The Crucial Role of Supplier Engagement in Tackling Scope 3 Emissions

Supplier engagement plays a pivotal role in addressing Scope 3 emissions and achieving climate targets. As the global community grapples with the urgent need to mitigate climate change, businesses are under increasing pressure to reduce their carbon footprint across their entire value chain, not just within their own operations (Scope 1 and 2 emissions). Scope 3 emissions encompass all indirect emissions generated by a company’s activities, including those associated with the production, transportation, and disposal of purchased goods and services. Given that Scope 3 emissions often account for the majority of a company’s total carbon footprint, effectively managing and reducing them is paramount to meet climate goals.

In this article, we will delve into the reasons why supplier engagement is vital for addressing Scope 3 emissions. Additionally, we will highlight best practice that help you implement a successful supplier engagement program for achieving your company’s Scope 3 targets.

Unlock the potential of software-driven supplier engagement for Scope 3 decarbonization. Contact us to discuss your company’s individual challenges and learn more about the benefits of the Climate Intelligence Platform.

Why supplier engagement is paramount for Scope 3

Supplier engagement is crucial for addressing Scope 3 emissions, with several factors driving its importance:

Regulatory Pressure

• SEC (U.S. Securities and Exchange Commission): The SEC is increasingly focused on climate-related disclosures. In 2022, they proposed new rules to enhance and standardize climate-related disclosures, including for Scope 3. Engaging with suppliers to gather accurate emissions data helps in complying with these regulations.
• ISSB (International Sustainability Standards Board): The ISSB is working on global sustainability reporting standards. Supplier engagement assists in aligning with these standards by collecting emissions data consistently across the supply chain.
• EU’s CSRD (Corporate Sustainability Reporting Directive): The EU is tightening its reporting requirements. Under the CSRD, large companies must report on supply chain emissions. Supplier engagement is key to meeting these obligations effectively.

Stakeholder Expectations

• Investors: ESG (Environmental, Social, Governance) investors increasingly consider supply chain emissions when evaluating companies. Engaging with suppliers to reduce emissions demonstrates a commitment to sustainability, attracting such investors.
• Customers: Ethical consumers demand transparency. Supplier engagement allows companies to provide customers with detailed information about their products’ environmental impact, enhancing brand reputation.

Strategic Implications

The new requirements of regulatory authorities and the various stakeholders result in numerous consequences for the future-oriented business strategy of companies. Let’s delve into these strategic implications of supplier engagement in greater detail.

• Risk Mitigation: Supplier engagement helps identify high-emission suppliers, allowing companies to assess climate-related risks and diversify their supplier base to reduce exposure to carbon-intensive sources.
• Cost Reduction: Collaborating with suppliers on emission reduction strategies can lead to cost savings through improved efficiency and resource use.
• Innovation: Partnering with suppliers to reduce emissions fosters innovation. Suppliers may develop more sustainable products or processes, giving the company a competitive edge.
• Market Access: Some markets, like the EU, may restrict imports from companies with high carbon footprints. Supplier engagement aids in meeting these market access requirements.

Best Practices for Implementing a Successful Supplier Engagement Program

Now that we understand the critical role of supplier engagement in managing Scope 3 emissions and meeting sustainability goals, let’s delve into some practical strategies for success. These best practices, when effectively implemented, can empower companies to navigate the complex landscape of supply chain sustainability with finesse.

• Assessment and Prioritization: Start by assessing the environmental impact of your supply chain. Identify high-impact suppliers and prioritize engagement efforts accordingly.
• Set Clear Expectations: Define sustainability expectations for suppliers through contracts, agreements, or codes of conduct. Clearly communicate the importance of carbon reduction and other sustainability goals.
• Collaboration and Education: Collaborate with suppliers to develop shared sustainability goals. Offer training and resources to help them understand and implement eco-friendly practices.
• Data Collection and Monitoring: Implement systems for tracking and reporting supplier emissions. Regularly review progress toward sustainability targets and address issues promptly.
• Incentives and Recognition: Consider offering incentives for suppliers that exceed sustainability expectations. Recognize and celebrate their achievements, fostering motivation for continuous improvement.
• Transparency: Be transparent about your own sustainability journey and progress. This transparency encourages suppliers to follow suit and promotes a culture of shared responsibility.
• Technology Integration: Leverage technology, such as the Climate Intelligence Platform, to streamline data collection and enhance visibility across the supply chain.
• Continuous Improvement: Encourage continuous innovation and improvement in sustainability practices, both within your organization and among suppliers. Regularly reassess goals and adapt to changing circumstances.

Conclusion

In conclusion, supplier engagement has become indispensable for addressing Scope 3 emissions, aligning with regulatory requirements, and meeting climate targets. To excel in this arena, companies must adopt best practices that prioritize sustainability, collaboration, and transparency throughout the supply chain. As the global focus on sustainability intensifies, supplier engagement will not only become a compliance necessity but a strategic advantage for forward-thinking organizations.

Get into action

For those ready to take concrete steps towards a sustainable supply chain, the Climate Intelligence Platform offers a compelling solution. Trusted by leading brands, the platform streamlines the process, saving costs and automating time-intensive tasks for supply chain decarbonization. From data acquisition to tracking and engagement, it provides everything you need to set up, test, and manage your supplier climate engagement targets.

Contact us to discuss your company’s individual challenges and learn more about the benefits of the Climate Intelligence Platform.

AI’s new Potential for Scope 3 Decarbonization

In order to meet climate targets within their supply chain (Scope 3), companies must gather and interpret extensive data on emissions, climate risks, and other factors from their suppliers. Until now, this widely dispersed data could only be acquired through manual processes and individual supplier consultations, demanding significant time and resource investments. However, a transformation is underway. Advanced AI technology now enables the quick and automatic aggregation of climate-related supplier data from public sources, facilitating its analysis for scope 3 decarbonization.

Unlock the Potentials of AI for your Supply Chain Decarbonization! Get Exclusive Access to our AI Supplier Screening Programm, to manage Scope 3 Data and implement Actions.

How exactly can this work? That’s what we shared at CHOICE Event #61 with Yasha Tarani (CEO) and Nikolas Martens (Head of Engineering) from The Climate Choice. Find here their most important insights.

Why is Scope 3 Decarbonization important? 

Deloitte conducts an annual study that delves into the priorities of top executives (CxOs) in large companies across the globe, shedding light on why they choose to address specific issues. Their findings reveal a significant shift in the corporate landscape. Notably, climate change has ascended to a position of paramount importance, second only to economic outlook. This signals a pivotal moment where climate concerns have permeated the highest echelons of corporate leadership. However, it’s imperative to recognize that the impetus to act on climate issues doesn’t merely stem from regulatory pressures. It also emanates from a multitude of stakeholders who demand action.

One crucial aspect that emerges prominently is the role of supply chain emissions (Scope 3). These emissions represent the lion’s share, comprising an average of 85% of a company’s total emissions. Yet, addressing supply chain emissions is a formidable challenge due to their indirect nature, which presents multiple complexities and obstacles.

Why is Scope 3 Decarbonization so hard?

Companies striving to meet their Scope 3 decarbonization targets encounter several significant challenges when it comes to effectively utilizing supplier-specific data. These challenges can impede their ability to take meaningful actions. Here’s a breakdown of these challenges and their implications:

Continuous Tracking:

• Challenge: Managing annual data collection from a vast network of thousands of suppliers can be a daunting and resource-intensive task.
• Implication: This continuous tracking requirement demands a robust system that can efficiently gather data from a multitude of sources without overwhelming the company’s resources. It also necessitates real-time or near-real-time data updates to stay current.

Data Quality:

• Challenge: Supplier data often comes in various formats, documentation styles, and may lack comparability, making it difficult to draw meaningful insights or comparisons.
• Implication: Ensuring data quality is paramount. Implementing standardization protocols, data validation, and normalization processes is crucial to derive accurate and actionable insights from diverse data sources.

Assessment Fatigue:

• Challenge: Suppliers are frequently inundated with data requests from different customers, each with varying data needs, creating a state of assessment fatigue.
• Implication: Companies must adopt a more strategic approach to supplier engagement. This includes minimizing repetitive requests, streamlining communication, and aligning data requests with suppliers’ capabilities and priorities to maintain productive relationships.

Lack of Incentives:

• Challenge: Encouraging suppliers to actively engage in decarbonization efforts can be challenging, as they may lack motivation or a clear understanding of the benefits.
• Implication: To address this, companies must develop a Theory of Change that outlines the incentives and benefits for suppliers to participate in sustainability initiatives. This may include cost savings, improved market access, or enhanced brand reputation.

The solution: the Climate Intelligence Platform

At The Climate Choice, we focus on solving the key challenges of Scope 3 decarbonization. We have therefore built the first climate-specialized platform that unites supplier data & engagement to rapidly reduce emissions. Our approach is designed to help companies kickstart their supplier climate program in days rather than in months.

So what does the approach look like? Here are the key steps:

1. Leveraging AI for Scope 3 Analysis: Begin by harnessing the power of artificial intelligence (AI) to analyze suppliers with publicly available data. This automated analysis provides valuable insights into their environmental performance, emissions, and climate-related practices. This initial assessment sets the foundation for informed decision-making.

2. Engaging Suppliers without Public Data: Recognize that not all suppliers may have publicly accessible environmental data. For such suppliers, the approach shifts towards assessing their maturity level in terms of sustainability practices. This assessment serves as a starting point, allowing you to provide constructive feedback and guidance.

3. Focused Benchmarking and Incentives: Identify your top suppliers and those contributing significantly to emissions within your supply chain. These key players warrant a more detailed and granular benchmarking process. Additionally, consider implementing incentive mechanisms to encourage these suppliers to actively reduce their environmental footprint. Incentives can take various forms, such as financial rewards or preferential treatment within your supply network.

The first step: AI Supplier Screening

To speed up the launch of your supplier engagement program while minimizing resource requirements, we present our new AI supplier screening program. This program leverages cutting-edge technology to streamline the process, ensuring efficiency and effectiveness throughout. Here’s a breakdown of how the AI supplier screening program operates:

1. Comprehensive Data Collection: The program incorporates an AI-driven data pipeline that autonomously gathers detailed Scope 3 information from diverse sources. This data pipeline is designed to collect granular data pertinent to your supplier profiles.

2. Robust Data Analysis: Once the data is collected, our system performs a meticulous analysis. It scrutinizes a range of climate data documents and taps into publicly available data sources to create a comprehensive profile of each supplier. This analysis extends beyond surface-level assessments to provide a deeper understanding of their climate-related practices.

How AI Supplier Screening Works:

• List of Suppliers: The process commences with a list of your suppliers, encompassing the entirety of your supply chain network.
• Identify Company: The AI system employs advanced algorithms to identify each supplier as a distinct entity, ensuring accuracy in the subsequent steps.
• Identify Reporting Entity: It further distinguishes the reporting entity within the supplier organization, recognizing the entity responsible for providing climate-related data.
• Identify Data Sources: The program identifies and categorizes the various data sources associated with each supplier, whether internal or external.
• Extract & Verify Data: Leveraging state-of-the-art data extraction techniques, the AI system extracts and verifies the pertinent climate data from these sources, ensuring data accuracy and reliability.

What are the tangible outcomes of the AI supplier screening?

The AI supplier screening program yields a range of tangible outcomes that can significantly benefit your organization in its pursuit of Scope 3 goals. Here are the notable advantages and insights that emerge from this innovative approach:

Automated Analysis of Thousands of Companies: The program’s capabilities extend to the automated analysis of thousands of companies within your supply chain ecosystem. This extensive coverage ensures that you can comprehensively assess and engage with a wide array of suppliers, maximizing the program’s effectiveness.

Inclusion of Meta Data: In addition to climate-specific data, the analysis encompasses meta data that provides valuable context. This includes details such as revenue figures and sectors in which these companies operate. Such comprehensive insights enable more informed decision-making.

Audit-Ready Data: The data generated through the AI screening program is audit-ready, ensuring that it meets the highest standards of accuracy and reliability. This audit readiness is pivotal, especially when it comes to compliance requirements and reporting.

Accessibility via API: The convenience of accessing the data via an Application Programming Interface (API) streamlines its utilization within your organization’s existing systems and workflows. This seamless integration enhances the efficiency of your sustainability initiatives.

Key Insights Uncovered

The program goes beyond data collection to uncover key insights that can inform your sustainability strategy. These insights encompass:

Supplier Maturity Structure: You gain a clear understanding of the maturity levels of your suppliers concerning sustainability practices. This allows you to tailor engagement strategies accordingly.

Trends in Climate-Related Data: The program identifies and highlights trends in climate-related data, providing valuable intelligence for decision-making and future planning.

Scope 3 Emission Breakdowns: Detailed breakdowns of Scope 3 emissions help you pinpoint areas of focus and prioritize decarbonization efforts.

Decarbonization Actions: The program’s analysis identifies potential decarbonization actions that can be taken. It offers actionable pathways to reduce emissions and improve sustainability performance.

Join the Early Access Program today

You can now seize the opportunity as one of the early adopters, accessing the full array of AI benefits for your Scope 3 targets through our exclusive Early Access program. By joining, you’ll experience firsthand the advantages we offer. We anticipate an average savings of 90% in both time and cost for the collection and analysis of supplier data. Don’t miss out on the chance to be at the forefront of this transformative technology.

Request to join the Early Access Program today, it’s limited!

Top 5 Questions AI can answer for Scope 3 Decarbonization

Artificial intelligence (AI) has emerged as a powerful tool in addressing complex challenges. Specifically, its potential for tackling climate change has gained significant attention. Today, effective climate actions require us to collect and interpret vast amounts of data on emissions, climate risks, and more. Not only from one’s own company, but also along whole value chains. This is because most of a company’s emissions – even up to 90% – occur in Scope 3. A transparent data basis is therefore needed on which to effectively collaborate with suppliers on joint decarbonization measures. 

This is where AI plays a crucial role. According to a survey by Boston Consulting Group, 87% of 1,000 executives consider AI a helpful catalyst for climate transformation. Through the use of AI, companies can now quickly access data from public sources about their suppliers on a large scale, allowing them to better collaborate with them on decarbonization efforts. On top of that, they can gain essential strategic insights about the climate maturity of their business partners and competitors. In this article, we explore the top five questions that AI can answer for Scope 3 decarbonization, empowering you to make informed and impactful climate decisions.

1. Has the company calculated Scope 1, 2, and 3 emissions?

When assessing the climate maturity of your supply chain, one of the fundamental questions in evaluating a company’s commitment to decarbonization is the extent to which they have calculated and disclosed their greenhouse gas (GHG) emissions. AI can help assess whether a company has comprehensive coverage of Scope 1, 2, and 3 emissions. By analyzing public data, AI algorithms can identify relevant information from your supplier’s sustainability reports, public statements, and other disclosures. This allows you to assess your own emissions in more detail and compare them with industry benchmarks along your supply chain, setting a foundation for meaningful decarbonization strategies.

2. Has the company set climate targets?

Setting ambitious climate targets is crucial to driving action and holding companies accountable for their emission reduction efforts. The next important question is therefore to what extent a supplier has set and communicated climate targets and ambitions. To get answers, AI algorithms can extract and aggregate information from public announcements, reports, and social media activity regarding a company’s specific emissions reduction goals. This knowledge enables you to benchmark your company’s own targets against industry peers and business partners in order to identify areas for improvement.

3. Has the company a climate transition plan in place?

To achieve your own climate targets, you need a transition plan that outlines how your company navigates the complex process of decarbonization. And so do your suppliers need such a roadmap to implement reduction measures. AI can help determine whether a supplier has a transition plan in place by analyzing public disclosures and sustainability reports. This allows you to gaining insights into the decarbonization strategies, initiatives, investments and businesses activities of your business partners as well as competitors. Doing so, you can identify potential synergies or areas for collaboration.

4. Is the company engaging their suppliers for climate action?

As seen above, your suppliers play a pivotal role in your Scope 3 strategy and significantly impact your decarbonization journey. Therefore it is crucial to know if a supplier is actively engaging and monitoring its own supply chain with regards to emission reduction. Public supplier reports, sustainability initiatives, and collaboration programs convey the extent of a company’s engagement with its suppliers. This information allows you to assess the effectiveness of your own existing supplier management and identify opportunities to collaborate on decarbonization measures with peers.

5. Has the company communicated concrete decarbonization measures?

Last but not least, communicating concrete decarbonization measures is essential to demonstrate commitment, become accountable and inspire others to follow suit. Leveraging AI’s capabilities, you can assess whether your own organization as well as suppliers have effectively communicated its decarbonization initiatives – and which one in particular. This analysis allows you to gain insights into industry-wide actions, identify leading best practices and improve your own impact.

Conclusion

AI offers a powerful tool for companies seeking to enhance their decarbonization in Scope 3 by leveraging climate-relevant information on a large scale. Employing AI algorithms empowers decision makers to answer critical questions related to emissions data, climate targets, transition plans, supplier engagement and decarbonization measures. This way, businesses gain valuable insights into their own operations and those of their stakeholders. Equipped with this knowledge, organizations can collaborate more effectively with suppliers, benchmark their progress against industry peers and strategically position themselves to drive meaningful change. Through the power of AI, companies can take significant steps towards Scope 3 decarbonization and contributing to a sustainable future.

You are curious how you can benefit from CLIMATE AI? Learn more about our new AI Supplier Screening program!

Measuring and Understanding your Scope 3 Emissions

For most companies, the majority of their greenhouse gas emissions (up to 90 %) lie in their supply chains – so-called Scope 3. Reducing those Scope 3 emissions provides the biggest lever for corporate climate transformation, but it is also by far the most difficult. The first step and basic requirement is to measure and holistically understand the company’s Scope 3 emissions.

That’s what we learned at the CHOICE Event #55 from Richard Scholz from the WifOR Institute and Yasha Tarani from The Climate Choice. Here you will find the most important insights from their joint presentation.

Scope 3 Reporting Becomes Mandatory under CSRD

Companies worldwide are facing increasing pressure from stakeholders and regulations to meet their climate targets. Of particular importance is Scope 3, as defined by the GHG Protocol, which, in contrast to Scopes 1 and 2, includes all upstream and downstream emissions along a company’s supply chain. This new importance of Scope 3 is, among other things, becoming apparent in the fact that Scope 3 reporting becomes mandatory under the upcoming EU wide Corporate Sustainability Reporting Directive (CSRD).

From 2025 onwards, companies in Europe meeting two of the following three conditions will have to comply with the CSRD and thus report scope 3 emissions:

• €40 million in net turnover
• €20 million in assets
• 250 or more employees

In addition, non-EU companies that have a turnover of above €150 million in the EU will also have to comply. 

Different methods of measuring Scope 3 emissions

With this in mind, we are going to have a look at how exactly companies can go about to tackle their Scope 3 emissions. The first step is definitely to measure the emissions from their supply chain. For this, the GHG Protocol suggests to use different calculation methods, depending on the availability of data. 

As shown in this graphic, you can use either supplier-specific data or secondary data (i.e., industry average data). The different methods are sorted according to their specificity. The best calculation method is by far the supplier specific method on top. However, if you have not done a calculation yet, starting at the bottom of the method sorting is the recommended approach. The so-called spend-based method uses average data points.

The spend-based method of measuring Scope 3 emissions 

The starting point of a spend-based method is the purchase list, also referred to as your spend file or order placements. It should include all goods and services purchased by your company. Three information are of particular importance here:

• Which kind of products/services are bought?
• Where are those products/services produced?
• How much of those products is bought?

To understand this better, let’s have a look at a concrete example. We assume that our chemical products purchased from the USA are worth 300,000 €. So we know the type of product, the country of origin and the amount of products purchased. After those basic observations, we now look at model data. In the model data, we find out how much revenue the chemical industry in the USA has and also how much CO2 emissions the chemical industry in the USA is emitting. With this information, we can now attribute a certain certain of CO2 emissions to the revenue of the chemical products that our company bought.

Adding Tier 2 and 3 emissions of suppliers of suppliers

However, with this first step, the process of measuring Scope 3 emissions is not concluded yet, as the results only represent the Scope 1 emissions of the suppliers. In order to also calculate the tier 2 and 3 emissions of suppliers of your suppliers and so on, you will need an additional purchase list from the chemical industry of the US – so-called model data.

Now we look at each and every purchase item that the chemical industrie of the US is buying. And we attribute a certain amount of CO2 emissions from those other industries across the whole world that the US chemical industry is buying from. That for example also includes the Scope 2 emissions of the US chemical industry, because they are buying electricity. You need to repeat this process with a list of the tier 3 suppliers, so the emissions caused by suppliers of tier 2 suppliers.

Moving the ladder all the way up to the supplier-specific method

The spend-based method is a good starting point to get a first impression of the emissions of your supply chain. However, the goal should always be to move up the ladder as quickly as possible from average data to deeper and more specific climate information of your suppliers. This is where specialized software tools like the Climate Intelligence Platform come into play.

The Climate Intelligence Platform provides a way to efficiently automate the various steps of the supplier-specific method for Scope 3 decarbonization. Companies receive everything they need to set up, test, manage and achieve their supplier climate engagement targets – from data acquisition to tracking and engagement. Via the platform they can access and acquire a wide range of audit-ready company risk as well as emission data and support their suppliers in their decarbonization journey.

Start with the AI Supplier Screening

Through the use of AI, you can now quickly access data from public sources about your suppliers on a large scale, allowing you to better collaborate on decarbonization efforts. On top of that, you gain essential strategic insights about the climate maturity of your business partners and competitors.

Embark on your Scope 3 climate journey today! Together, we’ll pave the way for informed climate choices and a sustainable transformation that makes a real difference.

Get more information about our AI Supplier Screening.

Schneider Electric’s Path to Scope 3 Decarbonization

To meet their climate targets, global corporations must reduce CO₂ from their supply chain in particular, which can account for up to 90% of their total emissions. The problem: they cannot reduce these Scope 3 emissions themselves, but instead have to enable their suppliers to do so. This collaboration requires, above all, holistic data on the climate performance of suppliers, which does not yet exist.

How does a global enterprise such as Schneider Electric deal with this challenge? This is what we learned at the the CHOICE Event #47 from Kanishk Negi, Sustainable Procurement Director at Schneider Electric. Here you will find the most important insights from his presentation.

Schneider Electric’s corporate sustainability strategy

Schneider Electric SE, the multinational leader in the digital transformation of energy management and automation, is aiming to accelerate sustainable progress for its customers, employees, partners and communities everywhere. For this purpose, the organization has set six long-term commitments:

• Act for a climate positive world
• Be efficient with resources
• Live up to our Principles of trust
• Create equal opportunities
• Harness the power of all generations
• Empower local communities 

To ensure compliance, Schneider Electric has committed to achieving 12 measurable goals by 2025.

The particular importance of procurement is reflected in the fact that one-third of these targets depend mainly on Schneider Electric’s supply chain (marked with a blue arrow in the graphic). Of these four procurement-dependent commitments, let’s now take a closer look at how Schneider Electric is trying to reduce the CO₂ emissions of its top 1,000 suppliers by 50%.

The challenges of Scope 3 decarbonization

Decarbonizing Scope 3, or supply chain emissions, is a complicated and challenging undertaking. This is especially true for a large and diversified company like Schneider Electric. The multinational organization employs more than 128,000 people in 115 different countries. Its procurement spend last year was over 14 billion euros. Because of its well-balanced global presence, Schneider Electric’s suppliers come from all parts of the world. Managing this global supply chain effectively is therefore a particularly complex task.

In addition, when Schneider Electric began looking at the climate maturity of its top 1,000 suppliers, further challenges came to light. As it turned out, 70% of these companies were actually new to the idea of decarbonization. This means that they had never calculated or quantified their carbon footprint and were not aware of the difference between Scope 1, 2 and 3 emissions. Furthermore, two-thirds of the suppliers requested were found to be small and medium-sized enterprises. This added another nuance to the challenge, as smaller companies have only limited capacities and competencies when it comes to topics like sustainability and decarbonization. Accordingly, many suppliers initially took particular notice of the high cost factor involved in implementing climate protection measures.

Solving the problem: The Zero Carbon Project

After gathering all these insights and gaining a holistic understanding of the challenges, Schneider Electric launched a comprehensive support program in April 2021 and named it “The Zero Carbon Project”. Under the program, Schneider provides tools and resources in order to help suppliers set and achieve their climate targets. The suppliers participating in the program were first encouraged to quantify their CO₂ emissions using the company’s digital tools. This data was then used to set goals and strategies for emissions reduction. 

In order to provide suppliers with comprehensive support for climate actions, Schneider Electric has established a wide range of offerings. So far, more than 130 live training sessions on CO₂ calculation and decarbonization measures took place. In addition, Schneider Electric has provided its suppliers with various digital tools on its web portal. Among other things, they can use these for a digital emissions calculation as well as for best practice exchange with peers and partners to access other innovative solutions for decarbonization. The consultation is supported by specialized experts and is also adapted to the different geographical characteristics.

The results of all these intensive engagements have already been promising. 1,016 active suppliers are currently participating in the program and are being engaged in decarbonization measures. 90% of those suppliers have now calculated their CO₂e footprint. In addition, the participating suppliers have already reported around 8% reduction in their CO₂e emissions.

Streamlining Scope 3 decarbonization with digital tools

Schneider Electric’s pioneering efforts show that, despite today’s challenges, it is actually possible to successfully engage suppliers in decarbonizing the supply chain. Nevertheless, as it stands today, companies can only accomplish this extremely complex task with a great deal of effort, which is why digital tools are now more crucial than ever in order to streamline the process of collaborating with suppliers. 

One such tool is our AI Supplier Screening. Through the use of AI, you can now quickly access data from public sources about your suppliers on a large scale, allowing you to better collaborate on decarbonization efforts. On top of that, you gain essential strategic insights about the climate maturity of your business partners and competitors.

Embark on your Scope 3 climate journey today! Together, we’ll pave the way for informed climate choices and a sustainable transformation that makes a real difference.

Get more information about our AI Supplier Screening.