Sustainability isn’t just a buzzword anymore; it’s changing the way we do business. With 90% of S&P 500 companies reporting on sustainability, carbon accounting is quickly becoming a mainstay of normal business operations. But these global giants aren’t just looking inward for sustainability metrics, they are also prioritizing their suppliers based on sustainability. Supply chains make up over 80% of a company’s emissions, so it’s no surprise that large organizations are turning to their supply chains to gather sustainability data and cut down on emissions. Here’s what smaller suppliers need to know to make them a preferred partner for larger contracts.
Reporting Data
As a supplier, your organization’s business activities and their related emissions are documented as your clients’ Scope 3 emissions. Large international organizations are leading the charge with environmental reporting, so they will often ask all suppliers within their supply chain to report emissions data to them. Some of the most common data they ask for include:
- Total Emissions by Scope: The total amount of greenhouse gas emissions that your company produces, split into Scope 1, 2, and 3.
- Spend with Company: The portion of total revenue that comes from the relationship with this client company.
- Product Emissions Factors: An emission factor is a multiplier used to standardize emissions data from different types of organizational activities, processes, or products. If applicable, they may ask you to provide an emissions factor for your product.
Many larger organizations are looking to their supply chains for ways to reduce their overall environmental footprint. Suppliers with accurate emissions data readily available, or those who prioritize sustainable practices, are likely to be considered for large contracts over those that are not working to gather climate data and reduce emissions.
As a smaller supplier, investing in some form of emissions data tracking is a great step towards becoming a preferred supplier. The common issue is that carbon accounting can be confusing and time-consuming. Green Impact developed Carson, an automated carbon accounting platform, specifically for small and medium businesses to easily track emissions without overconsuming time or resources. Carson fast-tracks emissions reporting by automating emission calculations. It turns energy data into an emissions footprint automatically, reducing human error and resource constraints. Carson provides a view of your total emissions and enables legacy data to see year-over-year trends. The platform also comes with intuitive dashboards that allow you to analyze emissions by scope, asset, or location. Carson’s gap identifier will let your team know about any missing data to fill in, and the platform automatically generates downloadable sustainability reports, ensuring you don’t need a sustainability expert on staff to make emissions reporting a reality. With minimal training requirements and a shorter implementation timeline than more robust tools, Carson is the perfect solution for smaller organizations that are looking to get started with carbon accounting.
The advantages don’t stop with supply chain data. Other benefits of emissions tracking as a small supplier include improving your own operational efficiency, reducing waste and energy costs, and driving innovation. These benefits to the bottom line can also enable your organization to be more competitive with pricing and set your organization up for long-term success.
How to Stand Out
Besides providing emissions data, there are a few other key factors that could provide the edge your organization needs to secure those big win contracts. If your organization has set goals with the Science-Based Target Initiative (SBTi), that can also boost your reputation among potential clients. Programs like EcoVadis provide assessments that score your sustainability and enhance an organization’s credibility and visibility as a sustainable partner. There are also numerous local and regional organizations, such as Sustainable Pittsburgh, that work to highlight environmentally conscious businesses. Adding a sustainability-related award, score, or certification to your organization’s repertoire is a great way to signal your organization’s commitment to sustainability internally and externally.
Emphasizing diversity and equity as a women, minority, or veteran-owned business is another good way to differentiate your organization from the competition. Championing diverse perspectives drives innovation and enhances brand reputation, benefiting all parties in the value chain. While being a minority-owned business does provide tangible proof of commitment to diversity, any organization with consistent social commitments and hiring practices can highlight its culture of embracing diversity to show a potential client that they share similar values.
If your organization is a small or medium-sized local business, this can also work in your favor with clients. Large organizations that are focused on sustainability may also be interested in sourcing locally. Advertising your organization as a local supplier with strong community ties can be a good way to show a socially and environmentally conscious organization the synergy between your potential partnership and their own ESG initiatives.
The Bottom Line
Winning large contracts as a small supplier can seem daunting. As sustainability reporting becomes a reality of doing business, viewing emissions tracking as an opportunity rather than another obstacle can create a competitive advantage for winning deals with large organizations. Utilizing a simple emissions tracking system like Carson can help your organization provide clients with emissions data, position your organization as a premier supplier, and unlock synergy within your own operations.