Supplier Engagement in Action: Examples from Denmark on Scope 3 Reductions

Decarbonizing the value chain is essential for companies to reach science-based targets and deliver on the Paris Agreement. Given that upstream scope 3 emissions on average are more than 11 times higher than a company’s operational emissions, supplier engagement stands as a critical avenue for reaching net zero. However, supplier engagement represents relatively new territory for many companies.

In November 2022 UN Global Compact Network Denmark, in collaboration with BSR, made a ‘call for cases’ to gather good examples of how to engage suppliers in climate targets.

The report Supplier Engagement in Action: Examples from Denmark on Scope 3 Reductions was launched in April 2023. It presents eight cases, aiming to inspire and motivate other companies to work with their suppliers to set science-based targets and reduce emissions to endeavour towards a 1.5°C-aligned future.

The cases provide a diversity of examples differing in industries, supply chains, company sizes, and maturities – so as to both showcase the breadth and applicability of different approaches, but also to identify common themes which can guide the development of all supplier engagement.

The eight cases in the report prove that there is no “perfect recipe” for supplier engagement and scope 3 emissions reduction, and each company must create its own strategy.

There are, however, common actions from companies within the report:

• Integrate climate considerations into procurement.
• Top-down support and internal buy-in.
• Segmenting scope 3 emissions and suppliers.
• Continuous dialogue, cultural understanding, and supplier support.
• Tracking progress through best-available climate data.
• Partnerships for decarbonization challenges.