How to effectively engage your suppliers

“In today’s interconnected world, your suppliers’ risks are your risks, and engagement is no longer optional.”

Your business is only as sustainable as your supply chain. With supply chains generating 11 times more greenhouse gas emissions than direct operations, and 67% of procurement leaders now integrating ESG data systems with suppliers, the pressure to engage effectively has never been greater.

The challenge? Many organisations approach supplier engagement as a compliance exercise—sending questionnaires, collecting data, and ticking boxes. This frustrates suppliers and delivers limited results. The alternative is treating engagement as a strategic partnership that creates shared value, builds resilience, and drives genuine sustainability improvements.

This article explores why supplier engagement matters, what makes it effective, and how you can implement a programme that works for both you and your suppliers.

Why supplier engagement matters now

Supplier engagement has evolved from a nice-to-have into a business imperative for three key reasons.

Regulatory pressure is intensifying.

New due diligence legislation—including the EU’s Corporate Sustainability Due Diligence Directive, Germany’s Supply Chain Act, and France’s Duty of Vigilance Law—requires organisations to identify, prevent, and mitigate human rights and environmental risks throughout their supply chains. Compliance demands active engagement, not passive monitoring.

Supply chains drive your climate impact.

For most organisations, Scope 3 emissions from the value chain represent 60-90% of their total carbon footprint. Achieving net zero targets without engaging suppliers is impossible. You need accurate data, collaborative reduction plans, and suppliers who are on board with your climate goals.

Stakeholders expect transparency.

Investors, customers, and employees increasingly scrutinise supply chain practices. Demonstrating that you’re actively working with suppliers to improve standards builds trust and protects reputation.

The benefits for you and your suppliers

Effective supplier engagement creates value on both sides of the relationship. When done well, it’s not a burden, it’s an opportunity.

For your organisation:

• Better data quality: Engaged suppliers provide more accurate sustainability data, enabling reliable Scope 3 reporting and informed decision-making.
• Risk reduction: Proactive engagement helps you identify and address risks—from labour violations to climate disruptions—before they impact operations.
• Innovation and efficiency: Collaborative relationships often uncover opportunities to improve processes, reduce waste, and lower costs together.
• Resilience: Strong supplier relationships mean faster problem-solving and less disruption during crises.

For your suppliers:

• Capacity building: Rather than simply receiving demands, suppliers gain practical guidance and training to improve their sustainability practices.
• Competitive advantage: Suppliers who enhance their sustainability performance become more attractive to other clients in competitive markets.
• Long-term partnerships: Engagement often signals a commitment to longer-term relationships and business stability.
• Access to resources: Suppliers benefit from tools, frameworks, and expertise they might not otherwise have access to.

Practical steps to get started

Building an effective supplier engagement programme doesn’t require starting from scratch. Follow these practical steps to create a structured approach.

1. Map and prioritise your suppliers

Start by understanding who’s in your supply chain and where the greatest risks and impacts lie. Create a comprehensive supplier map that includes key information such as location, sector, spend level, and sustainability performance.

Develop a risk scoring methodology that considers:

• Sector risk: Some industries carry higher inherent ESG risks (e.g., textiles, electronics, agriculture).
• Geographic risk: Certain regions have weaker labour protections or environmental regulations.
• Impact level: Suppliers representing significant spend or critical to your operations warrant closer attention.

This prioritisation ensures you focus resources where they’ll have the greatest impact rather than trying to engage everyone at once.

2. Define clear objectives and expectations

Be specific about what you’re trying to achieve. Are you focusing on carbon reduction? Labour standards? Circular economy principles? Different objectives require different engagement approaches.

Communicate your expectations clearly to suppliers. This might include:

• Minimum ESG standards they must meet
• Data and reporting requirements
• Timeframes for improvements
• Support you’ll provide along the way

Transparency builds trust. Share your own sustainability goals and explain why supplier engagement matters to achieving them.

3. Design tailored engagement strategies

Not all suppliers need the same level of engagement. High-risk, high-impact suppliers may require intensive support including on-site visits, detailed audits, and regular check-ins. Lower-risk suppliers might simply need access to training resources and annual assessments.

Consider different engagement mechanisms:

• Training workshops: Interactive sessions on specific topics like carbon accounting, labour rights, or environmental management.
• Digital platforms: Technology solutions that streamline data collection, track progress, and facilitate communication.
• Supplier toolkits: Practical resources including questionnaires, self-assessment templates, and guidance documents.
• Collaborative initiatives: Industry partnerships or peer-learning programmes where suppliers can share best practices.

4. Build capacity, don’t just audit

Traditional approaches focus on auditing and monitoring. Whilst important, audits alone rarely drive improvement—especially for smaller suppliers with limited resources. Capacity building is essential.

Develop training programmes that are:

• Address the specific sustainability challenges your suppliers face.
• Offer multilingual content and formats that work for different learning styles.
• Focus on actionable steps suppliers can implement, not just theory.
• Track participation and assess whether training leads to performance improvements.

When suppliers understand what’s expected and how to achieve it, compliance improves dramatically.

5. Implement due diligence processes

Effective due diligence goes beyond initial assessments. Establish ongoing processes for:

• Monitoring: Regular check-ins to track progress against sustainability commitments.
• Verification: Third-party audits or certifications where appropriate.
• Remediation: Clear protocols for addressing non-compliance, including support for corrective action plans.
• Reporting: Transparent communication about supply chain performance to internal and external stakeholders.

Automation tools can significantly reduce the administrative burden of due diligence whilst improving data quality and consistency.

6. Measure and demonstrate impact

Define key performance indicators to track the effectiveness of your engagement programme. These might include:

• Percentage of suppliers meeting minimum ESG standards
• Supplier ESG score improvements over time
• Training completion rates
• Reductions in supply chain emissions or incidents
• Percentage of spend covered by sustainability assessments

Regular reporting helps demonstrate value to internal stakeholders and identifies where programme adjustments are needed.

Best practices that work

Based on experience supporting organisations across sectors, these best practices consistently deliver better engagement outcomes.

To ensure that your supplier engagement is as effective as possible we recommend that you consider the following best practices: 

• Start with key suppliers: focus on those that have the biggest impact on your business or environmental footprint. 
• Tailor your approach: different suppliers have different capacities. Small businesses may need more support than large multinationals. 
• Build long-term relationships: engagement is ongoing. Schedule regular check-ins, share progress updates, and celebrate successes together. 
• Be transparent: share your goals, challenges, and expectations openly. Transparency builds trust and accountability. 
• Track and measure progress: set KPIs for supplier engagement and monitor changes over time. Use tools to quantify impact when possible. 

A real-world example

A leading digital services provider in the banking sector needed to strengthen their Scope 3 emissions strategy. Their climate targets required engaging suppliers in decarbonisation efforts, but they lacked visibility into their supply chain’s climate readiness.

The company implemented a structured three-step engagement process:

Step 1: Survey customisation

They introduced their supply chain to the engagement programme through a customised Climate Maturity Survey designed to assess suppliers’ current sustainability practices and readiness.

Step 2: Response analysis

Survey data was combined with desk research to evaluate each supplier across five critical dimensions: Motivation, Strategy, Reporting, Ratings or Certifications, and Targets. This created detailed supplier profiles.

Step 3: Climate maturity mapping

A maturity curve visualised supplier performance across the value chain, revealing the diversity of sustainability practices and highlighting where to focus engagement efforts.

The outcome

Armed with these insights, the company tailored support based on each supplier segment’s needs. They delivered two comprehensive training sessions focused on carbon accounting practices, data sharing expectations, target establishment, and emissions reduction strategies.

The structured approach enabled the company to prioritise resources effectively, build supplier capacity systematically, and make measurable progress toward their Scope 3 reduction goals. Suppliers appreciated the practical support rather than simply receiving demands, strengthening relationships across the value chain.

Frequently asked questions

What is supplier engagement in the context of sustainability?

Supplier engagement involves collaborating with supply chain partners to align on and improve environmental, social, and governance practices—extending your sustainability impact beyond your own operations into your value chain.

How do we prioritise which suppliers to engage first?

Start by mapping your supplier base and applying risk scoring based on sector, geography, spend level, and sustainability performance. Focus initial efforts on high-risk, high-impact suppliers where engagement will deliver the greatest value.

What’s the difference between supplier engagement and supplier auditing?

Auditing is a compliance check—verifying whether suppliers meet standards. Engagement is broader and more collaborative, including capacity building, training, and partnership to drive continuous improvement. Effective programmes combine both.

How can we measure the effectiveness of supplier engagement?

Track metrics such as supplier ESG score improvements, training completion rates, reductions in supply chain emissions or incidents, percentage of spend under sustainability assessments, and supplier compliance rates. Regular dashboards help demonstrate progress.

What if suppliers don’t have the resources to improve?

This is where capacity building becomes essential. Provide training, tools, and practical guidance to help suppliers improve. Many smaller suppliers want to enhance sustainability practices but lack the knowledge or resources—targeted support addresses this gap.

How do we balance engagement with regulatory compliance requirements?

Design your engagement programme to meet regulatory requirements whilst adding value beyond compliance. Structured due diligence processes, clear documentation, and robust monitoring satisfy legal obligations whilst building stronger supplier relationships.

Where should we start if we’re new to supplier engagement?

Begin with a supplier risk assessment to understand your landscape and priorities. Identify 5-10 key suppliers for a pilot programme. Test your engagement approach, learn what works, and then scale to broader supplier groups based on those insights.

Taking the next step

Supplier engagement done well transforms your supply chain from a source of risk into a source of competitive advantage. It requires investment in time, resources, and relationships but the returns are substantial.

Whether you’re starting from scratch or enhancing an existing programme, focus on building genuine partnerships. Provide clarity about expectations, support suppliers with practical capacity building, leverage technology to streamline processes, and measure progress rigorously.

The organisations succeeding with supplier engagement aren’t those with the biggest budgets or the most sophisticated systems. They’re the ones that treat suppliers as partners in a shared sustainability journey.

Download our factsheet on data collection throughout the supply chain, featuring perspectives from both buyers and suppliers with specialised tips for each scenario.

Ready to strengthen your supplier engagement strategy? Get in touch to discuss how to build an effective programme for your organisation.

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