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Why Your Suppliers Are Essential to Your Low-Carbon Transition

The low-carbon transition is now essential for all companies seeking to stay ahead of regulatory requirements and reduce their carbon footprint , and address the urgency of climate change. In France, the National Low-Carbon Strategy (SNBC) sets ambitious for reducing greenhouse gas (GHG) emissions, thereby mobilizing the entire economic sector toward sustainable development and carbon neutrality by 2050.

However, beyond internal initiatives and energy-conservation measures, a large portion of thecarbon footprint lies… with its suppliers. It is in Scope 3 of the carbon footprint that often hides more than 70% of total emissions, highlighting that the effectiveness of a carbon strategy depends on the ability to engage the entire value chain. Given this reality, the success of the energy and ecological transition depends more than ever on active collaboration with its partners, supported by innovative tools and structured methods.

 3 Contents

Why a low-carbon approach must involve the entire value chain

Understanding Scope 3: Companies’ Hidden Carbon Footprint

Long limited to certain large organizations, carbon accounting is now becoming a widespread requirement. In France, GHG reporting is mandatory for companies with more than 500 employees (Grenelle II Decree). At the European level, the CSRD directive will require rigorous reporting on all greenhouse gas emissions, across all scopes, starting in 2025.

🔍 Scope 1: Direct emissions from processes, facilities, or vehicles owned bythe company

🔍 Scope 2: Indirect emissions related to the consumption of purchasedenergy (electricity, heat, steam)

🔍 Scope 3: Other indirect emissions throughout the value chain (purchases, assets, waste, transportation, use)

It is worth noting that Scope 1 and 2 emissions generally account for only 10 to 20% of a GHG inventory.

In many sectors (manufacturing, textiles, digital, retail), Scope 3 emissions can account for up to 90% of an organization’s carbon footprint. Ignoring this aspect means overlooking the bulk of its environmental impact.

Issues and Regulatory Framework in France: SNBC, PPE, Obligations

France has established a robust regulatory framework to support the ecological and energy transition. The SNBC defines carbon budgets for each period and guides national policy through the multi-year energy plan (PPE). Large companies are now required to regularly prepare a carbon footprint and submit an action plan to reduce their emissions, including those of their suppliers. The Energy and Climate Act and the duty of care reinforce the obligation of transparency and the implementation of the carbon strategy throughout the entire supply chain.

Success therefore depends on incorporating GHG emission reduction criteria not only during the partner selection process and in national carbon strategies, but also in each carbon transition plan.

Carbon Neutrality: From Individual Action Plans to a Collective Strategy

Achieve thecarbon neutrality target requires collective action. According to the CDP, supply chain emissions (Scope 3) can be up to 26 times higher than companies’ direct emissions (Scopes 1 and 2). Acting alone is no longer enough: a company’s carbon performance depends directly on the carbon transition strategy and plan implemented by its partners and suppliers.

Pioneering companies rely on collaborative carbon management tools, such as Decarbo’Target® (to set shared reduction targets with suppliers) or Decarbo’Supply® (to map the carbon footprint of the supply chain). These solutions fit naturally into carbon budgeting and national carbon strategy required by government agencies and markets.

How to ensure the long-term viability and growth of your business through a successful low-carbon strategy.

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Suppliers: The Key to a Successful Decarbonization Strategy

How to Measure and Manage Supplier Emissions

Measuring the carbon footprint of suppliers is an essential prerequisite for any effective low-carbon strategy. However, according to a study by Audencia, “while all carbon footprint assessments include Scope 1 and 2 emissions (direct and indirect energy-related emissions), only 47% of them report Scope 3 emissions—which are also required—even though they account for a very significant portion of total emissions.” This lack of data on Scope 3 emissions hinders the implementation of a truly comprehensive carbon transition plan.

To address this shortfall, it is essential to establish common metrics, share benchmarks, and regularly update the carbon footprint in collaboration with partners.

Digital solutions, such as Decarbo’Supply®, facilitate data collection and the creation of shared dashboards. These tools enable companies to track GHG emissions reductions throughout the value chain and anticipate risks related to climate change or the volatility of theenergy.

Best Practices for Engaging Suppliers

The success of a corporate carbon strategy depends on the active engagement of suppliers. Some companies are already including carbon criteria in their requests for proposals, prioritizing long-term partnerships, and supporting their suppliers in implementing plans to reducegreenhouse gas.

Regular dialogue, training, and transparency are essential: for example, organizing workshops on climate change, sharing best practices, or using solutions such as Decarbo’Tender® to incorporate environmental assessment into every new contract. In this way, each supplier becomes a key player in the carbon transition plan and the sustainable development of the entire supply chain.

Examples of Effective Tools and Methods

The commitment of the Schmidt Group perfectly illustrates the effectiveness of a collaborative approach to reducing thecarbon footprint. As France’s leading manufacturer of custom kitchens, Schmidt has chosen Decarbo’Solution® to refine its GHG inventory, particularly Scope 3, which accounted for 99.4 % of its emissions.

Thanks to the Decarbo’Solution® tool, Schmidt was able to reduce the uncertainty in its carbon footprint by 50% to just 5% by involving more than 80% of its suppliers in the collection and analysis of accurate data. The platform, which is free for suppliers, has helped foster their engagement and build their expertise on carbon-related issues.

Modules such as the Decarbo’Solution® have enabled Schmidt to better target its action plans, track the impact of its purchases, and identify eco-design opportunities, such as replacing certain raw materials with lower-carbon alternatives. The Schmidt-Decarbo’Solution® experience thus demonstrates the value of collaborative tools in accelerating the low-carbon transition in industry.

Benefits and Prospects of a Collaborative Low-Carbon Strategy

Economic and Competitive Advantages for the Company

Reducing GHG emissions across the value chain yields numerous economic benefits:

Optimization of Logistics and Energy Costs
Easier access to financing and markets subject to climate criteria
Improving resilience to the risks of climate change or supply disruptions

“The companies surveyed by BCG and CO2 AI reported annual profits from decarbonization totaling more than 7% of their revenue, representing an average net profit of $200 million per year.” Committing to the energy transition also strengthens brand image and builds trust among customers and investors, while meeting the requirements of the National Council and the Ministry of Ecological Transition.

Overall Impact on Society and the Environment

Beyond economic performance, a successful carbon transition contributes to the ecological transition based on solidarity and to meeting national and European commitments to reduce greenhouse gas emissions. Every company that actively participates in reducing GHG emissions andadaptation to climate change accelerates the transformation of the French economy toward a more resilient and equitable model.

Shared tools, the pooling of action plans, and transparency between clients and suppliers create a positive dynamic: every stakeholder in the value chain becomes a driving force behind the national carbon strategy and sustainable development.

Preparing for Future Expectations (Regulations, Markets, Innovations)

Regulatory pressure and stakeholder expectations will continue to grow: carbon budgets, the National Climate and Energy Plan (SNBC), international market requirements… Developing a integrated, well-equipped, and collaborative carbon strategy that is integrated, well-equipped, and collaborative—thanks to solutions such as Decarbo’Solution®, ensures rapid of tomorrow’s climate commitments.

Foresight, innovation, and collective commitment will enable every company to turn climate challenges into sustainable opportunities.

How to Succeed in Your low-carbon strategy is no longer an option, but a necessity for any company that wants to ensure its long-term viability, demonstrate its commitment to its customers, and actively contribute to the fight against climate change. By integrating their suppliers into their transition plan, organizations are taking a decisive step forward: they are turning a constraint into a powerful driver of sustainable growth and emissions reduction in the long term.

Experience shows that mobilizing the supply chain — supported by tailored solutions such as Decarbo’Target®, Decarbo’Tender® or Decarbo’Supply® — helps accelerate the implementation of climate commitments and achieve carbon budgets set by the national strategy. Cooperation, innovation, and transparency are the keys to building a resilient economy that is aligned with society’s expectations and ready to meet the challenges of tomorrow.

Involving your suppliers means making the low-carbon transition a collective success that benefits the climate and sustainable development.