Supply Chain Emissions & Decarbonisation Blogs | Terrascope

Engaging Suppliers on Scope 3 Reductions: Best Practices and Tips

Written by Terrascope Team | Mar 27, 2024, 9:39:55 AM

Summary

To engage suppliers on Scope 3, focus on the suppliers that make up most of your emissions, build climate goals into normal procurement, give suppliers practical help, reward progress and track their data in one system. Review the programme every year. Engagement works best when suppliers see it as part of the commercial relationship, not a separate survey.

Last updated: 23 October 2026

Why is supplier engagement so important for Scope 3?

Because most of your emissions sit with your suppliers, you can't cut them alone. In companies' 2023 disclosures, supply chain emissions averaged 26 times operational emissions, according to CDP and BCG (June 2024). The same report found that only 15% of disclosing companies had set a Scope 3 target.

Supplier engagement is also recognised in target setting. The Science Based Targets initiative (SBTi) accepts supplier engagement targets as one way to address Scope 3, and published supplier engagement guidance in June 2023.

Before you start, make sure the groundwork is in place. See our prerequisites for supplier engagement. For the basics of value chain emissions, see our main guide to Scope 3 emissions.

What are the best practices for Scope 3 supplier engagement?

There are five. The table gives a quick view, and the sections below explain each.

Best practice What it means in practice Who leads
1. Clear, regular dialogue Share your targets and data needs; build them into existing procurement meetings Procurement with sustainability
2. Tailored support Give suppliers tools, training and one-to-one help that fits their maturity Sustainability
3. Recognition and incentives Reward progress through preferred status, longer contracts or finance Procurement and finance
4. Scalable data collection One system to request, check and track supplier data Sustainability and IT
5. Review and improve Get feedback, review results and update the programme yearly Programme owner

1. How should you talk to suppliers about Scope 3?

Talk to them clearly, often and through the channels you already use. Tell suppliers your reduction targets, what data you need and by when, and how it links to your own climate goals.

  • Build it into procurement. Add climate goals to supplier reviews, tenders and contracts. A separate process signals that climate is a side project.
  • Explain how the data will be used. Suppliers share more when they know why you need it and how you'll protect it.
  • Follow up. Ask your procurement team to check survey progress and answer questions.
  • Keep a regular rhythm. Use training sessions, business reviews, one-to-one meetings and group calls. Aim for quarterly contact with key suppliers, and at least once a year with others.

2. How can you support suppliers who are just starting?

Meet suppliers where they are. Some already have targets and data. Others don't know where to begin.

  • Point beginners to free resources, such as the GHG Protocol standards and the SBTi target-setting guidance.
  • Offer group webinars on how to measure emissions and fill in your data request.
  • Give your largest or most emissions-intensive suppliers one-to-one expert sessions.
  • Share emission factors or templates where it helps them report consistently.

The more your requests match common standards, the less work it is for suppliers who serve many customers.

3. Should you use incentives to drive supplier action?

Yes, where they fit your business. Incentives tied to climate performance help suppliers see a commercial reason to act. Agree the options with procurement, finance and legal first.

Options include:

  • Public recognition of supplier climate leadership.
  • Preferred supplier status or longer-term agreements linked to climate targets.
  • Direct finance or co-investment for reduction projects.
  • Help accessing better loan terms, such as through supply chain finance linked to climate performance.

You can also set consequences for suppliers that don't engage over time, but give them a fair chance and support first.

4. How should you collect and track supplier data?

Use one system that requests, checks and tracks supplier data, so everyone works from the same numbers. Spreadsheets and email break down once you engage more than a handful of suppliers.

A good system should:

  • Send standard data requests and reminders.
  • Check submitted data for gaps and errors.
  • Show each supplier's data quality and progress over time.
  • Feed supplier data straight into your Scope 3 inventory, replacing averages.

This lets procurement and business units see which suppliers need more help and where reductions are happening. Our guide to Scope 3 calculation methods explains how supplier data improves your figures.

5. How do you keep improving the programme?

Review it at least once a year. Ask suppliers and internal teams what's working and what isn't. Then update your objectives, timelines and responsibilities.

Track a few simple measures:

  • Share of Scope 3 covered by engaged suppliers.
  • Share of suppliers providing primary data.
  • Share of suppliers with their own targets.
  • Reductions reported by suppliers.

What does supplier engagement look like in practice?

BBR-VT used Terrascope to screen 100% of its suppliers. Screening every supplier first meant the team could see which ones to prioritise for deeper engagement.

How Terrascope helps with supplier engagement

Terrascope's Scope 3 supplier engagement tools are built for companies with large, complex supply chains, especially in food, agriculture and consumer goods. They help you:

  • Rank suppliers by their share of your emissions and choose who to engage.
  • Send guided data requests that show suppliers what to provide, in what format, and how it will be used.
  • Check submitted data and show its quality.
  • Replace average emission factors with supplier data in your Scope 3 inventory as it arrives.
  • Track supplier progress in one place with Terrascope data management.

In a Verdantix report commissioned by Terrascope, 87% of corporate respondents said they prioritise supplier engagement capabilities when choosing software. Read the Verdantix report.

If you're not sure which suppliers to start with, book a free value chain mapping workshop.

Frequently asked questions

What is supplier engagement in Scope 3?

It is working with your suppliers to measure and reduce the emissions linked to the goods and services you buy. It includes asking for data, setting expectations, offering support and tracking progress.

Which suppliers should you engage first?

Start with the suppliers that make up the largest share of your Scope 3 emissions. Then consider strategic importance, risk and how ready they are. Many companies engage the group of suppliers that together cover most of their purchased goods emissions.

How often should you contact suppliers about emissions?

Quarterly for key suppliers is a good rhythm, and at least once a year for others. Use existing procurement meetings where you can, so climate is part of normal business.

What is an SBTi supplier engagement target?

It is a target for a share of your suppliers, by emissions, to set their own science-based targets by a set date. The SBTi accepts it as one way to address Scope 3. Check the current SBTi criteria, as its standards are being revised.

What if suppliers won't share emissions data?

Use secondary data for them for now, explain why you need the data, and offer support. Simple templates and clear use of the data help. Over time, add data requirements to contracts.

Talk to us about supplier engagement

If you want to set up or scale a supplier engagement programme, contact our team.