Engaging a relatively small group of key transport suppliers can drive significant reductions across a company’s total greenhouse gas emissions, modelling shows from RESET Carbon, an LRQA company.
The analysis comes as the UN reveals that the world will overshoot global temperature targets set in the Paris Agreement, highlighting the urgent need for strategies to reduce Scope 3 emissions.
Indirect emissions created across supply chains – known as Scope 3 emissions under the Greenhouse Gas Protocol (GHG Protocol) Corporate Standard – typically account for more than 80% of a company’s total carbon footprint.
Liam Salter, CEO of RESET Carbon, a Hong-Kong based emissions reduction consultancy acquired by LRQA, said:
“Supply chains are becoming increasingly exposed to carbon pricing via the incoming EU Carbon Border Adjustment Mechanism or exporter country emissions trading or carbon taxes. If businesses want to avoid long-term carbon cost risks, they need to act now. Supply chain emissions take time to reduce. We’re talking three years or more to see meaningful results.”*
RESET Carbon’s modelling shows that targeting key suppliers can help organisations accelerate impact. For example, lessons from the apparel sector in Vietnam demonstrate how collaboration with suppliers on energy efficiency and fuel switching can unlock meaningful reductions. Across other manufacturing and retail supply chains, RESET’s analysis found that initial cuts of 15-30% can be achieved quickly through collaboration on existing, proven technologies, with larger cuts of 40-60% possible in the longer term through energy or fuel switching.
The consultancy recommends three key strategies for businesses in the transport seeking to achieve faster carbon reductions across their operations:
1. Turn data into delivery plans –beginning with carbon hotspot mapping at supplier facility level, to prioritise investment where emissions are most concentrated
2. Work with strategic suppliers for maximum effectiveness –partnering with high-volume vendors to scale low carbon solutions and clean technologies
3. Collaborate across industry to scale solutions – coordinating reporting, sharing supplier performance benchmarks and co-investing in low carbon supplier pools
Turning data into delivery plans
Many companies have already gathered supplier emissions data, but the next challenge is to translate that data into delivery plans. Integrating emissions targets into sourcing decisions ensures that carbon performance becomes part of standard commercial strategy, not a parallel effort.
The recommended approach begins with carbon hotspot mapping at the supplier facility level to identify where emissions are most concentrated. This enables businesses to prioritise investment where it can have the greatest net zero impact. Once hotspots are identified, facility-level emissions reduction roadmaps can be created to support supplier engagement, sourcing decisions and commercial alignment.
Liam added: “There’s often a misconception that carbon reduction means high cost. In reality, many reductions can be delivered through measures like efficiency and onsite renewables, with strong returns on investment.”
These actions can deliver initial reductions of 15 to 30 percent through technologies that are proven, affordable and quick to implement. Larger cuts, in the region of 40 to 60 percent, may require offsite renewable energy or fuel switching. These investments may take longer to deliver, but with appropriate planning and prioritisation, they are achievable and necessary for long-term net zero alignment.
Working with strategic suppliers for maximum effectiveness
Many brands, particularly in high-emission sectors such as energy, apparel, consumer goods, technology and food and beverages, have already begun building programmes to reduce emissions in their supplier base. This includes industry collaborations like the Carbon Leadership Programme and the Supplier Leadership on Climate Transition, as well as in-house initiatives focused on net zero alignment.
Liam said: “Strategic suppliers represent a major lever for net zero progress. Even if supply networks shift in response to economic or regulatory factors, established high-volume vendors are often best placed to meet performance expectations. Their ability to scale low carbon solutions, implement clean technologies and collaborate on emissions planning makes them critical to any serious net zero supply chain strategy.”
Transport networks face complex Scope 3 challenges, with emissions dispersed across suppliers, fleets, and global routes. Aligning measurement approaches under GHG Protocol and using digital tracking systems with independent assurance helps build trust and transparency across international operations.
Collaborating to scale solutions
Beyond individual supplier relationships, cross-industry collaboration is emerging as a powerful enabler of supply chain decarbonisation. Coordinating carbon reporting requirements, sharing supplier performance benchmarks and co-investing in low carbon supplier pools can reduce cost and complexity, and accelerate net zero delivery across sectors.
Standardised data frameworks can ease the burden on suppliers who report to multiple buyers, and benchmarking tools allow procurement teams to compare emissions performance across facilities or products. These tools support more informed decisions and help ensure that procurement aligns with the company’s climate ambition.
Liam concluded: “As suppliers serve multiple brands, coordinated approaches reduce duplication and create stronger incentives to invest.”
RESET also highlights efforts to build low carbon manufacturing pools in key sourcing regions. These pools, under development through initiatives such as the Industry Decarbonisation Roadmap, bring together suppliers that are ready to meet the demands of net zero sourcing. For buyers, this creates a reliable, verified base of lower-carbon manufacturing options aligned to industry needs.
For more information on carbon verification, visit https://www.lrqa.com/en/data-and-information-verification/verification-services/ or read more on RESET Carbon’s modelling, visit https://www.lrqa.com/en-gb/insights/articles/resilient-supply-chains-a-pathway-to-net-zero/
