Securing C-Level Buy-In for Scope 3 Success

Securing C-Level Buy-In: The First Step Toward Decarbonizing Your Supply Chain

Decarbonizing your supply chain isn't just a "sustainability project." It’s a business transformation that will impact every aspect of your operations. As discussed in Module 2 of our Scope 3 Action Group, achieving success in this area requires securing internal buy-in across all key departments to ensure decarbonization is embedded in the core of your company’s values, operations, and long-term strategy. One of the most important steps in this process is ensuring that the C-suite and executive leadership are on board.

Here’s WHY C-level commitment is crucial and HOW companies have successfully integrated decarbonization into their strategic goals.

1. C-Level Leadership: Make Decarbonization a Strategic Goal

The journey toward a decarbonized supply chain begins with executive leadership. The C-suite plays a pivotal role in driving change by recognizing that sustainability is no longer just a “nice to have”—it’s a critical aspect of future business success. Here’s how C-level leadership can help achieve decarbonization:

Make it a Board-Level Issue: According to a report by CDP and BCG, companies with a climate-responsible board—which possesses climate oversight and competence—are 4.8 times more likely to have a Scope 3 target and a 1.5°C-aligned transition plan. This underscores the importance of integrating climate considerations into the board's strategic agenda. (ESG News)
Allocate Resources and Set Clear Targets: McKinsey & Company highlights that in Germany’s DAX40 companies, 40% assign sustainability directly to the CEO. This direct involvement ensures that sustainability initiatives receive the necessary resources and attention at the highest levels. (McKinsey & Company)
Lead by Example: The World Economic Forum’s report, "The Cost of Inaction," emphasizes that companies with proactive climate strategies can yield significant returns on investment. For instance, businesses that invest in climate adaptation and mitigation can see returns of $2 to $19 for every dollar invested. (WEF)

By embedding sustainability into the core of corporate strategy and operations, C-level leaders can drive meaningful change, mitigate risks, and position their companies for long-term success in a rapidly evolving business landscape.

How to Make Decarbonization a Strategic Goal: Company Examples

Integrating decarbonization into a company’s strategic goals requires clear commitments, measurable targets, and executive leadership. Let’s explore some concrete examples from leading companies that have effectively made decarbonization a top priority:

1. Lenovo: Aligning with Science-Based Targets

In 2020, Lenovo became the first PC and smartphone maker to set near-term emissions reduction goals for 2030, validated by the Science Based Targets initiative (SBTi). This alignment with the latest climate science underscores Lenovo’s commitment to achieving net-zero greenhouse gas emissions by 2050. (Lenovo StoryHub)

2. Bosch: Leading in Scope 3 Decarbonization

As the first automotive supplier to join SBTi, Bosch has set a global benchmark for Scope 3 decarbonization. The company aims to reduce its Scope 3 emissions by 15% by 2030 compared to 2018 levels, demonstrating a proactive approach to managing emissions across its value chain. (Bosch Global)

3. Unilever: Integrating Sustainability into Business Strategy

Under CEO Alan Jope, Unilever has committed to becoming a climate-positive business by 2030. The company has integrated sustainability into its core business strategy, aiming to decarbonize its supply chain and achieve a net-zero carbon footprint across its product portfolio. Unilever also links executive bonuses to sustainability goals, embedding environmental responsibility into its corporate culture. (Unilever)

4. Microsoft: Setting Ambitious Carbon Negative Targets

CEO Satya Nadella announced Microsoft’s goal to become carbon negative by 2030. This comprehensive plan includes removing more carbon from the atmosphere than the company emits, both directly and through its supply chain. Decarbonization is a top strategic priority, integrated into corporate objectives and supported by executive leadership. (The Official Microsoft Blog)

Key Steps to Make Decarbonization a Strategic Goal

Based on the examples above, here are key steps companies can take to make decarbonization an integral part of their business strategy:

Set Science-Based Targets: Align emissions reduction goals with the latest climate science to ensure they are both ambitious and achievable.
Engage Executive Leadership: Ensure that sustainability is a top priority for the CEO and the board, with clear commitments and accountability.
Integrate into Business Strategy: Embed decarbonization into the core business strategy, linking it to product development, supply chain management, and financial planning.
Link Performance to Incentives: Tie executive bonuses and other incentives to the achievement of sustainability goals to drive accountability.

By adopting these practices, companies can effectively integrate decarbonization into their strategic goals, driving both environmental sustainability and business success.

From Inspiration to Integration: Join our Scope 3 Action Group to Make Scope 3 Part of Your Business Strategy

To further your commitment to decarbonizing your supply chain and to collaborate with like-minded leaders, we INVITE YOU TO JOIN the Scope 3 Action Group. This 4-months blended learning program provides you with a unique opportunity to join a group of Scope 3 Action leaders from procurement and sustainability to: share strategies, address challenges, and develop your Scope 3 Strategy.

Cohort #4 will start on March 13th
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