Sustainability is now a commercial expectation for businesses of all sizes. One of the clearest signs of this shift is the growing trend of large corporations demanding carbon reporting and climate commitments from their supply chains.
Why does this matter for businesses?
There were 24,800 companies that completed the CDP disclosure in 2024. Recent data from the CDP Supply Chain Program 2024 shows that companies accounting for two-thirds of the global market now require their suppliers to disclose emissions, including major names such as Unilever, AstraZeneca, Microsoft and Tesco.
These organisations understand that their carbon footprint extends far beyond their direct operations. For most large companies, Scope 3 emissions (those from suppliers, products, and wider value chain sources) make up the majority of their total carbon output. To ensure suppliers are actively taking steps to reduce their greenhouse gas (GHG) emissions supporting broader Net Zero goals, large organisations are now commonly expecting suppliers to:
- Disclose their Scope 1, 2 and 3 emissions
- Promote transparency by disclosing ESG metrics through the Carbon Disclosure Project (CDP)
- Align with Supplier Codes of Conduct
- Set environmental targets and annually track sustainability KPIs
- Adhere to corporate ESG-related goals
How can suppliers respond
For suppliers, the message is clear: start measuring and managing your carbon emissions. This can be achieved through a carbon footprint assessment (CFA), by identifying emissions sources and establishing a baseline for future action. A CFA provides the insights required to develop and execute a carbon reduction plan (CRP) to meet supply chain expectations. As supplier sustainability maturity improves, alignment with frameworks such as the SBTi or CDP can provide further benefits and reassurance to the wider value chain.
Measuring greenhouse gas emissions can be complex and demanding, often presenting a challenge for suppliers. However, for those working with or aiming to work with large corporations, it’s a challenge that can no longer be avoided. Working with carbon accounting experts can help simplify the process, ensure accuracy and turn emissions data into clear, actionable insights.
McGrady Clarke supports suppliers in navigating these emerging demands. We help organisations by streamlining data collection, conducting complex emissions calculations and producing reports that demonstrate progress towards their sustainability goals.
Start measuring your carbon emissions today to understand your organisation’s environmental impact and respond proactively to be part of the movement towards Net Zero.
Contact us today to speak with an expert.
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