Businesses Tackle Scope 3 Emissions For Net Zero

As climate awareness becomes a louder voice across boardrooms and balance sheets, companies are being called ever more accountable not only for their own immediate operations but for the spreading carbon shadow that lies deep within their supply chains. Whereas most have gone some distance toward cutting Scope 1 and 2 emissions — those they emit directly or buy — Scope 3 is the sleeping giant in the room. Frequently overlooked, and yet potentially accounting for 80% or more of a company's overall emissions, Scope 3 emissions are one of the most intricate and challenging issues en route to net zero.

Scope 3 emissions are all the greenhouse gases emitted indirectly as a consequence of a company's operations, covering the entire supply chain of products — from raw material extraction through disposal. In contrast to emissions from owned property or purchased energy, Scope 3 emissions are outside a company's direct control, instead lying with suppliers, logistics companies, end-users, and all parties in between. This indirectness has rendered them intractable, if not elusive. But driven by increasing regulator and consumer scrutiny, companies no longer have a choice but to pay attention.

To meet the challenge head on, companies now look towards concerted and systematic effort that focuses on collaboration, creativity, and disclosure. The effort starts with an unambiguous starting point. Quantifying Scope 3 emissions can seem formidable because of the way they're scattered, but resources and guidance like the Greenhouse Gas Protocol's Technical Guidance for Calculating Scope 3 Emissions create a useful guideline. For those companies that are short on staff or internal talent, collaborations with carbon accounting service providers like Greenly, Sphera, or ENGIE Impact provide an attractive alternative. These third-party experts not only optimize the process but also enable in-house teams to concentrate on crafting actionable reduction design strategies.

Data alone, however, is insufficient. Creating true impact requires true engagement with suppliers. The old days of simply issuing strict edicts from on high are receding; instead, companies are having greater success building true partnerships with their supply chain stakeholders. Open communication, transparency, and mutual comprehension are the pillars of this partnership. Suppliers, after all, are the ones who will need to make changes, which can cost money or disrupt established processes. Without transparent communication on the why of emission reductions — and the long-term benefit of sustainable practices — such efforts are likely to fall flat.

Hardline methods, such as threats or ultimatums, may tempt some companies to try to enforce compliance. Although these methods may yield short-term gains, they tend to destroy long-term relationships and demoralize suppliers. Instead, companies that take a supportive, open approach are seeing more sustainable success. One particular case in point is Grosvenor Property UK, which assisted its suppliers in creating science-based targets and identifying areas where emissions could be reduced. Its collaborative approach not only built confidence but also enabled suppliers to make effective changes for themselves.

After a business realizes its Scope 3 horizon and has commenced engagement, there is a need to set aspirational yet feasible reduction goals. These goals serve as beacons, enabling companies to track progress, remain accountable, and adapt when needed. Global frameworks like the Science Based Targets initiative (SBTi) provide companies with scientifically grounded benchmarks aligned with the overarching goal of net zero emissions by 2050. By following SBTi’s Net Zero Standard, businesses ensure their goals contribute meaningfully to the broader climate agenda.

However, setting targets isn’t enough if expectations aren’t clearly communicated across the value chain. Clear communication through contracts, supplier codes of conduct, and training programmes keeps everyone on the same page. Even more importantly, enabling suppliers with information and tools to act — by way of webinars, workshops, or providing them with funds directly — gives them the autonomy to take a proactive role in the company's decarbonisation process. Based on their businesses, suppliers could find opportunities to lower energy use, implement more efficient processes, or move toward sustainable materials.

Monitoring progress where vision intersects accountability. Periodic monitoring enables businesses to be continuously informed about how their suppliers reduce emissions, which areas need intervention, and furnish constant advice. Providing access to instruments, knowledge, and incentive packages not just inspires suppliers but also drives them faster toward green practices. Strategies such as the provision of climate performance awards or public awards constitute powerful drivers of inspiration. When suppliers are hailed for their dedication to sustainability, it creates a culture of shared responsibility and inspires others to step up to the challenge.

Finally, the path to net zero — particularly in addressing Scope 3 emissions — is not a one-person mission. It is founded on collaboration, openness, and shared aspiration. Tracking and reporting publicly against progress increases accountability but also sends a very clear message to industry competitors and customers alike. It is an indication of a company's commitment to transformation, it calls for collaboration, and it allows the sharing of best practice between sectors.

As companies navigate this intricate landscape, the way forward to a sustainable future becomes more distinct. With strategic planning, collaborative action, and an unshakeable commitment to transparency, even the most elusive of emissions can be addressed — one supplier at a time, one innovation at a time, and one milestone at a time.