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Supplier Cascade: How to accelerate supply chain climate action
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- ESG Insights

Accelerating Supply Chain Decarbonization #Sustainability #SupplyChain #ClimateAction 🌍 3 Key Takeaways:
- Engage with suppliers to start decarbonization commitments immediately.
- Use science-based targets to guide and measure progress in supply chain emissions reduction.
- Transparency and consistent communication are crucial for cascading sustainability efforts through supply chains.
Further Insights:
Introduction to Scope 3: Majority of a company’s emissions are often in its supply chain, underscoring the importance of tackling scope 3 emissions for holistic sustainability.
Collaboration is Key: The value of cross-industry alliances and employing common sustainability frameworks signals to suppliers the importance of unified climate action.
Real Examples Emerge: Companies like Philips and AstraZeneca illustrate the importance of engaging suppliers in sustainability goals, with Philips aiming for 50% of its suppliers to commit to science-based targets by 2025.
Challenges of Data Collection: Accurating calculating scope 3 emissions is challenging but vital. Initiatives like CDP reporting and sector-specific intensity reduction methods support this.
Advocating for Public Commitments: Public commitments to SBTi help create a culture of transparency and accountability, encouraging suppliers to follow suit.
The Importance of Supplier Education: Practical steps to reduce emissions, like switching to renewable energy sources, are emphasized. Programs that educate suppliers on these measures are essential.
Progress Measurement: Tracking reductions against science-based targets is vital to understand the impact of commitments on overall carbon footprint reduction.
Closing Thoughts:
As businesses push for decarbonization within their supply chains, the need for clear, actionable targets has never been more pressing. Philips and AstraZeneca provide compelling examples of how direct engagement and requiring science-based targets from suppliers can lead to significant emissions reductions. But the journey doesn't stop here; ensuring these practices are widely adopted across industries will be crucial for achieving broader climate goals. How can your organization further integrate sustainability into its supply chain to contribute to a healthier planet?