In today’s climate conscious world, businesses are racing to decarbonize operations, reduce their environmental footprint and align with global sustainability goals. But while many focuses on reducing direct emissions, the biggest carbon culprit often lies beyond their immediate control, in the supply chain.

These emissions, categorized under Scope 3 of the GHG Protocol are becoming a critical frontier in the fight against climate change and a strategic opportunity for companies to lead.

Understanding supply chain emissions is a crucial first step for businesses aiming to cut their carbon footprint. Tackling these indirect emissions enables faster, more effective climate action and ensures a smoother shift to a low carbon economy. Managing supply chain emissions is no longer optional; it’s essential for staying compliant, competitive and resilient in a carbon conscious world.

What Are Supply Chain Emissions?

Supply chain emissions, also known as Scope 3 upstream emissions include the indirect greenhouse gases released during:

• Raw material procurement and sourcing
• Manufacturing and processing operations
• Packaging and material use
• Transportation and logistics activities
• Storage, warehousing and distribution
• End-of-life disposal or recycling

These emissions aren’t under your operational control, but they are directly linked to the products and services you purchase. Supply chain operations, from procurement and manufacturing to transportation and distribution, contribute significantly to greenhouse gas emissions and climate change.

In most industries, supply chain emissions are, on average, 11.4 times higher than operational emissions, which equates to approximately 92% of an organization’s total GHG emissions.

Why Supply Chain Emissions Can’t Be Ignored!

•  They drive most of your emissions:

          Switching to renewables helps, but if suppliers rely on carbon intensive manufacturing or inefficient logistics, your footprint stays high.                                                                                                

• Required by ESG frameworks:

         Scope 3 disclosures are now mandatory in most ESG standards. Omitting them risks non-compliance and reputational loss.

• Under investor and consumer scrutiny:

         Transparency in your supply chain signals accountability to climate conscious stakeholders.

• Critical for net zero:
  Net zero isn’t achievable without reducing upstream emissions. Ignoring Scope 3 breaks the decarbonization chain.

• High impact through influence:

         You may not control suppliers, but you can drive change through sustainable sourcing and engagement.

Benefits of A Greener Supply Chain

Sustainable supply chain management integrates environmental, social and economic factors across a product’s entire lifecycle, delivering value to businesses, consumers and the planet alike:

•  Lower emissions intensity: Reduces the carbon footprint per unit of product or service delivered.

• Improved ESG ratings & compliance: Supports alignment with frameworks for better ESG scores and regulatory readiness.

• Enhanced investor & customer trust: Demonstrates climate responsibility, increasing transparency and stakeholder confidence.

• Cost savings & operational efficiency: Streamlines processes, reduces energy use, and cuts waste, lowering expenses over time.

• Supplier resilience: Promotes more stable, future ready supply chains through sustainability driven practices.

• Stronger brand & competitive advantage: Builds reputation and differentiates your business in a sustainability driven market.

• Greater transparency & risk mitigation: Helps identify and manage climate, reputational and supply chain risks proactively.

• Access to green finance & incentives: Qualifies your organization for sustainability linked loans, grants and tax benefits.

How ARRO from CeroED Helps Green Your Supply Chain

You can’t build net-zero without a net-zero supply chain. With the right tools, partnerships and strategy, greening the chain becomes a catalyst for climate leadership.

At CeroED, we enable organizations to go beyond the four walls of their operations and take climate action where it truly counts: upstream and downstream across the value chain.ARRO integrates supply chain sustainability into your core ESG strategy through its integrated supplier assessment module, which plays a key role in helping organizations to evaluate, benchmark and engage in suppliers based on ESG performance, risk, and compliance by:

•  Assessing and benchmarking supplier performance, helping identify high-risk vendors early.

• Mapping and classifying emissions across all 15 GHG Protocol categories.

• Identifying carbon hotspots by supplier, product or geography.

• Driving targeted actions to reduce and manage supply chain emissions effectively.

• Supporting ESG scorecards and performance tracking.

• Enable continuous value chain improvement through transparency, accountability and measurable progress across the supply network.

Ready to map and manage your supply chain emissions through ARRO? Let’s connect the dots across suppliers, data and impact.

Email us at info@ceroed.com

Visit www.ceroed.com

#GHG Protocol #ESG #CeroED #ARRO #Sustainability#Climate Change