Carbon neutrality is no longer a matter of if but when. The 2021 court case against Shell in Netherlands demonstrated it is no longer about ticking the boxes but taking real action. What does this mean for your supply side? Scope 3 emissions cover all indirect emissions that are incurred in the supply chain both upstream and downstream and, for many businesses, suppliers can account for between 50% to 80% of total emissions.
Having accurate information on your supply base is imperative; this creates the first key challenge, “data” capture. With potentially 1,000’s of suppliers, businesses who have not structured or enriched supplier master data with the appropriate dataset will struggle to get to grips with net zero. There are a number of third party solutions to help businesses, however unless these tools are embedded into a robust supplier on-boarding process and regular supplier review, the process itself becomes unwieldy and less meaningful.
Accompanying this data challenge, a change of perspective and approach must be applied to ensure the net zero objective can be operationalized in a meaningful way. Importantly this action must be measurable and capable of being validated by customers. Is your sustainability goal more than lip service? What changes have you made?
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