Greener Operations, Stronger Partnerships: Why Supply Chain Collaboration Matters

Every sheet of paper comes with a footprint — and it's bigger than most realise.

For example, research shows that for every tonne of paper produced, more than 1,300 kilograms of CO₂-equivalent emissions are released into the atmosphere. That’s before the paper even leaves the production facility.

In an industry where volumes are high and sustainability pressures are mounting across manufacturers and the entire supply chain, it’s clear to see that greener operations can no longer be a solo effort. 

Now, raw material suppliers, chemical processors, packaging converters, logistics providers and energy partners all play a critical role in helping pulp and paper businesses meet rising ESG expectations.

The Growing Pressure to Decarbonise the Supply Chain

Sustainability in the pulp and paper industry is no longer defined by in-house efficiencies alone. The conversation has expanded to include the full scope of a company’s supply chain ranging from raw material sourcing to packaging and distribution.

This shift is being driven by a combination of regulatory change, market expectations and financial pressure. Manufacturers are now expected to reduce emissions not only from their own operations (Scope 1 and 2), but also from activities and assets they don’t directly control, known as Scope 3 emissions.

For the pulp and paper sector, this presents a significant challenge. The supply chain is both broad and emissions-intensive, encompassing pulp production, chemical inputs, heavy transport, and energy-intensive conversion processes. And each of these links carries carbon impact.

Three key forces are accelerating the need for supply chain-wide decarbonisation:

1. Stricter ESG Reporting Requirements in Asia Pacific

Across Asia Pacific, governments and regulators are rapidly advancing their ESG disclosure frameworks, bringing the region in line with global standards. Countries like Singapore, Japan and South Korea have introduced mandatory climate-related reporting aligned with the Task Force on Climate-related Financial Disclosures (TCFD).

Other nations such as Thailand and Malaysia have begun developing or tightening sustainability disclosure mandates for listed and large companies.

These developments highlight the increasing emphasis on sustainability and climate-related disclosures across the Asia Pacific region. For pulp and paper businesses operating across borders or exporting to international buyers, this shift means adapting to a patchwork of evolving requirements. Increasingly, Scope 3 emissions are coming under scrutiny, requiring companies to report and act on carbon impacts across their value chain.

In practice, this means that pulp and paper producers must engage more deeply with upstream suppliers (e.g., pulp, chemicals) and downstream partners (e.g., packaging converters, logistics providers) to access reliable emissions data. It also means working with energy providers that can support clean electricity adoption and credible carbon reporting — a growing requirement in green finance and cross-border trade.

2. Customer-Driven Accountability in Regional and Global Markets

Asia Pacific is a critical node in global supply chains, especially for packaging and pulp products. For example, countries such as Indonesia, Vietnam and Thailand are major exporters of paper-based products, supplying raw materials and finished goods to consumer markets across North America, Europe, and increasingly, intra-Asia.

But as multinational corporations push to green their procurement worldwide, suppliers across the region are coming under increasing pressure to comply with sustainability standards or risk losing business. 

Major FMCG brands, retailers, and packaging buyers, many of whom operate regionally but report globally are now assessing their suppliers not just on price and quality, but on climate impact. They want pulp and paper partners who can help them reduce Scope 3 emissions, use renewable energy in production, and offer traceable, lower-carbon products.

Procurement teams at large FMCG companies and retailers are no longer focused solely on cost and lead times. They are now asking harder questions like:

• What energy sources are used in manufacturing?
• Are suppliers reducing their Scope 2 emissions?
• Can they prove measurable progress on ESG targets?

In export-driven manufacturing dominated countries like Vietnam, Indonesia and the Philippines this trend is particularly significant. Manufacturers that can’t demonstrate meaningful progress on decarbonisation may be passed over for competitors in markets with clearer ESG visibility.

At the same time, those who proactively adopt clean energy and collaborate with their partners on ESG performance can unlock new business opportunities, deepen customer trust, and gain preferred supplier status in an increasingly competitive global market.

3. The Business Case for Shared Sustainability

Across Asia Pacific, energy costs and carbon risks are becoming a growing concern for industrial manufacturers. This is particularly true for businesses in high-consumption sectors like pulp and paper. 

In the Philippines, Vietnam and India, grid prices have seen significant volatility, while others, including Singapore, South Korea and China are actively rolling out carbon pricing mechanisms or emissions trading schemes.

For energy-intensive operations that rely on 24/7 processes — such as pulp refining, chemical treatment, or heat-intensive conversion — this presents not only a cost challenge but a long-term risk to operational predictability.

This is where shared sustainability becomes a strategic advantage. By working with partners across the supply chain — from packaging converters to logistics providers and clean energy providers — pulp and paper manufacturers can collectively reduce emissions, build energy resilience, and strengthen their ESG position.

For example, transitioning to solar energy at mill level helps reduce Scope 2 emissions, while sourcing materials from other low-emission partners improves Scope 3 reporting. These improvements, when aligned across a network of supply chain actors, create a compound effect that delivers both environmental and commercial returns.

In this context, sustainability is seen as being both a compliance goal and a coordinated business strategy. 

Why Collaboration Is the New Competitive Advantage

As the pulp and paper industry navigates tightening ESG requirements, rising energy costs, and growing customer scrutiny, collaboration is quickly becoming a long-term business differentiator.

Rather than treating decarbonisation as a company-by-company exercise, forward-looking manufacturers are partnering across their supply chains to align strategies, reduce emissions collectively and share value creation. 

Here are five key business advantages of taking a collaborative approach:

Solar Energy as a Supply Chain Solution

Solar energy is one of the most practical and scalable ways for industrial manufacturers to reduce greenhouse gas emissions especially those that fall under Scope 2, which relate to purchased electricity. 

For pulp and paper producers, where operations depend heavily on energy-intensive processes like pulping, drying and mechanical conversion, transitioning to clean electricity represents a direct path to decarbonisation.

Here’s how solar energy supports both sustainability and operational goals across the value chain:

Solar Energy: The Way Forward for Green Supply Chains

As the pulp and paper industry accelerates toward a lower-carbon future, one thing is increasingly clear: no company can do it alone.

Sustainability today goes beyond internal efficiency or isolated action but instead, requires collective effort across the supply chain. From pulp producers and packaging converters to energy providers and logistics partners, every actor plays a role in reducing emissions and creating more transparent, resilient operations.

Solar energy is proving to be one of the most accessible and effective enablers of this transition. When adopted collaboratively it becomes a strategy for strengthening partnerships, aligning ESG performance, and improving competitiveness in a market where environmental credibility is business-critical.

At TotalEnergies ENEOS, we support this transition through our no CAPEX model that enables manufacturers to adopt clean energy without any upfront investment. Here’s how it can benefit you:

• We finance, build, and operate the solar system — reducing financial and operational risk
• You pay only for the solar electricity you use — typically at a lower rate than grid electricity
• Your business benefits from lower Scope 2 emissions, improved ESG scores, and greater energy cost stability
• All while maintaining operational reliability and focusing resources where they matter most

Learn more about our offerings by reaching out to our team today.