Carbon emissions in the supply chain can be fundamentally higher than those of a company’s operational carbon footprint. When discussing corporate emissions, most of us automatically start looking at electricity and other operational emission sources. But it is the Upstream Scope 3 emissions, and therewith the supply chain emissions, that often make up the largest share of a corporate carbon footprint.
Supply chain emissions often exceed operational emissions
According to CDP, supply chain emissions are on average over twice that of a company’s operational emissions. In the energy and mining sector, upstream Scope 3 emissions exceed operational emissions by up to four times. For this reason, corporations can no longer afford to disregard their supply chain emissions.
Corporations need a strategy for supply chain emissions
Forward-looking companies appreciate that resilient, climate-proactive suppliers are good for business and reputation. Chisitiana Figueres from the UN Framework Convention on Climate Change says, “Suppliers that are better able to tackle sustainability challenges, such as climate change and water risk, are simply better business partners”. There are many different ways to engage suppliers and reach new targets. The most popular ones range from the reduction of carbon emissions to increasing transparency in the supply chain.
Emission reductions through CDP Supply Chain
One way to better manage supply chains is through CDP Supply Chain. CDP collects data related to Climate Change, Water, and Forests. Requested companies need to answer a questionnaire that will then be ranked by CDP. Investors and companies use the data collected by CDP and the ranking to make investment and business decisions.
Improving transparency through EcoVadis
EcoVadis is a sustainability assessment platform for global supply chains. The supply chain is the strongest lever for the impact of sustainability. EcoVadis scorecards make it easy to understand, track and improve global environmental, social and ethical performance.