As companies face growing pressure to meet their national and legally binding net zero targets, it is becoming increasingly clear that global supply chains are central to the solution. Scope 3 emissions, which typically account for the largest share of a business’s carbon footprint, are often concentrated in manufacturing, logistics and upstream supplier activities. These emissions are complex to manage, but they represent one of the most urgent and high-impact areas for progress towards net zero.
To explore what leading companies can do next, we spoke with Liam Salter, CEO of RESET Carbon. Based in Hong Kong, RESET is a specialist consultancy that supports multinational brands in reducing emissions across their supply chains. Salter is a recognised global expert in climate strategy, with over two decades of experience in sustainability leadership roles. He believes the case for supply chain action is stronger than ever.
The rising cost of emissions and the case for early action
According to Liam Salter, CEO of RESET Carbon, the need for supply chain action is both immediate and strategic. “If businesses want to avoid long-term carbon cost risks, they need to act now. Supply chain emissions take time to reduce. We’re talking three years or more to see meaningful results.”
Salter highlights that acting during a period when carbon remains underpriced is not only practical from a cost perspective, it is necessary to stay on course for net zero. As policy frameworks evolve and more jurisdictions put a price on carbon, the ability to demonstrate active emissions reduction across the supply chain will become a key part of compliance, reputation and investment readiness.
“According to Bloomberg, carbon prices under the EU Emissions Trading System are expected to rise to €140 per tonne by 2030,” says Salter. “That cost won’t be limited to companies within the EU. Through mechanisms like the Carbon Border Adjustment Mechanism, global supply chains will feel that pressure too. The financial impact is coming, and businesses need to be ready.”
Why strategic suppliers still matter
Many brands, particularly in high-emissions sectors such as apparel, consumer goods, technology and food and beverages, have already begun building programmes to reduce emissions in their supplier base. This includes industry collaborations like the Carbon Leadership Programme and the Supplier Leadership on Climate Transition, as well as in-house initiatives focused on net zero alignment.
As Salter explains, “Even if those relationships evolve, the commercial and carbon impact of your most significant suppliers remains. Many are multinationals with the ability to adapt and provide lower carbon options in new geographies if properly engaged.”
Strategic suppliers represent a major lever for net zero progress. Even if supply networks shift in response to economic or regulatory factors, established high-volume vendors are often best placed to meet performance expectations. Their ability to scale low carbon solutions, implement clean technologies and collaborate on emissions planning makes them critical to any serious net zero supply chain strategy.
How to engage for maximum impact
RESET’s modelling shows that engaging a relatively small group of key manufacturing suppliers, when done in a phased and structured way, can drive significant reductions across a company’s total Scope 3 emissions. This is a foundational step toward delivering credible net zero targets.
The recommended approach begins with carbon hotspot mapping at the supplier facility level. This helps identify where emissions are most concentrated, guiding companies to focus investment where it can have the greatest net zero impact. Once hotspots are identified, facility-level emissions reduction roadmaps can be created to support supplier engagement, sourcing decisions and commercial alignment.
Salter notes, “There’s often a misconception that carbon reduction means high cost. In reality, many reductions can be delivered through measures like efficiency and onsite renewables, with strong returns on investment.”
These actions can deliver initial reductions of 15 to 30 percent through technologies that are proven, affordable and quick to implement. Larger cuts, in the region of 40 to 60 percent, may require offsite renewable energy or fuel switching. These investments may take longer to deliver, but with appropriate planning and prioritisation, they are achievable and necessary for long-term net zero alignment.
Balancing ambition with affordability
RESET advises companies to use action plans that quantify the cost and impact of different carbon reduction scenarios across the supplier base. This enables a more realistic conversation with suppliers, aligns expectations, and provides a clearer view of which actions can support the organisation’s net zero pathway.
Many companies have already gathered supplier emissions data, but the next step is to translate that data into delivery plans. Integrating emissions targets into sourcing decisions ensures that carbon performance becomes part of standard commercial strategy, not a parallel effort.
This alignment is particularly important for businesses that have committed publicly to net zero. With scrutiny increasing, internal teams must be equipped to show how their sourcing practices are delivering against climate goals, not just operational efficiency or compliance.
Collaborating to scale solutions
Beyond individual supplier relationships, industry collaboration is emerging as a powerful enabler of supply chain decarbonisation. Coordinating carbon reporting requirements, sharing supplier performance benchmarks and co-investing in low carbon supplier pools can reduce cost and complexity, and accelerate net zero delivery across sectors.
Standardised data frameworks can ease the burden on suppliers who report to multiple buyers, and benchmarking tools allow procurement teams to compare emissions performance across facilities or products. These tools support more informed decisions and help ensure that procurement aligns with the company’s climate ambition.
“As suppliers serve multiple brands, coordinated approaches reduce duplication and create stronger incentives to invest,” says Salter.
RESET also highlights efforts to build low carbon manufacturing pools in key sourcing regions. These pools, under development through initiatives such as the Industry Decarbonisation Roadmap, bring together suppliers that are ready to meet the demands of net zero sourcing. For buyers, this creates a reliable, verified base of lower-carbon manufacturing options aligned to industry needs.
Delivering on net zero through supply chain resilience
Resilient supply chains are no longer just about managing disruption. They are about enabling meaningful climate action. The ability to adapt to regulation, scale carbon reduction and support long-term performance is now central to the definition of resilience.
For companies with net zero targets, cutting supply chain emissions is not a side project. It is a core part of delivering on their climate commitments. Working closely with key suppliers, setting clear and achievable reduction plans, and using shared tools across the industry are now essential steps. These actions help businesses lower emissions faster and more effectively.
To meet net zero commitments, companies must take decisive action beyond their operational boundaries. A resilient, low carbon supply chain is not only a competitive advantage, it is a cornerstone of any serious plan to decarbonise and deliver on the promises of net zero.
