Sustainability Consulting

Salesforce faced the challenge of decarbonizing its supply chain and reducing scope 3 emissions, which encompass emissions from purchased goods and services, capital goods, upstream transportation and distribution, waste generated in operations, and upstream leased assets. To address this, Salesforce implemented a supplier engagement initiative that requires suppliers to set science-based targets as part of their contracts. This initiative is structured around a three-step approach: require, enable, and incentivize, which serves as a model for other companies aiming to engage their suppliers effectively.

To achieve its goal, Salesforce committed that by 2024, 60% of its suppliers by emissions would set science-based targets. The selection of these suppliers is based on their relative emissions, climate impact, spending, and other strategic business considerations. Salesforce re-evaluates its supplier list annually to ensure the engagement remains strategic and effective. Since Q2 2021, all suppliers have been asked to set science-based targets, aiming to create a ripple effect of corporate climate action.

Internally, Salesforce secured buy-in for this program through its corporate sustainability team, which operationalizes sustainability across the organization. A dedicated supplier sustainability leader within the procurement team collaborates with various departments to implement the initiative. Salesforce has also tied a portion of executive variable pay to performance on environmental, social, and governance (ESG) measures, including increasing spend with suppliers who have made climate commitments.

The implementation of the supplier engagement target began with a survey to priority suppliers to assess their familiarity with science-based targets and identify barriers to target-setting. The survey revealed that while many suppliers were interested in setting targets, they faced challenges such as limited internal resources and data management tools. In response, Salesforce introduced the Sustainability Exhibit in April 2021, which mandates that suppliers set science-based targets and work towards reducing their absolute emissions. To accommodate suppliers' resource constraints, Salesforce developed an attestation form that allows suppliers to commit to SBTi-aligned targets without formal validation.

Salesforce has also provided resources and tools to support suppliers, including a supplier guide, an Introduction to Net Zero Targets, and a “Sustainability Accelerator” training program for small- and medium-sized enterprises (SMEs). By becoming a CDP Supply Chain member, Salesforce streamlined supplier reporting requests, enabling it to track progress against its emissions reduction goals. The company monitors supplier performance through SBTi’s Target Dashboard and engages directly with high-priority suppliers to address challenges.

Progress towards the target is calculated annually and reviewed by a third party, with results reported in Salesforce’s annual Stakeholder Impact Report. As a leader in supplier engagement, Salesforce shares its approach with others in the industry to support broader climate action efforts.