With businesses facing growing societal and legislative pressure to act on climate change, procurement is assuming an increasingly important role in corporates’ environmental, social and governance strategies. Despite the scale of the challenge they face, time is running out for functions to map their Scope 3 emissions and deliver improved sustainability performance.
CPO COMPASS
Mapping the course to net-zero
While businesses are committed to reducing their Scope 3 footprint, the biggest obstacle for many is lacking a clear picture of what it looks like.
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Procurement steps up to the ESG challenge
Businesses cannot move forward into a sustainable future unless they are able to inspire progress within their supply chains. With procurement teams taking responsibility for identifying and managing their organisation’s upstream Scope 3 footprints, it is likely that the function will play a pivotal role in addressing other sustainability and environmental impacts.
65%
The percentage of CPOs that believes procurement will take on an increasing role in shaping their firms’ sustainability programme in 2023.
Securing supplier support
To deliver on ESG goals, buyers must engage with suppliers to outline the organisation’s emissions-reduction commitments and collaborate with vendors wherever necessary to ensure they take action to reduce their emissions footprint.
“It shouldn’t just be an engagement strategy: you need to be driving home that you have a commitment to an absolute reduction in emissions by a certain year, and you have to demonstrate the plan on how to approach it”
Marielle Beyer, Head of Global Procurement, Roche
Scope 3 complexities demand immediate action
Although many regulators and organisations are taking a long-term view of emissions-reduction activities, the complexity of determining, planning and successfully delivering a reduction in Scope 3 emissions requires companies to take immediate action.
23%
The proportion of respondents that said they are on track to meet their Scope 3 emissions-reduction targets, compared with 55% for Scope 1 and 2 targets.