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In the race against climate change, the pressure on businesses to account for and reduce their carbon footprint is quickly mounting. For companies that oversee complex and extensive supply chains, this task can be particularly challenging — or just plain intimidating. 

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However, addressing scope 3 emissions — those indirect emissions that occur across a company’s supply chain — is crucial for mitigating your overall footprint and achieving your sustainability goals. 

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Here are six steps to engage your supply chain and reduce scope 3 emissions:

1. Set clear and realistic targets
2. Map out your supply chain
3. Support your suppliers early and often
4. Implement incentive and recognition programs
5. Incorporate sustainability into your procurement processes
6. Monitor, measure, and report on progress

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1. Set clear and realistic targets

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The first step towards reducing your carbon footprint is to set clear, science-based targets for reducing scope 3 emissions in your supply chain. These targets should align with the Paris Agreement’s goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels. 

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Transparent and ambitious (yet attainable) goals demonstrate a strong commitment to mitigating the worst effects of climate change. When this commitment is communicated across your organization and supply chain, it can set the tone for all other decisions, strategies, and processes.

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‍Learn more about how to set science-based targets here.

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2. Map out your supply chain

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The next step towards reducing your footprint is mapping out your supply chain in detail. Conduct a comprehensive mapping exercise to identify all of your suppliers and everything that contributes to your supply chain. This list will include your Tier 1 suppliers, Tier 2 suppliers, logistics providers, and other stakeholders. 

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Using this list, rank your suppliers in terms of their impact on your carbon footprint. Keep in mind that your supplier’s direct emissions will be your indirect (scope 3) emissions. You’ll want to prioritize the suppliers with the highest emissions first. It’s not uncommon for a handful of suppliers to be responsible for more than half of a corporation’s scope 3 emissions. 

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You can ask your supplier’s to self-report on their footprint to facilitate this process, or use technology like Green Project’s supply chain solutions to champion your outreach,  engagement, and maturity analysis strategy. 

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3. Support your suppliers early and often

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Once you identify the top emitters in your supply chain, make a plan around how you will engage and support them. Building strong relationships with your suppliers and nurturing these relationships over time is essential for reducing your scope 3 emissions. Keep the lines of communication open as you work with your suppliers on critical interventions to reduce their environmental impact. 

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Explain the importance of reducing emissions and how this effort aligns not only with your long-term interests but with theirs as well. Consider organizing supplier workshops, training sessions, and regular meetings to share best practices and innovations.

4. Implement incentive and recognition programs

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In addition to communication and education, you can encourage your suppliers to actively participate in emissions reduction efforts with incentives and recognition programs. These could be financial incentives, like performance-based bonuses or favorable contract terms. They could also include public recognition to reward suppliers who demonstrate leadership in sustainability through awards, certifications, and media coverage like press releases. 

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Incentives and recognition can go a long way to both form relationships with your suppliers and motivate them to support your goals. If all else fails, you can consider the use of negative reinforcement, like switching suppliers if your existing ones don’t meet their targets by a certain deadline — but let’s start with the positive first! 

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5. Incorporate sustainability into your procurement processes

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Once you’ve set your goals as an organization and you know which targets you have to reach, ensure that your procurement department knows how to incorporate these goals into their day-to-day processes. A company doesn’t stop procuring new suppliers, products, and services once it sets its goals, so it is integral that any newly-onboarded suppliers meet your stringent sustainability criteria. 

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Consider creating or updating your procurement guidelines and supplier codes of conduct to reflect expectations, with a strong preference towards those suppliers who differentiate themselves in their sustainability efforts. Your focus may shift from driving supplier costs down to driving supplier emissions down, and that’s fine! In the long run, your efforts to lower your overall emissions will pay off: the business case for sustainability is well-established. 

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6. Monitor, measure, and report on progress

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It’s not enough to set ambitious targets and work with your suppliers to achieve them. You will also have to regularly monitor, measure, and report on your progress. Regularity is critical to allow you to keep track of progress and implement continuous improvement where needed. Supplier engagement is not passive: your team must continue to keep tabs on progress and remove roadblocks to emissions reduction wherever and whenever possible. 

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Technology like Green Project can enable robust monitoring and reporting so you can publish public sustainability reports that highlight your achievements without the risk of greenwashing. Transparency and third-party validation in reporting helps build trust with not only your suppliers but your customers, employees, and investors — it also serves to further drive engagement and action in a virtuous cycle of improvement. 

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Learn more about supplier engagement 

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Green Project’s sustainability managers are here to guide you through the process of supplier engagement. Get in touch to learn more about how you can engage your supply chain to lower your carbon footprint.

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Case study: How Green Project Enabled NotReal to Meet Microsoft’s Supplier Requirements

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