Engaging key suppliers can reduce Scope 3 F&B manufacturing emissions

Following two consecutive years of record-high global temperatures – along with continuing challenges surrounding emissions levels, biodiversity loss, food insecurity, and more – participants at the 30^th annual United Nations Climate Change Conference, also known as COP30 – will hopefully discuss protecting communities from the impacts of climate change, scaling up applicable climate solutions, and holding nations accountable to contribute financial resources.

Just as COP30 began this week, analysis and modelling from RESET Carbon, a Hong-Kong based emissions reduction consultancy, shows that engaging a relatively small group of key retail and food manufacturing suppliers can drive significant reductions across a company’s total greenhouse gas emissions.

The analysis comes as the UN reveals that the world will exceed global temperature targets set in the Paris Agreement, highlighting the urgent need for strategies to reduce Scope 3 emissions. Indirect emissions created across supply chains – known as Scope 3 emissions under the Greenhouse Gas Protocol (GHG Protocol) Corporate Standard – typically account for more than 80% of a company’s total carbon footprint.

“Supply chains are becoming increasingly exposed to carbon pricing via the incoming EU Carbon Border Adjustment Mechanism or exporter country emissions trading or carbon taxes,” said Liam Salter, CEO of RESET Carbon, which was acquired by LRQA in early 2025, in a statement. “If businesses want to avoid long-term carbon cost risks, they need to act now. Supply chain emissions take time to reduce. We’re talking three years or more to see meaningful results.” (Per Bloomberg, carbon prices under the EU Emissions Trading System are expected to rise to €140/USD $184 per tonne by 2030.)

RESET Carbon’s modelling shows that targeting key suppliers can help organisations accelerate impact. Across manufacturing and retail supply chains, RESET’s analysis found that initial cuts of 15-30% can be achieved quickly through collaboration on existing, proven technologies, with larger cuts of 40-60% possible in the longer term through energy or fuel switching.

The consultancy recommends three key strategies for businesses in retail and food and beverage manufacturing seeking to achieve faster carbon reductions across their operations:

1. Turn data into delivery plans –begin with carbon hotspot mapping at supplier facility level, to prioritise investment where emissions are most concentrated.
2. Work with strategic suppliers for maximum effectiveness –partner with high-volume vendors to scale low carbon solutions and clean technologies.
3. Collaborate across industry to scale solutions –coordinate reporting, sharing supplier performance benchmarks and co-investing in low carbon supplier pools.

Many companies have already gathered supplier emissions data, but the next challenge, according to RESET Carbon, is to translate that data into delivery plans. Integrating emissions targets into sourcing decisions ensures that carbon performance becomes part of standard commercial strategy, not a parallel effort.

The recommended approach, per the consultancy, begins with carbon hotspot mapping at the supplier facility level to identify where emissions are most concentrated. This enables businesses to prioritise investment where it can have the greatest net zero impact. Once hotspots are identified, facility-level emissions reduction roadmaps can be created to support supplier engagement, sourcing decisions and commercial alignment.

Salter added, “There’s often a misconception that carbon reduction means high cost. In reality, many reductions can be delivered through measures like efficiency and onsite renewables, with strong returns on investment.”

RESET Carbon reported that these actions can deliver initial reductions of 15-30% through technologies that are proven, affordable and quick to implement. Larger cuts, in the region of 40-60%, may require offsite renewable energy or fuel switching. These investments may take longer to deliver, but with appropriate planning and prioritisation, they are achievable and necessary for long-term net zero alignment.

Many brands, particularly in high-emission sectors such as energy, apparel, consumer goods, technology and food and beverages, have already begun building programs to reduce emissions in their supplier base. This includes industry collaborations like the Carbon Leadership Programme and the Supplier Leadership on Climate Transition, as well as in-house initiatives focused on net zero alignment.

“Strategic suppliers represent a major lever for net zero progress. Even if supply networks shift in response to economic or regulatory factors, established high-volume vendors are often best placed to meet performance expectations,” said Salter. “Their ability to scale low carbon solutions, implement clean technologies and collaborate on emissions planning makes them critical to any serious net zero supply chain strategy.”

RESET Carbon said retailers and manufacturers are integrating Scope 3 targets into supplier finance and sourcing frameworks, offering examples such as Asda’s sustainability-linked finance program and Tesco’s partnership with Santander reward suppliers who meet verified emission-reduction KPIs (key performance indicators). Additionally, initiatives such as the Weetabix Net Zero Wheat Programme show how scientific data collection at the farm level can reduce upstream emissions and improve supply chain resilience.

The consultancy noted that individual supplier relationships, cross-industry collaboration is emerging as a powerful enabler of supply chain decarbonisation. Coordinating carbon reporting requirements, sharing supplier performance benchmarks and co-investing in low carbon supplier pools can reduce cost and complexity, and accelerate net zero delivery across sectors.

RESET Carbon explained that standardised data frameworks can ease the burden on suppliers who report to multiple buyers, and benchmarking tools allow procurement teams to compare emissions performance across facilities or products. These tools support more informed decisions and help ensure that procurement aligns with the company’s climate ambition.

RESET Carbon also noted that building low carbon manufacturing pools in key sourcing regions – under development through initiatives such as the Industry Decarbonisation Roadmap – bring together suppliers that are ready to meet the demands of net zero sourcing. For buyers, this creates a reliable, verified base of lower-carbon manufacturing options aligned to industry needs.

“As suppliers serve multiple brands, coordinated approaches reduce duplication and create stronger incentives to invest,” concluded Salter.