Blog Layout

Supply chain engagement, as part of your sustainability strategy, will make your business stronger

24 May 2022

Don't fear Scope 3, embrace it 

Dawn photo of a lake reflecting a building and chimney. Bright orange colours with silhouetted reeds.
Momentum is vital if you want to deliver an effective and on-time sustainability strategy. But it’s often a challenge for organisations to create. 

As time ticks on, your teams face a mountain that gets steeper and steeper. This inevitably causes a ‘rabbit in the headlights’ effect, intensified by business resource shortages and diary backlogs. 

The longer you leave it, the steeper that curve gets.
 
First, you must quantify the size of the task ahead: where have you set the boundaries and what is the 'Scope' you have signed up to? 

Every strategy is different, as no industry is the same. No matter what sector your company sits in and no matter how well you think you know your business, capturing the right data in a timely and effective manner, and harnessing ‘momentum’, brings many challenges. 

That said, there are ways to make this process focussed and more efficient.
 
We will explain more below, but first let’s start with a definition of Scope and your responsibilities as a business.

What are the three Scopes?

Dawn photo of a lake reflecting a building and chimney. Bright orange colours with silhouetted reeds.

The Greenhouse Gas Protocol divides emissions in three categories:

 

  • Scope 1: Emissions released directly from a business

  • Scope 2: Indirect emissions released from the energy purchased by an organisation

  • Scope 3: Indirect emissions, accounting for upstream and downstream emissions from a product or service and emissions across your supply chain


As a business, Scope 1 and Scope 2 are pretty much in your control: you own the data and to a certain extent have control of the people and processes.

 

Scope 3 can put fear into even the most experienced sustainability professional.

Why the fear?

seedling growing out of forest floor

It's big: At least 90% of your overall footprint and in some instances even more, depending on the industry

 

It's hard to organise: It can be a bit like 'herding sheep'. You have multiple suppliers from potentially different sectors, different attitudes to sustainability, and different stages of 'carbon maturity'.

 

It's complicated: Some will have data, some will not. It might be very manual at the start. Your suppliers might be in different countries, speak different languages and have different legislation. How do you summarise your findings to give them value?

 

Ultimately, this is the right thing to do. A net zero strategy which covers Scope 3 communicates clear intent to make a difference to the way you operate. Tackling Scope 3 will embed sustainability into your overall culture and BAU operations sooner rather than later; before the mountain becomes too steep.

 

A three-step approach

If your organisation doesn’t cover Scope 3 in your targets don't immediately worry; but do start planning to extend your horizons. If you do have it embedded in your targets but haven’t engaged with your supply chain, once again don't panic.


Below are a few simple thoughts on how to achieve your goals and thrive in the process.

 

Step One: Be Organised

 

As with most things we deal with in the world of energy and sustainability, if you don't know the start position, how will you know what you've achieved? Scope 3 is an enormous element of your overall carbon footprint, so you need to understand the problem in detail.

 

This can be done through realistic assumptions and estimates to start with, but ultimately going straight to the source and asking 'simple' and straightforward questions is going to be the most effective way of building clear data sets. We would like to emphasise the word 'simple'. You don't want to turn suppliers off before you've even started. Build 'data confidence' over time.

 

Start with a simple survey, which takes no more than 10 minutes to complete. Then build from this starting point. Once you have a base line of information, you can progressively expand the questions over time.

 

Step Two: Be Engaged

 

Using data requests in a new procurement process is an effective way of gaining the data quickly. However, engaging with an already established supplier is a slightly different process. Demanding that legacy suppliers give you 100 separate pieces of data by next week might work, but it is likely to damage a relationship rather than enhance it.

 

We are finding that organisations who outline their own intention for net zero and why they are asking for this information will get better long-term results from their supply base. This moves it from a purely transactional relationship to one which is a true embedded partnership.

 

If you can articulate what you need and why, it's amazing what suppliers will do. If you can’t do this then, you don’t have a well-considered plan.

 

Step Three: Be Consistent

 

Have a plan and let your suppliers know about it. Tell them what you are doing and what has worked in the past and what hasn't. Achieving net zero is a multi-layered process and one which will have many twists and turns along the way. Your customers will demand change and your supply chain needs to be aware of it. This will take time and needs continuous focus. Don't expect it to happen overnight.

 

Bring structure to your plan. Examples of how this can be done are:

 

  • Creating a simple and easy data capture process (preferably an online platform rather than spreadsheets)
  • Create sustainability forums with suppliers included
  • Build a communication hub outlining key achievements and announcements
  • Ring fence green 'funds' to subsidies capex programmes
  • Develop joint community events across your business regions

 

These actions will ease the pain and really move things forward for your engagement plan.


It isn't easy, but the rewards are huge

One thing is for certain, sustainability and carbon reduction programmes will become part of standard business practice. If they are not embedded into BAU operations, customers and policymakers will make it very hard for organisations to remain financially viable.

 

There is a business need to create true joined up engagement across the whole supply chain. Increasing dialogue and forming a common link between each organisation in your network of businesses can only improve your ability to adapt to change through the sharing of innovative ideas and building true partnerships.


If you would like to talk to the edenseven team about effective steps to implement Supply Chain Engagement programmes, please get in contact with us.



A birds-eye-view of shipping containers at a port
by Doug Mccauley 18 February 2025
What Do Your Scope 3 Emissions Have to Do with Inflation? Scope 3 emissions cover everything outside your direct operations —the carbon footprint of your supply chain, purchased goods, logistics, business travel, and more. The higher your Scope 3 emissions, the more energy-intensive your supply chain is. And the more energy-intensive your supply chain, the more vulnerable you are to rising costs. Think of it this way: High Production Costs- If your suppliers are heavily dependent on fossil fuels, their production costs are rising fast. Price Volatility- If your supply chain lacks efficiency and resilience, price volatility will hit you harder. Locking in High Costs- If you’re not actively engaging with suppliers to reduce emissions, you’re locking in long-term cost increases that could have been avoided. Without accurate Scope 3 data and a clear engagement strategy , businesses are leaving themselves open to higher prices, lower margins, and greater financial risk . Why Businesses Struggle to Tackle This A major challenge is that Procurement and Sustainability teams often operate in silos: Procurement teams focus on cost and supplier relationships but often lack deep sustainability expertise. Sustainability teams focus on compliance and decarbonisation but aren’t typically measured on financial performance. This disconnect means emissions reduction is rarely treated as a financial opportunity —when in reality, cutting carbon from your supply chain is also one of the most effective ways to reduce exposure to cost inflation. The Businesses That Get This Right Will Win Leading organisations are already taking action. They are: Gathering detailed Scope 3 emissions data to map out cost risks in their supply chain. Engaging suppliers to drive efficiency, reduce emissions, and lower costs. Building resilience by shifting towards lower-carbon, more cost-stable alternatives. The result? Lower long-term costs, reduced financial risk, and a competitive edge over those stuck with inefficient supply chains. This is not just about sustainability compliance —it’s about smart financial decision-making. If You’re Not Taking Action, You’re Losing Money Every business will feel the impact of rising supply chain costs—but not every business will be prepared for them. If you don’t have accurate Scope 3 emissions data and an effective engagement strategy, you are: Paying more than you need to for essential goods and services. Exposing your business to long-term cost inflation. Missing out on opportunities to build a stronger, more resilient supply chain. The sooner you act, the better—for your bottom line and for the planet. Is your business ready to take control of its costs? Get in touch today.
The UK houses of parliament at night
by Doug Mccauley 14 February 2025
In 2023, the UK Government announced plans to introduce a carbon border tax from 2027, known as the UK Carbon Border Adjustment Mechanism (UK CBAM). This policy aims to prevent carbon leakage (the practice of shifting emissions-intensive production to countries with weaker climate policies) by ensuring that imported goods are subject to a comparable carbon price as those produced domestically under the UK Emissions Trading Scheme (UK ETS). Ultimately, the goal is to drive global reductions in industrial emissions and support the transition to a low-carbon economy. What is the UK CBAM? The UK CBAM will apply to imported goods in emissions-intensive industries. Starting in 2027, businesses importing iron, steel, aluminium, ceramics, cement, fertilisers, glass and hydrogen into the UK will be required to: Mandatory Disclosures: Submit reports detailing the carbon emissions embedded in their products (embodied carbon). The UK CBAM will require reporting to detail the Scope 1 (direct emissions from production), Scope 2 (indirect emissions from purchased electricity), and select precursor product emissions embodied in imported products. Levy Payments: Pay a levy based on the carbon pricing of the exporting country. If the exporting country has little to no carbon pricing, UK importers will be subject to a higher tax rate. This initiative encourages businesses to source materials from suppliers with strong carbon policies, incentivising sustainable production methods. How Will it Work? The UK CBAM will require importers to report and pay for the emissions embedded in their products at the UK ETS carbon price. If a foreign producer has already paid a carbon price in the country of manufacture, this may be deducted from the payment charge under UK CBAM to avoid double taxation. The UK Government has proposed to have four accounting periods per year to align with the standard practices used by other taxes. How Does the UK CBAM Differ from the EU CBAM? While both mechanisms share the same overarching objectives, there are key differences: Scope of Products : The EU CBAM applies to cement, iron, steel, aluminium, fertilisers, electricity and hydrogen, whereas the UK CBAM excludes electricity imports but also applies to additional products, such as ceramics and glass Implementation Timeline : The EU CBAM has already begun its transitional phase (October 1, 2023), requiring emissions reporting, with full financial enforcement starting in 2026. The UK CBAM, however, will take effect in 2027. What Can Businesses Do to Prepare? To limit exposure and ensure compliance with UK CBAM, businesses should take the following steps: Assess Supply Chains: Assess your exposure to UK CBAM by reviewing your suppliers to understand where imported products and materials are being manufactured and their carbon intensity. Identify other suppliers with lower-carbon intensities. Engage Key Suppliers: Work with your suppliers to encourage the adoption of low-carbon technologies and practices that will reduce the carbon intensity of manufactured materials. Consider switching suppliers and sourcing materials from UK-based companies that already comply with UK ETS, to reduce exposure. Comprehensive Emissions Reporting: Ensure you have sufficient emissions accounting and reporting practices in place, to minimise disruption caused by mandatory reporting. We recommend businesses understand their Scope 1, 2 & 3 emissions to identify high-impact activities and inefficiencies within their operations and their supply-chain. How We Can Help edenseven is a sustainability consultancy with a proven track record in designing and delivering data-driven sustainability strategies. Our cloud-based carbon accounting and management platform, cero.earth , simplifies compliance and reporting for businesses of all sizes. Why Choose cero.earth? Regulatory Compliance: Aligns with the Greenhouse Gas Protocol (Scope 1, 2 & 3) to ensure accurate and compliant carbon reporting. Expert Support: Backed by a team of analysts who guide you through the process, making compliance straightforward. Seamless Data Integration: Easily upload and export data in required formats with our integrated report building tools, for effortless reporting and disclosure. Enhanced Credibility: Track and disclose detailed emissions data to investors and stakeholders with confidence, ensuring enhanced credibility. Reduce Costs: cero.earth identifies high emissions sources and inefficiencies within your operations and supply chain, enabling you to make informed decisions about where to implement impactful change, saving you cost with CBAM and ongoing operations. Net Zero Project Tracking: Design, implement and track your carbon-reduction projects and leverage our Net Zero Carbon (NZC) dashboard to visualize your pathway to Net Zero and set strategic carbon reduction targets. Flexible Packages: cero.earth offers tailored packages to suit all businesses. For businesses seeking a hands-off experience, our Strategic package allows us to handle the entire carbon accounting and compliance process on your behalf, ensuring a seamless and fully managed approach, allowing you to focus on what you do best. Prepare Your Business for the Future With the UK CBAM on the horizon, businesses must take proactive steps to manage their carbon impact and ensure compliance. cero.earth by edenseven, provides the tools and expertise needed to navigate these changes with ease. Start your journey towards sustainable and compliant operations today. Get in touch today to learn more about how we can support your transition and comply with the latest sustainability regulations.
A person holding a plant sapling
by Doug Mccauley 12 February 2025
Over the last few decades, carbon offsetting has become a go-to strategy for businesses looking to demonstrate sustainability commitments and enhance their external credibility. Offsetting takes many forms, from tree planting and forest conservation to providing communities with clean cookstoves and renewable energy. However, with a vast number of offset providers offering projects of varying credibility, navigating this landscape can be confusing for businesses and consumers alike. The Problem with Offsetting While carbon offsetting can play a role in broader climate action, it is not a substitute for direct emissions reductions. Protecting and enhancing nature and biodiversity should be seen as complementary to carbon reduction—not a replacement for it. Lack of Additionality - Many offsetting projects do not actually remove additional carbon from the atmosphere beyond what would have happened anyway. Distraction from True Action - Offsetting can divert attention from the urgent need to tackle emissions at the source, delaying meaningful business-wide carbon reductions. Regulatory and Reputational Risks - The EU is set to ban terms like "climate/carbon neutral" or "climate positive" based on offsetting from 2026, increasing the risk of greenwashing accusations for businesses wishing to claim climate positives from offsetting projects. Several large companies have already rolled back offset-based sustainability claims after using unreliable carbon offsets. Should you Avoid Offsetting Entirely? Not necessarily. High-quality carbon offsets can still be a useful tool to support broader sustainability efforts, and often provide social benefits, while supporting the United Nations Sustainable Development Goals (SDGs). However, they should only come after a business has taken concrete steps to measure and reduce emissions. The Science-Based Targets initiative (SBTi), a leading assessor of corporate science-based Net Zero targets, only permits the offsetting of residual, unavoidable emissions (less than 10% of a company's total emissions) after all other feasible reduction measures have been implemented. This further highlights the importance of prioritsing direct emissions reductions before considering any forms of offsetting. Before investing in offsets, ensure you: Measure Your Carbon Footprint - This should include Scope 1, 2 and 3 emissions, to provide a full picture of your environmental impact. Without this data, you are unable to make informed carbon reductions. Develop a Robust Carbon Reduction Plan - Your plan should cover Scope 1, 2 and 3, align with the goals of the Paris Agreement, and set ambitious reduction targets. Take Action and Track Progress - Implement emissions reduction initiatives and continuously monitor progress towards Net Zero. If your business meets these criteria, investing in credible, high-quality offsetting schemes can be an additional way to contribute to climate action. However, if these foundational steps are not in place, offsetting alone is not the answer for your business - it does little to drive real change. What We Offer At edenseven, we help businesses design and implement data-driven sustainability strategies that prioritise real emissions reductions. Our cloud-based platform, cero.earth , simplifies carbon accounting and management, ensuring compliance with climate regulations and providing a clear roadmap to Net Zero. With expert guidance from edenseven, your business can avoid greenwashing pitfalls and take meaningful action to cut emissions, comply with regulations, ensure credibility with stakeholders, and reduce costs. Want to build a credible, impactful sustainability strategy? Get in touch today.
by Doug Mccauley 10 February 2025
In January 2025 , gas accounted for 38% of Britain’s electricity mix, the highest contribution among all sources. This represented an 11% lead over wind energy and a 2% increase compared to January 2024. Wind energy, however, delivered its lowest January contribution in the past four years, comprising 27% of the energy mix. Nuclear and imports each saw a 3% increase, contributing 12% of Britain’s electricity generation. Contributions from solar, hydro, and biomass remained stable compared to January 2024, with solar and hydro each accounting for 2% and biomass 6%. Coal, which was phased out of UK electricity generation in September 2024, delivered 0% of electricity in January 2025. For comparison, coal contributed 2% in January 2024, equal to the individual shares of solar and hydro. Zero-carbon sources made up 43% of Britain’s electricity generation in January 2025—the lowest proportion for January in the past four years. This was 4% lower than in January 2024 and 13% lower than January 2023. However, the rolling 12-month average for zero-carbon sources reached 51%, the highest of the past four years and 2% higher than the previous 12-month period. The carbon intensity of electricity generation in January 2025 was 168 gCO₂/kWh, the second highest of the past four years. Despite this, the rolling 12-month average carbon intensity fell to 125 gCO₂/kWh—a 19% reduction compared to the prior year and the lowest of the past four years, underscoring progress in decarbonisation. Increasing renewable electricity generation remains crucial to achieving net-zero goals, enhancing energy security, and reducing reliance on imports.
Orange sky at sunset, over a town.
by Doug Mccauley 5 February 2025
Contributing Authors: Pete Nisbet, Alejandro Navarro, Craig Cheney In their 2020 report, the Climate Change Committee emphasised the importance of local authorities in national decarbonisation efforts and the UK’s journey to net zero. Quoting the capacity to impact roughly one third of UK emissions, the report highlighted the significant remit of local authorities, including local transport, social housing, and waste, as well as their influence over local businesses and communities. Unlike private entities and businesses – which also contribute significantly to UK emissions yet often exhibit limited willingness to respond* – local authorities have demonstrated a clear commitment to addressing climate change. Out of 394 local authorities, 327 have declared a climate emergency, with 114 setting net-zero targets and 280 developing actionable plans. This highlights the readiness of local authorities to act; however, translating this enthusiasm into meaningful outcomes requires clearer direction and support from central government. While the new government has shown a willingness to address these challenges, the reality is that news policies and funding mechanisms take time to develop and implement. Bridging this gap between ambition and action will be crucial to unlocking the full potential of local authorities in driving the UK’s net-zero agenda. One stand-out and wide-reaching solution to this is climate technology . With the ability to process data more effectively, identify problems faster, and test solutions virtually, technology provides an efficient, transformative vessel for decarbonisation and net zero strategies. In a recent survey, 40% of senior executives said they believe that digital technologies are already having a positive impact on their sustainability goals. And, with the ability to initiate significant carbon reductions across energy, materials, and mobility, and save money at the same time, climate tech has the potential to provide the public sector with the resources it needs toward net zero. *According to our recent analysis of the FTSE 250, 41% of the FTSE 250 do not have a net zero target, and those who do have delayed it by an average of 13 months.
Sunset sky with distant electricity pylons and text
by Doug Mccauley 16 January 2025
A review of Britain's electricity generation over the past four years, including the contributing energy sources, carbon intensity, proportion of zero-carbon sources and further insights.
Electricity pylon against cloudy sky with snow-covered ground
by Doug Mccauley 10 January 2025
In December 2024, wind energy accounted for the highest proportion of Britain’s electricity mix among all energy types, contributing 39%. Gas contributed 29%, which was a 3% increase from December 2023. Although wind's contribution was higher than in December 2021 and 2022, it was 2% below the 41% recorded in December 2023. Imports reached their highest level for December in the past four years, supplying 10% of Britain’s electricity mix, which is 3% more than in December 2023. Contributions from biomass, hydro, solar and storage remained stable compared to December 2023, providing 6%, 3%, 1% and 1%, respectively. Nuclear energy saw a 2% decrease in its contributions, delivering 12% of the mix in December 2024, the lowest level for December in the past four years. Coal contributed 0% after its phaseout from Britain's electricity generation in September of the previous year. Zero-carbon sources comprised 56% of Britain's electricity generation, marking the second highest level for December in the last four years; however, 4% lower than for December in the previous year. Despite this decline, the rolling 12-month average for zero-carbon sources was 51%, the highest of the last four years. The carbon intensity of electricity generation in December 2024 was 126 gCO₂/kWh, representing a 3% increase compared to December of the previous year. However, the rolling 12-month average was 125 gCO₂/kWh, indicating a 17% reduction compared to the previous 12-months and the lowest level in four years, reflecting ongoing decarbonisation efforts. Increasing electricity generation from renewable sources is essential for achieving our net-zero goals, ensuring energy security, and reducing reliance on imports.
Electricity pylon in a woodland in mist
by Doug Mccauley 16 December 2024
In November 2024, gas was Britain's primary electricity source, accounting for 38% of the mix, a 7% increase from November 2023. Wind energy contributed 27%, 4% lower than the previous year, marking its lowest November share in four years. Nuclear, biomass, solar, and hydro maintained their contributions from 2023 at 12%, 7%, 2%, and 2%, respectively. Nuclear's share was 4% below November 2021, the lowest in four years. Coal contributed 0% after the closure of the last coal-fired power plant, Ratcliffe, in September, while imports provided 11%, the second-highest November level in four years. Zero-carbon sources made up 42% of Britain's electricity generation, the lowest for November in four years and 5% lower than last year. However, the rolling 12-month average for zero-carbon sources is 51%, the highest in the same period. The carbon intensity of electricity generation in November 2024 was 171 gCO₂/kWh, an increase of 6% from November in the previous year. The rolling 12-month average dropped to 124 gCO₂/kWh, marking a 21% reduction and the lowest level in four years, reflecting ongoing decarbonization efforts. Increasing the electricity generation from renewable sources can help achieve our net-zero ambitions, ensure energy security, and decrease reliance on imports.
Warehouses against cloudy sky at sunset
by Doug Mccauley 13 December 2024
Mawdsleys signs a long-term agreement to use edenseven’s market-leading carbon reporting and management platform, cero.earth, to monitor all emissions and programmes of work to reach net zero . Mawdsleys is the UK’s largest independent pharmaceutical distributor. Established nearly 200 years ago, they have a fast-growing international network supplying medicines to meet patient needs and providing a route to market for manufacturers. Mawdsleys has signed a long term agreement with edenseven to use their carbon accounting and management platform, cero.earth. Built by edenseven, cero.earth is a cloud-based carbon accounting and management platform that provides businesses with a complete view of their emissions and decarbonisation plan. Using a dynamic view of all three emissions scopes, cero.earth provides a clear understanding of the current position against net zero targets and allows for the proactive monitoring of both current and planned projects. With a need to monitor and decarbonise operations at pace, Mawdsleys will leverage cero.earth to assess their current sustainability targets and produce a dynamic delivery plan to eradicate emissions permanently from their supply chain. Pete Nisbet, Managing Partner of edenseven, said: “We continue to evolve cero.earth to make sure we are providing our customers with the tools to dynamically monitor their decarbonisation programmes in a clear and practical manner. We are very excited to be working with Mawdsleys and are certain that, by embedding cero.earth into their net zero deliver plan, we can collectively make significant quantifiable environmental and financial gains.” William Sanders, CEO of Mawdsleys, commented; “Mawdsleys are leading the way in our sector, working towards net zero. Investment into thousands of solar panels and cutting edge battery storage technology, as well as operating electric vehicles, up to and including an HGV, makes edenseven the perfect partner to assist monitoring our decarbonisation plans. Mawdsleys are a key part of the healthcare system, delivering critical medicines to hospitals every day, so utilising cero.earth will help us maintain and enhance our position in the NHS Evergreen benchmarking assessment.” 
A ship at a port at sunset
by Doug Mccauley 29 November 2024
Thames Freeport is a unique initiative designed to stimulate trade and innovation and transform the lives of people in its region, leveraging global connectivity to over 130 ports in 65 countries. Occupying a strategic position with intermodal capabilities across river, rail, and road, Thames Freeport has recognised its opportunity to achieve social good, and has demonstrated an active commitment to advancing decarbonisation and fostering a circular economy. Thames Freeport is emerging as a hub for clean energy technologies, advanced logistics, and value-added manufacturing. Special Economic Zones (SEZs) such as the Thames Freeport are uniquely positioned to drive decarbonisation. By clustering industries and research institutions, SEZs enable collaboration on sustainable practices and green technology development. This concentration accelerates the adoption of renewable energy sources, smart grids, and circular economy practices. 
More posts
Share by: