Incentives for Scope 3 Supply Chain Decarbonization: Accelerating Implementation

In 2021, the World Business Council for Sustainable Development (WBCSD) –the Council of the Great Lakes Region is part of its Global Network –  in collaboration with PwC, released the report: “Reaching net zero: incentives for supply chain decarbonization” which summarized a framework of supplier decarbonization levers that companies can use to take action on decarbonizing their supply chains to reduce Scope 3 upstream emissions.

Since then and given the importance of value chain transformation, a WBCSD working group on Incentivizing Supply Chain Decarbonization was formed to deepen the practical guidance shared and drive action on Scope 3 emissions.

Decarbonization within the supply chain plays a critical role in realizing net-zero ambitions, and businesses are in a unique position to influence supplier behaviors, operations and investments through incentives.

Throughout 2022, WBCSD in collaboration with PwC has facilitated working group sessions with members, looking at specific decarbonization levers that were voted by companies as the most valuable to focus on in order to drive impact. They leveraged members’ diverse expertise, experience and resources to develop accessible insights and resources for businesses across industries.

The success of transformation is reliant on the integration of wider functions across an organization and many functions play a key role, such as procurement. As an introduction for procurement and sustainability practitioners across all sectors, the report Incentives for Scope 3 supply chain decarbonization: accelerating implementation was launched before COP27 to summarize a framework of supplier decarbonization levers that companies can use to take action on decarbonizing their supply chains to reduce Scope 3 upstream emissions.

The report pulls together those insights collected and covers how to assess the relative ease and impact of implementing each lever, when and how to implement them, as well as who is responsible. In particular, it looks at how existing procurement processes can be leveraged for decarbonization. 

Assessing all available levers is important for companies in the Great Lakes region and across the globe to start creating implementation roadmaps that will set the foundation for practical plans to reach net zero. 

Access the Incentives for Scope 3 Supply Chain Decarbonization Report here to understand how to create an implementation roadmap that sets the foundations for practical plans to reach net zero. 

Note: This report draws on the consultation from the Incentivizing Supply Chain Decarbonization working group as part of the WBCSD cross value chain project “SOS 1.5”. This project aims to facilitate collaboration to accelerate and unlock decarbonization solutions. To learn more about SOS 1.5 project, please read through this link

About the World Business Council for Sustainable Development (WBCSD):

WBCSD is the premier global, CEO-led community of over 200 of the world’s leading sustainable businesses working collectively to accelerate the system transformations needed for a net zero, nature positive, and more equitable future.

We do this by engaging executives and sustainability leaders from business and elsewhere to share practical insights on the obstacles and opportunities we currently face in tackling the integrated climate, nature and inequality sustainability challenge; by co-developing “how-to” CEO-guides from these insights; by providing science-based target guidance including standards and protocols; and by developing tools and platforms to help leading businesses in sustainability drive integrated actions to tackle climate, nature and inequality challenges across sectors and geographical regions.

Our member companies come from all business sectors and all major economies, representing a combined revenue of more than USD $8.5 trillion and 19 million employees. Our global network of almost 70 national business councils gives our members unparalleled reach across the globe. Since 1995, WBCSD has been uniquely positioned to work with member companies along and across value chains to deliver impactful business solutions to the most challenging sustainability issues. 

Together, we are the leading voice of business for sustainability, united by our vision of a world in which 9+ billion people are living well, within planetary boundaries, by mid-century.  – Follow us on Twitter and LinkedIn.

CGLR’s business and sustainability network programming is supported by the Fred A. and Barbara M. Erb Family Foundation.

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