Reducing supply chain emissions, particularly scope 3 emissions, remains one of the toughest yet most impactful challenges. By prioritising sustainable sourcing and implementing effective strategies for carbon emissions reduction, you can drive meaningful change. In this blog, we'll walk you through essential steps to building a more sustainable, resilient supply chain that supports climate action.
Start by mapping out where your products and raw materials come from. What environmental impacts occur from your purchasing decisions? Identifying key “hotspots" for concentrated emissions–such as high-energy suppliers or carbon-intensive materials–can help you focus on the areas that will have the greatest impact on your sustainability goals.
Aligning your supply chain with relevant frameworks can help you ensure that your supply chain management supports both climate action and resilience. For industries like food and beverage, or agriculture, emissions often come from complex land-use processes. Aligning with frameworks like the Science Based Targets initiative for Forest, Land, and Agriculture (SBTi FLAG), Greenhouse Gas Protocol (GHGP) Land Sector and Removals, and Science Based Targets for Nature (SBTN) can provide clarity on best practices for managing land-use emissions and mitigating environmental impact.
It's also crucial to stay ahead of upcoming regulations that may impact your value chain. For instance, the EU Deforestation Regulation (EUDR) and the Corporate Sustainability Due Diligence Directive (CSDDD) will directly affect sourcing practices and sustainability efforts. Early preparation can help you navigate these changes, ensuring compliance while advancing your green supply chain initiatives.
Tackling scope 3 emissions is a team effort—effective change requires collaboration with your suppliers. Start by sharing best practices and encouraging suppliers to adopt sustainable measures such as renewable energy or circular production models.
Your supplier selection process can be a powerful lever for change. Prioritising sustainability in your procurement policies can drive transformation across your value chain. For example, you might choose suppliers that use regenerative farming practices which not only reduce emissions but can also have a net positive environmental impact.
Setting science-based targets is a critical step towards aligning your company with global climate goals like limiting warming to 1.5°C. However, achieving these targets requires a well-structured climate transition plan that outlines your strategy, actions, and resources to reduce emissions and adapt to climate risks—particularly when tackling complex scope 3 emissions.
A strong climate transition plan should prioritise key emission hotspots, reduction strategies, and supplier engagement to ensure meaningful progress. For example, Tetra Pak increased renewable energy use by sourcing local renewable electricity in China to advance its RE100 goal and climate commitments, illustrating the impact of a focused, actionable plan.
Integrating sustainability into core business decisions presents an exciting chance to innovate and stand out. When developing new products or selecting suppliers, consider climate impact as a key factor. This approach not only strengthens your environmental commitment but can also differentiate your products in a competitive market. Highlighting your reduced carbon footprint can attract environmentally-conscious consumers and deepen their trust in your brand.
Transforming supply chains requires industry-wide teamwork. Engage with a broad network of stakeholders, including competitors. Joining industry groups or coalitions helps address shared challenges like data transparency and sustainability standards while providing a platform for meaningful partnerships. Consider joining forces with companies that share common suppliers to collectively promote sustainable practices.
Working together on initiatives such as value chain interventions—practices adopted within a company's value chain, often in the production area of agricultural or forestry products—can drive significant climate action. As an example, planting a leguminous cover crop species to improve soil health in rotation with wheat can contribute to carbon reductions or removals, which can be attributed to a company's science-based target performance.
Insetting projects, where companies invest in emissions reductions and removals within their own supply chain, further support these efforts and nature-positive outcomes. This type of cross-industry collaboration accelerates progress and fosters sector-wide sustainability.
After setting targets and launching your plan, keep pushing forward by exploring new ways to innovate. Explore emerging technologies and sustainable practices such as insetting, carbon removal technologies, and digital tools for real-time emissions tracking. These innovations can unlock new opportunities for emissions reductions and efficiency while helping to future-proof your supply chain.
Building a sustainable supply chain is a complex but essential journey that demands commitment, collaboration, and innovation. By understanding your value chain, aligning with key frameworks, collaborating with suppliers, and setting science-based targets, you lay the groundwork for meaningful impact. Turning challenges into opportunities and embracing cross-industry partnerships can amplify your efforts, creating a ripple effect that extends beyond your company. Embracing emerging technologies and sustainable practices will also help future-proof your supply chain, ensuring long-term resilience and a positive environmental footprint.
With these strategies, you can drive real change while positioning your business as a responsible leader in the transition to a net zero world. What’s your next move to reduce scope 3 emissions? South Pole is here to guide you every step of the way.
Contact us today to reduce emissions and drive sustainability.
