You can help your suppliers reduce their emissions – and your own carbon footprint
For most businesses, around 90 per cent of total emissions occur in the value chain – a large portion of which come from suppliers.
Even though these emissions come from outside of your business’s own operations, your business can still play a big role in reducing supplier emissions. This five-step checklist from our guide to enterprise value chain engagement will help you pick the right approach to engaging your suppliers.
Identify which suppliers to focus on, using criteria such as supplier GHG emissions, GHG emission reduction potential, the readiness of suppliers to engage, and strength of relationship with suppliers. Measuring your scope 3 emissions will give you crucial insights.
Decide on a strategy. Depending on the situation, there are several different ways of engaging suppliers. Broadly speaking, there are three main types of strategies.
Good communication is a crucial part of successful supplier engagement. Explaining why climate performance insights are important to you helps to build trust and identify opportunities for collaboration and support.
Some suppliers may already be making progress toward net zero, whereas others may not know where to start. Ask suppliers whether they are tracking emissions and following reduction targets. Make sure to communicate to suppliers what’s in it for them.
For suppliers that are still in the early stages and lack the know-how, consider running information-sharing sessions such as webinars. Point suppliers toward third-party services that can help them get started, like the free-to-use Business Carbon Calculator.
You can use different ways of encouraging suppliers to track and reduce emissions. For example, you can have a supplier recognition program. Additionally, you can work closely with your procurement team to prioritise low-emission suppliers or impose certain sustainability requirements on suppliers.
Net zero is an ongoing process. Make sure to follow up with suppliers at least yearly.
You can download Normative’s practical guide at the link below:
Reducing value chain carbon emissions: a practical guide
For more information and guidance on how to reduce your emissions, reach out to the experts at Normative:
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