3 ways companies can reduce their indirect emissions throughout value chains

To achieve net zero by 2050, companies must address Scope 3 emissions, which are often difficult to measure due to their distribution across the value chain. The guide recommends a three-step approach: securing stakeholder buy-in through shared values, establishing true partnerships via education and guidance, and utilizing standardized disclosure frameworks like CDP to create consistent baselines. Using Flex as a case study, the document highlights that a collaborative approach led to 29% of preferred suppliers and 48% of specified customers setting emissions reduction targets within one year.

• Reducing Scope 3 emissions is particularly complex in the manufacturing industry because it requires internal expertise and the ability to scale collaboration with suppliers, customers, and employees. Key challenges include aligning a diverse group of suppliers who are at different stages of sustainability, empowering partners to report emissions, and the resource-intensive nature of standardizing disclosure frameworks.
• Companies can successfully address Scope 3 emissions by following three strategic steps: securing stakeholder buy-in by ensuring partners view emissions reduction as a shared responsibility; acting as a facilitator and guide through education and regular support for smaller or resource-poor suppliers; and using established disclosure organizations to standardize measurement and baselines.
• The company Flex implemented these collaborative strategies, utilizing the CDP non-profit environmental impact framework and providing tools such as webinars and workshops. In 2021, this approach resulted in 29% of their preferred suppliers and 48% of specified customers establishing emissions reduction or science-based targets within the first year.

APA

Whitten, K. (2022). 3 ways companies can reduce their indirect emissions throughout value chains. World Economic Forum. https://www.weforum.org/stories/climate-action/here-s-how-companies-tackle-scope-3-emissions-value-chains/

Chicago

Whitten, Kyra. 3 ways companies can reduce their indirect emissions throughout value chains. World Economic Forum, 2022. https://www.weforum.org/stories/climate-action/here-s-how-companies-tackle-scope-3-emissions-value-chains/.

Wikipedia

{{cite report |last1=Whitten |first1=Kyra |title=3 ways companies can reduce their indirect emissions throughout value chains |publisher=World Economic Forum |date=15 September 2022 |url=https://www.weforum.org/stories/climate-action/here-s-how-companies-tackle-scope-3-emissions-value-chains/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{whitten2022ways, author = {Whitten, Kyra}, title = {{3 ways companies can reduce their indirect emissions throughout value chains}}, institution = {World Economic Forum}, year = {2022}, month = sep, url = {https://www.weforum.org/stories/climate-action/here-s-how-companies-tackle-scope-3-emissions-value-chains/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }