The Challenge in Scope 3 Emissions Reduction
When developing a sustainability strategy, the leadership team at Flex, a global manufacturing partner, knew that supplier engagement was imperative to helping address Scope 3 emissions. Scope 3 emissions are often the most difficult to manage since they are outside of a company’s control, emphasizing a need to empower value chain partners towards shared emission reduction goals.
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. Flex’s multi-pronged strategy to reach net zero greenhouse emissions by 2040 includes collaboration with suppliers. To support their strategy, 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.
The company was challenged with creating a program that could support its diversified preferred supplier base. Preferred suppliers were at varying points of their sustainability journey, located in different parts of the world, and many had concerns about the costs and resources required.
Supplier Engagement to Address Scope 3
To reduce barriers to entry, Flex worked with CDP over months of strategic development to offer personalized, multilingual communications and continued education to help preferred suppliers understand and navigate setting and meeting emissions reduction targets. After inviting preferred suppliers to participate, Flex conducts a year-long program including:
- A series of trainings and communications to educate suppliers, 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 to educate suppliers about CDP’s disclosure questionnaire and process.
- 1:1, personalized meetings, if needed, to address supplier questions.
- A post-disclosure phase to discuss feedback on goal setting and inform continued collaboration with future cohorts of preferred suppliers.
As of 2022, 35% of preferred suppliers disclosed GHG emissions reduction targets, putting Flex at 69% towards its 2025 goal.
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.
By bringing preferred suppliers along on their sustainability journey, Flex is helping incite climate action across the value chain while deepening engagement and supporting the continuity of supply.