Building Climate-Resilient Supplier Networks: Real Case Studies of Successful Collaboration Initiatives

Key Takeaways

• • Successful supplier climate collaboration requires structured programs with clear metrics, practical support, and long-term commitment
  • Leading companies like Unilever, Walmart, and Apple have demonstrated that supplier engagement delivers measurable emissions reductions while strengthening supply chain resilience
  • Effective programs balance ambitious targets with supplier enablement through training, financing, and shared resources
  • Small and medium-sized suppliers benefit most from collaborative approaches that reduce technical and financial barriers
  • Climate collaboration creates competitive advantages through improved operational efficiency, reduced costs, and enhanced brand reputation

  Three case studies of successful collaboration initiatives to reduce climate risk. When Unilever launched its Supplier Climate Programme in 2021, the consumer goods giant faced a daunting challenge: how to engage 56,000 suppliers across diverse industries and geographies in a shared climate journey. Three years later, the program has become a blueprint for successful supplier collaboration, demonstrating that even the most complex supply chains can be transformed through strategic partnerships.

  Climate resilience isn't something companies can achieve alone. With the majority of corporate emissions originating from supply chains rather than direct operations, supplier engagement has evolved from a nice-to-have sustainability initiative into a business imperative. Organizations that excel at supplier collaboration are building more resilient operations while accelerating progress toward net-zero goals.

  This article examines real-world case studies of successful supplier climate collaboration initiatives, revealing the strategies, challenges, and results that can guide your own supplier engagement efforts. These stories demonstrate that when companies invest in their suppliers' climate capabilities, everyone wins. This article examines real-world case studies following our popular guide on climate risk integration.

  Why Supplier Climate Collaboration Matters Now

  Supply chains account for an average of 11.4 times more emissions than companies' direct operations, according to CDP data. Supply chains account for an average of 11.4 times more emissions than companies' direct operations, according to CDP dataFor consumer goods companies, this ratio can exceed 90%. This means that even organizations that achieve operational carbon neutrality will have limited climate impact without addressing supply chain emissions.

  The urgency has intensified as stakeholders demand transparency and action. Investors increasingly evaluate companies based on comprehensive climate strategies that include Scope 3 emissions. Customers prefer brands that demonstrate supply chain responsibility. Regulators are implementing carbon pricing and disclosure requirements that extend throughout value chains.

  Beyond compliance pressures, climate collaboration delivers tangible business benefits. Suppliers that improve energy efficiency reduce costs, enhancing their competitiveness and pricing stability. Organizations with climate-resilient suppliers experience fewer disruptions and recover faster when extreme weather events occur. The World Economic Forum reports that extreme weather events have increased by over 400% since the 1970. Forward-thinking companies are discovering that sustainability and profitability reinforce rather than conflict with each other.

  According to research from MIT Sloan, companies with strong supplier relationships built on trust and collaboration find it easier to influence partners on climate resilience measures. These long-term partnerships enable the kind of meaningful engagement required for systemic change.

  Where Supply Chain Emissions Actually Originate

  Understanding the emissions profile helps explain why supplier collaboration is essential:

  Emission Source	Percentage of Total	Why Supplier Collaboration Matters
  Direct Operations (Scope 1 & 2)	8-12%	Company can control directly through operational improvements
  Purchased Goods & Services	35-45%	Requires supplier engagement on materials, manufacturing, and processes
  Transportation & Distribution	10-15%	Depends on logistics partners and transportation mode choices
  Product Use Phase	20-30%	Influenced by product design decisions made with suppliers
  End of Life Treatment	8-12%	Requires circular economy partnerships with suppliers

  Key Insight: Over 88% of typical corporate emissions come from supply chain activities beyond direct control. This makes supplier collaboration not just beneficial but essential for meaningful climate action.

  Case Study 1: Unilever's Supplier Climate Programme – Building Capabilities at Scale

  The Challenge

  As a global consumer goods company with 56,000 suppliers across multiple industries, Unilever faced the reality that approximately 63% of its total emissions came from raw materials, ingredients, and packaging. The company needed a scalable approach to engage suppliers with vastly different climate capabilities—from those with no emissions tracking to those with sophisticated sustainability programs.

  Traditional supplier engagement approaches wouldn't work at this scale. Unilever needed a program that could accommodate suppliers ranging from multinational corporations to small family businesses, across industries from petrochemicals to agriculture.

  The Approach

  Unilever launched its Supplier Climate Programme with a tiered strategy focused on the 300 suppliers contributing most significantly to its carbon footprint—representing approximately 44% of Scope 3 emissions from purchased goods.

  The program built on three core pillars:

  Climate Promise Commitment: Suppliers publicly commit to three requirements: setting Science Based Targets initiative (SBTi) aligned targets, publicly reporting progress, and sharing product-level greenhouse gas emissions data with Unilever. Suppliers publicly commit to three requirements: setting Science Based Targets initiative (SBTi) aligned targets

  Differentiated Support Based on Maturity: Unilever segments suppliers into groups based on their climate capabilities. Advanced suppliers receive support in sharing Product Carbon Footprint (PCF) data through the Partnership for Carbon Transparency (PACT). Suppliers in earlier stages receive hands-on assistance through implementation partners like Manufacture 2030, which helps develop baselines and implement reduction plans.

  Innovation Partnerships: For suppliers with high emissions-reduction potential, Unilever creates collaborative innovation partnerships. For example, Ball Corporation partnered with Alcoa to pilot Elysis technology—an alternative to carbon-based anodes that creates low-carbon aluminum for aerosol cans.

  The program provides practical enablement including free access to carbon accounting tools, customized training programs, and connection to renewable energy procurement opportunities. Unilever also embeds climate considerations directly into commercial processes, including supplier contracts.

  The Results

  By 2024, 181 suppliers actively participated in the programme, with participants representing 75% of Unilever's sales. The initiative has delivered several significant outcomes:

  Emissions Transparency: Suppliers are progressively sharing PCF data, giving Unilever an increasingly accurate picture of its supply chain emissions. This visibility enables more targeted reduction strategies.

  Operational Improvements: Weener Plastics, a packaging supplier, reported making operational savings since beginning the programme. The company enhanced its teams' focus on crucial emission reduction plans after calculating PCF data with Unilever-provided tools.

  Accelerated Climate Action: According to Stella Constantatos, Unilever's Supplier Climate Programme Lead, “We're seeing more suppliers accelerating their climate actions. By collaborating with us in the programme, our partners are not only better equipped to reduce emissions, they are also helping us build a more accurate picture of the climate impact in our supply chain.”

  Industry Standardization: Through partnerships with organizations like the World Business Council for Sustainable Development (WBCSD), Unilever is helping drive industry-wide standardization of carbon accounting methodologies, reducing the reporting burden for suppliers who work with multiple customers.

  Key Success Factors

  Unilever's program succeeds because it balances ambition with pragmatism. The company sets clear expectations while providing substantial support to help suppliers meet them. By focusing on high-impact suppliers rather than attempting to engage all 56,000 at once, Unilever concentrates resources where they deliver maximum emissions reduction.

  The differentiated approach acknowledges that suppliers have varying capabilities and resources. A multinational petrochemical company requires different support than a regional food ingredient supplier. Unilever's tiered engagement model ensures each supplier receives appropriate assistance.

  Critically, Unilever frames climate collaboration as beneficial for suppliers' businesses, not just an additional compliance burden. Ball Corporation's Sustainability Director Predrag Ozmo emphasized this perspective: “It's essential to explore and explain the business case for climate action. Understanding the costs of action versus inaction is imperative. Embracing an ambitious climate approach now will safeguard all our businesses in the long run.”

  Case Study 2: Walmart's Project Gigaton – Achieving the Impossible Six Years Early

  The Challenge

  In 2017, Walmart set an audacious goal: work with suppliers to reduce, avoid, or sequester 1 gigaton (1 billion metric tons) of greenhouse gas emissions from product value chains by 2030. At the time, many observers considered this target aspirational at best, impossible at worst. “According to McKinsey research, the average supply chain disruption now costs companies between $100 million and $1 billion”

  With over 100,000 suppliers producing everything from fresh produce to electronics, Walmart faced immense complexity. The company needed to catalyze immediate action across suppliers of all sizes while maintaining its core value proposition of everyday low prices for customers.

  The Approach

  Walmart designed Project Gigaton around three strategic principles: voluntary participation rather than mandates, practical emission reduction projects, and continuous improvement through recognition and support.

  Focus Areas and Flexibility: Walmart identified six key “pillars” where suppliers could focus reduction efforts: energy use, agriculture, waste, packaging, deforestation, and product use and design. Later, the company added transportation as a seventh pillar. Suppliers choose which areas to address based on their operations and opportunities.

  This flexibility proved crucial for engaging suppliers with dramatically different operations. A food supplier might focus on agricultural practices and food waste, while an electronics manufacturer concentrates on energy efficiency and packaging.

  Practical Support Infrastructure: Walmart provided extensive resources to reduce barriers to participation:

  • Gigaton PPA Program: Launched in collaboration with Schneider Electric, this program allows suppliers to pool resources and collectively purchase renewable energy through Power Purchase Agreements (PPAs). Individual suppliers often struggle to access renewable energy markets; aggregation through Walmart makes it feasible.
  • Tools and Resources: Walmart developed platforms including the Circular Connector (for packaging innovation) and Factory Energy Efficiency tools. The company partnered with organizations like World Wildlife Fund and Environmental Defense Fund to create comprehensive toolkits.
  • Financing Programs: In partnership with HSBC, Walmart offers enhanced financing and early invoice payments to private brand suppliers who set science-based emissions targets aligned with the 1.5°C pathway.
  • Best Practice Sharing: Annual Sustainability Milestone Summits bring suppliers together to share successes and learn from peers.

  Recognition and Gamification: Walmart created “Giga Guru” status to recognize excellence in target setting, action, and results. This recognition motivates suppliers by acknowledging their leadership. The company progressively raises the bar for Giga Guru status, encouraging continuous improvement.

  The Results

  In February 2024, Walmart announced it had exceeded the 1 billion metric ton goal—six years ahead of schedule. The achievement represents emissions equivalent to removing approximately 211 million cars from the road for a year, or roughly equal to Japan's annual emissions.

  Specific results include:

  Unprecedented Scale: More than 5,900 suppliers have participated since launch, representing approximately 75% of Walmart's net sales. This makes Project Gigaton one of the largest private-sector climate consortia in history.

  Emissions Reduction by Category: Energy initiatives led the way in reducing and avoiding carbon, followed by waste management, and product use and design improvements. The agriculture pillar showed significant impact through optimized fertilizer use across millions of acres.

  Supplier Benefits: Ron Voglewede, a Walmart sustainability executive, noted that suppliers reported projects often delivered business benefits beyond emissions reduction: “It makes them more efficient.” Energy efficiency improvements, in particular, typically generate immediate cost savings.

  Industry Influence: The initiative has catalyzed broader industry action. According to Environmental Defense Fund, which partnered with Walmart on the program, “many companies in their supply chain had never previously considered their emissions profiles” before Project Gigaton engagement.

  Faster Than Expected Progress: The six-year acceleration demonstrates that when properly structured and supported, supplier engagement programs can exceed expectations. This success challenges the assumption that climate action must be slow or economically painful.

  Key Success Factors

  Project Gigaton's extraordinary success stems from several critical design choices:

  Invitation Over Mandate: By inviting rather than requiring participation, Walmart built enthusiasm rather than resentment. Suppliers joined because they saw value, not because of contractual obligations.

  Emphasis on Co-Benefits: Walmart consistently emphasized that projects reducing emissions also enhance resilience, reduce costs, improve quality, and create innovative products. This framing helped suppliers see climate action as business opportunity rather than burden.

  Addressing Practical Barriers: The Gigaton PPA program exemplifies Walmart's approach of removing obstacles. Individual suppliers, especially smaller ones, cannot easily access renewable energy markets. By aggregating demand, Walmart made renewable energy economically viable and administratively manageable for participants.

  Continuous Evolution: Rather than treating Project Gigaton as a static program, Walmart continuously adds new tools, raises standards, and expands scope. This keeps the initiative fresh and pushes ongoing improvement.

  Scale as Advantage: Walmart's massive buying power and supplier relationships created unique opportunities. When the world's largest retailer prioritizes climate action, suppliers pay attention. But rather than wielding this power punitively, Walmart used it to create enabling infrastructure that benefits all participants.

  Case Study 3: Apple's Supplier Clean Energy Program – Precision Targeting for Maximum Impact

  The Challenge

  Apple's carbon footprint presents a unique profile: manufacturing represents the single largest source of emissions, with suppliers accounting for approximately 65-70% of product-related carbon emissions. The company needed to transform energy use across a global manufacturing network while maintaining the precision, quality, and reliability that Apple products require. Apple launched its Supplier Clean Energy Program in 2015

  When Apple announced its goal to become carbon neutral across its entire business, manufacturing supply chain, and product life cycle by 2030, it effectively committed to decarbonizing one of the world's most sophisticated electronics supply chains.

  The Approach

  Apple launched its Supplier Clean Energy Program in 2015 with a laser focus on the highest-impact intervention: transitioning manufacturing electricity to 100% renewable sources.

  Clear Expectations and Support: In 2022, Apple explicitly required suppliers to decarbonize all Apple-related operations, including achieving 100% renewable electricity. Critically, the company made supplier progress toward these goals a key criterion for awarding future business. This creates powerful incentives while giving Apple leverage to drive change.

  To help suppliers meet these requirements, Apple provides comprehensive support:

  Clean Energy Academy: Apple offers free learning resources and live training sessions conducted by leading experts. These programs provide country-specific information to guide suppliers through renewable energy transitions. The resources address practical challenges like understanding local renewable energy markets, navigating Power Purchase Agreements, and optimizing onsite solar installations.

  Direct Investment: Apple has invested nearly 500 megawatts in solar and wind projects in China and Japan specifically to address upstream supply chain emissions. These investments help create renewable energy capacity in markets where suppliers operate.

  China Clean Energy Fund: Launched in 2018, this innovative fund connects suppliers in China with renewable energy sources. The fund exceeded its goal, with investments resulting in over 1 gigawatt of new wind and solar projects across 14 provinces. These projects deliver over 2,400 gigawatt-hours of renewable energy annually—equivalent to the residential power consumption of over 2.5 million people in China.

  Policy Advocacy: Apple actively engages with policymakers in countries where suppliers operate to support policies that enable renewable energy access. For example, in South Korea, Apple advocates for ambitious 2030 national renewable energy targets and improved PPA transparency. In Japan, the company participates in the Japan Climate Leaders' Partnership to support wider deployment of affordable clean energy.

  Green Bond Financing: Apple has issued $4.7 billion in green bonds to accelerate renewable energy adoption. These investments have supported projects ranging from utility-scale solar installations to battery storage systems that help stabilize renewable energy supplies.

  The Results

  Apple's supplier program has achieved remarkable scale and impact:

  Participation Scale: Over 320 suppliers representing 95% of Apple's direct manufacturing spend have committed to use 100% renewable energy for Apple production by 2030. This represents an increase from around 250 suppliers in 2023, demonstrating accelerating momentum.

  Renewable Capacity: The operational renewable energy across Apple's global supply chain has expanded five times since 2019, now totaling 16.5 gigawatts. In 2022 alone, the 13.7 gigawatts of renewable electricity in Apple's supply chain avoided 17.4 million metric tons of carbon emissions—equivalent to removing nearly 3.8 million cars from the road.

  Geographic Breadth: Suppliers in 28 countries are participating, with particularly strong engagement in key manufacturing regions:

  • Nearly 70 suppliers in China have committed to 100% renewable energy
  • 34 manufacturing partners in Japan are procuring 100% renewable energy
  • 18 businesses in South Korea participate in the program
  • 27 U.S.-based suppliers are making progress through various approaches including green utility programs and PPAs

  Supplier Success Stories: Companies like SK hynix have achieved 100% renewable electricity for Apple production. Others like Coherent Corp. are approaching this goal through green utility programs, while suppliers like Qorvo use PPAs for solar and wind projects.

  Cascading Benefits: Many suppliers, after experiencing success with renewable energy for Apple production, have chosen to extend these practices beyond their Apple-related operations. This multiplier effect amplifies the program's climate impact.

  First Carbon-Neutral Products: The program enabled Apple to launch its first carbon-neutral products in the Apple Watch line in 2023, demonstrating how supplier collaboration makes possible product-level carbon neutrality.

  Key Success Factors

  Apple's approach succeeds through several distinguishing characteristics:

  Materiality Focus: Rather than attempting to address all emissions sources simultaneously, Apple identified its single largest emissions source—manufacturing electricity—and concentrated resources there. This focus delivers maximum impact per dollar invested.

  Linking to Business Outcomes: By making climate progress a criterion for business awards, Apple ensures suppliers understand that sustainability performance affects their commercial relationship. This elevates climate action from an optional sustainability initiative to a business imperative.

  Investment in Market Infrastructure: Apple doesn't just ask suppliers to find renewable energy—it actively invests in creating renewable energy capacity in markets where suppliers operate. The China Clean Energy Fund exemplifies this approach, addressing a real barrier (limited renewable energy access) with tangible investment.

  Education and Capability Building: The Clean Energy Academy recognizes that many suppliers need knowledge and expertise to make the transition. By providing world-class training resources, Apple accelerates supplier capability development.

  Long-term Commitment: Apple's supplier relationships often span decades. This long time horizon enables the patient investment required for energy system transformations. Suppliers know Apple will be their customer long enough to justify significant renewable energy investments.

  Common Success Patterns Across Leading Programs

  While Unilever, Walmart, and Apple operate in different industries with distinct supply chain characteristics, their successful supplier collaboration programs share several critical elements:

  Program Comparison: Three Models of Excellence

  Company	Launch Year	Primary Goal	Suppliers Engaged	Key Achievement	Timeline Status
  Unilever	2021	Engage 300 top suppliers representing 44% of Scope 3 emissions	181 active participants	75% sales coverage; suppliers setting SBTi targets	Ongoing, expanding
  Walmart	2017	Reduce/avoid 1 gigaton CO2e by 2030	5,900+ suppliers (75% of sales)	1+ gigaton achieved	6 years ahead of schedule
  Apple	2015	100% renewable energy for manufacturing by 2030	320+ suppliers (95% of direct spend)	16.5 GW renewable capacity; 17.4M tons CO2e avoided annually	On track, accelerating

  This comparison reveals an important insight: different approaches can all succeed when they align with company culture, supply chain structure, and industry dynamics.

  1. Clear Goals With Flexible Pathways

  All three companies set ambitious, specific targets (300 suppliers for Unilever, 1 gigaton for Walmart, 100% renewable energy for Apple) while allowing suppliers flexibility in how they achieve results. This combination of clarity and adaptability accommodates supplier diversity while maintaining accountability.

  2. Substantial Support Infrastructure

  Successful programs don't just set expectations—they provide extensive resources to help suppliers succeed. This includes:

  • Free tools and training
  • Financial mechanisms (PPAs, enhanced financing terms)
  • Technical expertise and best practice sharing
  • Direct investment in enabling infrastructure

  3. Segmentation and Prioritization

  Rather than treating all suppliers identically, leading programs segment suppliers based on impact and capability:

  • Unilever focuses intensive support on 300 high-impact suppliers
  • Walmart allows suppliers to choose relevant focus areas
  • Apple prioritizes manufacturing electricity as the highest-impact intervention

  This targeted approach concentrates resources where they deliver maximum benefit.

  4. Recognition and Transparency

  Programs create visibility for supplier progress through:

  • Public recognition (Walmart's Giga Guru status, Unilever's Climate Promise)
  • Transparent reporting of results
  • Best practice sharing among suppliers

  Recognition motivates continued participation while transparency builds accountability.

  5. Business Case Emphasis

  Leading companies frame climate collaboration as business opportunity rather than burden. They emphasize co-benefits including:

  • Cost savings through energy efficiency
  • Enhanced competitiveness and market access
  • Improved resilience against climate disruptions
  • Innovation opportunities

  This framing helps suppliers see climate action as strategic investment rather than compliance cost.

  6. Partnership With External Organizations

  All three companies work with external partners including:

  • NGOs (WWF, EDF, CDP)
  • Industry consortia (WBCSD, PACT)
  • Technology providers (Schneider Electric)
  • Financial institutions (HSBC)

  These partnerships bring specialized expertise, standardized methodologies, and additional resources that individual companies couldn't provide alone.

  Overcoming Common Obstacles in Supplier Collaboration

  Even well-designed programs encounter predictable challenges. Understanding how leading companies address these obstacles can help you navigate similar situations:

  Challenge 1: Supplier Capability Gaps

  Many suppliers, especially smaller ones, lack expertise in carbon accounting, renewable energy procurement, or emissions reduction strategies.

  Solution Approach: Provide tiered support based on supplier capability levels. Unilever's differentiated engagement model—from hands-on assistance for beginners to advanced PCF data sharing for leaders—ensures each supplier receives appropriate support. Apple's Clean Energy Academy offers foundational training that builds supplier capabilities systematically.

  Challenge 2: Financial Constraints

  Suppliers may want to participate but lack capital for renewable energy investments or efficiency improvements.

  Solution Approach: Create collaborative financing mechanisms. Walmart's partnership with HSBC offers enhanced financing terms for suppliers setting science-based targets. Apple's green bond investments create renewable energy capacity that suppliers can access. Walmart's Gigaton PPA program allows collective purchasing that makes renewable energy economically viable for smaller suppliers.

  Challenge 3: Measurement and Reporting Complexity

  Carbon accounting can overwhelm suppliers unfamiliar with emissions calculations, particularly for Scope 3 emissions.

  Solution Approach: Provide standardized tools and methodologies. Unilever gives suppliers access to carbon accounting tools and works with PACT to standardize PCF data sharing. This reduces burden by ensuring suppliers can use one methodology to report to multiple customers. Start with simple metrics before progressing to comprehensive carbon accounting.

  Challenge 4: Geographic Market Barriers

  Renewable energy access varies dramatically by geography, with some markets offering limited options.

  Solution Approach: Invest in market infrastructure development. Apple's China Clean Energy Fund directly addresses limited renewable energy access by funding new capacity. Companies can also engage in policy advocacy to improve renewable energy markets, as Apple does in South Korea and Japan.

  Challenge 5: Maintaining Momentum Over Time

  Initial enthusiasm can fade as programs mature and easy wins become scarce.

  Solution Approach: Continuously evolve programs by raising standards, adding new focus areas, and creating fresh opportunities. Walmart progressively increases Giga Guru requirements and recently asked suppliers to report complete operational emissions footprints. Unilever expands from data sharing to innovation partnerships for advanced suppliers. Regular recognition events and best practice sharing maintain engagement.

  Building Your Own Supplier Climate Collaboration Program

  Based on these case studies, organizations can follow a structured approach to develop effective supplier collaboration programs:

  Phase 1: Foundation (Months 1-3)

  Assess Your Emissions Profile: Conduct a comprehensive Scope 3 emissions analysis to understand which supply chain categories contribute most to your carbon footprint. This analysis guides prioritization decisions.

  Segment Your Supplier Base: Categorize suppliers based on two dimensions:

  1. Impact: Which suppliers contribute most to emissions?
  2. Influence: Where do you have strongest relationships and leverage?

  Focus initial efforts on high-impact, high-influence suppliers.

  Supplier Segmentation Framework

  Use this matrix to prioritize your engagement approach:

  Supplier Type	Emissions Impact	Climate Capability	Recommended Approach	Resource Intensity
  Strategic Partners	High	High	Innovation partnerships; co-investment in advanced solutions	High investment, high returns
  Development Targets	High	Low	Intensive support; training; tools; technical assistance	Very high support needs
  Self-Directed Leaders	Low	High	Recognition; best practice sharing; minimal oversight needed	Low maintenance
  Basic Engagement	Low	Low	Standard resources; group training; monitoring only	Minimal resources

  Action: Plot your top 50 suppliers on this matrix to determine where to focus your initial program resources.

  Define Clear Goals: Set specific, time-bound targets that align with science-based pathways. Consider whether you'll focus on specific emissions reduction amounts (like Walmart) or coverage metrics (like Apple's percentage of suppliers).

  Benchmark Current State: Survey your priority suppliers to understand their current climate capabilities, existing initiatives, and barriers they face. This baseline informs program design.

  Phase 2: Design (Months 4-6)

  Develop Support Infrastructure: Based on supplier barriers identified in your baseline assessment, design support mechanisms. Consider:

  • Training and education programs
  • Carbon accounting tools
  • Renewable energy procurement assistance
  • Financing options
  • Best practice sharing forums

  Create Recognition Framework: Design a system to acknowledge supplier progress. This might include public recognition, preferential business treatment, or participation in innovation partnerships.

  Establish Measurement Systems: Define how you'll track program progress including:

  • Supplier participation rates
  • Emissions reductions achieved
  • Cost savings delivered
  • Resilience improvements

  Build Partnerships: Identify external organizations that can amplify your program through expertise, tools, or credibility. These might include:

  • Industry associations
  • NGO partners with climate expertise
  • Technology providers
  • Financial institutions

  Phase 3: Pilot (Months 7-9)

  Launch With Priority Suppliers: Begin with a manageable cohort of 10-30 high-impact suppliers who have shown interest or capability. This allows you to refine approaches before broader rollout.

  Test Support Mechanisms: Evaluate which tools and resources deliver most value to suppliers. Iterate based on feedback.

  Document Early Wins: Capture success stories and quantify benefits to build the case for program expansion.

  Refine Based on Learning: Use pilot experiences to improve program design before scaling to broader supplier base.

  Phase 4: Scale (Months 10-18)

  Expand Participation: Progressively invite additional suppliers to join based on prioritization framework.

  Deepen Engagement: For suppliers in earlier cohorts, move from foundational activities to more advanced initiatives like innovation partnerships.

  Evolve Requirements: As supplier capabilities mature, raise standards to drive continuous improvement.

  Share Externally: Publicize your program to build brand reputation and inspire industry peers.

  Phase 5: Integrate (Months 19+)

  Embed in Procurement Processes: Integrate climate criteria into supplier selection, performance management, and contract terms.

  Connect to Other Initiatives: Link climate collaboration with quality, efficiency, and innovation programs to avoid creating isolated sustainability efforts.

  Establish Continuous Improvement Cycles: Create regular review processes to assess program effectiveness, celebrate progress, and identify new opportunities. Understanding these impacts can be essential for continuous improvement in your business strategy

  Implementation Timeline Visualization

  Timeline	Phase	Key Activities	Milestones	Resources Required
  Months 1-3	Foundation	• Scope 3 assessment • Supplier segmentation • Goal setting • Baseline metrics	Emissions profile complete Priority suppliers identified	1-2 FTE analysts Carbon accounting tools Executive sponsorship
  Months 4-6	Design	• Support infrastructure • Recognition framework • Measurement systems • Partner selection	Program structure approved Partnerships established	Project team (3-4 FTE) Budget allocation Technology platform
  Months 7-9	Pilot	• Launch with 10-30 suppliers • Test support tools • Document learnings • Refine approach	First emissions reductions Success stories captured	Supplier engagement team Training materials Support resources
  Months 10-18	Scale	• Expand participation • Deepen engagement • Evolve requirements • Public reporting	50%+ supplier coverage Measurable impact achieved	Full program team Expanded tools/training Marketing support
  Months 19+	Integrate	• Embed in procurement • Continuous improvement • Industry leadership • Innovation partnerships	Business-as-usual integration Industry recognition	Ongoing program management Innovation budget External engagement

  Critical Success Factor: Each phase builds on the previous one. Rushing to scale before completing foundation and design work typically leads to poor adoption and limited results.

  Measuring Success: Key Performance Indicators

  Effective supplier collaboration programs require clear metrics to track progress, demonstrate value, and maintain momentum:

  Participation Metrics

  • Number and percentage of suppliers actively engaged
  • Percentage of spend covered by participating suppliers
  • Supplier retention rates in the program

  Emissions Impact Metrics

  • Total emissions reduced, avoided, or sequestered
  • Percentage progress toward overall reduction goals
  • Average emissions intensity improvement per supplier
  • Percentage of suppliers with science-based targets

  Supplier Capability Metrics

  • Number of suppliers with completed carbon footprint assessments
  • Percentage of suppliers with renewable energy commitments
  • Suppliers achieving advanced status levels (like Giga Guru)

  Business Value Metrics

  • Cost savings achieved by suppliers through efficiency improvements
  • Supply chain disruption reductions linked to climate resilience
  • Innovation partnerships or projects initiated
  • Supplier satisfaction scores for program support

  Market Leadership Metrics

  • Industry recognition or awards received
  • Peer companies adopting similar approaches
  • Media coverage and stakeholder perceptions

  Leading programs report on these metrics regularly, both internally to maintain executive support and externally to build accountability and inspire others.

  The ISO Connection: Leveraging Management Systems for Climate Collaboration

  For MSI's audience familiar with ISO management systems, supplier climate collaboration programs can leverage existing frameworks:

  ISO 14001 Environmental Management Systems

  Organizations with ISO 14001 certification already have established environmental management processes. Extend these systems to include:

  • Supplier environmental performance in procurement criteria
  • Collaborative improvement objectives with key suppliers
  • Supply chain emissions in environmental aspects and impacts assessment

  Organizations with ISO 14001 certification already have established environmental management processes

  ISO 9001 Quality Management Systems

  The ISO 9001 supplier management requirements provide natural integration points:

  • Include climate resilience in supplier evaluation criteria
  • Incorporate emissions reduction in supplier development programs
  • Use management review processes to assess supplier collaboration effectiveness

  This framing helps suppliers see climate action as strategic investment, similar to quality management initiatives

  ISO 14090 Climate Change Adaptation

  This standard provides frameworks specifically for climate adaptation planning. Apply these principles to:

  • Assess climate vulnerabilities across your supply base
  • Develop collaborative adaptation strategies with suppliers
  • Build resilience into supply chain design

  ISO 14090 – Adaptation to Climate Change. This is the foundational standard for climate adaptation.

  2024 ISO Amendments on Climate Change

  As of February 2024, ISO introduced amendments to 31 management system standards The February 2024 amendments to major management system standards explicitly require organizations to assess climate change relevance. This creates natural opportunities to:

  • Integrate supplier climate collaboration into existing management systems
  • Demonstrate how supplier programs address climate-related risks and opportunities
  • Use familiar audit and review processes to ensure program effectiveness

  Organizations implementing supplier collaboration programs can position these initiatives as extensions of existing management system requirements rather than separate sustainability projects. This integration improves adoption and leverages established processes.

  The Business Case: Quantifying Collaboration Benefits

  While climate action often focuses on environmental outcomes, supplier collaboration programs deliver measurable business value:

  Direct Financial Benefits

  Cost Reduction: Suppliers improving energy efficiency typically reduce operational costs by 10-30%, creating pricing stability and potentially lower costs for customers.

  Avoided Disruption Costs: Climate-resilient suppliers experience fewer weather-related disruptions. The average supply chain disruption costs companies between $100 million and $1 billion, making prevention highly valuable.

  Insurance Premium Reductions: Companies demonstrating supply chain climate resilience often qualify for 10-15% lower insurance premiums on climate-related coverage.

  Investment Returns by Initiative Type

  Investment Category	Typical Investment Range	Payback Period	Annual ROI	Key Value Drivers
  Climate Analytics Platforms	$150K – $500K	12-18 months	200-400%	• Avoided disruptions • Reduced expediting costs • Optimized inventory
  Supplier Training Programs	$50K – $200K	6-12 months	300-500%	• Supplier efficiency gains • Faster implementation • Reduced support needs
  Renewable Energy PPAs	$500K – $2M	24-36 months	150-250%	• Long-term price stability • Hedge against energy volatility • Regulatory compliance
  Resilience Co-Investment	$200K – $1M	18-24 months	250-400%	• Continuous supply during events • Strengthened relationships • Shared risk reduction
  Innovation Partnerships	$100K – $500K	36-60 months	400-700%+	• New product development • Market differentiation • Technology leadership

  Note: ROI ranges reflect data from companies including those profiled in this article. Actual returns vary based on industry, supplier base, and program design. Early movers typically see higher returns as they capture first-mover advantages.

  Strategic Benefits

  Enhanced Brand Reputation: Consumers increasingly prefer brands with strong environmental commitments. Research shows 55% of consumers are willing to pay more for products from companies with robust climate programs.

  Improved Investor Relations: Investors scrutinize Scope 3 emissions management. Strong supplier collaboration programs improve sustainability ratings and may reduce cost of capital.

  Talent Attraction: 76% of Millennials and Gen Z consider company climate commitments when evaluating employers. Leading programs help attract and retain top talent.

  Competitive Differentiation: As customers face their own Scope 3 pressures, suppliers with strong climate programs become more valuable partners.

  Innovation Benefits

  Supplier collaboration often sparks innovation. Unilever's partnership with Ball Corporation and Alcoa on low-carbon aluminum exemplifies how climate challenges drive technological advancement. These innovations can create new products, reduce costs, and open new markets.

  Looking Forward: The Evolution of Supplier Collaboration

  As supplier collaboration programs mature, several trends are emerging:

  From Voluntary to Required

  Leading companies are shifting from inviting supplier participation to requiring climate action as a condition of business. Apple's explicit linking of climate progress to business awards signals this evolution. Expect more companies to make supplier climate performance a mandatory requirement.

  Increased Transparency Requirements

  Programs are progressing from general commitments to detailed carbon footprint data sharing. Unilever's focus on Product Carbon Footprint data reflects this trend. Future programs will likely require granular, verified emissions data at the product and process level.

  Scope Expansion

  Programs are broadening from energy and emissions to encompass:

  • Water resilience and security
  • Nature and biodiversity protection
  • Circular economy and waste reduction
  • Social equity and just transitions

  This holistic approach recognizes interconnections between climate, nature, and social challenges.

  Technology Integration

  Advanced technologies are enabling more sophisticated collaboration:

  • AI and machine learning for emissions optimization
  • Blockchain for supply chain transparency
  • IoT sensors for real-time emissions monitoring
  • Satellite imagery for deforestation tracking

  These tools will make collaboration more efficient and verifiable.

  Industry Collaboration

  Rather than each company creating separate programs, expect increased industry collaboration through:

  • Standardized requirements and methodologies
  • Shared platforms and tools
  • Collective purchasing mechanisms
  • Joint policy advocacy

  This reduces supplier burden when working with multiple customers while accelerating industry-wide transformation.

  Call to Action: Building Resilience Through Partnership

  The case studies of Unilever, Walmart, and Apple demonstrate that ambitious supplier climate collaboration is not only possible but can exceed expectations. These programs show that when companies commit to genuine partnership—providing support, resources, and recognition alongside clear expectations—suppliers respond enthusiastically.

  Climate resilience cannot be achieved in isolation. Your supply chain is only as strong as its most vulnerable link. By investing in supplier capabilities, you strengthen your entire operation while contributing to broader climate action.

  For organizations beginning this journey, start with these concrete steps:

  1. Conduct a Comprehensive Scope 3 Assessment: Understand where your supply chain emissions originate and which suppliers contribute most.
  2. Engage Priority Suppliers: Reach out to high-impact suppliers to understand their climate journeys, challenges, and support needs.
  3. Design for Scale: Create programs that can start small with pilot suppliers but scale to eventually engage your entire supply base.
  4. Provide Real Support: Don't just set expectations—invest in tools, training, financing, and resources that enable supplier success.
  5. Measure and Share Progress: Track results, celebrate successes, and transparently report on your journey.

  The companies featured in these case studies weren't certain of success when they launched their programs. They took bold steps, learned as they went, and continuously improved their approaches. Your organization can do the same.

  Climate resilience through supplier collaboration is not a future aspiration—it's a present opportunity. Companies acting now will build competitive advantages through resilient supply chains, innovation partnerships, and market leadership. Strong executive leadership is essential for driving supplier engagement at scale Those who delay will find themselves increasingly vulnerable to both physical climate risks and market transitions.

  The question is not whether to engage suppliers in climate action, but how quickly and effectively you can build the partnerships that will define business success in a climate-constrained world.

  Frequently Asked Questions

  How do I get started if my suppliers have limited climate knowledge?

  Begin with education and awareness building rather than demanding immediate action. Unilever's approach of segmenting suppliers by capability and providing differentiated support works well. Start by:

  • Conducting simple supplier surveys to understand current awareness and activities
  • Offering free webinars or workshops on climate basics and business benefits
  • Sharing case studies of suppliers in similar industries who have achieved success
  • Providing access to simple carbon calculators before expecting comprehensive footprint assessments

  Remember that Nike's lean manufacturing approach, as described by MIT's Jason Jay, involves working with suppliers to improve productivity while embedding sustainability improvements. Frame climate action as business improvement rather than additional burden.

  What if suppliers resist participating in our climate program?

  Resistance usually stems from three sources: lack of understanding, resource constraints, or perceived misalignment with business priorities. Address each:

  For Understanding Gaps: Share data on climate risks affecting their industry and region. Show how extreme weather events have disrupted similar suppliers. Demonstrate the business case through peer examples.

  For Resource Constraints: Provide practical support including free tools, training, and financing options. Walmart's Gigaton PPA program exemplifies removing financial barriers by enabling collective purchasing.

  For Misalignment: Connect climate action to priorities the supplier already has, such as operational efficiency, customer demands, or regulatory compliance. Emphasize co-benefits rather than focusing solely on emissions.

  If a critical supplier remains resistant despite support, you may need to evaluate whether they represent an acceptable long-term risk to your supply chain.

  How much should we invest in supporting suppliers versus requiring them to self-fund improvements?

  The most successful programs balance company investment with supplier responsibility. Consider:

  Company Investment Areas:

  • Tools and platforms accessible to all suppliers
  • Training and capability-building programs
  • Market infrastructure development (like Apple's China Clean Energy Fund)
  • Initial assessments and baseline establishment

  Supplier Investment Areas:

  • Implementation of efficiency improvements with clear ROI
  • Renewable energy procurement (though you might facilitate through collective purchasing)
  • Operational changes within their facilities

  The key principle: invest in enabling infrastructure and shared resources while expecting suppliers to fund improvements that deliver direct business benefits. As Walmart's experience shows, many emission reduction projects pay for themselves through efficiency gains.

  How do we handle suppliers in regions with limited renewable energy access?

  This represents one of the most challenging barriers, particularly in emerging markets. Leading companies address this through:

  Direct Investment: Like Apple's China Clean Energy Fund, invest in creating renewable energy capacity in markets where suppliers operate.

  Collective Procurement: Aggregate demand across multiple suppliers to make renewable energy projects economically viable. Walmart's Gigaton PPA program demonstrates this approach.

  Policy Advocacy: Engage with local policymakers to improve renewable energy market structures. Apple advocates for improved PPA access and ambitious renewable energy targets in countries where suppliers operate.

  Phased Approach: Set interim targets focused on energy efficiency while renewable energy infrastructure develops. Accept that renewable energy transition timelines vary by geography.

  Alternative Solutions: Where grid renewable energy is unavailable, support onsite solar installations, renewable energy certificates from neighboring regions, or other transitional approaches.

  How do we ensure suppliers actually implement improvements versus just reporting progress?

  Verification and accountability mechanisms are essential:

  Third-Party Verification: Require suppliers to use verified data sources and standardized reporting frameworks like CDP, SBTi, or GHG Protocol. Unilever requires suppliers to publicly report progress, creating external accountability.

  Audits and Site Visits: Include climate performance in regular supplier audits. Site visits can verify renewable energy installations, efficiency improvements, and implementation of reported initiatives.

  Performance Tracking Systems: Use platforms that track actual energy consumption, renewable energy procurement, and emissions reductions rather than relying solely on self-reported commitments.

  Link to Business Performance: Apple's approach of making climate progress a criterion for business awards creates strong accountability. Suppliers understand that verification matters because it affects commercial relationships.

  Progressive Requirements: Start with commitments and plans, then advance to requiring verified data as supplier capabilities mature. This staged approach builds verification rigor over time.

  The most effective programs combine trust with verification—assuming supplier good faith while implementing systems that ensure accountability.

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  Ready to build climate resilience in your supply chain? MSI can help you develop supplier collaboration programs that integrate with your existing ISO management systems. Contact us to discuss how we can support your supplier engagement journey.