Embedding net zero strategies across your supply chain is no longer optional—it’s essential for climate leadership and long-term value creation. With Scope 3 emissions often accounting for over 80% of a company’s carbon footprint, decarbonizing your supply network has become the next frontier in ESG action.
But how do you go from setting net-zero targets to delivering real, measurable results?
Through real-world case studies, emerging technologies, and proven frameworks, we’ll explore how companies are embedding net zero into their supply chains—and how you can follow their lead.
Map Emissions Hotspots and Prioritize Supplier Engagement
The first step is clarity. Companies must identify where emissions occur across their supply chains. This requires emissions mapping and segmentation of suppliers by carbon intensity and potential impact.
According to the SSRN paper From Commitment to Action, top-performing firms use digital tools to pinpoint suppliers who contribute most to emissions. Mercedes-Benz, for example, partnered with Sphera to conduct detailed life cycle assessments that identify emissions hotspots and guide mitigation strategies.
This targeted approach allows companies to focus resources where they can make the greatest difference.
Empower Suppliers with Tools, Training, and Incentives
Engaging suppliers isn’t just about asking for data—it’s about providing the means for them to act. Many suppliers, especially SMEs, lack the knowledge or financing to implement decarbonization measures on their own.
EY’s Insight Report emphasizes the value of supplier enablement. Leading firms provide suppliers with carbon calculators, access to green financing, and preferential contracts based on emissions performance.
For example, PepsiCo, whose Scope 3 emissions account for 94% of its total, offers support through regenerative agriculture training and supplier engagement programs backed by a $2.25 billion green bond.
Build Net Zero Procurement into Core Operations
To embed net zero strategies at scale, procurement must evolve. Companies like AstraZeneca, featured in SBTi’s net-zero case studies, integrate science-based emissions targets directly into procurement scorecards and decision-making.
This shift in procurement culture is echoed in PwC UK’s Net Zero Transformation guide, which outlines how to revise RFPs, require supplier ESG metrics, and embed sustainability into contractual obligations.
When carbon impact becomes a procurement KPI, sustainability becomes a shared goal across the value chain.
Leverage Technology for Carbon Tracking and Transparency
Digital transformation is a critical enabler. Companies are increasingly adopting AI, IoT, and blockchain to track carbon footprints in real time, increase transparency, and automate sustainability reporting.
Tools like Emitwise help organizations model emissions across complex supply chains. OpenSC, a blockchain-based traceability platform piloted by Nestlé, validates supply chain claims and reduces greenwashing risks.
Meanwhile, platforms like Aklimate and WBCSD’s Pathfinder provide robust frameworks for product-level emissions tracking.
These technologies empower companies to act decisively and hold suppliers accountable.
Strengthen Governance and Align Leadership
Technology and procurement must be backed by strong governance. As the EY report stresses, successful companies embed climate goals into leadership incentives, risk management, and internal accountability.
IKEA, for instance, aims to halve its emissions by 2030 and reach net zero by 2050. It’s doing so by aligning every department—from sourcing to logistics—under a unified climate strategy (Supply Chain Digital).
Cross-functional climate committees, board-level ESG oversight, and supplier partnerships are all part of the governance toolkit that drives real transformation.
Innovate with Market-Based Mechanisms and Financial Tools
Beyond internal change, companies are using external levers to scale their impact. A recent ScienceDirect study highlights new market-based approaches such as carbon tokens and climate-linked supplier finance.
The Net Zero Action Accelerator details how sustainable supply chain finance programs can help suppliers invest in renewables and energy efficiency.
Some firms tie supplier interest rates or payment terms to sustainability KPIs. Others, like Marks & Spencer, invest directly in climate-smart supply chain solutions—such as methane-reducing cow diets to cut 11,000 tonnes of emissions annually.
Celebrate Progress, Report Transparently, and Build Trust
Transparency builds momentum. Leading companies regularly report their progress through CDP, GRI, or TCFD frameworks. They share roadmaps, metrics, and lessons learned with suppliers and stakeholders.
General Mills reduced Scope 3 emissions by 7% and Scope 1 and 2 by 12%, focusing on regenerative agriculture and supplier partnerships (TIME).
These efforts not only boost climate performance but also strengthen brand reputation and stakeholder trust.
Real-World Successes and the Power of Innovation
Let’s take a final look at some standout initiatives:
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AstraZeneca: Science-based target adoption
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Mercedes-Benz: Lifecycle-based supply chain decarbonization
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Emitwise & OpenSC: AI and blockchain for transparency | OpenSC Wikipedia
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Marks & Spencer: Methane reduction through dairy innovation
These are not isolated examples—they are part of a growing movement toward sustainable, responsible, and net-zero value chains.
Ready to Take the Next Step?
Embedding net zero strategies across your supply chain is a journey—but it begins with the right knowledge and tools. If you’re serious about decarbonizing your operations and influencing your value chain, now is the time to act.
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