The Supplier Cascade: Accelerating Supply Chain Decarbonization

The We Mean Business Coalition recently released a supplier engagement approach called the Supplier Cascade with the goal to provide businesses with a manageable way to tackle upstream Scope 3 emissions.

The approach focuses on engagement with Tier 1 suppliers but strives to create a ripple effect into tiers further upstream in the supply chain as well.

Supplier Cascade Overview

Below are the high-level steps of the Supplier Cascade approach.  For more details and examples of best practices, see the Supplier Cascade Explainer.

1. Businesses ask all of their Tier 1 suppliers to make a credible net zero commitment aligned with science.
2. Businesses ask all of their Tier 1 suppliers to start a cascade by asking all of their own Tier 1 suppliers to do the same.
3. Businesses ask all of their Tier 1 suppliers to report progress annually on their targets and supplier action.
4. Businesses also report annually on their own targets and supplier action progress.

Comparison to SBTi Supplier Engagement Targets

The Supplier Cascade was made in collaboration with the Science Based Target initiative (SBTi).  So how does the Supplier Cascade approach differ from SBTi’s supplier engagement targets? Here are the key differences:

1. Businesses ask their suppliers to make a net zero commitment, whereas SBTi supplier engagement targets require suppliers to set a near-term science-based target 
2. Businesses ask their suppliers to ask their own suppliers to set a net zero commitment, whereas SBTi supplier engagement targets don’t explicitly require any sort of cascading action
3. Supplier Cascade, at this point, is simply a suggested approach, whereas SBTi supplier engagement targets are public goals to which businesses are held accountable

Moving Forward

The Supplier Cascade is still in its early days, and the We Mean Business Coalition is looking for Early Adopters to test out the approach and support the creation of further guidance.

Register here to stay updated.

In the meantime, check out Edison Energy’s resources to learn more about Science Based Targets, or setting supplier engagement strategies for Scope 3 decarbonization:

• TAKING YOUR SUPPLY CHAIN TO NET ZERO | A game changer for global manufacturers
• Five Key Takeaways on the SBTi Net-Zero Standard
• Disclosure to Decarbonization: A Guide to Setting and Achieving Your Climate Goals

Have a question? Email our Sustainability team directly at information@edisonenergy.com.