The UK’s renewed commitment to its net-zero by 2050 target, laid out in the updated national strategy of October 2024, has placed supply-chain emissions under the microscope like never before. While large firms have long been encouraged to track their direct emissions (Scopes 1 and 2), the new mandate now requires detailed reporting of Scope 3 emissions—the indirect emissions that occur throughout the value chain. For energy-intensive manufacturers, this represents a significant shift, forcing them to look beyond their own operations and scrutinize the carbon footprint of every supplier that helps bring their products to market.
The move isn’t just about compliance. It’s part of a wider push to align corporate action with climate science. After all, Scope 3 emissions often account for the lion’s share of a company’s total carbon footprint. Steel producers, chemical firms, and other large industrial players are discovering that even small inefficiencies in supplier processes can add up to substantial emissions that now need to be counted—and eventually reduced. The government’s message is clear: supply chain transparency is no longer optional.
So where do manufacturers begin? A good starting point is to deploy open-data carbon calculators that can ingest supplier data and generate reliable estimates. Several open-source tools are already available, many of them backed by UK government departments or academic institutions. These calculators often draw on lifecycle emissions data for materials and processes, allowing companies to input procurement records—like tonnes of raw material purchased or kilowatt-hours of energy used—and receive standardized carbon figures in return. By linking these calculators to procurement software, manufacturers can start to build a clear, itemized view of supply-chain emissions at the material or component level.
Of course, no calculator is better than the data it receives. That’s why companies need to work closely with suppliers to collect accurate input data—whether that means actual energy use, transport distances, or processing methods. Open government datasets, such as those from the UK’s Office for National Statistics (ONS) or the Department for Energy Security and Net Zero, can provide useful benchmarks where supplier-specific data is lacking. For example, if a supplier can’t provide precise figures, manufacturers might apply average carbon intensities for that sector and material as a placeholder—flagging these figures for improvement over time.
But quantifying emissions is just part of the equation. Reducing them is the ultimate goal, and here’s where designing a robust Power Purchase Agreement (PPA) roadmap comes in. A PPA allows a manufacturer to contract directly with renewable energy producers, securing clean power for its own operations or even encouraging suppliers to do the same. The updated net-zero strategy explicitly encourages large firms to use their purchasing power to drive adoption of renewables throughout their supply chain.
To build an effective PPA roadmap, manufacturers should start by mapping their supply chain’s energy use, ideally identifying suppliers with the largest carbon footprints and the greatest potential for renewable transitions. From there, companies can explore options for aggregated or tiered PPAs—where a group of firms or suppliers band together to jointly purchase renewable power, spreading cost and risk. Open-data platforms tracking renewable generation projects and grid connection points can be a valuable resource for identifying suitable PPA partners.
Another crucial step is to embed these PPA plans into supplier engagement strategies. This might involve working directly with key suppliers to co-design renewable energy transition plans or offering technical assistance on PPA contracting. Some manufacturers are even experimenting with incentives, such as preferential contract terms for suppliers that commit to renewable energy targets or that agree to participate in joint PPA schemes.
Transparency is key throughout this process. Companies should aim to publish clear, accessible reports showing not just their own progress toward net zero, but how their supply chains are evolving too. This means disclosing Scope 3 emissions figures broken down by category (such as purchased goods, transport, and waste), explaining the methodologies used for calculations, and sharing updates on PPA milestones. The UK government’s strategy calls for annual reporting on these metrics, with independent audits encouraged to boost credibility.
For many energy-intensive manufacturers, the road ahead won’t be easy. Supply chains are complex, and aligning hundreds or even thousands of suppliers to a single carbon-reduction vision takes time and persistence. But the tools to get started are already available—from open-data calculators to public registries of renewable energy producers. What’s needed now is a willingness to act, to collaborate, and to lead by example.
The net-zero by 2050 goal isn’t just a national ambition—it’s a collective challenge that spans industries, borders, and supply chains. The 2024 strategy update signals that the UK is serious about tackling this challenge head-on. For manufacturers, the message is clear: now is the time to turn supply-chain carbon reporting from a compliance exercise into a driver of real, measurable climate action.