How Major Companies Can Help Their Suppliers Decarbonize

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As governments start requiring companies to tackle scope 3 emissions more companies will have to take on this challenge.

In some assessments, the boldest way for companies to address climate change is to look beyond their operations and cut emissions across their value chain. That means eliminating emissions from their suppliers as well as how their customers use their products.

In July, Amazon launched a program dubbed “Sustainability Exchange” to provide suppliers with the resources to measure and cut their emissions. In September, a group of major automakers including Ford Motor Company and General Motors announced a partnership with the consulting arm of utility giant Edison International aimed at helping suppliers adopt renewable energy.

At the core of these efforts is the simple reality that value chain pollution makes up the majority of emissions for companies in most sectors. An analysis from the Carbon Disclosure Project found that, on average, scope 3 emissions represent 75% of corporate emissions.

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