SBTi Supplier Engagement Targets: From coverage to measurable reductions

---## TL;DRA supplier engagement target asks suppliers that drive a major share of your upstream emissions to adopt science based targets within a fixed time window and report progress annually. Make the target measurable (clear coverage basis and threshold), verifiable (evidence rules), and impactful (link engagement to real reductions via initiatives and supplier specific data). Use the templates below to define the boundary, write the target statement, and stand up tracking without extra downloads.---## 1) What is a supplier engagement target?A formal commitment that by [YYYY + ≤5 years], suppliers responsible for [≥X%] of upstream emissions (or spend) will have science based targets in place, with annual progress reporting. It complements absolute or intensity targets by shifting the data and action upstream, especially for Category 1 (Purchased Goods & Services) and Category 4 (Upstream Transport & Distribution).When to use it- Complex, multi-tier supply chains- Heavy Cat.1 and/or Cat.4 footprint- Need to accelerate primary data and supplier specific factors---## 2) Define coverage and boundaryCoverage basis: Prefer emissions weighted coverage; use spend only when emissions data isn't available yet.Boundary options (pick one and fix it in policy)- Cat.1 only- Cat.1 + Cat.4- All upstream categories deemed materialCoverage register (copy/paste)| Supplier | Category | Coverage basis (emissions/spend) | % of Cat.1 and 4 covered | Included in target cohort? (Y/N) | Notes || ------------ | ------------ | ------------------------------------ | ---------------------------- | ------------------------------------ | --------------- || Supplier A | Cat.1 | Emissions | 18% | Y | || Supplier B | Cat.4 | Spend | 9% | Y | || Supplier C | Cat.1 | Emissions | 4% | N | Below threshold |---## 3) Write your target statement (templates)Option A : Emissions-weighted> [YYYY], [≥X%], Categories [1, 4], SBTi aligned targetsOption B : Spend-weighted (interim)> [YYYY], [≥X%], Cat.1 + Cat.4 spend, SBTi aligned targets, [≤5 years]Option C : Mixed pathway> [≥X%], [YYYY], [X% absolute or intensity], [YYYY]---## 4) Evidence and verification rulesWhat counts as "SBT-aligned"?- Public commitment recorded (e.g., company website or registry)- Validated near-term (and, where relevant, net-zero/FLAG) targets- Evidence of scope coverage and base yearStatus codes (use in tracking)- None | Committed | Near-term validated | Net-zero validatedEvidence register (copy/paste)| Supplier | SBT status | Evidence link | Base year | Target year(s) | Scope coverage notes || ------------ | ------------------- | ---------------- | ------------- | ------------------ | ------------------------ || Supplier A | Near-term validated | [URL] | 2022 | 2030 | Covers Scope 3 || Supplier B | Committed | [URL] | - | - | Submission due Q4 |---## 5) Data model for counting coverageCore rules- Group suppliers by parent to avoid double counting across subsidiaries.- Pick one basis (emissions or spend) for the official roll-up; you can track both internally.- Assign each supplier to one or more categories (Cat.1, Cat.4, etc.) with a primary category for aggregation.- Freeze the cohort annually (e.g., as of March 31) for consistent year-over-year reporting.Roll-up worksheet (copy/paste)| Basis | Universe total (Cat.1+4) | Total covered by suppliers with SBTs | Coverage % | Notes || --------- | ---------------------------- | ---------------------------------------- | ------------- | ------------- || Emissions | 1,240,000 tCO₂e | 812,000 tCO₂e | 65.5% | Parent-grouped || Spend | $2.1B | $1.3B | 61.9% | FX-normalized |---## 6) Supplier onboarding: the standard askEmail/letter template (paste and send)> Subject: Request to set a science based climate target>> Hello [Name],>> We are formalizing an upstream climate target. By>> [YYYY]>> [≥X%]>> [Cat.1/Cat.1+4]>> SBTi aligned targets>> What we're asking from you1. Publish a commitment to set a science based target within [≤5 years].2. Share your latest inventory (Scopes 1 to 3) and base year.3. Provide evidence of SBT validation (once approved) and an annual progress update.> We'll support data exchange and recognize decarbonization initiatives that reduce our shared footprint.>> Thanks, [Your Name/Team]---## 7) From engagement to impact: linking to real reductionsUpgrade ladder1. Spend-based coverage to map the universe2. Activity data (e.g., ton-km, kWh, mass, process)3. Supplier-specific factors (plant/line-level)4. Verified initiative impacts (e.g., recycled content, renewable energy, fuel switching)Initiative log (copy/paste)| Supplier | Category | Initiative | Evidence | Expected reduction (tCO₂e/yr) | Status || ------------ | ------------ | ------------------- | ------------------ | --------------------------------- | ---------- || Supplier A | Cat.1 | Recycled content ↑ | Cert + LCA excerpt | 4,200 | In flight || Carrier B | Cat.4 | Mode shift (air→sea) | Lane plan + data | 7,900 | Planned |---## 8) Guardrails and QA- Avoid double counting across categories (Cat.3 vs Scope 1/2; Cat.1 vs Cat.2; Cat.4 vs internal logistics).- Factor governance: Lock vintage and geography within each category; document exceptions.- Certificates & market instruments: Define acceptance criteria (geography match, vintage, additionality).- Cohort freeze: Annually freeze the supplier cohort for coverage calculations; track mid-year changes in a separate log.- Sensitivity analysis: Report low/central/high coverage using alternative bases (emissions vs spend) and parent grouping assumptions.---## 9) Recalculation policy (for the supplier target)Triggers- Material changes to supplier universe (M and A, exits of top suppliers)- Method/factor updates that shift emissions coverage materially- Re-baselining of Cat.1/Cat.4 inventories- Evidence changes (target de-validations or withdrawals)Thresholds- Relative: ≥ 5 to 10% change to covered emissions or spend- Absolute: ≥ [X,000] tCO₂e impact on the covered totalChange log (copy/paste)| Date | Trigger | Estimated impact (% / tCO₂e or $) | Decision | Approvers | Notes || ------- | ---------- | ------------------------------------- | ---------------- | ------------- | --------- || | | | Recalculate / No | | |---## 10) Reporting pack (ready to paste into your report)Headline metrics- Coverage (emissions weighted) [%]- Coverage (spend weighted) [%]- # suppliers # Committed / Validated- # initiatives # Planned / In flight / Delivered- Verified reductions attributed to supplier initiatives [tCO₂e]One-slide table| Metric | Value | YoY Δ | Notes || --------------------- | --------- | --------- | --------- || Emissions coverage | | | || Spend coverage | | | || Suppliers validated | | | || Initiatives delivered | | | || Verified reductions | | | |---## 11) FAQs (brief)Can I mix emissions and spend for coverage? Choose one for the official roll-up to avoid confusion; track the other for sensitivity only.Do sub-suppliers count? Count the supplier of record; include sub-tier evidence as supporting detail, not separate coverage.What if a supplier's target lapses? Downgrade status and re-compute coverage at the next cohort freeze; document in the change log.---## How DitchCarbon helps- Coverage → precision: Map AP/GL to Cat.1 and 4 for immediate coverage, then upgrade hot-spots to activity and supplier specific data.- Supplier SBT tracking: Roll up emissions- or spend weighted coverage, track Committed/Validated status, and maintain a cohort freeze with parent grouping.- Initiative attribution: Record and verify reductions from supplier initiatives (recycled content, energy switching, mode shift) and link them to categories.- Governance built-in: Version-locked factor packs, change logs, and recalculation thresholds to keep the target auditable.- SBT-ready outputs: Paste-ready target statements, evidence registers, and reporting tables for internal review or external assurance.