How Procurement Can Deliver Against SBTi V2.0 Net-Zero Targets

Understanding the Shift: What SBTi V2.0 Means for Scope 3

The Science Based Targets initiative (SBTi) has released its updated Corporate Net-Zero Standard V2.0, marking a significant evolution in corporate climate commitments. While the changes are comprehensive, one theme stands out with particular clarity: the intensified focus on value chain emissions. For any organisation with a validated target, understanding how procurement can deliver against these new expectations is no longer optional, it’s fundamental to success.

Previous standards acknowledged the importance of Scope 3, but V2.0 elevates it from a reporting exercise to a core strategic challenge. The standard explicitly states that companies are expected to “actively use all available levers within their control or influence to implement their targets.” It then goes on to name these levers, including “procurement choices” and “supplier engagement.”

This is a direct call to action for procurement and supply chain functions. The era of estimating Scope 3 emissions using industry averages and focusing only on a handful of top suppliers is over. The new standard demands a more granular, data-driven, and proactive approach. It requires companies to not only measure their value chain emissions with greater accuracy but also to demonstrate credible plans and actions to reduce them. This means engaging suppliers at scale, collecting primary data, and integrating climate performance into commercial relationships. The responsibility for orchestrating this complex process falls squarely at the feet of procurement.

Why Procurement Can Deliver Against the New Standard (And Why It Must)

The updated SBTi standard isn’t just adding another burden to procurement’s plate; it’s formally recognising the power the function has always held. Procurement teams are uniquely positioned at the intersection of a company's internal operations and its vast external supply web. This is precisely why procurement can deliver against corporate net-zero goals in ways no other department can.

Firstly, procurement manages the relationships. They are the primary point of contact for thousands of suppliers, holding the commercial levers that command attention and drive action. While sustainability teams can set the strategy, it is procurement that translates those goals into contractual requirements, performance metrics, and sourcing decisions. They can make decarbonisation a condition of doing business.

Secondly, procurement acts before the impact is locked in. Critical decisions about which suppliers to partner with, what materials to buy, and which logistics networks to use are made long before an invoice is paid. By embedding an emissions signal into the sourcing process, procurement can steer billions in spend towards lower-carbon options, making decarbonisation a criterion for selection, not an afterthought.

For too long, sustainability goals and procurement decisions have happened in separate rooms. SBTi V2.0 makes it clear they must now share the same desk, using the same data to drive towards a common objective.

Finally, procurement has the operational expertise to manage complex, data-intensive programmes at scale. The function is already adept at handling vast amounts of supplier information, from financial risk to quality assurance. Adding emissions data is a natural extension of this capability, provided they have the right tools to move beyond manual spreadsheets and surveys.

A Practical Roadmap: Four Steps for Procurement Teams

Transitioning from a traditional cost-and-risk focus to one that includes climate impact requires a structured approach. Here is a four-step roadmap for how procurement can deliver against the ambitious targets set by the SBTi V2.0 standard.

1. Establish a Single Source of Truth for Supplier Data
   You cannot manage what you cannot measure accurately. The first step is to move away from fragmented spreadsheets and annual, low-response surveys. The goal is to build a unified, continuously updated view of your supply chain's emissions. This involves consolidating data from multiple sources, including public disclosures, existing assessments, and direct supplier submissions. A modern platform can automate this process, mapping tens of thousands of suppliers and enriching their profiles with verified data to give you a clear baseline and identify critical gaps.
2. Move from Annual Surveys to Continuous Engagement
   Supplier fatigue is real. Bombarding suppliers with generic, repetitive questionnaires yields poor results and damages relationships. A smarter approach involves scalable, targeted engagement. Start by using existing, high-quality public data to reduce the burden on suppliers. For primary data collection, use a dedicated portal that makes it easy for suppliers to submit information, offers guidance, and provides them with value in return, such as scorecards that benchmark their performance against peers. This transforms the process from a mandatory chore into a collaborative partnership.
3. Embed Emissions Data into Sourcing Decisions
   To truly drive reductions, emissions data must be available when it matters most: before the purchase order is signed. This means equipping buyers and category managers with a clear, simple “emissions signal” within their existing procurement tools. This doesn’t mean always choosing the absolute lowest-carbon option. It means making the climate impact of a decision visible, allowing for informed trade-offs alongside cost, quality, and delivery. It enables procurement to quantify the emissions impact of different sourcing scenarios and select partners who are aligned with your net-zero trajectory.
4. Collaborate on Reduction Pathways, Not Just Data Collection
   The ultimate goal is not just to report a number but to reduce it. The most effective procurement teams work with strategic suppliers to co-create decarbonisation roadmaps. By sharing data-driven insights and forecasts, you can help suppliers identify hotspots and opportunities for improvement, from energy efficiency projects to adopting renewable energy. This collaborative approach strengthens supplier relationships and builds a more resilient, low-carbon value chain for the long term.

Overcoming Common Hurdles: How Procurement Can Deliver Against Resistance

The path to integrating sustainability into procurement is not without its challenges. However, with the right strategy and tools, these hurdles are entirely surmountable. Understanding how your procurement can deliver against these challenges is key to building momentum.

The Data Quality Problem

Many teams feel stuck due to a perceived lack of reliable supplier data. The solution is not to wait for perfect data but to start with a robust foundation. A platform that leverages a massive universe of existing public and verified data can provide up to 70% coverage from day one. This allows you to focus your direct engagement efforts where they will have the most impact: on high-spend, high-emission suppliers for whom primary data is critical.

Supplier Pushback and Engagement

Suppliers are often small businesses with limited resources. If they perceive data requests as a one-sided compliance exercise, they will disengage. To foster collaboration, you must make the process easy and demonstrate value. This means minimising new requests by using data they have already disclosed elsewhere, providing clear instructions and support, and offering back insights like peer benchmarks that can help them improve their own operations.

Internal Alignment and Incentives

Procurement teams are often measured on cost savings and efficiency. To drive change, climate goals must be integrated into their performance metrics. This requires close alignment between the Chief Procurement Officer and the Chief Sustainability Officer. By creating shared KPIs and demonstrating how reducing emissions can also mitigate risk and create long-term value, you can ensure that the entire organisation is pulling in the same direction.

The SBTi V2.0 standard represents a pivotal moment for corporate climate action. It confirms that meaningful decarbonisation is impossible without addressing the value chain. For procurement teams, this is an opportunity to step into a leadership role, transforming their function from a cost centre into a central driver of their company's net-zero mission. With the right strategy, data, and collaborative tools, procurement can deliver against these new targets and build a more sustainable future.