Strategic Focus: Influence Of Scope 3 And Product Compliance On Supply Chain Sustainability

Published 16 January 2024 by Elisa Molero & Kim Knickle &

Disclosure Rules, Regulations & Frameworks ESG & Sustainability ESG Initiatives ESG Performance Improvement Net Zero Sustainability Goals Sustainability Reporting Sustainability Strategy Sustainable Supply Chain Strategic Focus

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Executive Summary

With organizations facing mounting regulatory pressure to disclose sustainability performance beyond their own business operations, firms are increasingly conducting deeper scrutiny of their own and their suppliers’ ESG practices. The quest for transparency, Scope 3 quantification and product compliance have become key challenges and goals for corporates; decision-makers need to understand the influence of these factors and their overlap with broader ESG and sustainability strategies. This report guides corporates through product compliance and Scope 3 issues, and their relationship to supply chain sustainability, to help them build a consistent narrative that embraces internal stakeholders from EHS, sustainability, procurement and operations teams.

Product compliance and Scope 3 are crucial for supply chain sustainability
Supply chain ESG performance relies on suppliers and product-level transparency
Key steps to embed product compliance and Scope 3 for supply chain ESG strategies

Table of figures

Figure 1. Regulatory overlap: product and emissions management, and supply chain sustainability
Figure 2. Supply chain sustainability capabilities serving product compliance and Scope 3 emissions management

Organisations mentioned

Assent, Compliance & Risks, Cority, GHG Protocol, iPoint-systems, Source Intelligence

About the authors

Elisa Molero

Industry Analyst

Elisa Molero is an Industry Analyst in the Verdantix ESG & Sustainability practice. Her current research agenda focuses on emerging solutions and global market trends around supply chain sustainability. Her background is in Economics, Leadership and Governance (BSc, University of Navarra). Prior to joining Verdantix, Elisa worked as a research analyst at the Centre For Economic Performance at the London School of Economics, where she completed a Master’s degree in Global Politics, with Distinction.

Kim Knickle

Research Director, ESG & Sustainability

Kimberly Knickle is Research Director of the ESG & Sustainability practice at Verdantix. Her research areas encompass ESG regulations and reporting, ESG risk, supply chain sustainability, circular economy, social impact, and sustainable finance. Kim has worked for more than 20 years in the IT industry, providing research and analysis to help companies invest wisely in new technologies. Before joining the analyst industry, she held various roles in IT services, engineering and product safety testing, beginning her career at Underwriters Laboratories, Inc. Kim holds an MBA from Boston University and a BS in Electrical Engineering from Cornell.