Decarbonising supply chains

Supply chain emissions are a major source of corporate carbon emissions, but comparatively few companies manage them. This study investigates how companies can systematically measure and reduce them.

Factsheet

  • Schools involved Business School
  • Institute(s) Institute for Public Sector Transformation
  • Research unit(s) Data and Infrastructure
  • Strategic thematic field Thematic field "Sustainable Development"
  • Funding organisation Others
  • Duration (planned) 01.12.2025 - 31.12.2026
  • Head of project Melanie Senn
  • Project staff Melanie Senn
    Dr. Matthias Sahli
    Dr. Jan Bieser
  • Partner Swisscom AG
  • Keywords Supply chain, emissions, climate protection, data-driven approaches

Situation

Companies are under increasing pressure to reduce greenhouse gas (GHG) emissions and show measurable progress towards internationally agreed climate protection targets. While this challenge is still manageable for direct emissions caused by direct energy consumption, supply chain emissions are far more difficult to reduce. These include the emissions caused by the production and transport of procured goods and services, and make up more than 50% of emissions for many companies. Their reduction is particularly difficult because they occur outside the company's direct operations, within upstream supply chains that may comprise hundreds or thousands of globally distributed suppliers. Managing this complexity requires a targeted and systematic approach to identify the most significant sources of emissions and develop economically viable measures that deliver the greatest reductions. Developing such an approach and the capabilities required to implement it can be demanding, particularly for organisations with limited internal resources for supply chain emissions management, as is often the case. This study therefore examines how companies can manage supply chain emissions systematically, which key reduction measures are available and how data can support effective action.

Course of action

To answer the research questions, we combine a literature review with case studies of three Swiss companies that are experienced with supply chain emissions management. This allows us to synthesise existing knowledge, specify and extend it through the practical experience of companies.

Result

The main result is a process model that organisations can use to systematically manage and reduce their supply chain emissions. The study further identifies 14 concrete reduction measures across four areas: engaging existing suppliers, renewing the supplier portfolio, optimising products and materials, and embedding emissions targets within the organisation. Measures include supplier data collection, target-setting, capacity building and joint innovation, integrating emissions criteria into supplier selection, reducing purchasing volumes, substituting carbon-intensive materials, applying circular economy principles, and incorporating emissions targets into procurement responsibilities and incentives. Data are a critical enabler throughout the entire process. Companies need data to map supply chains, calculate emissions, identify hotspots, model reduction pathways, track measures and report progress. However, greater detail also increases data collection and management effort. Companies should therefore balance accuracy with effort and concentrate granular, supplier-specific data and advanced analysis on major emissions hotspots.