Insights From Analyzing Supply Chain Emissions In The Consumer Goods Industry

As we wrap up our research consulting project, I’m left with a deep sense of gratitude for the opportunity to engage in meaningful research, supported by an incredibly collaborative client and team. This project gave me a chance to dive into sustainability, resilience, and equitable development—areas I am deeply passionate about—as I continue to navigate my career path in these fields. The experience allowed me to refine my understanding of critical climate issues, and for that, I’m truly appreciative.

One of the most rewarding aspects of this project was the chance to collaborate with an exceptional team. As anyone who’s worked in a team knows, there’s always the risk of encountering challenges, but when things click, the intellectual and professional rewards are unparalleled. We worked closely together, learned from one another, and ultimately created an environment where we could collectively push the boundaries of what we knew, all while building camaraderie that made the journey that much more enjoyable.

In the second half of our research, we had to pivot our approach. Initially, our research had a broad scope, but as we progressed, it became clear that narrowing our focus would allow for a more impactful analysis. Together with our client, we decided to delve deeper into identifying key supply chain investment areas that could yield the most significant emissions reductions. The idea was to stress-test our client’s current investment strategy by assessing whether it was aligned with the most effective opportunities for reducing emissions.

What we uncovered during this analysis was eye-opening. Our research revealed that just eight supply chains contributed to over fifty percent of the total scope 3 emissions. Even more striking, four of these supply chains were already represented in our client’s portfolio. We focused our analysis on these four sectors, selecting a subset of companies within each to evaluate their emissions disclosures and identify key hotspots in the supply chain.

One of the most pressing insights we gained during this exercise was the significant data gap in scope 3 emissions reporting. Despite the growing number of companies disclosing emissions through platforms like CDP, the data on supply chain emissions was either sparse or entirely absent. This lack of transparency is a significant challenge in addressing corporate emissions, particularly because scope 3 encompasses indirect emissions across a company’s entire value chain, including both upstream (e.g., suppliers) and downstream (e.g., consumers) emissions. Upstream emissions tend to be reported more frequently, though this remains inconsistent, while downstream emissions are notoriously difficult to measure, especially in consumer-facing industries.

What truly stood out was that even in instances where companies weren’t reporting on certain categories of scope 3 emissions, the scope 3 categories reported on still dwarfed operational emissions. In some cases it accounted for up to ninety-nine percent of the company’s overall carbon footprint. This pointed to a simple truth: effectively addressing corporate carbon emissions is impossible without tackling scope 3 emissions, particularly those originating from the supply chain.

Reflecting on our findings and presenting them to the client, I gained a deeper appreciation for the vital role our client plays in this space. The work they do—and the investments they make—can drive real impact, and I’m excited by the potential of the innovations they are helping to enable. Ecosystem actors like them have the power to spark significant change in the fight against climate change.

There were moments during the project when the sheer scale of the problem felt overwhelming. The more we researched, the more challenges we uncovered. However, I’ve come to realize that much like my experience working in development, in sustainability work, it’s crucial to remain rooted in your personal mission and stay focused on actionable solutions. Taking a long-term, solutions-oriented approach is vital, no matter how large the issue may seem.

Our final presentation to the client last week, though conducted over Zoom, had a palpable energy. It was incredibly rewarding to see the team engage thoughtfully with our findings, asking questions and reflecting on how they could take action. One team member even began to check for alignment with a new company they had invested in with our research.

In conclusion, this project reinforced several key lessons for me: first, that the journey to meaningful emissions reductions must address the full scope of corporate emissions, including the often-overlooked scope 3; second, that sustainability efforts can be truly impactful with innovative data driven solutions; and third, that even in the face of overwhelming challenges, a clear focus on solutions is the best way forward. I am excited to take these insights into my future work, continuing to explore opportunities for driving systemic change in the fight against climate change.