Accelerating Supply Chain Decarbonization: The Scope 3 Action Group

01/17/2024 | Reading time: 5 minutes

In 2023, the seeds of the Scope 3 Action Group were sown at the 4th Climate Transformation Summit, where international sustainability, procurement and business leaders come together to share knowledge, insights and best practices on decarbonization. Addressing the biggest corporate challenge today: The reduction of emissions in the supply chain as these so-called Scope 3 emissions make typically 70% and more of a company’s total greenhouse gas emissions.

From Climate Goals to Implementation in Scope 3

Fast forward to today, our shared mission of the Scope 3 Action Group is to transcend borders. Fostering together change, sharing securely data and getting into action along the supply chains. The last year successfully started group goes 2024 into the second round. The group facilitates active exchange, information sharing, synergies and collaborative efforts with suppliers on scale.

How we tackle Scope 3 together

  1. Benchmark of your own climate management: along increasing market requirements.
  2. Analyse your supplier structure: regarding climate maturity and data availability.
  3. Exchange and network: with leading experts and peers to share experiences and best practices. Among others, companies such as ContiTech, EnBW and Katjes participated in the first batch last year, consisting of fourteen Scope 3 Action takers from across industries.

Navigating the Path to Net Zero, a Global Challenge

Why does it feel like we are all lacking behind on climate? Because we do.

A recent Science-Based Initiative Survey shows that even companies with Scope 3 targets are struggling to meet them, emphasizing the urgent need for action. But this is not an easy task as tackling Scope 3 emissions requires companies to take responsibility for emissions beyond their office doors.

Tackling Scope 3 is not easy

Activating suppliers to understand their climate maturity, including reduction targets, actual emissions and decarbonization measures, is a complex task. Making sense out of this information from hundreds and thousands of suppliers even more difficult. And creating an actionable decarbonization roadmap for Scope 3 seems to be far out of reach, even for many leaders.

In order to be able to demonstrate progress, holistic climate data controlling is necessary that goes beyond financial aspects. Particularly in the value chain, we need information from suppliers about environmental impacts, with the CO2 footprint serving as the first step. Data on goals, measures and impact are just as important.

WOLFRAM NIMMERRICHTER, CSR-MANAGER AT SPORT-THIEME GMBH, MEMBER OF SCOPE 3 ACTION GROUP 2023

In the Scope 3 Action Group, members go through a 4-months peer-learning journey in which they move through the three modules: Climate management, Supplier Engagement and Decarbonization Roadmapping to do just that.

The Climate Choice’s Role in Accelerating Action

As support, Scope 3 Action group members get access to the Climate Intelligence Platform, as an easy and useful tool in gathering, analysising and managing climate-relevant data of suppliers.

Moreover, the group’s journey is guided through bi-weekly online masterclasses, tutorials and personal coaching, including the digital Handbook that provides summary papers, technical and workshop notes as well as the working document ‘Scope 3 Masterplan’ as invaluable resources.

Together for Climate Protection: Shaping Impact

The Scope 3 Climate Action Group is supported by strong partners. The Climate Choice collaborates with experts from myclimate, amc group and the wifor Institute, who provide each a masterclass during the three modules of the program. Together, they offer practical insights on climate transformation, emission calculation and decarbonization of the supply chain.

We have committed to global climate goals, aiming to stay well below 2°C, which requires halving emissions every 10 years. This can only be achieved in collaboration with suppliers. Only through this can measures be implemented at an unprecedented pace and scale. With THE CLIMATE CHOICE, we provide the platform for this.

Lara Obst, Founder of THE CLIMATE CHOICE

About The Climate Choice’s Climate Intelligence Platform

The B2B data platform provides access to climate-relevant data from companies and their suppliers to accelerate the transition to net zero future. The platform allows companies to transparently and systematically assess their own climate performance and the climate maturity of their suppliers. Software-as-a-Service offerings include improved collaboration with suppliers through specific recommendations, benchmarks, and free resources, as well as a strong partner network for implementing decarbonization measures.

Accelerating Action along the Supply Chain

Today’s reality is that very few companies currently have credible plans in place to tackle the Scope 3 challenge. As a consequence decarbonization roadmaps are missing that outline strategies to align with the global target of halving emissions by 2030 and reaching net-zero by latest 2050.

In this context, understanding, planning, and creating strategies for achieving net zero – especially in Scope 3 – remains the biggest challenge for most organizations.

How the Scope 3 Action Group helps

  1. In Module 1: Members assess and benchmark their own climate performance, to discover gaps and opportunities for their holistic climate management and decarbonization strategies.
  2. During Module 2: Companies activate their supplier to disclose their climate maturity, while supporting them with valuable resources according to their maturity level.
  3. Resulting in Module 3: The gathered data is used as decision-metrics for concrete next steps and the creation of a 12-month outlook.

How the 4-Months Journey works

Members of the Scope 3 Climate Action Group commit to reducing emissions and achieving net-zero emissions in their supply chains, in line with international climate goals. Given fragmented global approaches but no clear guidelines, the group collaborates internally and, crucially, with its suppliers to get into action. Through peer experiences, inspiration and shared best practices, the group provides the necessary space to collect data, build trust and promote climate measures.

Outcomes of the Scope 3 Action Group 2023

During the 4-month of the Scope 3 Action Group 2023, participants successfully completed their own Climate Performance Assessment and discovered improvement areas together. In the next step of module 2, over 1.500 suppliers were activated. As a result more than 50% of suppliers disclosed their climate maturity and are engaging in further information sharing, personal exchange and commitment (re-)definition. Group members were able to transfer the gathered climate-relevant information into digital Supplier Scorecards. Those are fuelling decision-matrixes, amplifying which next actions need to be considered in the resulting 12-month action plans.

How You Can Participate and Become a Climate Leader

Companies eager to drive climate transformation can now apply for membership in the Scope 3 Action Group. To gain further insights, review our CHOICE Event #67, providing further information.

Join the Climate Community in taking Actions!

The applications for the Scope 3 Action Group are open until 29th February 2024. The program starts on 14th March.

Witnessed the transformative power of community collaboration and get ready to drive actions along your supply chain!

Apply to join the Scope 3 Action Group 2024.