Beyond the Tip of the Iceberg: Lessons in Supply Chain Decarbonization

In the world of corporate sustainability, we often use the iceberg analogy to describe emissions. While Scopes 1 and 2 are the visible tips, the massive, submerged portion – Scope 3 – frequently accounts for 75%+ of a company’s total footprint. Scope 3 decarbonization is a particularly complex and challenging space since the emissions are driven by activities outside the operational control of the organization; at the same time it is ripe for innovation.

Our recent webinar unpacked this topic with experts from SE Advisory Services, Levi Strauss & Co., and Marks & Spencer.

Levi Strauss & Co. and Marks & Spencer have each launched structured, supplier-focused decarbonization programs to accelerate Scope 3 progress at scale. LS&Co.’s LEAP is a targeted initiative that supports suppliers in transitioning to renewable electricity, and embedding low-carbon practices across manufacturing operations. M&S’ RE:Spark is a comprehensive supplier decarbonization program designed to build capability, drive renewable energy adoption, and create a clear pathway for emissions reduction across its global supply base.

SE Advisory Services is driving impact through 20+ active global supply chain programs worldwide. In parallel, we apply the same structured approach internally through The Zero Carbon Project – Schneider Electric’s programme to accelerate supply chain decarbonization. The initiative partners with 1,000 strategic suppliers, representing 70% of upstream emissions, to drive measurable reductions through renewable energy adoption, efficiency improvements, and supplier capability building.

Webinar Key Takeaways:

Renewable Electricity as a Key Lever:

Addressing supplier scope 2 emissions through renewable electricity acceleration is a powerful and viable pathway to drive impact. Wind and solar are proven technologies that can generate compelling business cases for suppliers.

Bridging the Supplier Maturity Gap:

One of the most significant barriers to decarbonization is the “maturity gap” among suppliers. Many supply chain partners lack the technical expertise to navigate complex renewable energy markets or the capital to invest in green infrastructure. Supplier education and capacity building are critical elements to successful programs and need to be coupled with streamlined pathways to implementation.

Sponsorship Beyond Sustainability:

Successful programs require active involvement from sourcing and procurement teams. When decarbonization is embedded in the commercial relationship, it gains the momentum needed to move from a “pilot” to a standard operating procedure.

Tailored Market Solutions:

Renewable energy markets are not one-size-fits-all. In India, for example, programs must navigate nuanced state-specific regulations and grid complexities. Providing suppliers with localized technical and market assessments is essential for simplifying adoption.

Aggregated Power:

There is strength in numbers. By bringing suppliers together to aggregate their buying power in cohorts, sponsors can help them secure better prices, terms and access for renewable energy that they could not achieve individually.

The Path Forward

Decarbonizing the supply chain is complex, but it is far from impossible. Proven models and practical frameworks now exist to help organizations translate Scope 3 ambition into measurable progress. For companies willing to invest in supplier capability and resilience today, the rewards are significant: stronger financial performance, greater regulatory readiness, and a clear competitive advantage in a rapidly decarbonizing global economy.

If advancing Scope 3 is a priority for your organization, we welcome a conversation about the pathways and practical actions most relevant to your supply chain. You can also revisit the full discussion with Levi Strauss & Co. and Marks & Spencer by watching the webinar on demand.