Join the Supplier Cascade early adopters taking control of scope 3 emissions
Jenny Ahlen, Managing Director, Net Zero, We Mean Business Coalition
A multinational’s supply chain can be multi-tiered, span dozens of countries and include thousands of companies of all sizes – many far from a company’s direct control. It can be challenging, labor-intensive and costly for companies to get a handle on their scope 3 emissions, understand how to address them, and actually implement strategies to begin reducing them.
Yet they are key focus areas for any company serious about reducing its carbon footprint and taking a leading role on climate change, with value chain emissions accounting for 90% or more of total emissions in some companies and sectors.
Supplier engagement is also a matter of building resilience and securing future profits in a world where climate-related disruption – in the form of floods, hurricanes, drought and extreme heat – is already a reality, and where investors and customers want to understand how businesses are preparing.
A cascade of action
One year ago the We Mean Business Coalition in partnership with BSR, CDP, Ceres, Environmental Defense Fund, Exponential Roadmap Initiative and SME Climate Hub, and in collaboration with the Science Based Targets initiative, launched the Supplier Cascade.
The Supplier Cascade is a practical, action-oriented way for businesses to address scope 3 emissions by focusing on an area that is within their direct control – their relationship with their tier 1 suppliers.
The approach means that companies do not need to wait until they have perfect accounting of their value chain emissions before taking action to reduce them.
Instead organizations create tangible climate action by asking their tier 1 suppliers to set a credible emissions target aligned with science, publicly report their progress against targets, and cascade the approach to their own tier 1 suppliers and beyond.
With our partners we have been working with a group of companies to pilot the Supplier Cascade approach.
Our early adopters are already in the process of reaching out to their suppliers and kickstarting a cascade of action in their supply chains. Together they represent over $30 billion in supplier spend.
Over the coming months we will continue to road test Supplier Cascade, gathering feedback, sharing learnings and providing guidance to address common challenges.
And we are inviting more companies to join us so that we can gather as many learnings as possible from across sectors and company sizes – and cascade climate action far and wide through global supply chains.
Putting momentum before perfection
The aim of the Supplier Cascade approach is to accelerate action where it is sorely needed.
Only 39% of businesses reporting to CDP have engaged with their suppliers on decarbonization. And just 0.04% of companies require their suppliers to set a science-based emissions reduction target.
With time ticking to drastically cut emissions and keep 1.5°C alive, we cannot let perfection be the enemy of momentum.
The Supplier Cascade approach makes starting to tackle scope 3 emissions straightforward for every business, regardless of its size or sector.
Companies do not need exact data from their entire supply chain before getting started; instead, they can start engaging with their tier 1 suppliers now and refine areas to focus on, as needed, when more accurate data is available. The approach also does not require detailed technical knowledge, meaning it is more straightforward for buyers and procurement teams to implement.
In addition businesses have flexibility on how they choose to engage their suppliers to set targets. This could range from favorable contract terms or support to develop renewable energy Power Purchase Agreements (PPAs), to measures such as levying an external carbon price on contracts or contract nonrenewal.
And Supplier Cascade is a clearer and more efficient ask for tier 1 suppliers, who can give all their customers the same information and only need to do one thing, saving them time and money.
Take control of scope 3 emissions – join the early adopters
Today we are reopening the doors to the Supplier Cascade and inviting new companies to join us.
There are compelling reasons to get started now on tackling scope 3.
If your company is looking for a practical, flexible, action-oriented and measurable way to reduce supply chain emissions, join the Supplier Cascade today as an early adopter.
Your company will become part of a group of leading businesses implementing this new approach to achieving widespread impact throughout the supply chain.
To register your interest please complete our sign-up form and a member of our team will be in touch soon.