The electronics manufacturer Foxconn realized that Scope 3 represented 86% of its emissions and that 20% of them came from aluminium and stainless-steel alloy consumption.

Understanding that significant improvements could be made from better waste management in its supply chain, Foxconn organized a reverse logistics process with suppliers to collect manufacturing aluminium debris from the company’s sites and reuse it in its suppliers’ melting process. This approach reduced the amount of raw aluminium used and required establishing a strong traceability system for the debris to verify its reuse and recycling in new products. This was achieved through a digital platform shared with suppliers, which allowed to track recycling rates together with products’ carbon footprint.

The collaboration brought the parties multiple benefits. For Foxconn, material costs were reduced, as were the products’ carbon footprint, allowing an increase in its market share in the electric vehicle and the computer/communication/consumer electronics (3C) industries. For its suppliers, the project guaranteed 100% traceable recycling and achieved 70% carbon emission reductions compared with outsourcing manufacturing. Foxconn’s broader supplier engagement model related to digital empowerment improved energy efficiency, and joint-process R&D allowed it to achieve additional efficiency benefits.