How Engaging Transport Suppliers Can Slash Scope 3 Emissions

Scope 3 emissions represent the largest portion of corporate carbon footprints, yet tracking and controlling them remains a considerable challenge for organisations.

With evolving sustainability agendas, companies are increasingly exploring methods to cut these complex emissions.

Research from RESET Carbon, an LRQA company, suggests that cuts could be achieved by making strategic decisions around supplier sourcing.

Strategic supplier engagement

RESET Carbon is an LRQA company based in Hong Kong dedicated to addressing the climate crisis.

The firm specialises in supporting clients to develop carbon reduction strategies and comprehensive decarbonisation solutions grounded in science-backed methodologies.

The UN has stressed the urgent need for Scope 3 reductions, with related emissions endangering the feasibility of achieving global temperature targets set in the Paris Agreement.

By targeting Scope 3 emissions, which, on average, account for more than 80% of a company's carbon footprint, businesses can make a big difference.

The analysis from RESET Carbon suggests businesses should address Scope 3 emissions through engagement with a focused group of critical suppliers.

While genuine progress depends on supplier initiatives, many organisations find it difficult to identify starting points for their green transition.

“Supply chains are becoming increasingly exposed to carbon pricing via the incoming EU Carbon Border Adjustment Mechanism or exporter country emissions trading or carbon taxes," says Liam Salter, CEO of RESET Carbon. 

"If businesses want to avoid long-term carbon cost risks, they need to act now. Supply chain emissions take time to reduce. We’re talking three years or more to see meaningful results.”

Targeted procurement approaches

According to RESET Carbon, procurement functions should focus on critical suppliers to enable their organisations to deliver greater impact.

Through strategic partnerships with suppliers on initiatives such as energy efficiency improvements or fuel transitions, substantial reductions could be realised – as evidenced in Vietnam's apparel sector.

The research indicates that initial emissions reductions of 15% to 30% could occur rapidly across manufacturing and retail supply chains through partnership on established technologies that enhance energy efficiency.

More significant cuts of 40% to 60% could become achievable via energy or fuel switching.

Three core strategies

For accelerated carbon reductions throughout operations, RESET Carbon puts forward three primary strategies.

Transform data into actionable plans: Mapping carbon hotspots should start at the supplier facility level, where emissions tend to be most substantial.

While many organisations already possess the necessary data, they often struggle to convert it into executable plans.

Through embedding targets within sourcing decisions businesses can position carbon performance as a fundamental component of commercial strategy.

Liam adds: “There’s often a misconception that carbon reduction means high cost. In reality, many reductions can be delivered through measures like efficiency and onsite renewables, with strong returns on investment.”

Collaborate with strategic suppliers: By forming partnerships with high-volume vendors, businesses can implement low carbon solutions and clean technologies at scale.

Companies in sectors including energy, apparel, consumer goods, technology and food and beverages have already started cutting emissions within their supplier networks.

For transport networks, which encounter dispersed emissions across suppliers, fleets and international routes, harmonising measurement methodologies under protocol and deploying digital tracking systems could help establish transparency.

Liam explains:  “Strategic suppliers represent a major lever for net zero progress. Even if supply networks shift in response to economic or regulatory factors, established high-volume vendors are often best placed to meet performance expectations. Their ability to scale low carbon solutions, implement clean technologies and collaborate on emissions planning makes them critical to any serious net zero supply chain strategy.”

Industry-wide co-operation: Through collaboration across sectors, businesses can scale solutions by coordinating reporting practices, exchanging supplier performance benchmarks and jointly investing in low carbon supplier pools.

Standardised data frameworks could help reduce the burden on suppliers serving multiple buyers, whilst procurement teams can evaluate emissions performances across facilities or products using benchmarking tools.

Through collaborative work with suppliers and establishing robust data frameworks, procurement teams can gain the transparency required to make informed sourcing decisions.

This approach could help businesses develop sustainable strategies to reduce Scope 3 emissions.