Carbon footprint
A carbon footprint measures the total greenhouse gas emissions caused directly and indirectly by a product, organization, or activity. In procurement, supply chain emissions (Scope 3) often represent 70-90% of a company's total carbon footprint.
Examples
Supplier emissions tracking: A company requires key suppliers to report annual carbon emissions data, using it to calculate the Scope 3 footprint and identify high-emission categories where reduction efforts would have the greatest impact.
Low-carbon sourcing: When evaluating packaging suppliers, procurement includes carbon intensity as a criterion. A supplier using renewable energy scores higher despite a modest price premium.
Transport mode optimization: Analysis reveals airfreight for non-urgent shipments generates 50x the emissions of ocean freight. Procurement adjusts lead times to shift volume to lower-carbon transport modes.
Definition
For most companies, the supply chain accounts for far more emissions than direct operations. Scope 3 emissions from purchased goods, logistics, and services frequently represent 70-90% of total carbon footprint, making procurement a critical lever for climate goals.
Measuring supply chain carbon is challenging because it requires data from suppliers across multiple tiers. Approaches range from spend-based estimates to supplier-specific primary data, with accuracy improving as organizations move toward actual measured data.
Procurement can reduce carbon through supplier selection, specification changes (lower embodied carbon materials), logistics optimization, and supplier engagement programs that support emissions reduction across the supply base.
Regulatory requirements for carbon disclosure are expanding globally. Procurement teams increasingly need to treat carbon as they would cost—measuring, managing, and reducing it systematically.
Related Terms
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