Decarbonizing Supply Chains: A Scope 3 Playbook for India

The document outlines a five-step playbook for Indian companies to decarbonize their supply chains, addressing the specific challenges of the Indian market such as fragmented supply chains and data gaps. It emphasizes the role of procurement in managing upstream emissions and proposes ten key imperatives for the Indian government to enable this transition through policy, finance, and infrastructure support.

• Indian companies exhibit a significant gap in reporting and targeting Scope 3 emissions; only 31% of Indian companies reporting to the Carbon Disclosure Project (CDP) include Scope 3 emissions, and only 22% of those reporting emissions data have set Scope 3 targets compliant with the Science Based Targets initiative (SBTi).
• The report identifies several systemic challenges to Scope 3 reduction in India, including fragmented supply chains involving many small and medium-sized enterprises (SMEs) that lack the capacity to report data, a lack of uniform reporting standards, and a tendency for some companies to rely on carbon offsets rather than absolute emission reductions.
• The proposed five-step framework for Scope 3 reduction consists of: creating a baseline and data strategy, setting science-based and business targets, developing upstream and downstream carbon reduction strategies, defining organizational enablers, and building a roadmap and business case.
• Procurement functions are critical to decarbonization as they primarily manage Scope 3 categories 1-4: purchased goods and services, capital goods, fuel- and energy-related activities, and upstream transportation and distribution.
• The report suggests a 'customer-back' approach to reduction strategies, incorporating supplier engagement, operational design, circularity (minimizing waste and maximizing material use), and portfolio evaluation to identify high-impact areas.
• Organizational enablers necessary for successful implementation include senior leadership buy-in for governance, the adoption of carbon accounting software for technology enablement, and the appointment of a chief sustainability officer (CSO).
• The document outlines ten imperatives for the Indian government to support the Scope 3 transition, including establishing carbon pricing mechanisms, providing financial incentives like grants or subsidies for decarbonization, and exercising public procurement leadership by favoring low-carbon products.
• India's national climate goals, termed 'Panchamrit', include achieving net zero emissions by 2070 and four 2030 milestones: meeting 50% of energy requirements with renewable energy, reaching 500 GW non-fossil energy capacity, reducing 1 billion tonnes of projected CO2 emissions, and reducing carbon intensity by 45% over 2005 levels.

APA

World Economic Forum (2024). Decarbonizing Supply Chains: A Scope 3 Playbook for India. https://www3.weforum.org/docs/WEF_Decarbonizing_Supply_Chains_2024.pdf

Chicago

World Economic Forum. Decarbonizing Supply Chains: A Scope 3 Playbook for India. 2024. https://www3.weforum.org/docs/WEF_Decarbonizing_Supply_Chains_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Decarbonizing Supply Chains: A Scope 3 Playbook for India |date=January 2024 |url=https://www3.weforum.org/docs/WEF_Decarbonizing_Supply_Chains_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024decarbonizing, author = {{World Economic Forum}}, title = {{Decarbonizing Supply Chains: A Scope 3 Playbook for India}}, institution = {World Economic Forum}, year = {2024}, month = jan, url = {https://www3.weforum.org/docs/WEF_Decarbonizing_Supply_Chains_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }