Tackling supply chain emissions is crucial for a business striving to minimise environmental impact. With supply chain emissions often falling under Scope 3, the indirect emissions that occur in a company’s value chain, it can be challenging to accurately measure and reduce these emissions effectively.
However, by implementing strategic measures and collaborating with suppliers, companies can make significant strides in decarbonising their supply chains and contributing to global emissions reduction targets.
Understanding Scope 3 Emissions
Scope 3 emissions encompass all indirect emissions that occur in a company’s value chain, both upstream and downstream. These emissions include purchased goods and services, transportation and distribution, waste generated in operations and end-of-life treatment of sold products. According to the EPA, Scope 3 emissions often represent the largest portion of a company’s carbon footprint, emphasising the importance of addressing supply chain emissions in pursuing net-zero goals.
Engaging Suppliers for Accurate Measurement and Reduction
Companies must engage their key suppliers to effectively reduce supply chain emissions. By developing a comprehensive supplier engagement plan, businesses can collaborate with suppliers to accurately measure their carbon footprint and implement targeted reduction strategies. This engagement may involve collecting data on suppliers’ energy usage, transportation methods, and waste management practices and providing guidance and support for adopting more sustainable alternatives.
Implementing Decarbonisation Measures
Once a company clearly understands its supply chain emissions, it can begin implementing decarbonisation measures. These measures may include:
- Packaging and waste reduction efforts: Minimising packaging materials and implementing circular economy principles to reduce waste generated throughout the supply chain.
- Shifts to renewable energy: Encouraging suppliers to transition to renewable energy sources, such as solar or wind power, to reduce the carbon intensity of their operations.
- Logistics optimisation: streamlining transportation and distribution networks to minimise fuel consumption and emissions associated with the movement of goods.
- Material substitution: Exploring alternative, lower-carbon materials that can be used in production without compromising quality or performance.
Collaborating for Success
Achieving supply chain sustainability and reducing emissions is a collaborative process. Companies must work closely with their suppliers to overcome challenges, share best practices and drive continuous improvement. By establishing open lines of communication, setting clear expectations and providing the necessary resources and support, businesses can foster a culture of sustainability throughout their supply chain.
The Path to Net-Zero
Addressing supply chain emissions becomes increasingly critical as more companies commit to science-based emissions reduction targets and net-zero goals. Businesses can significantly reduce their overall environmental impact by optimising supply chains for carbon footprint reduction and engaging suppliers in the decarbonisation process. Moreover, by taking a leadership role in supply chain sustainability, companies can accelerate decarbonisation efforts throughout the economy, driving positive change on a global scale.
Take Action Today
Ready to start your journey towards a more sustainable supply chain? Our team of experts at Morson Projects is here to help. With our deep understanding of carbon reduction strategies and experience in supply chain optimisation, we can guide you through measuring, reducing and offsetting your supply chain emissions. Contact us to learn more about our services and take the first step towards achieving your sustainability goals.