Corporate giants face increasing pressure to address the environmental impact of their operations, particularly concerning emissions generated in supply chains. For many companies, 70% of their total greenhouse gas emissions come from what are known as Scope 3 emissions, which include those arising from purchased goods and the use of products sold. This discrepancy poses a significant challenge in achieving credible sustainability goals.

To tackle these complex emissions, the Science Based Targets initiative (SBTi) proposes a shift in perspective. Their recent paper suggests that companies should focus not just on reporting aggregate Scope 3 emissions but also on developing new metrics that align procurement strategies and revenue generation with global climate targets. By actively measuring how spending is directed towards suppliers maintaining low emissions, firms can better integrate sustainability into their core operations.

Holger Hoffmann-Riem, from the Swiss non-profit Go for Impact, emphasizes the necessity for suppliers to promptly reduce their emissions. “The real challenge is ensuring that all suppliers are taking meaningful action towards decarbonization,” he notes.

Furthermore, scientists acknowledge a gap in the guidance available for corporate action. The SBTi highlights that climate science may not always provide clear answers on how companies should address emissions effectively, suggesting a need for enhanced metrics that go beyond current standards. For instance, benchmarks could specify required sales percentages of sustainable products, offering more tangible goals for manufacturers.

In conclusion, adopting a more nuanced approach to measuring emissions offers a promising pathway for large businesses. This strategy not only improves transparency but also drives real impact in the transition toward sustainable practices. Addressing Scope 3 emissions represents both a challenge and an opportunity for companies to showcase leadership in environmental accountability.