The journey towards net zero demands ongoing commitment and a proactive approach. By following these steps and engaging in collaborative action, your business can effectively address and implement Scope 3 reductions and embark on a path towards a more sustainable future.
As environmental awareness intensifies, businesses find themselves under increasing scrutiny for their impact on the planet. This scrutiny extends beyond their own operations, peering deeply into their supply chains – the intricate web of suppliers and customers that fuel their activities.
This brings us face-to-face with Scope 3 emissions, an often-neglected, yet potentially enormous elephant in the corporate greenhouse gas room.
Scope 3 emissions encompass all the greenhouse gases emitted indirectly through a company’s activities, ranging from the production of purchased goods and services to even the end-of-life disposal of their products. The catch? These emissions sit largely outside a company’s direct control, residing in the hands of suppliers, their suppliers, and even their customers.
The sheer size of Scope 3 emissions is enough to give even the most climate-conscious executive a pause. These indirect emissions can easily account for over 80% of a company’s total carbon footprint, dwarfing direct emissions from owned or controlled sources. This harsh reality presents a cruel twist of fate: the emissions you are most responsible for are the ones you have the least power to change.
So, where does this leave businesses struggling to tame the scope 3 beast? Fear not, for all hope is not lost. While the challenge is undeniable, several paths lead towards progress.
Step 1: Establish a baseline for Scope 3 emissions
The first step is awareness: identifying where your Scope 3 emissions come from. But Scope 3 emissions can be distributed across a very broad spectrum, so how should these be collated into a single source to rely on for future steps.
The good news is that the Greenhouse Gas Protocol, the creator of the emission scoping system, offers some help in the form of its ‘Technical Guidance for Calculating Scope 3 Emissions’ report. Here, you will learn how to define scope 3 emissions, where to look for them, and how to quantify them.
But, depending on your business size, this may still take a large amount of time to do on your own. The other option you have is to instead work with a solution’s provider, such as Greenly, Sphera, or ENGIE Impact, who specialise in guiding businesses through the labyrinth of Scope 3 emissions.
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By partnering with a third party, you can reduce the time and effort needed to map your Scope 3 landscape, freeing up your team to focus on developing and implementing an effective emission reduction strategy.
Step 2: Engage with your suppliers
Achieving supplier emission reductions requires a shift from top-down directives to collaborative partnerships. While gathering data through surveys has its place, building genuine trust and understanding through open dialogue proves more effective in the long run.
Focus on mutual understanding. Identify the sources of emissions and why reducing them matters. Remember, the supplier will ultimately do the work, often at their own cost. Therefore, they need a clear and compelling reason to prioritise emission reduction.
While some businesses might resort to ultimatums and threats, this approach, while potentially achieving immediate change, risks damaging long-term relationships and hindering mutual commitment to sustainable practices. A collaborative, partnership-based approach fosters trust, shared knowledge, and a more durable outcome in terms of both emission reduction and supplier engagement.
Step 3: Set ambitious and targets
Now you know the scope of the challenge, the next step is setting ambitious yet achievable targets for your Scope 3 reduction. These targets become crucial guiding lights, providing a clear benchmark for success and enabling proactive adjustments along the journey. Unlike a late-stage realisation of missed goals, a target-driven approach allows for course correction throughout the process, maximising the effectiveness of your efforts.
Frameworks like the Science Based Targets initiative (SBTi) offer invaluable tools for aligning your overall emission (scope 1, 2, and 3) reduction ambition with the global pursuit of net zero emissions by 2050. Specifically, SBTi’s Net Zero Standard provides a structured framework for setting science-based targets, ensuring your company’s climate action is grounded in the latest scientific data and contributes meaningfully to the collective effort.
Step 4: Communicate expectations and provide support
Make sure to demonstrate consistent messaging across all channels, from contracts and codes of conduct to dedicated training sessions and webinars. This allows you to work together and leverage each other’s strengths to achieve your goals.
One practical approach involves empowering suppliers by providing them with better training on emission-reduction initiatives they can implement within their own businesses. This could include optimising production processes, increasing energy efficiency, or making wider use of recycled materials. The specific opportunities will vary depending on the nature of each supplier’s business.
Grosvenor Property UK offers a successful example of this approach. They engaged with their suppliers to set their own science-based climate targets, prompting them to dive deep into their own emissions profiles and identify areas for improvement. This collaborative approach demonstrates the power of communication and shared commitment in driving meaningful change across the value chain.
Step 5: Track progress, offer guidance, and recognise achievements
Regularly monitor and track suppliers’ reduction efforts to assess progress and identify areas for further collaboration. Go beyond simply monitoring performance; offer guidance, provide free tools and resources, and implement financial incentives to encourage suppliers to adopt sustainable practices. Engagement in joint projects can foster knowledge sharing and accelerate innovation in emissions reduction strategies.
Acknowledging and rewarding suppliers who demonstrate exceptional commitment to reducing Scope 3 emissions can also send a powerful message. Implementing climate performance awards or public recognition programs can provide valuable incentives for continued progress and inspire others to follow suit. By creating a culture of shared responsibility and mutual encouragement, the collective impact on emissions reduction can be significantly amplified.
Monitor and report your progress
Continuously monitoring and reporting on progress towards Scope 3 emission reduction is not just about internal accountability; it’s a powerful tool for driving industry-wide change. This level of transparency not only demonstrates a company’s own commitment to decarbonisation but also encourages collaboration and best practice sharing throughout the supply chain.
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As companies take responsibility for their entire environmental footprint, it becomes clear that supply chain decarbonisation is a collective effort. By implementing these strategies, companies can actively contribute to a more sustainable future not only for their own operations but for the entire industry.
Consistent monitoring, transparent reporting, and dedicated collaboration with suppliers – these are the cornerstones of achieving meaningful reductions in Scope 3 emissions and mitigating the impacts of climate change.
