Decarbonization
Pathway
This is intended to provide a framework that PSCI members can use to support their
suppliers in decarbonization towards Net Zero, in line with global goals such as the
COP Paris Agreement and UN Sustainable Development Goals.
■ To deeply decarbonize, PSCI members need to address our Scope 3 emissions ■ The principle is embedded that our suppliers (PSCI members Tier 1 suppliers)
i.e. the GHG emissions generated by our suppliers in the course of delivering would flow this framework down to their supply chains (members Tier 2+).
their contracts with us.
■ This approach builds on Maturity Models for other PSCI focus areas.
■ PSCI members will require our suppliers to address their own Scope 1 & 2
GHG emissions and those of our suppliers own supply chain i.e. their Scope 3
emissions.
Maturity model for Decarbonization
01 02 03 04
L eve l
L eve l
L eve l
L eve l
Starting out Developing Implementing Leading
■ Set baseline for reducing ■ Public target to reduce Scope 1 ■ Obtain SBTi verification of ■ Obtain SBTi verification of
Scope 1 and 2 emissions & 2 GHG emissions Near Term Science Based a Near and Long Term Net
Targets aligned with 1.5°C Zero target
■ Public commitment to setting
Science Based Targets (in line ■ Set Scope 3 GHG emissions ■ Require suppliers to set
with a 1.5°C trajectory) reduction targets, including Science Based Targets
targets for suppliers to reduce
■ Public commitment to
their GHG emissions
Targets
increasing use of renewable
electricity (at least 80% in line
with supplier standards by
the SMI) This Maturity
■ Set internal target for Model is aligned
engagement of supply chain
with the Common
Supplier Standards
published by the
Sustainable Markets
Initiative
■ Actively assess reporting and ■ Management systems and ■ Scope 3 (all relevant ■ Reported emissions provided
disclosure tools, processes governance in place to ensure categories) calculated using with limited or reasonable
and management systems accurate reporting and combination of spend-based assurance by 3rd party auditor
to establish an annual GHG disclosures of Scope 1, 2 & 3 methods and primary data ■ Reporting carbon footprint
reporting process emissions from suppliers
for products (e.g. life cycle
■ Establish a baseline for Scope ■ Scope 1 & 2 with 3rd party ■ Reporting, disclosures and assessment) using digital tools
1 and 2 GHG emissions in line verification processes meet external to provide full transparency
with GHG Protocol and publicly standards e.g. CDP, SASB, throughout value chain
■ Publicly disclose upstream
disclose them TCFD, SBTi, GRI
Scope 3 emissions (Scope 3 ■ Decarbonization is embedded
- Operating under own categories 1 to 8) using spend- ■ Scope 1, 2 and 3 carbon in company culture with
internal management based methodology footprint provided to PSCI Governance and Targets
systems without external member companies in ratio at Board level impacting
- Understand material sources
validation specific to their business/ remuneration
of emissions across Scope 3
spend (site based or corporate
■ Initiate internal processes for GHG categories ■ Active participation in external
level emissions accepted) in a
Scope 3 screening of some in-sector and cross-sector
■ Report to 3rd party ESG digital tool determined by
Scope 3 categories using partnerships, publicised to
rating provider, such as the requestor
spend-based methodology support transition to Net Zero
Enablers & Actions
Ecovadis or Sedex
■ Detail of targets, actions and
■ Ad-hoc success in - Advocacy on sustainable
■ Board commitment to a reductions made transparent
implementing actions for challenges and change
decarbonization strategy
reduction in emissions, mostly ■ Majority of employees have towards Net Zero incl.
made public
focussed on Scope 1 & 2 received training to embed Energize, SMI Health
■ Material improvement emissions reductions activity Systems Task Force and
opportunities identified to across business others
reduce Scope 1 & 2 emissions
■ Key suppliers engaged at ■ Demonstration of significant
- managed in line corporate level to set their investment in innovation and
with accreditation in strategy & targets and report delivery of carbon reduction
management standards publicly ■ Minimises the use of carbon
such as ISO9001, ISO14001,
- Set standards for suppliers compensation (offsets) in
ISO50001 and built into core
which requires transparent the short and medium term.
business processes
GHG reporting and Only highest quality carbon
Suppliers are ■ Senior management production of emissions compensation schemes
expected to accountability allocated, reduction plans by the (removals) used to achieve Net
undertake most, coordinated across all suppliers Zero in line with SBTi guidance
business units
or all, of the ■ Demonstrating progress (incl. ■ Working with suppliers of
steps outlined ■ Regular engagement with exploring options) towards Transport to provide green
employees to raise awareness sourcing renewable heat transport solutions (in line with
at each stage of of need for action on emissions (in line with SMI supplier SMI supplier standards)
maturity reduction standards)
■ Purchasing certified renewable
electricity from utility suppliers,
where markets allow