Supplier Engagement on Sustainability: Key Principles and Climate Insights
Most environmental and social impacts occur beyond a company’s own operations, within global supply chains. Issues such as biodiversity loss, water use, forced labour, and carbon emissions are largely driven by supplier activities. For many manufacturing companies, 70–90% of total greenhouse gas emissions come from the value chain, making supplier engagement essential.
Companies are increasingly driven to engage suppliers by regulation, client and investor expectations, peer pressure, and the need for resilience and innovation. Sustainability performance is also becoming a key indicator of overall supplier excellence.
Four principles for effective supplier engagement
Successful supplier engagement moves beyond generic, top-down data requests and is guided by four principles:
Risk-based: Focus on material risks instead of broad questionnaires.
Engaging: Build dialogue, explain expectations, and share responsibility.
Proportionate: Adapt requirements to supplier size, maturity, and risk.
Reciprocal: Create shared value through incentives, recognition, or collaboration.
Focusing on climate impact
Because most emissions sit in the value chain, supplier engagement is critical for climate action. A structured approach starts with identifying emission hotspots and prioritising key suppliers. Clear internal alignment, well-defined expectations, and capable procurement teams are essential. Reliable supplier emission data, when properly validated, can significantly improve the accuracy of corporate carbon footprints and support targeted reduction actions.
By focusing on collaboration rather than compliance, supplier engagement becomes a powerful lever for reducing risks, improving data quality, and accelerating sustainability progress across the value chain. 
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