SBTi Publishes Guidance to Drive Decarbonisation Across Supply Chains

The Science Based Targets initiative has released a new guide to help companies develop and achieve scope 3 supplier engagement targets, addressing what is typically the largest source of corporate emissions. Supply chain emissions are on average 11.4 times larger than a company's direct emissions, making supplier engagement a critical lever in corporate decarbonisation strategies.

The new guide, titled Engaging Supply Chains on The Decarbonisation Journey, outlines a step-by-step process for companies to evaluate, develop and implement supplier engagement targets — one of four recognised methods for setting scope 3 targets under SBTi criteria. Under SBTi rules, companies whose scope 3 emissions represent over 40% of their total scope 1, 2 and 3 emissions must set scope 3 targets, including supplier engagement and reduction targets that collectively cover at least 67% of total scope 3 emissions. An example supplier engagement target would commit that 85% of suppliers by spend covering purchased goods and services will have science-based targets by a specified year.

The guide is designed for companies with existing scope 3 supplier engagement targets as well as those exploring engagement tactics more broadly. Supplier engagement targets are considered relatively trackable once a programme is in place, as progress is measured by the share of suppliers — within the defined target boundary — who have adopted SBTi-aligned targets. The SBTi argues that supplier engagement creates a reinforcing feedback loop: broader adoption across the supply chain generates more data for accurate target-setting, improves transparency and resilience, and strengthens credibility with investors, customers and employees.

The guide is the first in a planned series of SBTi publications on supply chain emissions, with subsequent work to address Beyond Value Chain Mitigation and scope 3 target-setting guidance. The SBTi frames supply chain decarbonisation as essential to halving emissions by 2030 and reaching net-zero by 2050. For Indian companies — many of which are embedded in global supply chains and face increasing pressure from multinational buyers on scope 3 disclosures — the guidance offers a structured framework for understanding and responding to emerging requirements from international trading partners.

Key figure — 11.4 times larger than direct emissions — average supply chain emission footprint