THE SUPPLIER CASCADE
A PRACTICAL APPROACH TO ACCELERATING SUPPLY CHAIN DECARBONIZATION
The Supplier Cascade gives businesses a manageable way to address Scope 3 emissions through Tier 1 supplier engagement. Built from best practice, it focuses on enabling action in the areas that are within a business’s control.
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. The Supplier Cascade can create a domino effect of climate action as each subsequent tier of the supply chain asks its own Tier 1 suppliers to take action.
Please join us to create tangible climate action throughout the supply chain.
Download the Supplier Cascade explainer to learn more about the approach and how it can benefit your business.
Created 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.
Businesses ask their Tier 1 suppliers to set a credible emissions target aligned with science. Businesses have complete flexibility and freedom in the way they incentivize their suppliers.
Tier 1 suppliers continue the cascade by asking their own Tier 1 suppliers (also called Tier 2 suppliers by the original business) to set a credible emissions target aligned with science.
Tier 1 suppliers who have made a credible emissions targets aligned with science report progress against their targets annually, so customers can access public primary data on emissions reductions in their supply chain.
Businesses also report annually on supplier action progress: - the number of their Tier 1 suppliers that have made a credible emissions target aligned with science, and those that have cascaded the approach.
Through publicly accessible and comparable reporting, businesses share what they are doing and encourage others to act.
The data showing supplier engagement is driving climate action
It is increasingly urgent for companies to take effective action to decarbonize and build resilience in their supply chains.
With corporate supply chain emissions on average 26 times greater than operational emissions, tackling scope 3 is critical for the growing number of companies that are working towards ambitious emissions reduction targets and net zero goals.
Our latest analysis by Jenny Ahlen, Managing Director, Net Zero, We Mean Business Coalition and Sonya Bhonsle, Director of Strategic Accounts, CDP shows that while there is work to do, companies investing time, effort and resources in working with their suppliers on decarbonization is paying off
The data showing supplier engagement is driving climate action
Reducing emissions in our upstream supply chain has a potential impact many times greater than the reduction of CO₂ emissions from Philips’ own operations, so addressing our Scope 3 emissions has a real knock-on effect – minimising our overall carbon footprint and that of our suppliers and customers. We are proactively helping our supply chain partners to decarbonise, including sharing tailored guidance and practical training. We’re also ensuring accountability through on-site visits, to help partners improve their climate maturity. The sooner every business encourages their suppliers to understand and act on their emissions, the sooner we will reach net zero together – which is why the Supplier Cascade is so essential.
Tom Scholte, Sustainability Manager for Group Sustainability, Philips
We were one of the first seven companies in the world to have our net zero targets approved by SBTi, but we know that reducing global emissions is not something that anyone can do alone. Engaging with suppliers is critical for every business – we must all work together to engage our partners and embed decarbonization across value chains. We’re urging our supply chain partners to set a clear decarbonisation plan and make it public, to mobilise employees in support of their aims, and to engage their own suppliers to cascade targets upstream too. Together, we can ensure a major knock-on positive impact for people and planet.
Robert Williams, Director of Sustainable Procurement at AstraZeneca
Q&A
Key questions about the Supplier Cascade answered
- Who is eligible to use the Supplier Cascade?
- What counts as a credible net-zero commitment?
- How do you define SMEs (i.e., small- and medium-sized enterprises)?
- What does this approach cover?
- Does this replace the need for businesses to address other aspects of their Scope 3 emissions?
- Do all suppliers need to join the Supplier Cascade?
- What is a Tier 1 supplier?
- What should be reported annually as part of the Supplier Cascade?
- Where should businesses report as part of the Supplier Cascade?
- What is required of businesses who are Early Adopters of the Supplier Cascade?
- What technical support is available for implementation of the Supplier Cascade, including helping suppliers to act?