Sustainability Consulting

AstraZeneca faced significant challenges in managing its supply chain emissions, particularly in tracking and improving the quality of data related to its scope 3 greenhouse gas (GHG) emissions. The company recognized that engaging suppliers was crucial to achieving its ambitious sustainability targets, which include having 95% of its suppliers set science-based targets by FY2025 and reducing absolute scope 3 GHG emissions by 50% by FY2030 from a FY2019 baseline. The decision to implement a supplier engagement program was driven by the need for better data availability and quality, as well as the desire to incentivize suppliers to build capacity within their operations.

To address these challenges, AstraZeneca developed a comprehensive supplier engagement program that emphasizes clear communication of expectations and collaboration with suppliers. The program prioritizes high-spend suppliers in high-emissions categories, aiming to engage 95% of its top suppliers by the end of 2023. AstraZeneca's approach includes requiring suppliers to report their own emissions data and progress against their targets, which enhances the quality of emissions data reported back to AstraZeneca. This structured engagement not only helps in tracking progress against AstraZeneca's own emissions targets but also fosters a culture of accountability among suppliers.

The implementation of the supplier engagement program is supported by a dedicated team led by a Director of Procurement Sustainability, which works closely with procurement employees to facilitate one-on-one supplier interactions. Key environmental expectations were established, including annual reporting of ESG information and emissions data, as well as setting science-based targets through the Science Based Targets initiative (SBTi). AstraZeneca also utilizes public reporting tools like EcoVadis and CDP to monitor supplier performance and ensure consistent messaging around sustainability.

Quantifiable results from AstraZeneca's efforts include a significant increase in the quality of emissions data reported by suppliers. In 2022, 38% of AstraZeneca’s scope 3 reporting was based on actual supplier emissions data, a notable increase from 20% in 2019. This improvement reflects the effectiveness of the supplier engagement program in enhancing data quality and supplier accountability. Additionally, AstraZeneca's commitment to sustainability has become a minimum requirement for suppliers, further driving the adoption of science-based targets across its supply chain.