Challenge

Scope 3 emissions often account for the majority of a company’s emissions footprint and can be the most challenging to manage, emphasizing a need for value chain partnerships. Scope 3.1 covers emissions from the production of purchased goods and services and includes suppliers.

In 2021, Flex committed that 50% of its preferred suppliers will set greenhouse gas (GHG) emissions reduction targets by 2025 and 100% of preferred suppliers by 2030. Reducing emissions across the value chain is also a key pillar of Flex’s multi-pronged strategy to reach net zero greenhouse emissions by 2040. The company recognized that the maturity of their preferred suppliers varied and many were hesitant due to the costs and resources required, which added to the complexity of addressing the global, value chain stakeholders.

Solution

To support the company’s sustainability goals and its valued supply chain partners, Flex launched a Supplier Greenhouse Gas (GHG) Emissions Reduction Program with preferred suppliers and CDP, a leading organization that operates a global environmental disclosure system.

After inviting preferred suppliers to participate, Flex conducts:

• A series of trainings and communications to help deepen supplier understanding of emissions calculation, helping them set emissions reduction targets. Flex shares resources such as an emission reduction tool evolved from an existing Flex emission file, based on GHG Protocol calculations tools.
• Global webinars to provide an overview of the program, and with CDP, to educate suppliers about CDP’s disclosure questionnaire and process.
• 1:1, personalized meetings, if needed, to address supplier questions during the process and discuss feedback on goal-setting and continued collaboration.

The trainings and meetings were conducted in-language with global teams ensuring the program communications were accessible and clear.

Impact

Within the program’s first year, 29 percent of preferred suppliers disclosed GHG emissions reduction targets with 60 percent of preferred suppliers disclosing operational emissions, and 7 percent of preferred suppliers having a renewable energy target.

As of 2022, 35% of preferred suppliers disclosed GHG emissions reduction targets, putting Flex at 69% towards its 2025 goal. The program results with a new cohort of preferred suppliers also included:

• 59% of preferred suppliers disclosed operational emissions.
• 1.4% of preferred suppliers had a renewable energy target.

Following the results of the first year, Flex conducted a strategy session and post-disclosure survey with the 2021 cohort. As a result of supplier feedback, the organization increased the amount of greenhouse gas emissions reduction trainings during the disclosure cycle.

Also in 2022, Flex launched a renewable energy program to help selected global preferred suppliers learn more about how to set green energy goals and calculate energy consumption.

Overall, the program not only helps advance value chain know-how of addressing certain categories of scope 3 emissions, but accelerates a more integrated sustainability strategy that shifts away from a single company, siloed approach. The program also has led to deeper engagement with Flex’s preferred suppliers, helping to build relationships, support continuity of supply, and mitigate risk, which directly benefits customers.

Source: Consultation with Flex