Supply Chain Resource Center

Catalyzing Supplier Sustainability

As buyers prioritize sustainability, suppliers increasingly play a critical role. From operations to materials, proactive engagement ensures mutual success on the path to a sustainable future.

This is your ultimate hub for mastering supply chain sustainability and guiding your company toward excellence. Find guidance, practical solutions, updates, and collaboration tips here.

char-supply-chain

Explore supply chain resources.

Supplier Sustainability Requirements Across Industries

Supplier sustainability requirements are increasing across industries, pushing value chain businesses to quantify ESG metrics and create a data-driven sustainability strategy.

50

Microsoft Suppliers

Must report Scope 1-3 emissions via CDP, meet a > 55% reduction target by 2030, and in some cases, undergo third-party data audits.

Source: Microsoft
80

Target Suppliers

Must establish SBTi targets for Scope 1-2 emissions and report diversity metrics, such as ownership by women, BIPOC, LGBTQ+, veterans, or people with disabilities.

Source: Target
5700

US Government Suppliers

Major suppliers must report Scope 1-3 emissions, disclose climate risks via CDP annually, and set SBTi emissions reduction targets.

Source: U.S. Government

Supply Chain Sustainability Regulatory Developments

Globally, over a dozen newly developed supply chain sustainability regulations are pushing major buyers to seek more quantified sustainability data from their suppliers.

Here are key regulations that U.S. companies need to know:

California’s SB 253 + SB 261

Requires over 10,000 U.S. companies to disclose Scope 3 emissions and value chain climate risks.

Prove It Act

Proposal to add carbon tax on imports, incentivizing suppliers to measure and reduce emissions for competitive advantage.

U.S. Uyghur Forced Labor Prevention Act

Bans imports from Xinjiang, pressuring supply chains to certify materials free from forced labor.

EU CSRD (Corporate Sustainability Responsibility Directive)

Mandates 50,000 EU/non-EU companies disclose extensive sustainability, including Scope 3, affecting supply chain transparency demands.

EU CSDDD (Corporate Sustainability Due Diligence Directive)

EU/non-EU companies must assess, address environmental/social issues, driving demand for supplier sustainability data.

EU Batteries Rule

Suppliers must enhance battery product recyclability and replaceability and report carbon footprint for EU market compliance.

EU CBAM

Introduces carbon border tax, affecting imports; by 2026, exporters to the EU must reduce product emissions to remain competitive.

SEC Climate Disclosure Rule

U.S. companies must report material supply chain climate risks, potentially requiring supplier climate data disclosure.

NY Fashion Act

Will require fashion retailers to map their supply chains, conduct due diligence on their social and environmental impacts, and report, track, and show progress toward targets.

Washington State’s SB 6092

Will require 1,000 U.S. companies to disclose their Scope 3 emissions.

Common Sustainability and ESG Supplier Data Requests

Most requests for supplier sustainability and ESG data are currently centered on climate, driven by regulations, risk analysis, and corporate sustainability objectives. Companies should prioritize climate data first, but not climate only, and should expect inquiries about governance structures and social aspects of their operations, including diversity, labor practices, human rights, and other ESG metrics.

Here are examples of supplier sustainability engagement methodologies:

Disclosure MediumAnnual RequestsBuyers Using MethodData Requested
CDP47,000+330+

  • Climate Nature
  • Water
  • Forestry
  • Biodiversity
  • Plastics

EcoVadis75,0001,200

  • All aspects of Sustainability

Science-Based Targets Initiative (SBTi)100+

3,000+ Set SBTi Net Zero Commitment

  • Climate Data (Targets, Emissions, and Strategies)
  • Scope 3
  • SBTi-aligned
  • Emissions Reduction Target

Proprietary Questionnaires & Surveys1,000+1,000+
  • Variable, depending on Company targets
  • Most common is Climate
The Higg Index Apparel and footwear specific framework24,000+300
  • Water
  • Waste
  • Nature
  • Climate Human Rights
  • Labor Practices
Other sector-specific frameworks:
  • GRESB
  • LEED
  • Fair Trade
  • Fair Labor
  • Responsible Jewelry Council
1,000+1,000+
  • Variable, depending on Company targets and specific industry
  • Most common is Climate
The landscape of supplier disclosures features a complex array of engagement methodologies.

Navigating Sustainability Data Requests

With an influx of requests across diverse channels for supplier sustainability data, acting today to track the data most critical to your major clients is a proven strategy to preserve and enhance your business relationships.

Explore solutions to help you respond to data requests:

Calculate GHG Emissions

Easily measure, manage, and share accurate carbon account data with your biggest customers in every requested data format.

Compare Product Footprints

Get product-specific carbon footprints to share with customers requiring want in-depth emissions data for each line item they buy from your company.

Report Climate Risks

Help your customers accurately assess any climate risks in their supply chain by supplying them with data on potential risks your company may be facing.

Report Sustainability Metrics

Report all the necessary sustainability metrics your clients need through any reporting framework (CDP, EcoVadis, proprietary, or others).

Additional Supply Chain Resources

From completing CDP questionnaires to undergoing EcoVadis assessments, suppliers navigate various frameworks and surveys. Discover additional tools and insights to streamline this process and foster sustainable partnerships.

Explore further resources for enhancing supplier engagement on sustainability:

12

ESG & Sustainability Reporting

Solve your reporting challenges, while strengthening data accuracy and performance ratings.

10

CDP

CDP Reporting: A Suppliers Guide to Disclosures, Scoring, and Questionnaires

11

EcoVadis

EcoVadis 101: The Definitive Guide to Improving Your Sustainability Rating

Flag-European-Union.jpg

CSRD

The European Union (EU) has created one of the most ambitious and progressive green agendas globally. The EU ESG regulatory landscape extends far beyond most other regions, as they aim to meet the goals set out in the Green Deal.

8

Climate & Carbon Resources

Carbon accounting is the modern language of climate change. It’s how companies share their climate story transparently and accurately today.

9

ESG 101

ESG has become today’s business imperative. Come up to speed on the basics of ESG, understand the importance for your company, and learn how to build a world-class ESG program from the ground up.

Supply Chain Sustainability FAQ

Why are supply chain sustainability requests increasing?

Heightening focus on achieving sustainability goals is driving the increase in sustainability data requests. Coupled with tightening regulations, the integration of sustainability into corporate risk management, and stakeholder expectations, investors, consumers, and regulatory bodies are increasingly holding companies accountable for their ESG impacts, prompting a rise in demand for transparent sustainability disclosures.

Who is requesting supply chain sustainability data?

The primary drivers of these requests are large multinational companies seeking to ensure their supply chains align with sustainability goals, reduce their exposure to risks, align suppliers with their code of conduct, and meet mandated reporting needs. These corporations are leveraging their influence across their supply chains to request and, in some cases, mandate sustainability data to meet their targets and their stakeholders’ expectations.

What types of supply chain sustainability data requests are being made?

Companies are being asked to provide a wide range of sustainability data. Most notably, there is a focus on climate-related information, aligning with global efforts to combat climate change. However, there is an expanding scope that includes requests for information on social issues like diversity and inclusion, labor practices, and human rights.

Will requests increase in the future?

Requests for sustainability data will continue to grow, both in frequency and in scope. This trend will be driven by ongoing environmental challenges, evolving societal expectations, and the recognition of sustainability as an integral part of business resilience and success. As such, companies can anticipate the need for more sophisticated data management and reporting systems to meet these demands for increasingly accurate and broad data sets.

Why is now the right time to action on sustainability data requests?

The ability to measure and reduce emissions will be an important aspect of maintaining current customer relationships and will give your company a competitive edge in winning new deals. 

With increasing regulations around sustainability, ESG, and climate reporting, starting today ensures that your company stays compliant and supports its customers to do the same. 

By assessing and acting on ESG data today, your company can identify and mitigate risks related to environmental, social, and governance factors preventing any potential for future loss of business. 

Eventually, your customers will request information on much more than emissions, with requests for information on water use, biodiversity, deforestation, equality, and much more. Starting now will prepare your company to meet every future request for sustainability data. 

How can Good.Lab help with sustainability data requests?

We have experience helping our customers comply with Microsoft’s Supplier code of conduct and report using the most common reporting tool, the CDP
 
We can help companies measure the most common request for data, GHG emissions, with our GHG Emissions Calculator, and with our team of experts, guide you through reports into CDP, ISSB, or any customer survey. 
 
Our carbon experts and team of consultants have worked with hundreds of companies and are prepared to help your company set achievable carbon reduction and other ESG goals, including the commonly requested goal to set science-based targets
 

Turn Supply Chain Challenges into Your Competitive Advantage

Learn how Good.Lab’s software powered by supply chain sustainability experts can help.

Schedule a Consultation
Welcome to Good.Lab! We're glad you're here and want you to know that we respect your privacy and your right to control how we collect and use your personal data. Please read our Privacy Policy to learn about our privacy practices or to exercise control over your data.
Decline AllAccept All
Strictly necessary

Essential for you to browse the website and use its features.

Preferences

Remember choices you have made in the past.

Statistics

Collect information about how you use a website.

Marketing

Track your online activity to help advertisers deliver more relevant advertising.

Decline AllAccept All