The Science Based Targets initiative (SBTi) has released a new guide to help businesses engage their supply chains in setting science-based targets.

Supply chain emissions account for the largest share of a company’s emissions, being on average 11.4 times greater than direct emissions, according to SBTi. Therefore, it is crucial for companies to initiate large-scale decarbonization efforts within their supply chains to avoid the worst impacts of climate change and facilitate the transition to a carbon-neutral economy.

Supplier engagement targets are one of the four methods for setting Scope 3 reduction targets for companies. They specify the portion of a company’s emissions that will be covered by suppliers, who will in turn set their own short-term science-based emissions reduction targets.

To meet SBTi criteria, companies whose Scope 3 emissions account for more than 40% of their total inventory (Scopes 1 + 2 + 3) must set supplier engagement targets and/or Scope 3 reduction targets that cover at least 67% of their Scope 3 emissions.

The document “Engaging Supply Chains in the Decarbonization Journey: A Guide to Developing and Achieving Scope 3 Supplier Engagement Targets” describes how to assess, develop, and set supplier engagement targets, implement engagement programs, and ensure companies fully understand what is required to achieve these targets. It is designed for companies with Scope 3 supplier engagement targets and those interested in exploring different supplier engagement tactics to reduce Scope 3 emissions.

While creating a supplier engagement program requires significant effort, investment, and internal support, companies that set supplier engagement targets may find them relatively straightforward to track. To meet a supplier engagement target, a company must work with its suppliers within the established boundary and ensure they set targets aligned with SBTi criteria.

Furthermore, supplier engagement aims to drive a reinforcing feedback mechanism: the more actors in the supply chain take climate-related actions, the more data will be available to create more precise and robust reduction objectives and strategies.

It can also help build credibility among key stakeholders such as investors, customers, and employees, who increasingly expect companies to take broader responsibility for reducing carbon emissions in their supply chain.

To halve emissions by 2030 and achieve carbon neutrality before 2050, companies must make unprecedented and proactive efforts to engage actors in their supply chains. Facilitating a climate-friendly and resilient supply chain is imperative to avoid the worst impacts of climate change and ensure future-proof business growth by empowering suppliers to initiate their own process of setting science-based targets.

At Global Factor, we have 19 years of experience supporting companies in their climate action. We have extensive experience in defining science-based reduction targets and developing reduction plans. Our specialized Net Zero team works collaboratively with suppliers to identify reduction opportunities, among other projects.

For more information, please don’t hesitate to contact Asier Sopelana (asopelana@globalfactor.com).

You can access the full guide in English at the following link:

Source: Global Factor

Global Factor is an international group with 19 years of experience, specialised in offering global, original, and innovative solutions in the fields of climate change adaptation and mitigation, carbon footprint, sustainability, circular economy, renewable energies, climate neutrality and carbon markets. Global Factor has an interdisciplinary team with a presence in 8 countries and has participated in more than 2,000 projects for more than 700 public and private clients, international organisations and non-profit entities in 51 different countries.