Paying it Forward: Supplier Engagement in Scope 3 Emissions Accounting
Scope 3 emissions are almost always the largest and most challenging portion of a company's carbon footprint. They include emissions generated across the value chain, from raw materials to product end-of-life management.
This approach required by the WRI GHG Protocol ensures a holistic assessment of a company's carbon externalities and requires strategic collaboration. To effectively address value chain emissions, supplier engagement is a pathway for ensuring alignment of goals, timelines, and helps identify opportunities for partnerships.
The Role of Suppliers in Scope 3 Emissions
Supply Chain Transparency:
Engaging suppliers is essential for obtaining accurate and comprehensive data on emissions. Transparent communication and data sharing allow businesses to identify hotspots within the supply chain and develop targeted mitigation strategies.
Risk Mitigation:
Collaborating with suppliers helps businesses assess and manage risks associated with climate change and resource scarcity. By working together, companies and their suppliers can develop strategies to adapt to changing conditions and ensure the resilience of the supply chain.
Innovation and Efficiency:
Supplier engagement fosters an environment of innovation and efficiency. Through collaboration, companies can work with suppliers to implement sustainable practices, optimize processes, and identify opportunities for emissions reduction.
Setting Emission Reduction Targets:
Establishing reduction targets for value chain emissions is more effective when major suppliers are involved. This collaborative goal-setting process aligns the interests of all stakeholders, encouraging a collective commitment to sustainability and a clear understanding of targets and target years (e.g., 30% by 2032).
Best Practices for Supplier Engagement in Scope 3 Emissions Accounting
Standardization:
Consider using a standard form, like CDP’s supplier information request, to collect information instead of creating a new structure. Suppliers are most likely already getting these requests from other customers, so this will help them move faster to provide the data you need.
Open Communication:
Foster transparent communication channels with suppliers. Create an environment where information exchange is encouraged, and concerns can be addressed collaboratively.
Education and Training:
Provide suppliers with the necessary education and training on sustainability practices. This ensures that all stakeholders understand the importance of emissions reduction and are equipped to contribute effectively.
Incentives and Recognition:
Recognize and reward suppliers for sustainable practices and achievements in emissions reduction. This positive reinforcement creates a culture of continuous improvement and motivates suppliers to prioritize sustainability.
Supply Chain Audits:
Regularly conduct audits to assess suppliers' sustainability performance. This not only ensures compliance but also identifies areas for improvement and collaboration.
Conclusion:
In the journey towards a sustainable future, effective measurement and management of Scope 3 emissions is critical. Supplier engagement is a powerful strategy for addressing indirect emissions, fostering innovation, building resilience, and communicating shared responsibility. As companies and their suppliers join forces to reduce their environmental impacts, a more sustainable and resilient global economy becomes an achievable reality.
The Uplift Agency
Uplift builds strategies, programs, and communication campaigns that advance ESG in workplaces, supply chains and communities.
We know how to navigate the road ahead because we’ve already been down it – 90 percent of our team has led environmental or social programs in corporations or nonprofits. Because ESG is all we do, our services are more comprehensive and integrated than most firms.
