Flowing blue lines, symbolising the dynamic and continuous process of navigating decarbonisation in line with SBTi's guide on Scope 3 emissions

The latest guidance release from the Science Based Targets initiative (SBTi) offers valuable insights for navigating the complexities of decarbonisation.

In this article, we explore the “Engaging Supply Chains on the Decarbonisation Journey” guide by the Science Based Targets initiative (SBTi). Our aim is to offer valuable insights into its successful implementation and the support we can provide.


SBTi’s Role and the Genesis of the Guide

The SBTi, a joint initiative backed by the World Wide Fund for Nature (WWF), plays a crucial role in guiding companies towards setting emissions reduction targets that align with the latest climate science. SBTi’s primary goal is to encourage businesses worldwide to halve their emissions by 2030 and achieve net-zero emissions by 2050, aligning their operations with global climate objectives.

The SBTi has devised a comprehensive guide focusing on Scope 3 emissions, often the most considerable part of a company’s carbon emissions, predominantly coming from supply chains. The guide is designed for companies considering or already on their path to SBTi Scope 3 supplier engagement targets and those exploring different supplier engagement strategies to reduce their Scope 3 emissions.


Breaking Down the Guide

The guide, created by SBTi, breaks down the supplier engagement journey into five distinct stages:

      1. Selecting the Right Suppliers for Your Target: This section emphasises calculating your Scope 3 emissions, determining the suitability of a supplier engagement target for your business, and identifying which suppliers to include in your target.
      2. Gaining Internal Buy-In: The guide underscores the process of identifying relevant internal stakeholders and the factors to consider while seeking internal approval.
      3. Implementing the Target: This part of the guide outlines the team’s roles and responsibilities, explains supplier expectations, provides guidance on communication strategies with suppliers, suggests useful resources for suppliers, and helps you select a suitable data collection solution.
      4. Facilitating and Monitoring Supplier Performance: This section is dedicated to strengthening supplier capacity, monitoring supplier performance, suggesting incentives for suppliers, reviewing supplier science-based targets, and fine-tuning the supplier engagement program.
      5. Supervising and Reporting on Target Progress: The final stage involves tracking the progress of engagement targets and regularly updating the supplier list.

In addition to the journey stages, the guide also provides additional resources on climate/GHG introduction, GHG inventory, science-based targets, Scope 3 emissions reductions, and supplier engagement.

Multiple ships docked at a port, illustrating the significant global scale and collaborative efforts required to navigate decarbonisation, as guided by SBTi's recommendations on Scope 3 emissions


How We Can Help

Implementing SBTi’s guidelines, especially with the complexity of Scope 3 emissions, can be a challenging task. That’s where the expertise of McGrady Clarke comes in. We are prepared to guide your company through the intricacies of setting and achieving supplier engagement targets.

Our support covers every stage of the process, from setting science-based targets to tracking progress and reporting results. Our team of experts will collaborate with your business to understand the unique characteristics of your supply chain, identify critical impact areas, and devise a custom strategy that aligns with SBTi’s rigorous criteria.

At McGrady Clarke, our support extends beyond the initial implementation. We are committed to helping your company track progress, ensure ongoing improvements, and adapt to changing business and environmental conditions.

With McGrady Clarke’s guidance, your journey towards decarbonisation and sustainability can become a strategic advantage, enhancing operational efficiency and promoting resilience in an increasingly climate-conscious business environment. We help your organisation work towards not only environmental regulation compliance but also gaining a competitive edge in your respective industry.

By implementing the SBTi’s guidelines and monitoring Scope 3 emissions, your company can demonstrate its commitment to sustainability. This, in turn, can enhance your reputation among stakeholders, including investors, customers, and employees. In a world where sustainability is increasingly valued, this can be a significant benefit.

Moreover, the process of decarbonisation can lead to improved operational efficiency. By examining your supply chain in detail, you can identify areas for potential improvement that may not have been apparent before. This could include optimising logistics, reducing waste, or collaborating more closely with suppliers to develop more sustainable processes. Such measures can lead to cost savings and make your operations more resilient in the face of potential future shocks, such as increasing energy prices or stricter environmental regulations.

McGrady Clarke’s support doesn’t end with the implementation of your supplier engagement targets. We also offer ongoing services to ensure that your decarbonisation efforts remain on track and continue to evolve with your business needs and the latest scientific understanding. This includes regular reviews of your targets and strategies, as well as support in communicating your progress to stakeholders.

With McGrady Clarke as your partner in decarbonisation, you can navigate the complexities of Scope 3 emissions and turn sustainability from a challenge into a strategic advantage. We guide your organisation towards achieving not only compliance with environmental regulations but also a competitive edge in your respective industry. Contact our experts today to learn how we can support your organisation.