ESG quick play: Supply chain emissions – The hidden impact of your carbon footprint
In this video, we uncover the hidden impact of supply chain emissions and explain why addressing them is crucial for any credible decarbonisation strategy and net-zero journey. While many organisations focus on direct emissions, Scope 3 emissions — those across the value chain — can account for over 90% of total greenhouse gases. Measuring them is complex, but essential for true climate action. We break down common calculation methods, key challenges in supplier data collection, and how collaboration between buyers and suppliers can unlock real emissions reduction. At Nexio Projects, we help companies measure, manage, and reduce their supply chain emissions through tailored strategies and stakeholder engagement.
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Welcome to Nexio Projects.
In this video, we uncover the hidden impact of supply chain emissions and show why tackling them is essential for achieving net-zero ambitions.
Most companies only see a fraction of their true carbon footprint. Emissions within supply chains, known as Scope 3 emissions, can represent more than 90% of a company’s total greenhouse gas emissions. Yet, in most cases, they remain hidden within business operations.
Measuring Scope 3 emissions is tough because the data comes from many fragmented sources. Suppliers operate across multiple tiers, and reporting standards are not always consistent.
Common methods companies use include:
Spend-based approaches, which rely on estimates. These are quick but less precise.
Activity-based calculations, which rely on accurate consumption data and provide better accuracy.
Supplier-specific data, which offers the greatest precision but can be quite resource-intensive to collect.
Many companies face barriers such as unreliable supplier data, limited resources, and complex supply chains. These challenges make accurate emissions accounting even more difficult, as we have discussed previously.
However, when buyers and suppliers collaborate closely, they can overcome these challenges and multiply their emissions reduction efforts.
Effective decarbonization means focusing on the suppliers responsible for the largest share of your emissions, improving data quality over time, engaging suppliers through training or incentive programmes, and making sustainability part of procurement and risk management.
Real progress happens when these efforts form part of a broader sustainability strategy with clear targets, strong governance, and meaningful stakeholder engagement.
At Nexio Projects, we provide expert guidance on supply chain carbon measurement and decarbonization roadmaps.
If you are interested in speaking with one of our experts, contact us through the contact button on our website. And make sure to read the full article below.
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