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Incentivizing supply chain decarbonization through public recognition and co-branding

Published: October 19, 2022

To reach net-zero, businesses across the globe must address Scope 3 supply chain emissions. Decarbonization within the supply chain plays a critical role in realizing net-zero ambitions, and businesses are in a unique position to influence supplier behaviors, operations and investments through incentives.  

In the sixth and last session of the series, the Incentivizing Supply Chain Decarbonization working group hosted by WBCSD in collaboration with PwC considered how to leverage public recognition and co-branding.   

Organizations can support suppliers in their decarbonization journey through non-financial rewards by publicly recognizing their progress or partnering to co-brand products or services. By taking advantage of their own reputation, larger organizations can offer public exposure as a reward for suppliers that have met certain emissions reduction targets or milestones. This could take many different forms, ranging from featuring their progress in press releases or via reward schemes, to co-branding on specific products and services. Verification of decarbonization progress is important, to ensure recognition is credible.   

Take a look at this issue for more information on how public recognition and co-branding can be used to enhance supplier decarbonization, including where to start, how to approach implementation, and what to consider.     

For context, the Incentivizing Supply Chain Decarbonization working group considers different decarbonization levers that can be applied to supply chains. These levers range from non-financial to financial, penalty to reward-based, and can be grouped into four areas:  

  1. Leveraging procurement
  2. Building capability
  3. Rewarding progress
  4. Enforcing performances

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