Why Supplier Engagement Is the Missing Link to Achieving SBTi Targets

Setting Science Based Targets initiative (SBTi) commitments has become a hallmark of credible climate leadership. More and more companies are stepping up, signaling their ambition to align with a 1.5°C pathway and demonstrate accountability to stakeholders. Yet many organizations quickly realize that reducing their own operational emissions, known as Scope 1 and Scope 2, only gets them part of the way.The real challenge lies in tackling Scope 3 emissions, which occur across the value chain, most significantly within supply chains. These indirect emissions often make up 70 to 90% of a company's total footprint, meaning that even bold internal efforts won't achieve meaningful reductions without supplier action. This is where supplier engagement becomes the critical lever for success.---## Why Supplier Engagement MattersFor most organizations, the supply chain represents the largest and most complex piece of their climate puzzle. Without active collaboration with suppliers, even the most ambitious SBTi targets risk falling short.Engaging suppliers allows companies to:- Access higher quality data for emissions measurement and reporting, reducing reliance on industry averages.- Accelerate decarbonization by sharing resources, aligning on low carbon technologies, and driving efficiency gains.- Expand influence far beyond their own operations, nudging entire industries toward more sustainable practices.Think of supplier engagement as multiplying your climate efforts. One company taking action is important; a network of suppliers moving together is transformational.---## Strategies to Strengthen Supplier EngagementLeading companies treat supplier engagement not as a one off project, but as an ongoing partnership. Successful approaches often include a mix of data gathering, capability building, and incentive alignment. Some proven strategies are:1. Prioritize high impact suppliers Focus on those suppliers responsible for the largest share of emissions. A targeted approach ensures that early efforts drive the greatest reductions.2. Simplify the process Many suppliers, especially small and medium sized businesses, lack the resources to navigate complex reporting systems. Offering streamlined templates and clear guidance lowers barriers to participation.3. Invest in supplier capacity Training, workshops, and digital tools can help suppliers develop the skills they need to track emissions, set their own reduction targets, and innovate in their processes.4. Embed sustainability into procurement Make climate alignment a factor in supplier selection and performance reviews. Reward those who commit to SBTi or other credible climate goals, creating a competitive advantage for low carbon leaders.5. Foster collaboration, not just compliance Encourage suppliers to co create solutions, such as joint renewable energy procurement or shared logistics improvements, that benefit both parties.---## Beyond Compliance: Building Stronger, Smarter Supply ChainsSupplier engagement isn't just about ticking the SBTi box, it's about future proofing your business. Companies that successfully integrate supplier collaboration into their climate strategy often realize broader business value, such as:- Resilience against regulatory changes, resource shortages, and cost volatility. A low carbon supply chain is typically a more efficient and stable one.- Enhanced reputation with investors, customers, and employees who increasingly expect genuine climate leadership.- Innovation opportunities as partnerships spark new product designs, circular business models, and breakthrough low carbon technologies.In this way, supplier engagement becomes not only a sustainability measure but also a driver of competitiveness and long term growth.---## Looking Ahead: Mobilizing the Value ChainAchieving SBTi targets requires a shift in perspective. Companies must look beyond their own four walls and embrace the reality that climate action is a collective effort. By making supplier engagement a core strategy, businesses can:- Meet their climate commitments with greater confidence.- Unlock operational efficiencies and cost savings.- Strengthen relationships across their value chain.- Position themselves as leaders in the transition to a net zero economy.In the end, tackling Scope 3 through supplier engagement is not just about responsibility, it's about opportunity. The companies that recognize and act on this will shape more resilient, innovative, and sustainable industries for the future.