Supply chain managers face enormous pressures to minimize their carbon footprint amid growing climate concerns. However, many companies still struggle to exercise control over Scope 3 emissions. This hurdle is one that is experienced by both sides of the production ecosystem, impacting buyers as well as suppliers.
Scope 3 Compliance Challenges
In addition to the difficulties of managing Scope 3 emissions from multiple parties, new regulations are drafted and published at a challenging rate.
One such example is “The Enhancement and Standardization of Climate-Related Disclosures for Investors” rule. This rule (finalized by the Securities and Exchange Commission (SEC) in March 2024) requires entities to disclose climate-related information to investors.
To remain compliant, companies must simplify emissions monitoring across their supply chain. This means that the reporting company must have clear oversight of suppliers’ carbon activities to ensure effective greenhouse gas (GHG) management.
How To Manage Supply Chain Emissions
In response to the building pressure placed on companies to address Scope 3 emissions, supplier engagement solutions, like EcoVadis, have been introduced to assist organizations with their decarbonization efforts.
Benefits of the EcoVadis Carbon Action Manager
The key benefits include:
- Risk mapping for informed supplier prioritization and engagement
- Independently reviewed primary data for objective insights
- Capability-building tools for improved supplier impact
- Purpose-built reporting to enhance Scope 3 disclosure
EcoVadis equips companies with the tools to engage with suppliers at scale while staying on track to meet their climate action commitments. Some features of this platform that aid GHG management include:
- Carbon Heatmap
- Carbon Rating
- Carbon Calculator
- Sustainability Metrics
- Product Carbon Footprint (PCF) Data Exchange
- E-Learning Hub
- Carbon Dashboard
Sustainability concerns will continue to be a consideration for supply chain practices, and companies must remain responsive to ensure they meet regulatory requirements. This active pursuit of more sustainable supply chain practices enhances the global push toward environmental preservation.
Final Thoughts
GHG management of the entire supply chain is a complex issue that requires improved monitoring and reporting. Companies can use tools, like the EcoVadis Carbon Action Manager, to meet their climate action commitments.
