An increasing number of corporations are voluntarily disclosing their scope 3 emissions, which encompass indirect greenhouse gas emissions from a company’s supply chain, according to a report from Supply Chain Dive. The quality of this data remains a challenge, yet large firms are pursuing deeper decarbonization efforts across their value chains.

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Renewable Energy as a Primary Lever

At a recent sustainable business conference, executives from several multinationals detailed their strategies. Mars, a food and confectionery company, employs a comprehensive method to track emissions across the entire lifecycle of its products. This includes upstream activities like agriculture and packaging, as well as downstream distribution and consumer use. The company reported a reduction in supply chain emissions compared to a 2015 baseline and initiated a program to accelerate renewable energy adoption within its value chain. A company executive noted that decarbonizing electricity is often the most straightforward step, and described a program where the firm purchases renewable energy certificates for its suppliers.

For Meta, a significant portion of its supply chain emissions originates from constructing and operating data centers. The technology conglomerate, which has a net-zero goal for 2030, invested in clean energy and low-carbon technologies. The company adjusted its accounting methodology to align with Greenhouse Gas Protocol standards while also incorporating market-based mechanisms. Meta also collaborated on a guide for other firms seeking to decarbonize supply chains through direct procurement of clean energy attributes. The company assists suppliers in procuring renewable energy and is exploring the use of low-carbon building materials, having tested mass timber in data centers.

Divergent Strategies for Different Supply Chains

Other companies highlighted the need for tailored approaches. Patagonia, an outdoor apparel company, has set a net-zero target for 2040 with an interim goal to reduce its scope 3 emissions by a specific percentage compared to a 2017 baseline. The vast majority of its indirect emissions stem from purchased goods and services, particularly raw materials manufacturing. The company uses a combination of industry indexes, lifecycle data, and supplier information to understand its footprint. A key challenge is encouraging suppliers to invest in upgrades without long-term purchase commitments. In response, Patagonia has fully financed energy efficiency improvements for select suppliers and is determining how to account for the resulting carbon reductions.

LOreal’s North American operations present a distinct emissions profile. A significant portion comes from raw materials and packaging, while a notable share is attributed to its digital media footprint, including activities like advertising photoshoots. The beauty company is engaging with industry groups to develop sector standards and has worked internally with marketing teams to identify decarbonization measures that also streamline workflows, such as reducing requests for multiple content iterations.

Source: IndexBox Market Intelligence Platform