The Future of Sustainable Supply Chains

Reaching net zero will not be possible without tackling Scope 3 emissions. These indirect emissions, which come from suppliers and downstream partners, account for more than 70 percent of a company’s total footprint in most industries, according to CDP. Yet they are also the hardest to track and reduce.

Supply chains are the final frontier in climate action. While companies have made progress on energy use and direct emissions, Scope 3 remains a black box. A report from Capgemini and CDP claims that despite making up the largest share of corporate emissions, Scope 3 remains widely unaddressed. According to CDP, European companies are only targeting 37 percent of their Scope 3 emissions with decarbonization measures, leaving the majority of value chain emissions unmanaged. This lack of action is especially concerning given that Scope 3 often accounts for over 90 percent of total emissions in many sectors. Without meaningful engagement of suppliers, companies risk missing their climate targets and falling short of emerging regulatory standards.

However, this is changing now. New policies, stakeholder demands, and competitive pressures are making supplier engagement not just important but essential.

Scope 3 emissions cover everything from raw material extraction to third-party transport. They span hundreds or thousands of suppliers, each with different capabilities and data maturity levels. Many companies still rely on spend-based estimations and average emission factors, which can miss significant hotspots or mislead decision-making.

According to Verdantix, only 43 percent of firms feel confident in their ability to report Scope 3 emissions accurately, and just 8 percent use software for product carbon footprinting. Without supplier-specific data, it is impossible to comply with regulations like CSRD or CBAM or to track progress against climate targets.

Engaging suppliers is the key to unlocking Scope 3 visibility. But engagement goes beyond data requests. It requires structured onboarding, clear communication, and ongoing support.

When done well, supplier engagement enables transparency, collaboration, and shared progress. Carbmee’s platform provides a streamlined way to invite suppliers, guide them through data submission, and validate inputs with feedback loops. This approach significantly reduces time spent on follow-ups and improves data quality across the board.

High-impact decisions require accurate, detailed data. Spend-based methods can only go so far. To design low-carbon products, evaluate supplier alternatives, or comply with product-level regulations, companies need SKU-level and material-specific emissions data.

Product carbon footprints (PCFs) are the foundation. With software-based PCF creation, companies can analyze emissions by product, supplier, and component. This enables better R&D decisions and allows sourcing teams to choose lower-carbon materials or partners.

In the Verdantix study, Carbmee customers using its PCF and SCF (supply chain footprinting) modules reported time savings, improved audit outcomes, and better collaboration with product and procurement teams.

Scaling supplier engagement is not a manual task. It requires structured workflows, automation, and real-time feedback. Especially for companies with thousands of suppliers, spreadsheets and emails simply cannot keep up.

Digital platforms like Carbmee’s enable:

• Easy supplier onboarding with automated invites and reminders
• Central dashboards for tracking data completeness and quality
• Real-time carbon data visualizations across supply chain layers
• Identification of high-emission hotspots for prioritized action

According to the mentioned Verdantix study, a model manufacturing company using Carbmee saw a 345 percent ROI over three years and broke even in just four months

The goal is not just to measure emissions but to reduce them. That requires collaboration. Once supplier data is in place, companies can co-create reduction roadmaps, set shared targets, and provide tools or incentives to support change.

Supplier training, performance benchmarking, and eco-design workshops can help build a shared language around sustainability. For many suppliers, this is also a business opportunity: those who demonstrate climate performance are more likely to win contracts or gain preferred supplier status.

The old model of linear supply chains is giving way to dynamic value networks. These networks are built on transparency, shared accountability, and digital infrastructure.

In the coming years, companies that invest in supplier engagement will move ahead not only on compliance, but on innovation, risk management, and brand value. They will be able to:

• Respond faster to regulatory changes
• Prove sustainability claims with real data
• Strengthen supplier relationships and resilience
• Build low-carbon product portfolios that meet market demand

Investing in supplier engagement offers numerous benefits beyond compliance, including enhanced innovation through collaboration on sustainable solutions, reduced risk through greater supply chain transparency and resilience, and improved brand value by demonstrating a commitment to sustainability that resonates with environmentally conscious consumers. Companies can also gain a competitive advantage by developing low-carbon product portfolios that anticipate and meet evolving market demands and regulatory landscapes. The shift towards value networks emphasizes the interconnectedness and shared responsibility necessary for achieving meaningful reductions in Scope 3 emissions and building a truly sustainable future.

This article is just the starting point. Over the next few weeks, we will publish a series of supplier engagement blogs to help you take practical next steps in supplier engagement. Topics include:

• Why Supplier Carbon Scores Matter: How to assess and compare suppliers on emissions performance
• From Emails to Intelligence: Building digital workflows for Scope 3 data collection.
• Onboarding with Impact: How to bring suppliers on board and build trust from day one.
• Hotspot Analysis for Procurement: Identifying and prioritizing emission-heavy categories.
• Collaboration that Works: Co-creating action plans with suppliers to move from reporting to reduction.

Stay tuned as we break down each challenge and offer smart, simple solutions to help your teams move forward. Want to know how already? Get in touch!