From Education to Action: Building a Business Case for Supply Chain Decarbonization

Reset Connect 2025 roundtable key takeaways 

In an era where sustainability is shifting from ambition to obligation, organizations face mounting pressure to transform climate intent into climate impact—particularly across the complex webs of their supply chains. Trio’s London Climate Action Week roundtable, “From Education to Action: Building a Business Case for Supply Chain Decarbonization,” brought together industry professionals to explore how actionable strategies, robust data practices, and collaborative governance can unlock meaningful progress. 

Discussions centered on turning sustainability from a conceptual ideal into a measurable, reportable, and commercially viable component of business operations. From practical insights on supplier data challenges to cutting-edge approaches like shadow carbon pricing, the session illuminated both the hurdles and the innovation emerging within the decarbonization journey.  

Data accuracy and carbon accounting 

Participants stressed the need for improvements in carbon accounting practices, particularly the use of accurate emission factors and a shift toward supplier-specific, primary data rather than relying on generic databases. While many companies are actively engaging suppliers on sustainability, these efforts often aren't captured in carbon reporting due to a lack of granular data. 

A key challenge discussed was how to support suppliers in providing the right data and emission factors. Even when activity-based data is used, incorrect assumptions can lead to major inaccuracies. For example, one participant highlighted a 100-fold difference in carbon impact between natural and synthetic rose oil, with natural rose oil carrying a much higher footprint due to intensive land and water use—despite both falling under the same broad product category. 

Another participant shared how transitioning from spend-based to activity-based data significantly improved accuracy. In their case, using a generic industry average emission factor for gypsum plasterboard initially produced an inflated footprint. However, when they incorporated supplier-specific activity data, the emissions were notably lower, underscoring the importance of engaging directly with suppliers to refine carbon data quality. 

Governance and common standards 

The importance of governance and standardization was highlighted. With numerous ways to report carbon emissions, there is a growing need to remove the need for competition. An initiative called Common Carbon was also mentioned, which aims to create unified methodologies for carbon accounting. 
 
A sensitive issue in banking was also raised: the difficulty in declaring a client “unbankable” based on climate risk or sustainability performance—something banks may need to grapple with in the future. 

SMEs and supplier expectations 

A recurring theme was the difficulty in engaging SMEs, many of whom don’t even produce financial reports, let alone environmental, social, and governance (ESG) disclosures. These businesses are often focused on survival, making it hard to prioritize sustainability reporting. 
 
Larger companies expressed reluctance to enforce ESG requirements through supplier contracts, recognizing the disproportionate burden on smaller suppliers. 

Emerging procurement trends 

Participants noted a growing use of shadow carbon pricing in procurement, especially for contracts exceeding £1 million. Some companies are taking a firm approach: if suppliers don’t include a carbon price in their quote, the buyer will apply a default price—such as the EU Emissions Trading System (EU ETS) rate of +10—and calculate it themselves. 
 
The NHS was cited as an example of tightening expectations, with all suppliers now required to have carbon reduction plans and targets in place. 

Green materials and supply constraints 

Specifically relating to the construction industry, concerns were raised about the limited availability of green steel and green concrete, with demand expected to outstrip supply soon. Challenges with insurance providers who resist alternative low-carbon concrete mixes, even when performance is equivalent, were also noted. 

Building occupancy challenges 

For companies that are tenants in leased properties, decarbonization remains difficult. The common refrain of “we don’t own the buildings” highlights a wider issue: landlords and investors often show little interest in improving building performance, stalling progress on emissions reduction. 

Product carbon footprints 

Trio highlighted the importance of using product carbon footprint (PCF) data in corporate carbon accounting to improve data accuracy, citing a client with a large in-house analyst team actively engaged in the process. The general feeling is that investment in internal resources can significantly improve emissions traceability and supplier engagement. 
 
As this roundtable made clear, building a compelling business case for supply chain decarbonization is no longer a theoretical exercise—it is a strategic imperative. Progress hinges not just on ambition, but on the quality of data, alignment of standards, and the strength of relationships between buyers, suppliers, financiers, and regulators. 

The discussion underscored the urgency and the complexity of climate action: the need for harmonized carbon accounting, the support required for SMEs, and the rising importance of procurement as a lever for change. Yet despite the challenges, shared determination was evident—to move beyond compliance and embed sustainability into the fabric of commercial decision-making. 

Trio has a wealth of experience supporting companies globally with supply chain decarbonization. We welcome the opportunity to share our approach and expertise with you, and to discuss how we can support your company further.   

If you have any questions or would like to contact one of our subject matter experts, please reach out to Lisa Turner.