Strategic Focus: Strategies For Reducing Purchased Product Emissions

Executive Summary

Purchased product emissions encompass upstream supply chain emissions from both tangible and intangible products acquired by a firm. The GHG Protocol classifies them into four categories (Scope 3, Categories 1-4), based on supply chain components and product types. In recognition of their prevalence, firms such as E.ON are adopting targets approved by the Science Based Targets initiative (SBTi) for purchased goods emission reductions. Progress on such targets, and compliance with an increasingly rigorous landscape of regulations aligned with the Task Force on Climate-related Financial Disclosures (TCFD), requires effective emissions management using accurate, granular emissions data. Whilst this is often hindered by poor visibility, low supplier engagement and the logistical requirements of data collection, firms can follow five cyclic stages of supply chain emissions management and engage in best practices to maximize data accessibility and accuracy.