Having a sustainable business can improve environmental impact while enhancing social responsibility and achieving economic efficiency. Achieving this across the company, however, requires a collaborative effort between the company and their stakeholders. Today, companies, pressured by public demand and regulations, now look deeply into their supply chain to ensure and strengthen the presence of business practices that make a positive impact on people and the planet.
As companies face increasing pressure from stakeholders to adopt sustainable practices, more and more continue to work with stakeholders across their supply chain. Suppliers and procurement teams play a critical role in building resilient, environmentally responsible supply chains. Monitoring ESG data, establishing codes of conduct, and empowering stakeholders, especially suppliers, are some of the practices teams do to integrate sustainability across the supply chain.
For large companies, working closely with their suppliers is essential in managing and improving their environmental impact. With supply chains contributing to greenhouse gas (GHG) emissions, measuring this data gives teams a clearer picture of their sustainability performance, allowing them to transform their supply chain into a sustainable ecosystem.
Yet suppliers for large companies may be challenged by new requirements asking them to measure their own emissions. At Keslio, we help suppliers report their GHG emissions to large companies like Microsoft in order to comply with sustainability reporting requirements.
Suppliers are at the heart of an organization’s environmental footprint. Current sustainability reporting requirements in certain countries and governing bodies have already incorporated GHG emissions data in their reporting requirements, creating a new challenge for businesses yet also an opportunity for low-carbon economies. While Scope 1 and Scope 2 emissions may be easily gathered and measured, many companies find themselves challenged when measuring their Scope 3 emissions, or the indirect emissions not owned or controlled by the organization.
Scope 3 emissions, which are found across the supply chain from the supplier to the end-of-life use of a product or service, may account for more than 90% of a company’s total emissions impact. These emissions are broken down into categories such as purchased goods and services, capital goods, employee travel and commute, and upstream and downstream transportation and distribution. Since these emissions are beyond the control of the company, procurement and supply chain teams are now tasked to work closely with their suppliers in order to get a clear and accurate picture of their environmental impact.
With the vast amount of data under Scope 3, along with pressure from customers affected by mandatory sustainability reporting, suppliers are pushed to monitor and report their data in order to support their customers in their sustainability goals.
At Keslio, we support suppliers and procurement teams in navigating the complex and evolving sustainability landscape. Our expertise is particularly valuable for companies looking to embed sustainability practices into their businesses. Through our GHG Emissions Calculations services, we help suppliers effectively manage, measure, and report their carbon emissions to strengthen stakeholder relationships and bring companies closer to their sustainability goals.
Microsoft, one of the largest companies in the world, is now working closely with their suppliers in order to get a better understanding of their Scope 3 emissions across their supply chain. New regulations have led to companies that supply different goods and services to Microsoft to measure their own annual emissions to support Microsoft’s sustainability reporting needs and decarbonization plans.
As mentioned before, measuring GHG emissions can be challenging for suppliers who are new to the sustainability landscape. Lack of time, knowledge, and experience act as barriers to effectively measure and report sustainability data. Calculating GHG emissions also entail gathering data from multiple internal and external sources, leading to the need for strong stakeholder engagement through methods such as interviews and surveys.
The time-consuming and laborious task of measuring GHG emissions can be overwhelming and complex for suppliers. In addition, companies may ask suppliers to have their reports validated by external auditors to ensure accuracy and transparency.
For suppliers for Microsoft, Keslio can help ease compliance by taking over the process of measuring and reporting GHG emissions while ensuring validity and reliability. Our GHG Emissions Calculations relieve suppliers of the struggles and confusion they may experience when measuring emissions on their own or through unfamiliar software. Our swift process allows suppliers to report emissions data with confidence as we guide suppliers through every step, from data gathering to accounting and reporting. By taking this complex process off suppliers’ hands, we allow them to continue growing their business while smoothly integrating sustainability into their practices.
Working with Keslio to receive accurate emissions reports aligned with Microsoft’s requirements yields multiple benefits for suppliers and procurement teams. Suppliers not only receive support and guidance in this new sustainability regulatory landscape, but they also receive insights on their GHG emissions in order for them to better manage their impact. Our services can also help manage costs due to its affordability in comparison to other software and consulting firms that also provide GHG emissions support. In addition, Keslio provides additional assurance statements that strengthen the validity of the report.
In the long-run, annual GHG reports and effective decarbonization strategies and commitments also strengthen a supplier’s reputation as a sustainability-focused partner, making them more appealing to procurement teams.
Building sustainable supply chains is not without challenges. Data silos, legacy systems, and resistance to change can hinder implementation. Furthermore, small and medium enterprises that are suppliers to large companies may face challenges due to lack of support, experience, and knowledge on the new sustainability landscape.
To overcome these barriers, organizations must prioritize stakeholder engagement, invest in training, and leverage partnerships. Working with sustainability consultants and advisors can provide the necessary expertise and support for a seamless transition. Through Keslio’s sustainability expertise and technology, suppliers for Microsoft can effectively strengthen their relationship with the company while working together for sustainable development.
Discover how Keslio can help procurement teams and suppliers with their GHG emissions reporting. To learn more about how Keslio can assist your organization in its decarbonization journey, read more here or reach out to us through hello@keslio.com
