In today’s world, businesses can no longer ignore their environmental impact. Climate change is not just a government or consumer issue—it’s a supply chain issue too. From raw material extraction to product delivery, every step of the supply chain contributes to carbon emissions. That’s why the Science-Based Targets initiative (SBTi) is stepping in to ensure companies take real action to reduce their footprint.

If you’re in manufacturing, logistics, retail, or any industry relying on supply chains, understanding how SBTi influences climate accountability is crucial. In this blog, we’ll break it down in simple terms, show how industries can benefit, and explain how PQSmitra supports businesses in this journey.

Why Supply Chains Are a Major Climate Issue

Most companies focus on reducing direct emissions (Scope 1) and emissions from purchased electricity (Scope 2). But what about the emissions from suppliers, transportation, and product usage? These fall under Scope 3 emissions, and they often make up 80% or more of a company’s total carbon footprint!

Example: A clothing brand may use renewable energy in its headquarters and stores (Scope 1 and 2), but if its suppliers use coal-powered factories, the brand is still responsible for massive emissions (Scope 3).

This is where SBTi comes in—helping companies tackle their entire carbon footprint, not just what’s easiest to control.

How SBTi is Holding Supply Chains Accountable

The Science-Based Targets initiative (SBTi) sets a clear roadmap for companies to reduce their emissions across the entire value chain. Here’s how it works:

1. Setting Science-Based Targets for Scope 3 Emissions

SBTi requires businesses to measure and reduce Scope 3 emissions if they make up 40% or more of their total carbon footprint. Companies must:

–  Work with suppliers to track and cut emissions

–  Switch to greener logistics like low-emission transport

–  Encourage customers to use products in an eco-friendly way

Making Supplier Engagement a Priority

Companies can’t reduce supply chain emissions alone—they need suppliers to take action too. SBTi pushes businesses to:

–  Set climate targets for suppliers

–  Choose vendors with sustainable practices

–  Offer incentives for greener operations

3. Driving Transparency Through Reporting

SBTi requires companies to publicly disclose their progress to ensure accountability. This prevents businesses from making empty “greenwashing” claims and encourages real climate action.

Industries Leading the Way with SBTi in Supply Chains

Some industries are making big moves in climate accountability, including:

Retail & Consumer Goods – Brands like Nike and Unilever are pushing suppliers to go green.

Automotive – Companies like Ford and BMW are cutting emissions from raw materials and manufacturing.

Food & Beverage – PepsiCo and Nestlé are working with farmers to reduce agricultural emissions.

Tech & Electronics – Apple and Dell are switching to carbon-neutral supply chains.

Challenges in Implementing SBTi in Supply Chains

Despite its benefits, integrating SBTi in supply chains comes with challenges:

Data Gaps: Many suppliers don’t track emissions, making it hard to measure progress.

Resistance from Suppliers: Smaller vendors may struggle with the costs of sustainability.

Complex Supply Networks: Managing emissions across global suppliers is difficult.

How PQSmitra Helps Businesses Align with SBTi

This is where PQSmitra plays a vital role. As an expert in sustainability consulting, PQSmitra helps businesses overcome the challenges of integrating SBTi in their supply chains. Here’s how:

–  Supply Chain Emissions Assessment – Identifying the biggest carbon hotspots in your value chain.

–  Supplier Engagement Strategies – Helping you work with vendors to reduce emissions.

–  SBTi Compliance Roadmap – Creating a step-by-step action plan tailored to your industry.

–  Monitoring & Reporting Assistance – Ensuring your business stays on track with SBTi commitments.

With PQSmitra’s expertise, companies can transform their supply chains into sustainability leaders while staying competitive in a climate-conscious market.

Conclusion:

The Science-Based Targets initiative is changing the way businesses approach climate responsibility. It’s no longer enough to focus on in-house sustainability—companies must take charge of their entire supply chain.

By committing to SBTi, businesses can:

• Strengthen their brand reputation
• Attract climate-conscious investors & customers
• Ensure long-term business resilience