Did you know that typically, scope 3 emissions account for more than 80% of the total greenhouse gas emissions of an average company?
Scope 3 emissions as defined by the Greenhouse Protocol are all indirect emissions (not included in Scope 2), that occur in the value chain of the reporting company, including both upstream and downstream emissions.
Developing a scope 3 supply chain charter can help your business achieve your sustainability goals, reduce their environmental impact, improve their reputation and competitiveness, and comply with regulatory requirements and stakeholder expectations. It can also help you collaborate with your key customers and suppliers, as well as with other industry groups and initiatives, to share best practices, data, insights, and learnings on how to decarbonize the value chain.
Developing your own supply chain charter will not only support your own net-zero goals, but it will also help you understand how to approach your key customers and prospects to demonstrate your net-zero ambition supporting their own carbon reduction targets.
- Align your supply chain partners with your own sustainability goals and expectations, and ensure suppliers follow the same principles and standards of environmental responsibility.
- Identify and address the sources and drivers of scope 3 emissions.
- Implement effective and cost-efficient emission reduction measures across the supply chain, such as improving efficiency, increasing reuse and recycling, switching to low-carbon energy sources, and innovating new technologies and solutions.
- Enhance your reputation and competitiveness in the market, as well as comply with regulatory requirements and stakeholder expectations, by demonstrating your commitment and contribution to climate action.
- Collaborate and communicate with your supply chain partners supporting their goals.
Plan your approach: Define your scope 3 emissions categories and metrics, set your targets and aspirations for suppliers, and engage with them to assess their capabilities and challenges.
Understanding your own carbon footprint and developing your net-zero strategy aligned to internationally recognised standards will enable you to be prepared to answer questions from your key customers and to attract new prospective customers. Developing your own supply chain charter will enable you to have a clear understanding of your carbon hotspots and opportunities for collaboration and reductions.
Below are a number of resources and guidance;
Science Based Targets Initiative Supplier Engagement Guidance
Transform to Net Zero Supplier Transformation Framework
Exponential Roadmap Supplier Action Guide
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