How to reduce Scope 3 emissions: Why supplier engagement is your secret weapon

As companies explore how to reduce Scope 3 emissions and shrink their carbon footprint, gathering and analyzing emissions data is key. While many feel confident measuring Scope 1 (direct emissions from owned operations) and Scope 2 (emissions from purchased energy), recent research shows only 15% are currently reporting Scope 3 emissions—indirect emissions from supply chains, logistics, and other external activities. These are typically the most complex and significant part of a company’s carbon footprint, accounting for an average of 75% of total emissions. 

Why supplier data could be the missing link in your Scope 3 emissions strategy

Scope 3 emissions are challenging to measure and manage due to their reliance on external partners. However, with strategic supplier engagement, businesses can turn this complexity into an opportunity for innovation, cost savings, and competitive advantage. If you're wondering how to reduce Scope 3 emissions, improving supplier engagement is one of the most effective strategies. 

1. Identify and prioritize hotspots 

Not all suppliers have the same emissions impact. Before you can engage effectively, you need to know where to focus your energy. Start with an assessment of materiality—a data-driven approach to pinpoint which suppliers and categories contribute most to your footprint. Often, a few suppliers generate the majority of Scope 3 emissions. Focusing on these high-impact “hotspots” will help you prioritize efforts where they’ll have the greatest impact. 

2. Start with the data you have 

Perfect data isn’t a prerequisite. While some companies wait for activity-based emissions data from every supplier, you can make meaningful progress with spend-based calculations and industry averages.  

Use financial data you already have—like invoices and purchase orders—combined with emission factors by industry sector. This spend-based method gives you a baseline understanding of your Scope 3 footprint and highlights the biggest opportunities for improvement. 

Avoid rushing into activity-based data, which can complicate reporting and lead to double-counting. A phased approach is both pragmatic and strategic. Start with spend-based calculations, then gradually introduce more specific activity data as relationships mature and data quality improves. The goal isn't perfection from day one; it's creating momentum and establishing the data collection processes that will improve over time. 

3. Educate and align suppliers 

Suppliers can’t support goals they don’t understand. Many smaller suppliers may be unfamiliar with carbon accounting, sustainability reporting, or their role in your decarbonization strategy. 

Consider hosting supplier workshops or training sessions to outline your goals, explain why they matter, and show how suppliers can contribute. Share the business case for sustainability: potential cost savings, risk reduction, and new market opportunities tied to improved environmental performance. 

Make it clear this isn’t just about compliance. Frame it around shared value: energy efficiency that reduces costs, waste reduction that improves margins, and innovation that drives competitive advantage for both organizations. 

4.  Incentivize supplier participation 

For real progress, sustainability must be integrated into supplier relationships. Rather than focusing on penalties, provide clear incentives for improvement. 

Implement scorecards that factor sustainability into vendor selection and contract renewals. Go beyond surveys—embed carbon metrics into procurement. Work with your procurement and finance teams to make sustainability a key evaluation criterion. 

Offer incentives like preferred vendor status or long-term contracts. You might even share cost savings from joint efficiency initiatives. Provide support where needed: energy audits, help with reporting, or access to financing for clean tech upgrades. Make it easier and more rewarding for suppliers to align with your goals. 

5. Collaborate for long-term impact 

The most effective supplier engagement is built on partnership. Co-develop solutions, and share tools, templates, and best practices. Treat key suppliers as strategic allies. 

Work together on innovation—whether through lower-carbon materials or more efficient processes. Explore joint procurement of renewable energy or technologies that drive shared benefits and economies of scale. 

To deepen this collaboration, consider launching a supplier decarbonization program. This initiative can help suppliers reduce their own Scope 3 emissions by giving them access to tools, expertise, and technologies that may otherwise be out of reach. 

These relationships take time and trust. Start with your most strategic suppliers, where the potential impact is highest, and scale from there. 

6. Use technology to simplify and scale  

Tools like World Kinect’s myWorld Carbon Management carbon accounting platform can simplify reporting and free you to focus on action. The platform offers comprehensive reports across emissions scopes, forecasts emissions, tracks progress to targets, and quantifies the impact of voluntary reductions. By combining a leading technology solution with World Kinect’s team of carbon experts, organizations can extend their internal capabilities and manage the lifecycle of emissions reporting more effectively. 

Conclusion: How to reduce Scope 3 emissions with long-term supplier strategies 

Understanding how to reduce Scope 3 emissions may seem daunting, but it’s a critical step toward a sustainable future. The key is trust, transparency, and teamwork with your suppliers. 

Start with the data you have and focus on high-impact areas. Align and educate your partners before asking for data or commitments. Create clear incentives and provide practical support. These steps are essential for any organization learning how to reduce Scope 3 emissions through supplier collaboration. 

By treating emissions data as a strategic asset, and your suppliers as valued partners, you can meet compliance requirements, drive innovation, reduce costs, and lead your industry in decarbonization.