Supply Chain Emissions
The greenhouse gas emissions embedded in an organisation's purchased goods, services, and materials — typically the largest source of corporate emissions, reported primarily under Scope 3 Category 1.
What is Supply Chain Emissions?
Supply chain emissions encompass the greenhouse gases produced throughout the upstream production processes of everything an organisation purchases. For most companies, these emissions dwarf their own operational (Scope 1 and 2) footprint — often by a factor of 5 to 10 times.
Calculating supply chain emissions requires mapping procurement activities to emission factors. The three main approaches, in order of increasing accuracy, are: spend-based (applying kgCO₂e/£ factors to procurement spend), activity-based (using physical quantities like kg or kWh with specific emission factors), and supplier-specific (using emissions data provided directly by suppliers for the goods purchased).
Reducing supply chain emissions requires a multi-pronged approach: procurement policy changes (switching to lower-carbon alternatives), supplier engagement (working with existing suppliers to reduce their emissions), supplier selection (preferring suppliers with strong climate commitments), and demand reduction (purchasing less overall).
Leading organisations are setting Scope 3 targets through SBTi and engaging suppliers through programmes like CDP Supply Chain. The CSRD also requires reporting on upstream value chain emissions, making supply chain data increasingly critical.
Practical Examples
A retailer maps its supply chain emissions using spend-based factors, discovering that imported textiles and food products account for 65% of its total Scope 3 footprint.
A construction company engages its top 20 material suppliers (representing 80% of procurement emissions) to provide product-specific carbon data, improving data quality from spend-based estimates.
A technology company sets a supplier engagement target requiring its highest-emitting suppliers to set their own Science Based Targets within two years.
How Climatise Helps
Climatise makes supply chain emissions calculation straightforward. Upload your procurement ledger and the platform automatically categorises spend, applies the most appropriate emission factors, and identifies your highest-impact supply chain hotspots for targeted reduction action.
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