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Supplier Engagement for Resilient Supply Chains

To thrive in a world of growing disruptions, companies need resilient supply chains. And it starts with supplier engagement. We’ve distilled common questions and real-world insights from companies of all sizes into seven practical tips for engaging with suppliers on climate.

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Supplier Engagement for Resilient Supply Chains

Getting the Most out of Supplier Engagement

Corporate supply chains are only as resilient as their suppliers. For any company focused on managing risk in a warming world, it is essential to ensure that suppliers are also becoming resilient, future-proofed businesses. But where should companies begin?

Whether you’re just starting or scaling up your approach, new guidance Building Resilient Supply Chains: Getting the Most out of Supplier Engagement, will help you build stronger, more future-proofed supply chains.

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Getting the Most out of Supplier Engagement

Why Supplier Engagement Matters

Right now, many companies are missing a critical opportunity to strengthen resilience and accelerate climate progress across their value chain.

  • Only 41% of companies reporting to CDP in 2023 said they are engaging suppliers on climate.
  • Only 17% of polled SMEs have received decarbonization requests from corporate buyers, suggesting that even minimal engagement could provide the push they need to take action.
  • Suppliers are 3.2x more likely to set a science-based target if climate change is featured in supplier award schemes.
  • 193M tonnes of CO₂e could be avoided if all emissions reduction project ideas submitted to buyers by 5,500+ suppliers in the CDP Supply Chain program were implemented.
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Why Supplier Engagement Matters

Seven Tips for Effective Supplier Engagement

There’s no one-size-fits-all approach to supplier engagement. But companies can accelerate progress by focusing on what works:

Build a cross-functional dream team

Have clear, measurable objectives for your supplier engagement efforts

Ask your suppliers to set targets

Use available tools and data

Prioritize suppliers by potential impact and readiness

Find the right incentives

Be prepared

Companies taking action

Albertons has committed to having 63% of its purchased goods and services suppliers by emissions set science-based targets by 2026.

Through its Zero Carbon Project, Schneider Electric is aiming for 50% operational GHG reduction by top 1,000 suppliers in five years.

Philips set a target for 50% of its suppliers to commit to science-based targets for CO2 emissions reduction by 2025.

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