Value chain engagement helps companies achieve net zero

Sustainability

7. Jul 2022

Kristian headshot

Kristian Rönn

CEO & Co-founder of Normative

What value chain engagement is and why it’s crucial for meeting climate targets, explained by Normative co-founder Kristian Rönn.

Kristian headshot

Kristian Rönn

CEO & Co-founder of Normative

For many companies, the majority of their emissions are in the value chain, which includes both upstream emissions from the supply chain as well as downstream emissions from product use and disposal.

To reduce emissions and reach net zero, companies must engage their value chain, as the latest IPCC report makes clear.

At Normative, we work with companies to reduce their carbon footprints, with a special emphasis on the value chain emissions. And in our work, we see that many companies want to act but don’t know where to start. 

Carbon reduction begins with accurate measurement

The first step to reduction is to measure your value chain emissions. Once you have identified your hotspots, you can devise a strategy for engagement and prioritization.

How to scientifically calculate your value chain emissions

Value chain engagement can take many forms: engaging your suppliers, switching to low-carbon financial investments, decarbonizing your product and service design, or implementing circular economy principles.

Reducing supply chain emissions has knock-on effects

For many companies, suppliers account for a large share of value chain emissions. By engaging and inspiring suppliers to reduce emissions, you will have a positive impact on your own carbon footprint as well.

There are no shortcuts to net zero. Businesses need to measure and reduce their emissions in order to be compliant with legislation and have the competitive advantage a sustainable business model creates. Without proper measurement, you may only be accounting for part of your carbon footprint – and could potentially face accusations of greenwashing. 

We know that value chain engagement can be difficult at first. The good news is that a little bit of strategic focus and target-setting goes a long way – jump-starting your net-zero journey and bringing in new business opportunities.

Engaging your value chain in carbon reduction: a practical guide

Our comprehensive free guide clarifies the path forward for companies that want to begin value chain engagement.

Get the free guide