Measuring Scope 3 carbon emissions (upstream and some downstream activities) presents significant challenges. Achieving comprehensive supply chain decarbonisation, particularly in partnership with suppliers, is complex.
It is crucial to collaboratively establish clear decarbonisation goals with suppliers, incorporating these objectives as specific criteria in sourcing and purchasing decisions.
However, merely setting goals is insufficient; companies and their suppliers must work in tandem to achieve the targets set.
A pivotal strategy involves engaging suppliers with the highest emissions, directing attention towards categories that the company aims to influence.
The calculation of priorities can be based on either physical quantities or expenditure.
Subsequently, it is advisable to encourage suppliers to actively reduce their carbon footprint, involving the measurement of Scope 1, 2, and 3 emissions. Suppliers should be motivated to commit to quantified reductions, aligning with the Paris Agreement and ideally gaining approval from the Science Based Targets initiative (SBTi). Some companies as part of their SBTi Scope 3 target, ask their own suppliers to commit to SBTi. Navigating this delicate negotiation with suppliers is crucial to avoid becoming an undesirable customer.
A constructive approach is to provide support to suppliers. This can include training, workshops, technical guidance, and the provision of tools such as software and calculation files. Establishing a structured Supplier Progress Plan is paramount to achieving success in the pursuit of decarbonisation goals.
over 95%
of total emissions are Scope 3 emissions for many companies. Yet they are the most challenging to measure.
(Gartner)
> 70%
of total emissions, on average, come from a company’s supply chain. This is on average 11 times higher than direct (scope 1) emissions.
(Science Based Targets)
- A best in class example of engaging suppliers can be found in the work done by Schneider Electric. Schneider Electric supports its Suppliers with The Zero Carbon Project. In partnership with their top 1,000 suppliers, they are helping them to cut 50% of their operational CO2 emissions by 2025. A clear roadmap and a digital community has been built for all members, providing training, resources, guidance, and implementation support. By the end of 2022, the program had achieved a 10% CO2 reduction among participating suppliers [75% of them had never quantified carbon emissions and were new to the subject at the start of the project].
EcoVadis rates more than 100,000 businesses on their sustainability performance, which helps improve the sustainability performance of global supply chains.
Givvable is an automated data platform that helps organisations understand the sustainability profile of their suppliers and supply chain. It captures, tracks and reports on the credentials of suppliers, that are the strongest indicators of whether a supplier is taking action on sustainability. Givvable covers local to global and SME to MNC suppliers, ensuring it has the widest coverage of supplier sustainability data globally.
Givvable will help you:
The mission of PlanetWise is to:
Sustainable Gaia is a sustainability consultancy for strategy, reporting, training and research. We help organizations in their sustainability endeavours in the following ways:
SustainableSG was started in September 2018 to accompany companies, non-profit entities and government agencies to review and implement effective and sustainable corporate strategies. Our services include:
Sustainao supports companies in their sustainability journey by building an impactful strategy, embedding sustainable practices across operations, and reporting performance to stakeholders.
Our sustainability consulting services are designed in a continuous improvement process: