You depend on your suppliers to achieve your climate goals, but how do you strengthen cooperation in the value chain?

Forfatter

Kristian Danielsen
Partner & CCO

Climate change is becoming increasingly urgent and more companies are choosing to take responsibility and set ambitious climate targets. This is both necessary and positive.

But it is rarely enough to look only at reductions in their own operation (scopes 1 and 2). For most companies, the vast majority of the climate footprint -- often 75 to 90 percent -- comes from activities in the value chain. This makes scope 3 a big challenge.

This is where the paradox arises: how can one achieve one's goals when most emissions are beyond one's own control? Many companies are experiencing exactly this. Climate targets have been set, but suppliers are not on board.

More companies are today choosing to commit to the Science Based Targets initiative (SBTi). Here, goals are required not only for scope 1 and 2, but also for scope 3. A special approach is supplier engagement targetsin which the company undertakes to ensure that a significant proportion of suppliers — typically those responsible for two-thirds to three-quarters of scope 3 emissions — are themselves putting science-based targets.

It sounds simple, but in practice it requires both knowledge, maturity and collaboration that many suppliers do not yet have.

The Solution: A Structured Supplier Program

At SustainX, we help companies build tailored supplier programs that enable and upskill suppliers so that they can actively contribute to climate goals instead of being a barrier. We believe that an effective programme is based on collaboration, knowledge sharing and common momentum rather than control and demands.

A vendor program creates engagement and better data quality, strengthens scope 3 reporting, and makes work more efficient and targeted. Our approach consists of three phases:

1. Segmentation and planning

First, the suppliers that will be included in the program are identified. They are grouped by maturity, size, industry and geography. Then the course is planned in detail with introduction, kickoff, expectation reconciliation, data collection and support. Everything is adapted to your needs.

2. Upskilling and data support

Suppliers gain knowledge and support to create climate accounting for scopes 1, 2 and 3, set targets and achieve SBTI validation. They receive joint training, individual sparring and practical tools such as computational models and digital platforms. In this way, their knowledge and maturity increase, so that they become active players in the green transition.

3. Documentation and application

Once results and goals are in place, they are compiled into a baseline report that can be used for both SBTI validation and scope 3 reporting. We help with documentation requirements, submission and use of SBTI's platform.

Completion

Et supplier engagement target requires more than good intentions.

It requires a well-designed programme that meets suppliers where they are and supports them all the way to the target.

With the right approach, it's not just about requirements. It is about maturing the entire value chain and strengthening cooperation on the green transition.

Summary

  • The majority of companies' climate footprint is in the value chain, and suppliers are therefore crucial to achieving climate targets.
  • A structured supplier programme creates engagement, better data and ensures that suppliers become active players in the green transition.

Kristian Danielsen
Partner & CCO
kda@sustainx.dk
+45 42 17 48 76