APQC Infographic: The Importance of Tier 1 Suppliers in Emissions Reporting

This is an excerpt of the original article. It was written for the November 2023 edition of Supply Chain Management Review. The full article is available to current subscribers.

November 2023

Last month, I had the pleasure of attending the NextGen Supply Chain Awards in Chicago. It was my first time attending the conference, which was in its fifth year, and I came away impressed with both the content and the quality of professionals I met in Chicago. This year’s conference—Strategies for a Digital Future—featured nearly 50 speakers and included CEOs and senior vice presidents, founders and innovators, leading academics and researchers, and top consultants. Over two days of the event at the Chicago Athletic Association, we learned more about artificial intelligence and predictive analytics, robotics and machine learning, fulfillment…

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Organizations face pressure from the public, regulatory agencies, and legislation to ensure that they monitor their greenhouse gas (GHG) emissions. In particular, scope 3 emissions, or those resulting from sources in the value chain not owned or controlled by the organization, make a significant impact on the environment and can be targets for reduction.

Gaps in Data

To ensure they track the emissions with the most impact, organizations often prioritize which suppliers they ask for data. Tier 1 suppliers are a logical first choice because they are key to an organization’s business.
Companies have mixed success in consistently asking key suppliers for emissions data, even though those suppliers asked have contributed the majority of scope 3 emissions.

The level of detail available in supplier emissions data can vary. To pinpoint hotspots and identify ways to reduce emissions, organizations need information on which products contribute most to an organization’s scope 3 emissions.

Tracking emissions should be a collaborative effort between companies and their suppliers. They can work together to develop systems and measures for sustainability. Once they gain visibility into the data, they can develop ways to track data by product categories, materials, or regions to pinpoint areas for improvement. The mutual benefits of this collaboration will ensure that both the company and its suppliers maintain a positive public perception, remain competitive, and ensure regulatory compliance.

Read the related APQC Benchmarks article here.

View the full size infographic here

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