Scope 3 emissions: Creating a symbiotic relationship with supply chains

In the UK, all the tier one contractors, and many smaller counterparts, have set net zero targets for Scope 1 and Scope 2 emissions over the coming years. While some of these are on track to be met or exceeded, knowledge and awareness down the supply chain still isn’t where it needs to be.

With Scope 3 emissions accounting for more than 70% of a businesses’ carbon footprint, how can main contractors support their supply chain partners and empower them to take actionable steps to reduce their carbon contribution? It starts with plugging gaps in knowledge and forming reciprocal relationships.

What are Scope 3 emissions?

Scope 1 and Scope 2 cover direct emissions from owned sources and indirect emissions from the purchase of energy, but Scope 3 includes all other upstream and downstream activities that create indirect emissions. The Greenhouse Gas Protocol identifies 15 categories within this, including employee commuting, waste disposal and investments to name only a few.

Perhaps the biggest contributor to Scope 3 emissions for main contractors is purchased goods and services, which is where supply chain impact comes to the fore. The activity of subcontractors makes up a large proportion of this but, in what can become a very complex supply chain, questions can arise around how you approach reporting on this and how to positively influence these third parties.

The supply chain challenge

On a single site you may encounter a tier one contractor working alongside a specialist subcontractor which employs just a handful of people. The difference? Resources. We recently spoke to some of our valued supply chain partners and across the board the same challenges were being reported – where main contractors may have a dedicated sustainability team, as is the case at Pexhurst, smaller firms don’t typically have the personnel or financial resources to dedicate to this.

Further removed from the main project client, subcontractors also have more flexibility available to them than those higher up in the chain. While currently this may be seen as less stringent requirements to adhere to, it’s a great opportunity to learn more about how to minimise carbon impact and implement small changes.

Leading by example

As a main contractor that is several years into this journey, we have knowledge, experience and, most importantly, data that our supply chain partners may not. Across the construction industry, we are constantly learning from each other and the topic of sustainability should be no different. By engaging with subcontractors and passing on some of what we’ve learnt – via supply chain events, CPDs and training – we not only open ourselves up to gaining valuable data needed for Scope 3 targets, but also play a part in influencing both individual firms and the industry as a whole.

Unlike tier one contractors with complex supply chains, as an SME we have direct contact and personal relationships with subcontractors and partners – some of whom we’ve worked with for more than 20 years. This puts us in a great position to understand their sustainability maturity, have a meaningful influence on their operations and include them in our journey.

Have you ever said, or heard someone say, “we don’t know where to start”? Even as a smaller business with fewer resources, there are plenty of small changes that can be made. As a first port of call, achievable substitutes include opting for an EV fleet, switching fossil fuel powered machinery to electric or using hydrotreated vegetable oil instead of diesel, and changing to a renewable electricity tariff.

Working alongside supply chain partners on a day-to-day basis, whether on site or via head office, all it takes is one conversation to start this journey. While it will become a matter of compliance on the approach to the government’s 2050 net zero target, the first step should be one of genuine curiosity and interest as we work together to make a positive impact on our carbon output.

Kayla Vella is senior client relationships manager at Pexhurst