Supply chain shocks are becoming carbon shocks

Yee Chow, Global Head of Sustainability at Zevero, argues that supply chain shocks are increasingly resembling carbon shocks in an analysis of EU energy policy. When tanker traffic through the Strait of Hormuz was disrupted earlier this year, global energy costs surged within days, highlighting how chokepoints ripple into plastics, freight and insurance. AccelerateEU, the Commission’s energy-resilience package, aims to reduce vulnerability, but firms face rapid supplier shifts with limited visibility into their carbon footprints or regulatory exposure. Quick procurement changes can alter Scope 3 emissions, as nearer suppliers cut logistics but raise manufacturing footprints. The plan envisions electrification and reform, yet real-time data remains elusive, complicating compliance timelines.