Accenture Study: Tier 2+ Suppliers Drive 64% of Upstream Emissions
A recent study by Accenture reveals that suppliers beyond Tier 1 contribute a significant 64% of total upstream emissions. Meanwhile, companies are grappling with the challenge of reducing their Scope 3 emissions, which are 11.4 times greater than all other emissions combined.
The report highlights that emissions hot spots vary by industry sector and supplier position in the supply chain. For instance, in the high tech sector, Tier 2+ suppliers account for a staggering 80% of upstream emissions. The location of suppliers also plays a crucial role, with different regions presenting unique emissions challenges within the same industry.
To tackle this issue, companies are taking collaborative actions. Hapag-Lloyd and DHL Global Forwarding have joined forces to reduce Scope 3 emissions by implementing biofuels derived from waste and residue materials. Meanwhile, software solutions providers like carbmee are supporting multiple industries by offering tools to manage supply chain data more transparently, enabling emissions reduction. Rolande, on the other hand, is providing Bio-LNG fuel compatible with existing LNG vehicles to achieve immediate CO₂ reductions in logistics Scope 3 emissions.
With the right visibility into their supply chain networks, up to natural resource extraction, companies can take targeted actions to reduce emissions and create more resilient supply chains. However, the upstream supplier base remains the most significant contributor to Scope 3 emissions, making it a critical area for companies to focus on in their sustainability efforts.
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