Action Type
Quick Wins
Use bonus-malus tool to integrate ESG in supplier tenders
BASF further integrated ESG criteria into its procurement process with BonusMalus tool to provide up to 5.5% bonus or malus to suppliers’ tenders in bidding process, based on ESG performance.
BASF
Map suppliers’ ESG progress on Scope 3 with maturity levels
Klöckner Pentaplast engaged their top 50 suppliers, classifying them into four different maturity levels, to reduce Scope 3 emissions.
Klöckner Pentaplast
Engage suppliers on Scope 3 with custom workshops
PMI’s Sustainability Accelerator is a program designed to increase supplier capabilities and performance across the value chain by sharing PMI’s sustainability learnings with its suppliers.
Philip Morris International
Reduce carbon footprint in packaging coatings value chain
Carbon reduction plan for coatings value chain, incl. process efficiency, circular solutions, solvent reduction, and water-based materials, led to 9% Scope 3 CO2e reduction in 2023 vs 2018 baseline.
AkzoNobel
Integrate carbon pricing in supplier tenders
A program to incentivize decarbonization, baselining, drive low carbon supplier selection while educating procurement teams by building carbon pricing into procurement tenders.
Haleon
Apply 3-phase program for global supplier decarbonization
The Zero Carbon Project’s 3-phase program uses digital solutions, active engagement, and agile governance to reduce GHG emission intensity by 38% across 1,000 suppliers, aiming for 50% by 2025
Schneider Electric
Engage SME suppliers and customers
Reduce Scope 3 emissions and drive a just transition by helping suppliers and customers commit to net zero. Use the SME Climate Hub to support them in measuring, reducing, and reporting emissions.
SME Climate Hub
Optimize solvent recycling and recovery
Solvent recovery and recycling initiative significantly reduces carbon emissions and promotes sustainable processes in pharmaceutical manufacturing.
Measure and reduce Scope 3.1 purchasing emissions
Use AI to calculate and measure primary emissions data from suppliers and assess the type of engagement required to assist them in decarbonizing hotspots.
CBRE
Enable Scope 3 data transparency
T-Systems leverages The Climate Choice's intelligence platform to automate Scope 3 data collection and analysis, enabling transparency and targeted supplier engagement
T-Systems
Embed decarbonization requirements in procurement
Decarbonize procurement by defining requirements tailored to: supplier context, timing in negotiation, desired inputs/outcomes, degrees of fulfillment, rewards/penalties, and scale
BCG
Design a supplier engagement program
Develop supplier engagement plans for Scope 3 upstream decarbonization by securing buy-in, segmenting, tailoring engagement, and supporting the decarbonization journey of suppliers
BCG
Decarbonize suppliers through a collaborative approach
Decarbonize the supply chain by incentivizing suppliers and collectively building decarbonization capacity, as well as connecting them to CDP
Philips
Redesign the value chain and source strategies
To meet emissions targets and decarbonize at scale, companies need to pursue innovative business models and technologies, and transform their value chains for sustainability.
BCG
Build partnerships through alliances and co-investments
Partnerships help solve multiple supplier decarbonization challenges. When selecting partners, consider who to work with, what issues to target, and how to ensure effectiveness.
BCG
Create financial incentives for suppliers
Supplier decarbonization can be incentivized financially or non-financially. Understanding supplier context and related benefits and risks is key for implementation.
BCG
Implement circularity in value chains to reduce emissions
Circular economy approaches in the value chain address inputs, product design, production, and end-of-life activities to increase reuse and recycling of raw materials and products
BCG