Reducing greenhouse gas emissions involves addressing three distinct categories of emissions: Scope 1, Scope 2, and Scope 3. While managing Scope 1 and 2 emissions is relatively straightforward, tackling Scope 3 emissions is far more complex. These emissions lie outside a company’s direct control, across the value chain; yet they typically constitute the majority of its carbon footprint (in some sectors, up to 98%).

But the task of reducing Scope 3 emissions is not insurmountable. The key lies in engaging suppliers throughout the value chain. Companies must move beyond merely requesting minor adjustments from their suppliers. Profound changes may be required, demanding a sustained effort to engage suppliers with the aim of enhancing their knowledge and fostering a collaborative relationship. Expecting suppliers to independently acquire the necessary expertise or skills to shrink their carbon footprint is unrealistic. By working closely with suppliers, companies can help them develop the skills and knowledge required to adopt greener practices. This collaborative approach not only motivates suppliers but also ensures they do not feel isolated in their sustainability efforts.

A crucial aspect of this engagement is ensuring that suppliers understand the importance of sustainability. It’s essential for companies to align their suppliers’ goals with broader sustainability objectives. If suppliers perceive sustainability as merely a box-ticking exercise, the results will likely be suboptimal. They may either give up, or fail. Therefore, clear and effective communication about the significance of sustainability is essential, and it must resonate deeply with suppliers. Companies should emphasise that these efforts are not only beneficial for the environment but also for the business, thereby creating a shared sense of purpose.

Supplier development programs that extend beyond Tier 1 suppliers can help. These programs should not only provide the necessary knowledge and skills but also the tools and incentives to help suppliers embrace sustainable practices. Establishing robust and fair assessment systems, offering support, and setting clear sustainability goals are all essential steps in driving meaningful improvements across the supply chain. Highlighting the business case for sustainability, such as the cost savings associated with energy-efficient technologies, can be particularly persuasive in encouraging suppliers to take the necessary actions.

Recognising the varied challenges suppliers face, particularly those in developing countries, is also critical for building a productive relationship. Suppliers in these regions may struggle with infrastructure issues that impede their ability to decarbonise. For instance, they may rely on local energy sources. Factories may be equipped with energy-intensive machinery that’s both difficult and costly to upgrade. Suppliers may be constrained by the level of innovation available in their country, or the limitations of local transportation networks. Addressing all of these challenges is essential for reducing Scope 3 emissions, but even acknowledging these difficulties can go a long way in building trust—a crucial factor in maintaining supplier motivation over time.

It is also important for companies to recognise that change does not happen overnight. Expecting immediate results is unrealistic, and attempting to impose standards on suppliers can backfire. Mutual respect and clear communication, with a focus on the shared goal of sustainability, are key to fostering a productive relationship. Companies must be prepared for setbacks, challenges, and unforeseen consequences that may threaten to derail the initiative.

The encouraging news is that suppliers who embrace more sustainable practices can reap considerable rewards. By implementing energy-efficient technologies, cutting down on resource use, and aligning with established sustainability standards, suppliers can unlock significant cost savings. Additionally, creating safer work environments, reducing the risk of accidents, and boosting overall productivity can lead to greater efficiency and profitability throughout the supply chain. These advantages make the journey towards sustainability not just a moral imperative but also a strategically sound investment for both companies and their suppliers.

In the end, though the path to greater sustainability is challenging, it is a pursuit well worth the effort. The rewards extend beyond just reducing environmental impact; they include fostering a more productive workforce, enhancing your brand’s reputation, and strengthening financial performance. Most crucially, however, is the cultivation of a business culture that is resilient and capable of adapting to the ever-evolving demands of the modern world. Engaging suppliers in sustainability efforts is not just a duty—it is a strategic opportunity to create a more resilient and future-ready enterprise.