more efficiently is a top priority if we are to mitigate climate impact. The REAL action will take place when those who learn do good for all of us.
Please drop us a line at Michael <at> TeamSilverline <dotcom> with inquiries on our partnered approach can help your organization.