Sustainability in the supply chain is more than just a corporate responsibility—it is a business necessity. Companies are under growing pressure to track and report their emissions accurately, ensuring transparency and compliance with evolving environmental regulations. However, to produce a comprehensive emission report, businesses need reliable data from suppliers.
To build a sustainable supply chain, companies must ask suppliers the right questions. This guide outlines five essential questions that will ensure accurate emissions tracking, better communication, and stronger collaboration to reduce environmental impact.
Why Supplier Emission Reports Matter
Suppliers play a crucial role in determining a company's carbon footprint, as their activities contribute significantly to Scope 3 emissions—the indirect emissions generated throughout the supply chain. Without reliable data from suppliers, businesses risk compliance failures, reputational damage, and missed opportunities for sustainability improvements.
By actively engaging with suppliers, companies can:
- Improve supply chain transparency
- Ensure accurate emission reporting
- Identify opportunities for emission reduction
- Align with sustainability regulations and corporate goals
How to Communicate with Suppliers About Emissions
Before requesting emission data, establish clear communication with suppliers. Many may lack experience with emissions tracking, so a collaborative approach is essential.
Tips for Effective Supplier Engagement
- Explain why emissions reporting matters—highlight regulatory compliance, financial benefits, and reputational advantages.
- Encourage open dialogue—allow suppliers to voice concerns and work together on solutions.
- Provide clear guidance—simplify the reporting process with resources and frameworks.
Once you have set the foundation, ask these five essential questions to ensure that supplier emissions data is accurate and actionable.
The 5 Essential Questions to Ask Your Suppliers
1. What is Your Emission Reporting Methodology?
Understanding how suppliers measure and report emissions is critical to evaluating the credibility of their data.
- Do they follow recognised standards such as the Greenhouse Gas (GHG) Protocol?
- Are their reports third-party verified for accuracy?
- Do they account for Scope 1, 2, and 3 emissions?
A standardised methodology ensures consistency and comparability across the supply chain, making emissions data more reliable.
2. How Do You Monitor and Measure Your Emissions?
Accurate emission reporting requires robust measurement systems.
- Do they use real-time tracking tools or rely on estimates?
- Are they investing in carbon accounting software for precise calculations?
- How frequently do they audit or verify their emissions data?
Suppliers that use advanced monitoring systems provide more reliable data, reducing the risk of misreporting emissions.
3. What Steps Are You Taking to Reduce Emissions?
Beyond reporting, suppliers should be actively working to reduce their emissions.
- Are they transitioning to renewable energy sources?
- Have they implemented low-carbon transportation solutions?
- Do they have net zero or carbon neutrality targets?
Suppliers committed to reducing emissions align better with corporate sustainability goals and contribute to a greener supply chain.
4. How Do You Ensure Data Accuracy in Your Emission Report?
Emission reports must be accurate, consistent, and verifiable.
- Do they undergo regular audits to verify reported data?
- Are independent verifiers involved in the assurance process?
- How do they address data inconsistencies or errors?
Reliable emissions data helps companies meet compliance standards, ensuring that their supply chain emissions are reported accurately.
5. How Can We Collaborate to Improve Emission Reporting?
Sustainability in the supply chain requires ongoing collaboration. Strengthening supplier partnerships ensures long-term improvements in emission reporting.
- Can we implement joint sustainability programs?
- How can we improve data sharing and transparency?
- Are suppliers open to pilot projects for emissions reduction?
By working together, companies and suppliers can develop innovative solutions to enhance emissions tracking and drive sustainability forward.
How a Leading Australian Company Engages Suppliers on Emissions
CBRE Australia, a leader in the construction industry, has made sustainability a core part of its supplier engagement strategy.
- They require suppliers to complete 100-question ESG assessments, evaluating their carbon emissions, energy use, and reduction strategies.
- They ask suppliers to disclose greenhouse gas emissions, reporting methodologies, and sustainability certifications.
- Their process ensures that suppliers align with sustainability goals while maintaining transparency in the supply chain.
CBRE's approach highlights the importance of rigorous supplier engagement in ensuring accurate and meaningful emission reporting.
Evaluating Supplier Responses and Taking Action
Once you gather responses from suppliers, the next step is assessing their accuracy, reliability, and effectiveness.
How to Assess Supplier Emission Reports
- Check for consistency—are their reporting methods aligned with international standards?
- Look for completeness—do they disclose all relevant emission sources?
- Identify potential red flags—are there missing details, unverifiable claims, or significant discrepancies?
Encouraging Suppliers to Improve Reporting
If you find gaps or inconsistencies, work with suppliers to enhance their reporting practices.
- Provide guidance and resources on industry-standard methodologies.
- Offer training on emissions tracking tools.
- Set clear expectations and sustainability targets for future supplier contracts.
Conclusion: Strengthen Your Emission Report with Supplier Collaboration
Creating a transparent and accurate emission report requires businesses to engage suppliers with the right questions and support systems. By focusing on clear communication, data integrity, and collaboration, companies can:
- Ensure accurate supply chain emissions reporting
- Strengthen supplier relationships for long-term sustainability
- Meet regulatory compliance and corporate ESG goals
As sustainability reporting becomes more regulated, businesses that prioritise supply chain transparency and emissions accountability will be better positioned for future success.
Are you ready to optimise your emission reporting process? Start engaging your suppliers today.
