Collaboration to tackle scope 3 emissions on the route to net zero

To dive deeper into what’s needed to make progress in meeting business climate targets, industry leaders, policy makers and experts at the forum split into smaller groups to debate. Focused on topics such as supplier engagement, communicating with consumers, and driving sustainable procurement, the biggest question marks were addressed, and potential pathways forward revealed. 

Companies are aligning their strategies based on double materiality assessments, focusing on opportunities that align with their business case rather than solely on reporting requirements. Navigating change is challenging, however, there is a level of optimism. As always, collaboration is key – particularly among leaders. Broad engagement across the business is necessary, involving all stakeholders in understanding the new language of double materiality. Involvement must begin from the start of the double materiality process, including data owners, risk managers, decision-makers, and finance departments. 

 

Given the ambitious deadline of net zero by 2050 and the complexity in addressing all social issues simultaneously, working towards a just transition certainly isn’t an easy task. The discussion aimed to outline practical action points for businesses, starting with engaging with suppliers. 

The first step is to align on what a “just transition” means. The overall focus is to approach net zero transition with social awareness, leveraging collaboration and resources for a more equitable process. 

What does ‘just transition’ mean and why should it matter to them? The need to outline the importance of a just transition and the consequences of not transitioning is crucial. Finally, collaboration can be achieved by utilising existing guidance on human rights and community involvement. This guidance can be applied to climate change, ensuring inclusive decision-making. 

Below are key business actions discussed: 

Engagement is crucial to move suppliers towards sustainability goals. Suppliers need intrinsic motivation as some do not see climate change as a threat or lack an incentive. It is therefore important to address the challenge of suppliers delivering high carbon products by offering data, premiums, regulatory references off-take agreements and training to build capacity and create common goals. 

The discussion aimed to understand the drivers for supplier engagement in product carbon footprinting (PCF) and how to foster scale, incentives and empowerment for suppliers to ensure a mutual benefit. 

Emphasising purpose and action behind carbon footprinting, changing mindsets and highlighting the role of different stakeholders, such as farmers, is important in driving progress. There also needs to be a mechanism for verification and levels of trust in data sharing, with the dual benefit of effort and gain. 

Let’s collaborate! Cross-industry collaboration for standardisation and data exchange would be beneficial to drive collective progress. It was also noted that a landscape approach should facilitate market entry for various stakeholders and ensure community regeneration and sustainability. 

Different strategies may be required for Business-to-Business (B2B) versus Direct-to-Consumer (D2C) regarding net zero communication, however, some remain relevant for both. 

It’s essential to make the concept of net zero and sustainable behaviour change empowering and effortless for consumers. It is crucial for consumers to understand the impacts and its benefits. Tailoring communication to make it relevant to consumers is helpful. This includes linking it to emotional benefits beyond sustainability to create an emotional connection. 

During effective communication, the role of sustainability professionals is integral to avoid greenwashing or greenhushing and maintain credibility. A governance structure for assessments within the business would be useful. 

 
Bridging procurement and sustainability

There is a language and culture gap between procurement and sustainability – how do we break the silo? First, by creating a supportive environment internally such as aligning corporate strategy with procurement goals and upskilling procurement teams accordingly. Building from this, incentivising procurement teams to decrease carbon emissions can help. This can include tying bonuses to these metrics to avoid only senior team KPIs being related to decarbonisation. 

Second, understand the purpose: action over data. While data is essential, taking action and understanding the purpose behind these actions is more crucial. And third, treat scope 3 emissions as a theory of change and emphasise social innovation, and encourage collaborative efforts to address them collectively.  

Clear metrics are vital to any goal to measure progress and maintain motivation, and sustainable procurement is no exception. Business must embed clear metrics into procurement’s performance goals. A focus on both absolute emissions and supply intensity reductions is important. Sustainability clauses in contracts and engagement metrics to measure supplier readiness and involvement can be useful. 

Communicating and implementing net zero and sustainability practices requires a holistic approach that includes consumer empowerment, cross-industry collaboration, and engaging suppliers. Performance metrics and incentives should be aligned with corporate strategies, emphasising both data and actionable steps. Building capabilities within procurement and ensuring company-wide alignment are critical for success. The focus should be on creating common goals, providing necessary support and training, and ensuring that every level of the organisation is engaged and incentivised towards achieving sustainability targets. 

Interested in continuing the conversation? We will be convening leaders in tackling scope 3 emissions in Washington DC (December 3rd-4th) for the Scope 3 Innovation Forum. Hear how leading brands such as Mars, Microsoft, Ulta Beauty, Johnson & Johnson are working to achieve net zero and hear practical guidance from Science-Based Targets initiative, E3G and more. Click here for more information on how to get involved.