With suppliers accounting for up to 90 per cent of a company’s carbon footprint, reducing supply chain emissions has become a key focus for large businesses with net zero targets. As a result, there is increasing interest in supply chain assessment platforms such as EcoVadis, which issues ratings based on a supplier’s carbon management practices.
Over the last year, EcoVadis has issued 15,000 ‘carbon scorecards’ and has published its findings in a new report.
A key takeaway is that the highest-scored companies are disproportionately large-sized, while the 11,500 SMEs assessed are predominantly in the early stages of implementing a carbon management programme. More than 90 per cent of SMEs were rated in either the ‘insufficient’ or ‘beginner’ categories.
Other findings include:
The most common method cited by companies for reducing their carbon footprint was using renewable energy (26.5 per cent), followed by sustainability training for employees (21.5 per cent) and upgrading equipment to improve energy efficiency (19.5 per cent).
The report concludes that working closely with SMEs and providing them with the tools they need should be a particular focus for buyers and solution providers going forward.
“Placing climate action at the heart of procurement strategies through ambitious actions, such as integrating sustainability criteria into purchasing processes, setting targets for buyers and creating performance incentives for suppliers, enables buyers to scale their impact far beyond their own operations.
“First-time reporters, and SMEs in particular, are often unequipped to produce high quality emissions data, and buyers and business partners must provide the support needed… Making science-based climate tools more accessible to SMEs will be crucial to closing this gap.”