| 11.4:1 | Average ratio of supply chain emissions to operational emissions |
In just the last few years:
| > | 1200+ Companies have set SBTs across 47 sectors |
| > | Over 80% of those targets address scope 3 reductions (with the majority addressing upstream supply chain) |
| > | Nearly 150 of those companies have included specific supplier engagement targets |
| > | Anthesis has supported 60+ clients in setting SBTi validated targets |
Why supplier engagement is important for science-based targets (SBTs) and Net Zero goals
Companies setting Scope 3 greenhouse gas (GHG) emission targets following SBTi guidelines face the same challenge, whether those targets are absolute reductions or supplier engagement goals. The real work of meeting these targets is through shortening the cycle of supplier capacity-building, moving suppliers quickly from understanding to action on climate.
What are Scope 3 Emissions?
Sustainable Supplier Engagement
Collecting data on supplier sustainability performance is not enough. We know that simply asking suppliers to set GHG reduction targets or to report their data will not translate to achieving scope 3 goals to the pace and scale of action that is needed. According to CDPs Global Supply Chain Report (2019), supply chain emissions account for 5.5 times more than a company’s operational emissions. A comprehensive, systematic approach to supplier relationship management and capacity-building can fast-track the ability of suppliers to set their own targets and will encourage the widespread transformation necessary to meet targets across supply chains.
Science-based targets, or SBTs, are goals developed by a business to reduce greenhouse gas emissions in line with the latest climate science. To learn more, visit our resource page:
View the Science-Based Targets RESOURCE PAGE
Key elements of a successful supplier engagement strategy
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Supplier Data Collection — A streamlined system to collect primary data on supplier annual emissions, whether or not climate targets have been set (SBTs), and emissions reduction initiatives being implemented. |
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Supplier Communication + Support — Deliver ongoing, timely communications to support suppliers and comprehensive, actionable guidance and resources. |
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Supplier Capacity Building — Targeted, personalized training and support to meet suppliers where they are in their climate journey and provide interventions and pathways towards more mature initiatives. |
Anthesis has partnerships with the leading ESG and sustainability software providers and understands key requirements to evaluate the best solution for our clients, and when the right solution doesn’t exist, we build it for them. For example, partner, SupplyShift enables effective supplier data tracking and insights via a centralized platform for companies and suppliers to exchange data and reduce supplier assessment fatigue.
What role does technology play in supplier engagement?
We’ve found that the two most critical elements of an effective scope 3 engagement program are light-weight supplier engagement software technology in combination with targeted capacity building support. The technology platform alone will not be able to deliver the transformation needed to meet targets.
How technology can help:
- Provides a centralized “hub” for scope 3 engagement resources and communications
- Enables efficiencies in management, data collection, and analytics
- Can track supplier engagement KPIs
- In some cases, reduces data collection redundancy and survey fatigue
- Displays benchmarking and other data insights that can drive action
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Managed supplier engagement services
Facilitating supplier engagement process and capacity-building to meet scope 3 targets requires a significant investment of time and attention. Software and efficient processes make the work easier, but the diversity of supplier needs on this topic requires tailored support.
Anthesis’ approach builds on the pre-existing software or process a company uses to monitor supplier performance and provides a modular capacity-building service that augments sustainability and procurement teams.
We draw upon our global ESG experts and sustainability consultants to provide virtual and remote, in-country, multi-language guidance, support, and resources to move suppliers through a customized step-wise process.
Webinar: Accelerating Supply Chain Scope 3 Emissions for SBTs
In this session from our virtual conversation series, Anthesis SBT experts Josh Whitney and Elena Kocherovsky share insights needed to evaluate, prioritize and set science-based targets for your scope 3 emissions as part of supply chain strategy. They explain crucial considerations about the nuances of the SBTi criteria and how leading companies are developing innovative supplier engagement programs using technology and collaboration to help drive progress on their climate initiatives.
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