Decarbonizing the Electronics Industry: Complex, But Not Optional - Modern Distribution Management

Decarbonizing the Electronics Industry: Complex, But Not Optional

As pressure mounts — from regulators, investors and increasingly climate-conscious customers — decarbonization is a challenge the electronics industry can no longer postpone. This sponsored article tackles why complexity, not interest, is the biggest hurdle here.
Waldom Partner Content

The electronics industry is one of the most advanced and fast-evolving sectors in the global economy. It powers everything from medical devices and data infrastructure to renewable energy and smart homes. And yet, when it comes to decarbonization, this modern industry is still in its early stages. 

Compared to sectors like fashion, or food — which have made high-profile Net Zero pledges and launched supply chain sustainability programs — the electronics industry is lagging behind. This isn’t due to a lack of interest, but rather the sheer complexity of the supply chain, the dominance of indirect emissions (Scope 3), and the difficulty of capturing consistent emissions data across geographies and partners. 

But as pressure mounts — from regulators, investors and increasingly climate-conscious customers — this is a challenge our industry can no longer postpone. 

The Reality Today: A Sector at an Inflection Point 

While sustainability is now on the agenda for most electronics companies, few have committed to full-scope Net Zero targets, and even fewer have started reporting on Scope 3 emissions in detail. 

Recent research by organizations such as the Science Based Targets initiative (SBTi) and CDP shows that while commitments to Net Zero are rising across sectors, the electronics industry — particularly component manufacturers and mid-tier distributors — remains behind. In its 2023 sector analysis, CDP found that electronics and electrical equipment scored lower than industries like automotive, consumer goods and apparel in terms of Scope 3 disclosures and science-based climate targets. Many companies in our space are still in the early stages of mapping emissions or have only committed to Scope 1 and 2 reductions. Few have established supplier engagement programs or adopted full lifecycle emissions tracking. 

In part, this is because electronic components typically pass through:  

  • Multiple manufacturing tiers, often in different countries  
  • Energy-intensive production processes with little supplier transparency  
  • Distribution networks that span global logistics hubs and modes of transport  
  • Short innovation cycles, making data collection and emissions tracking more difficult 

As a result, even companies with the best intentions often find themselves stuck in the “understanding” phase — trying to build a clear picture before they can act. 

Why Scope 3 Is the Heart of the Challenge 

For most companies in our industry, Scope 1 and 2 emissions (direct operations and energy use) make up a relatively small share of the total footprint. The vast majority lies in Scope 3—which includes: 

  • Purchased goods and services 
  • Inbound and outbound logistics 
  • Business travel 
  • Employee commuting 
  • Operational waste 
  • Leased offices where utilities aren’t directly controlled 

But Scope 3 is notoriously difficult to measure. It requires supplier engagement, better logistics data, new forms of internal coordination, and often, external support. 

At Waldom, we’ve learned that there’s no single solution — but combining reduction, tracking and collaboration can get us moving in the right direction. 

Waldom’s Strategy: Building a Realistic Path Toward Net Zero 

We’ve committed to achieving: 

  • Scope 1 & 2 Net Zero by 2027 
  • Scope 1, 2 & 3 Net Zero by 2035 

To get there, we’re pursuing a strategy built on clarity, partnerships, and layered action — acknowledging that while we don’t control everything, we can take meaningful steps now and build capacity over time. 

Reducing Scope 1 & 2 Emissions 

We’re addressing our operational footprint by: 

  • Transitioning our Rockford and Georgetown facilities to solar energy, aiming for 100% renewable power 
  • Optimizing facility operations and reducing on-site fuel use where applicable 

These are the areas we directly control, and our focus is on continuous, measurable improvements. 

Understanding and Addressing Scope 3 

Scope 3 is where our biggest challenge — and biggest opportunity — lies. Here’s how we’re approaching it: 

Tracking Emissions Where We Can 

  • Using AfterShip to monitor emissions from inbound and outbound shipments, helping us understand the carbon footprint of logistics 
  • Tracking business travel emissions to make more informed decisions about travel frequency and modes 
  • Mapping employee commuting patterns and encouraging low-carbon options 

Improving Office Sustainability 

  • For leased offices, we are choosing those that rely on renewable energy, even in spaces where we don’t manage utilities directly 

Building Better Data Foundations 

  • One of our key focus areas is weight-based emissions data. We’re investing in tools that help us capture accurate product weights — a key factor in carbon calculations 

Promoting Circularity and Reducing Waste 

  • Scaling our Green Stock program to reintegrate excess inventory, reduce component waste and promote a more circular distribution model 

Supporting Climate Solutions Through Partnerships 

  • With veritree, we plant a tree for every Green Stock order — restoring ecosystems and contributing to carbon sequestration in a verified, trackable way 
  • With ClimatePartner, we support global climate projects that complement our footprint — from clean energy to reforestation 

This reflects our blended approach: Reduce where possible, support where needed, and collaborate always. 

Going Beyond Emissions: A Culture of Sustainability 

We believe sustainability must go beyond carbon. That’s why we’ve also set complementary goals to: 

  • Achieve Platinum certification from both EcoVadis and the Green Business Bureau (GBB) by 2027 
  • Scale our sustainability-related volunteering to 500 hours by 2027 
  • Empower manufacturers to drive change through our 1% Green Stock Pledge, directing a portion of revenue toward joint sustainability initiatives 

And just as importantly, we’re working to build a sustainability-focused culture inside the company — through internal masterclasses, ESG training sessions, and shared learning across teams. Our goal is to make sustainability not just a department or a strategy, but a mindset that’s embedded in how we think, operate and grow together. 

Final Thoughts: From Intention to Momentum 

Decarbonizing the electronics sector is not a simple checklist. It’s a long-term shift — one that demands humility, experimentation, and cross-functional leadership. We’re still learning, and we expect to keep learning. But we also know that action can’t wait for perfection. For us, it’s about showing up, doing the work and inviting others to do the same. If more companies in our industry adopt that mindset, the collective impact could be enormous. 

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