Understanding Supply Chain Carbon Emissions Reporting

Why and How Companies are Tracking Their Suppliers’ Emissions

In recent years, there has been a growing concern about the impact of climate change on the environment and the global economy.

As a result, many companies are taking steps to reduce their carbon footprint and mitigate the effects of climate change. One important way that companies are achieving these goals is by tracking their suppliers’ emissions through supply chain carbon emissions reporting. This article will explain what this is, why it’s important, and how companies can implement it.

So, what is supply chain carbon emissions reporting? Carbon footprinting the supply chain is the process of identifying and assessing the greenhouse gas emissions associated with the production and transportation of goods and services throughout a company’s supply chain. This includes emissions from activities such as energy use, transportation, and materials used in the production process. By tracking these emissions, companies can gain a better understanding of their carbon footprint and take steps to reduce it.

Why is this so important? There are several reasons why supply chain reporting is important for companies, including:

  1. Environmental Responsibility: Many companies are committed to reducing their carbon footprint and mitigating climate change, and tracking suppliers’ emissions is one way to achieve these goals.

  2. Risk Management: Companies may be concerned about the risks associated with climate change, including the potential for supply chain disruptions or reputational damage, and tracking suppliers’ emissions can help them identify and mitigate these risks.

  3. Regulatory Compliance: In some instances companies may be required to report on their supply chain emissions or take steps to reduce their carbon footprint, and tracking suppliers’ emissions can help them comply with these regulations.

  4. Customer Demand: Consumers and other stakeholders are increasingly concerned about the environmental impact of the products and services they buy, and companies may be tracking their suppliers’ emissions in response to customer demand for more sustainable products and practices.

How can companies implement supply chain emissions reporting? There are a number of steps that companies can take, including:

  1. Set Goals: Companies should start by setting clear goals for their carbon reduction efforts, including specific targets for reducing emissions within their supply chain.

  2. Identify Suppliers: Companies can identify their suppliers and work with them to collect data on their emissions.

  3. Collect Data: Companies can collect data on their suppliers’ emissions through surveys, third-party assessments, carbon accounting tools, and product-level assessments.

  4. Analyse Data: Once the data has been collected, companies can have it analysed to identify hotspots of emissions and prioritise areas for improvement.

  5. Take Action: Companies should collaborate with their suppliers to implement strategies to reduce emissions, such as optimising transportation routes, using more sustainable materials, and improving energy efficiency.

  6. Monitor Progress: Companies need to regularly monitor their progress towards their carbon reduction goals and adjust their strategies accordingly.

Supply chain carbon emissions reporting is a critical tool for companies that are committed to reducing their carbon footprint and mitigating the effects of climate change. By tracking their suppliers’ emissions and taking steps to reduce them, companies can achieve their sustainability goals, reduce risks, comply with regulations, and meet the growing demand for more sustainable products and practices. With careful planning and implementation, supply chain reporting can be an effective way for companies to make a positive impact on the environment and the global economy.

To find out how your business can implement a successful supply chain emissions programme contact us at gozero@neutralcarbonzone.com

Alan Stenson, CEO

Neutral Carbon Zone