Challenge
Agilent Technologies officially committed to net-zero emissions of greenhouse gases by 2050. Scope 3 is by far the company’s greatest source of greenhouse gas emissions (over 90%). To tackle those emissions, Agilent highlighted that continued engagement with suppliers is key, helping them understand the importance of collaborating to jointly achieve their goals, and learning from those ahead.
Solution: Engaging Our Suppliers on Net Zero
Agilent is prioritizing the top strategic suppliers with the highest GHG emissions, suppliers with lower ESG performance ratings followed by all other suppliers to jointly reduce overall emissions. All suppliers have been communicated with Agilent’s commitment as part of our FY24 Supplier Code of Conduct and will be embedding key criteria of environmental and sustainability requirements within all Agilent’s procurement processes. The company enables this through knowledge forums and supplier roundtable sessions during which they share their commitments, understand where their suppliers stand and discuss quick wins as well as long-term decarbonization strategy while demonstrating progress. Agilent is also committed to sharing valuable and publicly available resources with their suppliers, especially SMEs. Moreover, the company tracks its suppliers’ progress through a yearly carbon emission questionnaire to guide risk management and mitigation plan development as part of its supply chain strategy.
Additionally, the company spearheads other Scope 3 initiatives, such as the shift from rapid air delivery to monthly ocean shipments. It adopts a yearly green logistics program involving procurement teams negotiating with suppliers to reduce frequency and mode of shipments to manage cost and reduce carbon emissions through transportation. Another approach involves Agilent’s Design for Environment initiative, guidelines documentation used to ensure all the different areas related to sustainable product development are covered, including the ones with important Scope 3 impacts: end-of-life management, materials, packaging, transportation, etc.
Impact
Since the launch of the program in 2023, Agilent has collected a 75% response rate for the carbon emission questionnaire in less than a year, as data is important to drive decisions and prioritize engagement. As Agilent matures its supplier management program, emission requirements will be embedded into the procurement processes with training programs for the procurement team to engage with all suppliers.