For most companies, the bulk of their CO₂ footprint lies in scope 3 emissions. Reducing these emissions is only possible if you look beyond your own organization and actively engage your suppliers. After all, it’s in the value chain that you can make a real difference. In this Insight, we explain how to collaborate with suppliers in a structured way to achieve the greatest impact.
Calculating scope 3 emissions is a complex exercise. Companies depend on their suppliers, for instance, for data and for potential reduction measures. Liesel Boutsen, CO₂ & Climate Lead at Pantarein: “In practice, therefore, companies still often work with sector averages and estimates. But those who really want to make progress choose collaboration.”
By engagingin dialogue with your suppliers, you gain access to reliable and detailed data on their raw materials, production processes, and the products and services they supply to your company. This not only results in a more accurate picture of your own footprint but also provides the basis for targeted reductions. “After all, suppliers themselves have the knowledge and expertise to make their materials or services more sustainable. Through innovation, they can reduce CO₂ emissions at the source.”
Close collaboration also facilitates the transition towards a more circular value chain. Think of projects in which discarded products are reused as raw materials. “This creates a chain that requires fewer new materials and gradually reduces its emissions.”
Companies that want to collaborate in a structural way can set up a supplier engagement programme. This not only brings suppliers on board but also keeps them engaged. “The first step is to define your objectives: do you only want insight into CO₂ data, or do you also expect reduction actions? And do you want to go further, with requirements related to recycling or labour conditions? Once those decisions have been made, you can anchor your ambitions in a Supplier Code of Conduct.”
Engaging with all suppliers is unrealistic. “That’s why you should focus on the most impactful partners, for example the 20 per cent of suppliers that together account for 80 per cent of your emissions. Instead of emissions, you can also choose another criterion, such as spend.”
Next, you should determine which data you need. Make sure to look ahead by, for example, asking for information on ambitions and reduction plans. “That way, you can assess whether a supplier is a frontrunner or rather taking a wait-and-see approach. Be sure to request this data via email or a software platform but also organize annual feedback meetings with key suppliers. These often provide deeper insights.”
Not every supplier will be able to provide the right data straight away. Therefore, you should think about how you can support your suppliers. “You can, for example, organize webinars, share best practices, or offer one-to-one guidance.”
Financial incentives can help as well. “You can, for example, enter into long-term contracts with sustainable partners.”
Finally, one important tip: collaboration works both ways. “You should actively look for ways to learn and experiment together,” Liesel concludes. “Pilot projects with suppliers often generate the most innovative ideas.”
“Engaging with all suppliers is unrealistic. That’s why you should focus on the most impactful partners.”
Looking for an experienced partner to help you get your CO₂ journey off the ground? Pantarein has extensive experience in carbon footprinting, reduction plans, SBTi, scope 3 and FLAG emissions, supplier engagement, and CO₂ communication. Get in touch via mail@pantarein.be.
