“We weren’t sure how to deal with these requests from our customers - this was all new to us. With the help of Carbonhound, we’ve been able to respond to all of our customer’s climate requirements and are excited to show our progress towards net-zero.”
Kenmode Tool and Engineering is a metal stamper and Precision Metalforming Association (PMA) member based in Algonquin, Illinois that designs and manufactures complex, high-precision, custom metal stampings and assemblies for vehicles, medical devices, electronics, and more. As the requests from their customers for climate data started coming in, they knew it was time to take action to secure their future and keep their customer base.
The past, present, and future of climate action for manufacturers
Companies like Ford, Toyota, BMW, Siemens, and Volkswagen have been publicly disclosing their environmental impacts and greenhouse gas (GHG) emissions since the early 2000s because of pressures from climate-conscious investors and consumers. Now, we’re seeing these companies not only disclose their own emissions, but also require this data from their suppliers as a purchasing condition. Adding to that, regulations coming out of the EU* are mandating that these companies engage with their supply chains – so if they weren’t feeling the pressure before, they sure are now!
TL;DR: As a middle-market supplier, your bottom line now depends on whether or not you can provide climate data for your customers.
Companies like Kenmode know this better than anyone, and they have been able to respond to any customer request that comes their way to secure their future and set themselves apart in today’s competitive landscape through climate action.
* European Union climate regulations include the Corporate Sustainability Reporting Directive (CSRD) and the Carbon Border Adjustment Mechanism (CBAM) which are making global impacts by legally requiring companies operating in the EU to engage with their supply chains to get first-hand climate data – regardless of where their suppliers are based.
Navigating customer requests to go from zero to climate-ready
No clue where to start? You’re not alone! These customer requests tend to come through to the teams that directly engage with customers – for Kenmode, this was their customer service, quality assurance, and purchasing teams. They had never worked with climate data before, let alone completed a carbon footprint, but they knew that they needed to get this done to keep their customers happy and secure their bottom line.
There are plenty of options to do your carbon footprint including free or paid tools, and downloadable spreadsheets. The way that you choose to go about preparing for these customer asks really depends on how much time you have to learn how to calculate your emissions, and the quality that you need.
Without an internal sustainability team, Kenmode opted to find an external tool to help them respond to these customer requests. Our team of climate experts at Carbonhound have helped them get this data quickly, efficiently, and without a huge lift from their team that would take away from their main job functions.
Kenmode’s climate journey… so far
Kenmode has always recognized the importance of their impact on the environment and have already set a target to have net-zero* carbon emissions by 2040. They have also already started making strides to reduce their carbon footprint by using more recycled materials, installing energy-efficient lighting, and increasing their use of green energy.
* Net-zero emissions involves balancing the amount of GHG emissions that are produced and the amount that are removed from the atmosphere. This is done by combining operational emissions reductions from initiatives like reducing energy consumption, and through efforts to remove carbon like planting trees and carbon capture.
Despite already implementing these initiatives to reduce their impact and use climate action as a business differentiator, Kenmode had never tracked their carbon emissions before. So when the requests started coming in from their customers, they knew it was time to get started with their first GHG inventory. For them, this involved calculating their carbon emissions from things like natural gas, propane, refrigerants, and electricity use all the way back to 2020. By quantifying their emissions over the past four years, they have also been able to see the impact that their initiatives have had on their carbon footprint.
Making your mark in the industry with climate action
Now that Kenmode has automated their climate reporting, they are starting to dip their toes into more emissions categories to understand their complete footprint by engaging with their employees to calculate employee commute emissions. As they continue to work towards their net-zero by 2040 goal and implement environmental initiatives, they are able to easily track their progress and establish themselves as a top choice for their customers who are looking to minimize their environmental footprint.
Equipped with an affordable and easy-to-use software, and access to climate experts at Carbonhound, Kenmode is ready to continue to track their progress with integrity and showcase their positive impact!
The writing is on the wall – measuring your carbon footprint and climate impact either already is, or will be, a requirement from your largest customers. As regulations and pressure from consumers moves companies to reduce their emissions, measuring and reducing your carbon footprint is the only way to secure your position in this industry – don’t get left behind.
Make sure you check out Kenmode’s spotlight in the PMA’s Metalforming Magazine!
