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S U P P L I E R E N G A G E M E N T T O O L S 01 Supplier Selection Are sustainability criteria included in the supplier selection process? Are suppliers evaluated on their ESG performance? Prioritizing partnerships with suppliers committed to sustainability is a foundational step. Firms should adjust their procurement processes to value products and services that have a lower footprint or to prioritize companies that have set credible climate targets. Common ways to do so are by including decarbonization and data sharing expectations in your supplier code of conduct and in your contractual agreements. 02 Supply Chain Monitoring Is the supply chain monitored for ESG compliance? Are audits of suppliers conducted regularly? Effective collaboration with suppliers is crucial to tackling Scope 3 emissions. Establishing shared emission reduction targets and timelines fosters accountability and mutual commitment. Regular check-ins, feedback sessions, and performance reviews can help suppliers stay on track. 03 Capacity Building Are there initiatives to build supplier capacity for ESG improvements? Is there support for suppliers to adopt sustainable practices? Many suppliers face barriers to adopting sustainable practices due to high upfront costs associated with new technologies. Companies can bridge this gap by providing financial support, sharing expertise, or even forming joint ventures to implement clean technologies. Companies can also help to support value chain decarbonization by setting supplier and customer engagement targets. For instance, your company could commit to supporting a specific percentage of suppliers (as a percentage of spend or GHG emissions) to set their science-based targets within five years from the date the company's target is submitted to the SBTi for validation. This could be through providing training, support, tools, and other resources to help them measure their emissions, report, and set reduction targets. Copyright 2024 Tango. All rights reserved.

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