Top 10: Scope 3 Strategies

Scope 3 emissions are now at the forefront of sustainability discussions, as organisations face mounting pressure to account for the environmental impact across their entire value chain.

These emissions, often harder to track than those directly produced by companies (Scope 1 and 2), come from activities like raw material sourcing and product disposal.

As regulations evolve, companies must act to address these emissions. Here's how businesses can approach Scope 3 emissions to create greener supply chains.

Prioritise transparency and climate strategy

At the heart of tackling Scope 3 emissions is transparency.

These emissions stem from indirect sources – both upstream and downstream in a company’s value chain – making accurate data critical. Businesses need to gather reliable information from their suppliers to pinpoint where the highest emissions occur, often in raw material production.

A practical first step is to prioritise suppliers who are open about their climate strategies and sustainability efforts.

Regular audits, third-party assessments, and collaborative platforms help ensure that the data collected is trustworthy, paving the way for informed decisions.

This transparency not only improves sustainability efforts but also helps companies meet regulatory demands, all while enhancing stakeholder confidence.

Mandate net-zero targets for suppliers

Companies hold significant sway over their suppliers, and one powerful way to use this influence is by requiring suppliers to set net-zero targets.

Organisations like NHS England and Tesco are already pushing their supply chains towards net-zero emissions. Tesco, for example, is aiming for a net-zero supply chain by 2050, offering guidance to help suppliers achieve these goals.

By making net-zero commitments mandatory, businesses can create a ripple effect. Smaller suppliers are encouraged to implement more sustainable practices, leading to an overall reduction in Scope 3 emissions.

It also sets a precedent, establishing net-zero practices as a standard across industries.

Enable a circular economy

Adopting a circular economy model is another effective strategy for cutting Scope 3 emissions. This involves extending the life of products through practices like leasing, reusing, repairing and recycling.

Not only does this reduce waste, but it also lessens the demand for new raw materials – a key driver of Scope 3 emissions.

Companies can innovate by adopting business models such as product-as-a-service, which encourages product lifecycle management and reduces the environmental footprint of their offerings.

These strategies save resources and cut costs while promoting a more sustainable way of doing business.

Encourage low-carbon travel and virtual collaboration

Employee travel, particularly for work, is another area where Scope 3 emissions can be reduced.

Offering incentives for low-carbon travel options like cycling or public transport helps cut down emissions from employee commutes. Some companies are also installing bike storage facilities or participating in programmes that promote active travel.

The shift towards remote or hybrid working models is another effective way to lower emissions. By reducing the need for regular business travel, companies can minimise their overall carbon footprint.

Virtual collaboration tools, widely adopted during the pandemic, ensure that business productivity remains high without the environmental cost of constant travel.

Invest in clean energy and emission reduction technologies

Clean energy is essential for achieving net-zero goals. The energy sector accounts for a significant portion of global emissions, and companies have the opportunity to influence the energy choices of their suppliers.

Corporate power purchase agreements (PPAs) and investments in renewable energy projects are ways businesses can reduce their Scope 3 emissions while supporting the broader shift towards renewable energy.

Another key area is investing in technology that captures or removes greenhouse gases from the atmosphere. Innovations like direct air capture, alongside other carbon removal technologies, are becoming critical in addressing both current and future emissions.

By backing these technologies, businesses can help scale solutions that will play a vital role in achieving long-term sustainability goals.

Foster industry collaboration for greater impact

Addressing Scope 3 emissions isn’t something businesses can do in isolation. Collaboration across industries is essential to drive large-scale change.

By aligning procurement strategies and partnering with like-minded companies, businesses can share best practices and drive collective action.

Working together through industry bodies and collaborative platforms, companies can establish shared standards for sustainability.

This level of cooperation fosters transparency and accountability, enabling more effective solutions for reducing emissions across entire sectors.

Join Procurement & Supply Chain LIVE: Scope 3

The Procurement & Supply Chain LIVE: Scope 3 event, held alongside Sustainability LIVE: Net Zero on 5-6 March 2025 at the QEII Centre in London, will delve into the intersection of procurement, supply chain and sustainability.

This event will feature workshops, stages, and discussions on regulatory pressures, ethical sourcing, and the financial benefits of sustainable practices.

Attendees will have the opportunity to network with industry leaders, exchange ideas, and explore innovative solutions to enhance their sustainability efforts and compliance strategies.

Stay updated on Supply Chain Digital for more information about Procurement & Supply Chain LIVE: Scope 3 in the coming months.

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