BC3 Members: Reach out to bc3@bc3sfbay.org if something needs updating
BC3 Practitioners stress that supplier engagement is more than a mass email. Individualized support is necessary to bring suppliers along with you on this journey. According to one BC3 member: “Suppliers don't need someone to point them in the right direction. They need someone to walk the path with them."
Setting your suppliers up for success also sets you up for success. Many of the same strategies apply as noted above with regards to segmentation and engagement – certain suppliers will need more support than others.
BC3 PRACTITIONER GUIDANCE:
How to support your suppliers
Leverage associations/groups (like the Business Council on Climate Change (BC3)) to create efficiencies for supporting suppliers
Leverage existing enablement resources such as:
The Science Based Targets Initiative (SBTi) April 2023 Guide Getting Started Guide for SBT Setting
The Science Based Targets Initiative (SBTi) May 2023 Guide Engaging Supply Chains on the Decarbonization Journey (free)
Business Council on Climate Change (BC3) SBT Guides (free here on our members-only hub)
Guide 1: Scope 1 & 2 GHG Inventory & Target-Setting Basics
Guide 2: Reduction Strategies to Achieve SBTs for Scopes 1, 2, 3
Letter for suppliers
Salesforce Supplier Sustainability Resource Library - In addition to their custom-built Net Zero Toolkit, Salesforce compiled this tailored resource library for supplier, comprised mostly of publicly available resources created and maintained by third-parties. With so much content out there, it can be helpful to point suppliers to a curated set of resources.
SME Climate Hub + SME Corporate Toolkit (Generally intended for companies with less than 50 employees)
Build your own enablement resources
BC3 Practitioners recommend leveraging existing resources as much as possible to minimize the amount of effort, time, and dollars required to provide content. Working through coalitions like BC3 to create and share resources can also help create consistency in messaging that leads to greater impact than going it alone. That said, sometimes it does make sense to build your own resource or program.
In addition to supplier sustainability websites and hubs, creating personalized resources for your suppliers can be very helpful. Here are a few examples of how you can do this:
Provide specific points of contact for one-on-one supplier support.
Gather suppliers together for support Via bespoke webinars and hands-on activities to submit sustainability data & answer sustainability questionnaires.
The SBTi Guide (Section 5.1) discusses why it is important to support suppliers in various ways. BC3 Practitioners add that leveraging a consultant to support your suppliers is a great way to continue to build supplier capacity with limited resources. This can take many forms, and some BC3 Practitioners have:
Funded a consulting firm to do GHG inventories for a subset of key SME suppliers
Created “Supplier Academies/Launchpad” cohorts
Explored opportunities to fund or encourage renewable energy adoption at key supplier companies
Provided live webinars and Q/A to suppliers
*BC3 hosted a webinar for our member's suppliers on 3/7/24. You may share the recording with your suppliers: Supplier Sustainability: Why it Matters and How your Business Benefits
Filled out forms with suppliers in a live meeting
Provided “office hours” for suppliers to get 1:1 support from their sustainability subject matter experts
Source: May 2023 SBTi guide
BC3 Practitioners suggest you leverage your supplier data and develop metrics/KPIs for your supplier program. Here are some examples of BC3 Practitioners supply chain program metrics:
% of top suppliers who have SBTs (commitment, validated, or internal plans to have them)
#/% of suppliers who responded to sustainability new supplier onboarding questions
#/% of supplierS that filled out an engagement survey/questionnaire
#/% of suppliers “meeting expectations” in supplier business reviews (or more broadly in sustainability program)
#/% of emissions covered by suppliers providing supplier-specific allocated emissions data
#/% of suppliers engaged with company in XXX time period
Here are some other KPIs that could be included:
% of suppliers who agree that supplier sustainability programming has helped to advance or accelerate their company’s corporate sustainability initiatives
# of page views on key resources
% of spend with "sustainable suppliers"
BC3 MEMBER EXAMPLES:
Examples of KPI's
Salesforce publishes their Schedule of ESG Metrics which include:
Percentage of applicable scope 3 emissions from suppliers with set SBTs
Percentage of applicable scope 3 emissions from suppliers committed to setting SBTs
Once you set up your supplier data system, and work with various internal teams to request data and information from your segmented suppliers, you will want to determine your cadence and process to track progress annually from suppliers. The SBTi also provides tracking and reporting guidance in section 6 of their guidebook.
BC3 PRACTITIONER GUIDANCE:
Tips for tracking supplier progress
Develop (or choose/customize) a tracking system to track supplier progress. BC3 Practitioners have approached this in a number of ways including:
Develop/design your own system for tracking
Existing database modifications (SCOUT, COUPA, etc)
New or upgraded software Solutions (Watershed, EcoVadis, EmitWise, etc - See Section 2 Gathering Data)
CDP Supply Chain reports (for members of CDP Supply Chain)
Whether you are developing a new system on your own, or relying on an outside software solution, you will want to capture the following information from suppliers:
Responses
Progress against KPIs
SBT status changes
Emissions Data (This is relevant if you are creating specific emissions factors for your suppliers)
Was data audited? Y/N
Agreements/Contractual Changes
This is relevant if you have buy-in to add sustainability addendums or exhibits to contracts
Ex: You might track which suppliers have signed onto these sustainability terms in your contract
FYI: Tracking may overlap with how your procurement teams house their contracts
Determine auditing requirements
If your company will be checking on supplier progress annually, determine scope and depth of this audit
Keep track of suppliers that have not responded/need support
Follow up if they need guidance, resources, training, etc.
Consider office hours, consulting hours, FAQs to help guide suppliers that need higher levels of support