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Why your suppliers are essential to your low-carbon transition

Visit low-carbon transition has become an imperative for all companies wishing to anticipate regulatory requirements, reduce their carbon footprint and respond to the urgency of climate change. In France, the National Low-Carbon Strategy (SNBC) sets ambitious targets for reducing greenhouse gas (GHG) emissions.emissions, mobilizing the entire economic fabric in a dynamic of sustainable development and carbon neutrality by 2050.

But beyond internal actions and energy-saving measures, a large part of thecarbon footprint of a company's carbon footprint can be found... with its suppliers. It's in the scope 3 of carbon footprint where more than 70 % of total emissions, reminding us that an effective carbon strategy depends on the ability to engage the entire value chain. Faced with this reality, the success of the energy and ecological transition relies more than ever on active collaboration with partners, supported by innovative tools and structured methods.

 3 Contents

Why a low-carbon approach must involve the entire value chain

Understanding scope 3: companies' hidden carbon footprint

Long limited to certain large organizations, carbon accounting is now becoming a widespread requirement. In France, GHG reporting is mandatory for companies with over 500 employees (Grenelle II decree). At European level, the CSRD directive will require rigorous reporting of all greenhouse gas emissions, across all scopes, by 2025.

🔍 Scope 1: direct emissions fromcompany processes, facilities or vehicles

🔍 Scope 2: indirect emissions linked to purchasedenergy consumption (electricity, heat, steam)

🔍 Scope 3: other indirect emissions along the value chain (purchasing, assets, waste, transport, use)

Scope 1 and 2 generally represent only 10 to 20% of a GHG balance.

In many sectors (industry, textiles, digital, distribution), scope 3 can represent up to 90% of an organization's carbon footprint. Ignoring this part of the footprint is tantamount to overlooking the bulk of its environmental impact.

Issues and regulatory framework in France: SNBC, PPE, obligations

France has established a solid regulatory framework to support the ecological and energy transition. The SNBC defines carbon budgets for each period, and guides national policy via the multi-annual energy program (PPE). Large companies are now required to draw up regular carbon footprint and present an action plan to reduce their emissions, including those of their suppliers. The energy-climate law and the duty of care reinforce the obligation of transparency and implementation of carbon strategy throughout the supply chain.

The key to success lies in integrating GHG emission reduction criteria right from the partner selection stage and in national carbon strategies, as well as in each carbon transition plan.

Carbon neutrality: from individual action plan to collective strategy

Reaching thecarbon neutrality requires collective action. According to the CDP, supply chain emissions (Scope 3) can be up to 26 times higher than companies' direct emissions (Scopes 1 and 2). Acting alone is no longer enough: a company's carbon performance depends directly on the strategy and carbon transition plan implemented by its partners and suppliers.

Pioneering companies rely on collaborative carbon management tools, such as Decarbo'Target® (to set reduction targets shared with suppliers) or Decarbo'Supply® (to map the carbon footprint of the supply chain). These solutions are a natural fit with carbon budgets and national carbon strategy required by public authorities and markets.

How to sustain and strengthen your business through a successful low-carbon trajectory.

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Suppliers: the key to a successful decarbonization strategy

How to measure and manage supplier emissions

Measuring the carbon footprint of suppliers is a prerequisite for any effective low-carbon strategy. However, according to a study by Audenciastudy, "while all balance sheets include Scope 1 & 2 emissions (direct and indirect energy-related emissions), only 47% include Scope 3 emissions, which are also required, even though they represent a very significant proportion of total emissions". This lack of data on Scope 3 is hampering the implementation of a truly global carbon transition plan.

To overcome this shortcoming, it is essential to establish common indicators, share benchmarks and regularly update the carbon footprint in collaboration with partners.

Digital solutions such as Decarbo'Supply®facilitate data collection and the creation of shared dashboards. These tools enable the company to track the reduction of GHG emissions throughout the value chain, and to anticipate the risks associated with climate change or the volatility of theenergy markets.

Best practices for engaging suppliers

The success of a corporate carbon strategy depends on the active commitment of suppliers. Some companies already include carbon criteria in their invitations to tender, promote long-term partnerships, and support their suppliers in implementing plans to reduce theiremissions..

Regular dialogue, training and transparency are essential: for example, organizing workshops on climate change, sharing best practices, or using solutions such as Decarbo'Tender® to integrate environmental assessment into every new contract. In this way, every supplier becomes a key player in the carbon transition plan and in the sustainable development of the entire industry.

Examples of effective tools and methods

The commitment of Schmidt Group Group's commitment is a perfect illustration of the effectiveness of a collaborative approach to reducing ourcarbon footprint. As France's leading manufacturer of made-to-measure kitchens, Schmidt has chosen GCI to refine its GHG balancebalance sheet, in particular scope 3, which accounted for 99.4% of its emissions.

Thanks to the GCI tool, Schmidt has been able to reduce the uncertainty of its carbon footprint from 50% to just 5%, by involving over 80% of its suppliers in the collection and analysis of accurate data. The platform, which is free of charge for suppliers, has made it easier for them to get involved and increase their skills on the subject of carbon.

Modules such as Decarbo'Solution® have enabled Schmidt to better target its action plans, monitor the impact of its purchases, and identify eco-design levers, such as replacing certain raw materials with less carbon-intensive alternatives. The Schmidt-GCI experience demonstrates the value of collaborative tools for accelerating the low-carbon transition in industry.

Benefits and prospects of a collaborative low-carbon strategy

Economic and competitive advantages for the company

The reduction of GHG emissions emissions across the value chain brings numerous economic benefits:

Optimizing logistics and energy costs
Easier access to financing and markets subject to climate criteria
Improving resilience to climate change climate change or supply disruptions

"Companies surveyed by BCG and CO2 AI reported annual benefits from decarbonization equivalent to more than 7 % of their sales, representing an average net profit of $200 million per year." Committing to the energy transition growth also strengthens the brand image and confidence of customers and investors, while meeting the requirements of the national council and ministry of ecological transition.

Overall impact on society and the environment

Beyond economic performance, a carbon transition contributes to the ecological transition and to meeting national and European commitments to reduce greenhouse gas emissions. Each company plays an active role in reducing GHG emissions and inadaptation to climate change accelerates the transformation of the French economy towards a more resilient and fairer model.

Shared tools, mutualized action plans and transparency between principals and suppliers create a positive dynamic: each player in the value chain becomes a driving force behind the national carbon strategy and sustainable development.

Prepare for future expectations (regulations, markets, innovations)

Regulatory pressure and stakeholder expectations will continue to grow: carbon budgets, SNBC, international market requirements... Having a carbon strategy and collaborative carbon strategy, thanks to solutions such as the Decarbo'Solution®means guaranteeing implementation implementation of tomorrow's climate commitments.

Anticipation, innovation and collective commitment will enable every company to transform climate constraints into sustainable opportunities.

Successfully low-carbon approach is no longer an option, but a necessity for any company wishing to ensure its long-term future, promote its commitment to its customers, and actively contribute to the fight against climate change. By integrating their suppliers into their transition plantransition plan, organizations are taking a decisive step: they are transforming a constraint into a powerful lever for sustainable growth. sustainable growth and emissions reduction emissions.

Experience shows that mobilizing the supply chain - supported by adapted solutions such as Decarbo'Target®, Decarbo'Tender® or Decarbo'Supply® - speeds up implementation climate commitments and achieve carbon budgets set by the national strategy. Cooperation, innovation and transparency are the keys to building a resilient economy, aligned with society's expectations and ready to meet tomorrow's challenges.

Involving your suppliers means making the low-carbon transition a collective success, in the service of the climate and sustainable development.