In a recent blog post, we explored why supplier engagement is crucial for ESG success and discussed some of the associated challenges, such as data collection and accuracy, supplier awareness and capability, and engagement and communication.

In this blog post, we’ll explore the topic in more detail, and showcase how supply chain mapping is the first step in overcoming many of the challenges associated with reporting scope 3 emissions.

What is Supply Chain Mapping?

Overcoming the challenges associated with supplier engagement, Scope 3 emissions, and effective ESG reporting begins by developing a comprehensive understanding of your supply chain.

Supply chain mapping is the process of identifying and assessing the various entities and activities involved in the production and delivery of a company's products or services.

With regards to Scope 3 Emissions and ESG Reporting, Supply chain mapping helps companies understand the environmental and social impacts associated with their entire supply chain, from raw material extraction to end-of-life disposal.

Importance of Supply Chain Mapping for Scope 3 Emissions

Supply Chain Mapping is important for a variety of reasons. It enables organisations to develop a comprehensive understanding of their total GHG emissions, enabling greater regulatory compliance. This in turn supports more effective decision making, improves operational performance, and unlocks new commercial opportunities.

Investors, customers, and other stakeholders increasingly demand transparency regarding a company’s environmental and social impacts. Supply chain mapping provides the necessary insights to communicate these impacts effectively.

Mapping your Supply Chain

Define

Begin by determining your specific ESG goals. Aligning these goals with regulatory and commercial obligations will help to define the volume and depth of information you require from your suppliers.

Identify

Identify all suppliers and categorise them based on their function within your supply chain, and their impact on your ESG goals. Gather information on key points of contact and produce a communication strategy that informs and educates suppliers on the information you require.

Integrate

Create relevant workflows and processes that optimise the collection of relevant Scope 3 Emissions and ESG data. Minimising the operational impact on suppliers through integrations and automations can reduce errors and eliminate manual data processing.

ESG Reporting Software like SustainIQ enables organisations to automate and optimise the process of Supplier Engagement and the collection of Scope 3 emissions data.

Review

Like many aspects of ESG Reporting, Supply Chain Mapping is a continuous exercise that requires regular review. Operational objectives and regulatory requirements can change, so it is critical that organisations regularly review their Supply Chain Map to ensure that the information being collected still aligns with the objectives of your business.

Learn more

SustainIQ is an integrated ESG reporting platform that unifies all aspects of an organisation’s sustainability activities within a single environment. Businesses use SustainIQ to measure, monitor, and report on their social, economic, and environmental performance in real time.

Our software saves sustainability professionals from wasting time chasing teams, sites, and regions for reporting information. No more unreadable spreadsheets, awkward (and incorrect) calculations, and endless report building. With SustainIQ, simply pull, input or bulk upload data and get access to your custom-built report at touch of a button.

To learn more about SustainIQ or to arrange a demo click here.