3. Establishing Negative Carbon Supply Chains

In addition to efficiently using the materials we procure to durably remove carbon, Running Tide prioritizes materials and suppliers who proactively reduce emissions within their value chain. Where possible, we also look to provide financial incentives to accelerate the decarbonization of the supply chains we touch.

Embodied emissions driving sourcing decisions

Carbon removal is an attribute of a negative emissions supply chain, and as such, it is imperative that we minimize embodied emissions throughout our supply chain. Material sourcing, transportation of raw materials, and the operation of material processing facilities represent some of the largest contributors to . Because we have implemented an , we are incentivized towards sourcing options and procurement decisions that proactively reduce emissions across our supply chain, and drive decarbonization efforts across all our operations. Wherever possible, Running Tide intends to work with our suppliers to decarbonize their production process, such as by replacing fossil fuel use with clean energy alternatives. Our decarbonizing efforts have a multiplying effect, increasing the volume and availability of “green” materials produced without the use of fossil carbon for both our own supply chain and beyond.

Because transportation is the most carbon-intensive component of our supply chain, Running Tide selects the most climate-efficient transportation pathways possible. Though a move to solely renewables-based transport is not realistic at this time, Running Tide tracks and seeks to minimize all transportation emissions. In the short term, Running Tide prioritizes maritime and rail transport, and works to identify inputs in close proximity to deepwater shipping ports, which enables more volume to be moved more efficiently. As our footprint expands and our ability to directly influence our supply chain grows, Running Tide will increasingly adopt renewable or non-fossil fuel-based transportation options.

Supplier participation

Building and operationalizing a negative carbon supply chain is not possible without the close collaboration and buy-in of our supplier partners.

In addition to meeting our needs around material specifications and complying with Running Tide’s Supplier Code of Conduct, future suppliers must sign a Climate Attestation, which details specific environmental and climate requirements that suppliers must adhere to at , such as a common intent to mitigate climate change, full disclosure of company-level emissions, documentation to substantiate any carbon claims, and annual sustainability reporting in line with industry standards.

Practically speaking, not all suppliers will currently be at a place on their sustainability journey where they can meet all of Running Tide’s climate requirements. In working with suppliers, it is our goal to expedite their climate evolution and accelerate their decarbonization efforts; as such, if a supplier has the intent to improve their sustainability practices such that they meet Running Tide requirements, we will work with them on a case-by-case basis to create a reasonable pathway to procurement, contingent on progression towards achievement of those goals.