Engaging Supply chains on Decarbonisation

In June 2023, the Science Based Targets initiative (SBTi) released a guide titled "Engaging supply chains on the decarbonisation journey: A guide to developing and achieving scope 3 supplier engagement targets." The guide provides a roadmap for companies to manage their scope 3 emissions, which include indirect greenhouse gas emissions from suppliers and customers. It emphasizes setting supplier engagement targets, identifying key suppliers with significant carbon impacts, building internal business cases, securing cross-departmental buy-in, and fostering collaboration with suppliers for knowledge sharing and capacity building. The guide outlines steps for effectively tracking supplier progress, reducing emissions, and meeting global sustainability goals. This approach enables companies to not only reduce their carbon footprint but also create stronger supply chain relationships, improve operational efficiency, and meet stakeholder expectations. Given India's focus on sustainability, it also aligns well with SEBI's BRSR mandate on scope 3 emission reporting and broader environmental goals.

SBTi Article.

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