Value chain engagement helps companies achieve net zero


Last updated: 2. Jan 2024


What value chain engagement is and why it’s crucial for meeting climate targets.

Headshot of Kristian Rönn

Kristian Rönn

CEO & Co-founder

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For many companies, the majority of their emissions come from value chain scope 3 sources, which include 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 chains.

At Normative, we work with companies to reduce their carbon footprints, with a special emphasis on 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 calculation

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 to gain a better understanding of carbon sources, 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 calculate and reduce their emissions in order to be compliant with legislation and have the competitive advantage a sustainable business model creates. Without proper accounting, you may only be addressing 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


Frequently asked questions about value chain engagement.

The value chain encompasses the supply chain, including both upstream suppliers as well as downstream activities like product use and disposal.

Value chain engagement is when businesses work with their suppliers (and other sources of value chain emissions) to collect data on carbon emissions and to support decarbonization initiatives.

For many companies, the value chain accounts for a large share emissions. By working to reduce value chain emissions, businesses reduce their own carbon footprint – and the carbon footprint of every other business that shares value chain activities with them.