Are you monitoring carbon emissions across your supply chain?

Tackling the climate crisis - cutting carbon emissions - has been behind the growing momentum for businesses to decarbonise by setting net zero commitments.

While the government’s net zero deadline of 2050 may seem far off, the pressures are increasing and decisive action is needed to address the climate reality.

Most organisations tend to focus on Scopes 1 and 2, which are usually directly linked to bills, invoices and readily accessible statistics. Tackling Scope 3 is a more complex task though, but an essential one if organisations are to truly achieve net zero targets.

Scope 3 emissions 

Scope 3 can account for almost three-quarters of the carbon footprint for many businesses. These are emissions which are not associated with the business itself, but with those organisations in its supply chain. This might include business travel, waste disposal, or the goods and services procured from supply chains.

With less control over emissions being produced, monitored and recorded in the value chain, how can organisations achieve their own net zero ambitions if they have limited oversight when it comes to their suppliers?

Drive value chain transparency

Here are some things to consider:

• Gain insight into the entire supply chain to determine the key sources of carbon emissions. 
• Make environmental disclosure a central requirement for those in your supply chain. 
• Go beyond data collection and set clear expectations for suppliers on emissions reduction.
• Set evidence-based carbon emissions reduction targets through your supply chain.
• Provide collaborative solutions with suppliers with initiatives in sustainability.
• Reconsider the suppliers you work with, or partner with them to decarbonise.

Businesses have a key role to play in combating climate change and cannot avoid Scope 3 emissions in their sustainability strategy. Their own interests must be aligned with these broader environmental requirements if they are to survive and protect their reputation and supply chain relationships.

To find out how you can identify risk in your supply chain, explore Alcumus’ Supply Chain Compliance solution.