Driving Scope 3 Climate Action Through Supplier Engagement

The journey to halving supply chain emissions by 2030 is no easy feat. It requires more than just setting goals and expectations – it demands building genuine partnerships and empowering suppliers to actively participate in the decarbonization journey.

Supplier Engagement: A Journey, Not a Destination

On average, companies need 1-3 years to fully disclose supply chain emissions and 3-5 years to see tangible reductions. The message is clear: start now to make meaningful progress! (Science Based Targets Initiative)

In the 2nd module of our Scope 3 Action Group, we explored how to design a successful Supplier Engagement Program. This approach is structured around a 4-step model that helps companies drive impactful climate action throughout their supply chains. Here’s an overview:

1️⃣ Secure Internal Buy-In

Decarbonizing your supply chain isn't just a sustainability initiative—it’s a comprehensive business transformation. For this effort to succeed, it must become a company-wide priority, supported by key internal stakeholders:

C-level leadership: Make decarbonization a strategic goal.
Procurement teams: Align purchasing decisions with sustainability objectives.
Finance & compliance teams: Integrate sustainability metrics into financial assessments and ensure regulatory alignment.

(McKinsey & Company)

This internal alignment ensures that decarbonization efforts are embedded in the core business strategy, rather than treated as an isolated sustainability project.

2️⃣ Analyze Supplier Structure

The next step is to assess the climate maturity of your suppliers. Understand where they currently stand in their decarbonization journey. Segment your suppliers based on:

Strategic value: Which suppliers are critical to your operations?
Emission impact: Where are the largest emissions hotspots?
Spend: Which suppliers represent significant investment?

This analysis allows you to prioritize your efforts, focusing on the suppliers who have the most potential for driving substantial emissions reductions.

(CDP Supply Chain Program)

3️⃣ Start Two-Sided Engagement

Supplier engagement is about fostering dialogue, not just giving directives. Building trust and collaboration is essential, and it begins with clear, two-way communication. Here’s how to get started:

Set clear expectations: Update your Code of Conduct to include climate-related requirements.
Host supplier webinars: Share your sustainability goals, resources, and best practices.
Provide tailored support: Offer resources for climate education and financing options to help suppliers invest in sustainable practices.
Create a roadmap: Tailor the engagement process to the specific maturity, size, and location of your suppliers to ensure realistic progress.

(Bain & Company)

4️⃣ Collaborate to Reduce

Reducing emissions across the supply chain requires continuous collaboration. To keep moving forward:

Integrate climate data: Use existing supplier management systems to track emissions progress.
Develop shared goals: Set joint targets for continuous improvement and measure your collective achievements.
Foster innovation: Explore co-investment opportunities and joint projects aimed at reducing emissions at scale.

(World Economic Forum)

Action > Perfection

The most important thing is to start now. You don’t need to have everything perfect from the beginning. Simplify your approach, iterate as you go, and focus on progress, not perfection. Success in supplier engagement is about taking action and building momentum over time.

(Harvard Business Review)

Dive Deeper

In our upcoming blog posts, we’ll dive deeper into each of these steps to provide even more insights and practical tools for designing your own Supplier Engagement Program.

—> Securing C-Level Buy-In for Scope 3 Success