Mitigating Scope 3 Emissions Through Supplier Engagement: A Guide for Businesses

How can businesses reduce Scope 3 emissions through supplier engagement?

As businesses strive to achieve sustainability goals, addressing Scope 3 emissions—those indirect emissions in the value chain—becomes crucial. Engaging with suppliers effectively is a powerful strategy for mitigating these emissions. The Science Based Targets initiative provides thorough guidance on this (Engaging Supply Chains On The Decarbonisation Journey, 2023).

Helena Glover - Net Zero Consultant

Article by Helena Glover

Sustainability Consultant, Net Zero Consulting Team

Helena is skilled at presenting decarbonisation pathways, leading engaging net zero and offsetting workshops to our clients to educate and support with the development of net zero strategies. Helena has researched and developed embodied carbon methodologies to support her areas of expertise in carbon accounting and report writing, as well as completing GHG Protocol Corporate Standard Training.

Why Supplier Engagement Matters WHEN MITIGATING Scope 3

The Importance of Supplier Engagement for Scope 3 Emissions

Scope 3 emissions can constitute a significant portion of a company's total carbon footprint. By collaborating with suppliers, businesses can influence and reduce emissions beyond their direct operations. Effective supplier engagement helps in identifying high-impact areas, promoting innovation, and ensuring long-term sustainability. Supplier engagement is essential because it extends the influence of a company's sustainability practices throughout its entire value chain, ensuring that environmental goals are met comprehensively and robustly.

Mitigating scope 3 emissions

HOW Supplier Engagement CAN HELP YOU REACH NET ZERO

STEPS FOR EFFECTIVE SUPPLIER ENGAGEMENT

  • 1) Set Clear Expectations

    Communicate your sustainability goals and standards to suppliers. Encourage them to adopt science-based targets aligned with your own objectives. 


    This sets a foundation for shared goals and accountability. Utilise tools like supplier codes of conduct and sustainability scorecards to clearly outline expectations and track progress. 


    Clear expectations create a mutual understanding and commitment, fostering a collaborative environment focused on achieving common sustainability targets.

  • 2) Collaborate and Support

    Work with suppliers to identify opportunities for emissions reduction. Provide resources, training, and incentives to facilitate their efforts. 


    Collaboration can lead to innovative solutions and improved efficiencies. Establish joint working groups or task forces to focus on specific sustainability projects, ensuring that suppliers have the support and guidance needed to implement effective changes. 


    Regular workshops and training sessions can help suppliers understand and adopt best practices in energy management, waste reduction, and other sustainability initiatives.

  • 3) Measure and Monitor Progress

    Implement systems to track and report on supplier performance. Use consistent metrics and regular reviews to ensure transparency and continuous improvement. 


    Develop a comprehensive monitoring framework that includes key performance indicators (KPIs) related to carbon emissions, energy use, and other relevant metrics.


    Regular audits and assessments can help identify areas of improvement and ensure that suppliers are on track to meet their sustainability goals.

  • 4) Recognise and Reward

    Acknowledge suppliers who make significant strides in reducing their emissions.


    Recognition programs can motivate suppliers to prioritise sustainability and drive further progress. Create awards or certifications for top-performing suppliers, and share success stories to highlight their achievements. 


    Public recognition not only incentivises suppliers but also demonstrates your company's commitment to sustainability, enhancing its reputation and encouraging other suppliers to follow suit.

HOW CAN YOUR SUPPLY CHAIN HELP YOU TOWARDS NET ZERO?

BENEFITS OF SUPPLIER ENGAGEMENT FOR NET ZERO

Engaging suppliers in your sustainability journey can lead to substantial reductions in Scope 3 emissions. It enhances your overall environmental performance, meets stakeholder expectations, and can result in cost savings through improved efficiency and innovation. Additionally, strong supplier relationships built on sustainability principles can create a more resilient and reliable supply chain. By working closely with suppliers, businesses can drive systemic change, reducing environmental impact while fostering innovation and operational excellence.


If you would like support on measuring and reducing your value chain emissions, book a 30-minute consultation with us below. Our Net Zero Consultants specialise in the creation and implementation of best practice-aligned net zero transition plans, including carbon accounting, target setting, data management, data analysis and reporting.

DOWNLOAD OUR SCOPE 3 GUIDE

The GHG protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard allows companies to assess their entire value chain emissions. However, interpreting the standard and applying it to your business and goals can be challenging. This document aims to help you do just that.

How to measure scope 3 emissions
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