Engaging your Suppliers on Sustainability
- Federation of Small Businesses
- Sep 23
- 4 min read
The Greenhouse Gas Protocol – which provides the most widely recognised accounting standards for greenhouse gas emissions – categorises GHG emissions into three ‘scopes’. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the purchase and use of electricity, steam, heating and cooling. Scope 3 includes all other indirect emissions that occur in the upstream and downstream activities of an organisation.
Addressing and reducing Scope 3 emissions is becoming increasingly crucial for all businesses. This task can be particularly challenging due to the intricate nature of supply chain networks that underpin modern businesses. According to the UN Global Compact, Scope 3 emissions contribute to over 70% of a business's carbon footprint. It is therefore vital for businesses to confront these emissions head-on and align with their suppliers to manage expectations for impactful climate action.
Moreover, it is becoming increasingly common for bigger businesses within your own supply chain to request sustainability reporting information from small businesses within their supply chain, to meet regulatory compliance, as well as investor and stakeholder expectations.
Developing more meaningful relationships with suppliers will help your business identify innovative solutions, exchange best practices, and foster a collective effort to reduce emissions across your value chain and beyond. A collaborative mindset is essential for expediting climate action progress, yet initiating these conversations can sometimes prove challenging.
Writing a letter to your suppliers is a great step in helping you start an initial supply chain conversation with your suppliers and improving environmental impact and transparency. Your letter should be clear, collaborative, and non-confrontational, focusing on shared goals rather than obligations.
What to include
To ensure strong engagement, it is important to provide compelling reasons to your suppliers for starting this conversation, especially when it relates to aligning with legislation and compliance.
Introduction and purpose
Briefly explain why you are contacting your supplier and how this relates to your sustainability goals. Emphasise that sustainability is an important part of your business and key to your success and recognise the supplier as a valued partner in this journey. You can also mention that you are reviewing both your own and your suppliers’ sustainability efforts as part of your Scope 3 emissions reporting. It is worth providing a simple explanation of Scope 3 emissions, which are the indirect emissions that come from the supply chain, such as purchased goods and transport.
Provide context on Scope 3 emissions
Clarify that the products or services supplied by the supplier are included in your Scope 3 emissions calculations.
Why it matters
Highlight the shared benefits of measuring emissions and collecting related data, such as cost reductions, improved efficiency, regulatory compliance, stronger positioning in tenders, and meeting customer expectations. Emphasise the crucial role that suppliers play in achieving these outcomes for themselves through their contribution to Scope 3 emissions.
Next steps
Suggest arranging a meeting, sending a questionnaire, and establishing a point of contact to continue the discussion. Keep the tone open and welcoming and encourage your suppliers to get in touch if they have any questions or wish to discuss the matter further.
Include a questionnaire
Including a questionnaire will help structure your conversation, set clear expectations, and provide a consistent way to gather information. However, it is important to keep it simple, particularly if your suppliers are new to carbon reporting, to ensure it is effective. Make it clear that you are not expecting perfection, but rather that this is the beginning of a collaborative journey.
Example questions to include in the questionnaire are as follows:
1. Do you have an environmental or sustainability policy? (Yes/No)
a. If yes, please provide a copy or a link.
2. Have you set any sustainability goals, such as carbon reduction or waste minimisation? (Yes/No)
a. If yes, please describe.
3. Are you working towards or certified in any sustainability programs (e.g., ISO 14001, Race to Zero, SBTi, B Corp, FSC, Fairtrade)? (Yes/No)
a. If yes, please specify.
4. Do you have a dedicated sustainability team or officer? (Yes/No)
5. Have you measured your company’s carbon footprint? (Yes/No)
a. If yes, please provide recent emissions data (Scopes 1, 2, and 3, if applicable).
6. What percentage of your energy consumption comes from renewable sources? (%)
7. Do you have initiatives in place to improve energy efficiency? (Yes/No)
a. If yes, please describe.
8. Do you assess the sustainability of your own suppliers? (Yes/No)
9. Do you have policies for responsible sourcing of raw materials? (Yes/No)
a. If yes, please provide details.
10. Do your products contain recycled, biodegradable, or sustainably sourced materials? (Yes/No)
a. If yes, please specify the percentage.
11. Have you implemented measures to eliminate single-use plastics or unnecessary packaging? (Yes/No)
a. If yes, please describe.
12. Do you have a waste reduction or circular economy strategy? (Yes/No)
a. If yes, please describe.
13. What percentage of your waste is recycled or repurposed? (%)
14. Do you offer take-back or recycling programs for your products? (Yes/No/NA)
15. Do you track and aim to reduce transportation emissions? (Yes/No)
a. If yes, please provide details.
16. Do you use low-emission, electric, or alternative fuel vehicles? (Yes/No)
17. Do you prioritise local suppliers to reduce transportation impact? (Yes/No)
18. Do you have fair labour policies and ensure compliance with labour laws? (Yes/No)
19. Do you ensure fair wages and safe working conditions for your employees and those in your supply chain? (Yes/No)
20. Are you involved in community engagement or social impact initiatives? (Yes/No)
a. If yes, please describe.
21. Are you compliant with all relevant environmental regulations? (Yes/No/NA)
22. Do you regularly review and improve your sustainability practices? (Yes/No)
23. Are you open to collaborating with us to improve sustainability efforts? (Yes/No)
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