Engaging suppliers meaningfully is key to successful decarbonisation across supply chains 

Engaging suppliers meaningfully is key to successful decarbonisation across supply chains 

Business in the Community Ireland (BITCI) is delighted to share the outcomes of its All-Ireland Climate Action Pilot Programme, a collaborative effort aimed at supporting small and medium enterprises (SMEs) in reducing carbon emissions. This programme highlighted the crucial role of supply chain decarbonisation through uniting, upskilling and empowering some BITCI member companies and a sample of their suppliers to proactively implement actions to lower their carbon footprint. This theme of effective supplier engagement models is a core aspect of COP29 discussions in Azerbaijan, highlighting the need to build capacity across supply chains particularly SMEs so Scope 3 emissions can be addressed.   

It was also highlighted in BITCI’s Low Carbon Pledge 2024 report, that companies are struggling to collate, manage and report on their Scope 3 emissions across their large and complex supply chains.  The Carbon Disclosure Project further reinforced this issue noting that delayed supplier engagement on carbon emissions leads to slower reduction progress, with full supply chain disclosure typically taking one to three years. Notably, real gains are to be harnessed through proactive supplier engagement models with companies that engage suppliers being 6.6 times more likely to develop climate transition plans aligned with Net Zero goals.   

The scope of the BITCI All-Ireland Climate Action Pilot Programme launched in partnership with the Bank of Ireland Group, Musgrave Group and SSE Airtricity, and 22 SMEs was to provide accredited carbon literacy training and tailored support focusing on developing climate action plans. It was delivered through a series of group workshops and one-to-one mentoring sessions with ‘learning by doing’ being the preferred method to maximise understanding of the challenges and scope of opportunities.   

Prior to participating in the programme, 72% of respondents said they had an average or good knowledge of carbon emissions / climate responsibility in relation to their business. This changed to 93% at the end of the programme saying their knowledge was now good or very good. Over half of the businesses are now developing climate action plans.   

Tomas Sercovich, CEO, BITCI said “Time is of the essence in our collective ambition to effectively transition to a decarbonised economy. Working collaboratively across supply chains is a critical component if we are serious about meaningful change. Despite a plethora of supports and tools available, SMEs feel overwhelmed on where to start. Collaborating and upskilling with their larger suppliers and knowing they will continue to be the supplier-of-choice reinforces the commitment and motivation by both sides to engage on value chain decarbonisation.”  

SME’s account for 68% of the total workforce in Ireland (CSO, 2020) and vary significantly in size, maturity and sector. Similarly, the 22 SMEs who completed this pilot programme spanned diverse sizes and sectors with 40% from the food and drink sector. Offering tailored sectoral approaches to supplier engagement to meet the specific needs of SMEs was identified as another key finding.   

“This programme provided exceptional training with very clear resources.”  

“We have engaged more with our suppliers as a result of this programme.”  

 “The Programme has already led to significant positive outcomes, including increased awareness and actionable steps towards carbon reduction among participating businesses.”  

Mr Sercovich continued “our recently launched Accelerate, The Business Pact for Climate and Nature will help build on these findings and scale up this programme. Accelerate expands on the success of our Low Carbon Pledge, by getting signatories to set a net-zero by 2050 target and to develop a Climate Transition Plan to track progress and accountability. Companies cannot achieve this target without engaging their entire supply chain. Through BITCI, the Accelerate signatories are building a community of action and capacity building, a centre of excellence to inform standards and quality of Climate Transition Plans including opportunities to share insights with peers and policy makers. It is an ambitious, innovative and unique campaign as there are nine areas in the architecture of the Climate Transition Plan that we are advocating, and addressing these will really move the dial for businesses.”  

Throughout this pilot programme, there was clear motivation by all groups to engage with the sustainability agenda and this momentum should be capitalised on to ensure skills and activities are honed and implemented. The development of dedicated Climate Transition Plans will help drive progress forward and pivot business operations to be future proofed by utilising low carbon solutions.   

Find out more about All Ireland Climate Action Pilot Programme for SMEs