The Importance of Tier 1 Suppliers in Emissions Reporting

Organizations face pressure from multiple directions when it comes to sustainability in supply chain. Factors such as public perception, competitors’ actions, regulatory compliance, and labor concerns influence how organizations approach their environmental practices to protect natural resources. 

In response to regulations and legislation, many organizations have to measure and report on their scope 3 greenhouse gas emissions. Yet this can be hard to do as organizations often lack the ability to efficiently collect this information from suppliers. APQC’s research indicates that at the median, organizations currently ask only half of their active tier 1 suppliers for emissions data, and slightly over half of active tier 1 suppliers can provide emissions data at the product or service level. Given that tracking and improving scope 3 emissions is a long-term effort, organizations should simultaneously consider boosting supplier relationships and using their influence to take action with suppliers to further reduce their emissions.

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