Drawdown Georgia Business Compact Sets Sights on Supply Chain Decarbonization and Strategies to Support Companies Working to Reduce Scope 3 Emissions

The Compact promotes a collaborative approach to help companies meet their carbon emission targets

Representing a major focus for 2025, the Drawdown Georgia Business Compact (Compact) is developing programs and kicking off outreach to key stakeholders to leverage collective impact on one of the biggest challenges for companies in meeting their carbon emission goals. Accounting for anywhere between 70% and 80% of an organization’s overall carbon footprint, Scope 3 emissions are indirect greenhouse gases discharged across a company’s value chain.

Unlike Scope 1 direct emissions from owned sources or Scope 2 emissions from purchased energy, Scope 3 emissions come from various upstream and downstream activities. These sources include raw materials, manufacturing, transportation, product usage, and end-of-life waste, among others. These areas are often outside the direct control of the company, which makes management much more complicated. While each company must develop its own tailored solutions and measurement mechanisms, without supply chain decarbonization to reduce Scope 3 emissions, organizations would be wholly unable to meet their climate goals.

“Our members have told us how hard it is to tackle Scope 3 emissions,” says David Eady, director of industry engagement for the Ray C. Anderson Center for Sustainable Business. “We believe collaboration is essential to addressing supply chain decarbonization. Together, we can collectively identify challenges, share best practices, and advance actions for lowering complex Scope 3 emissions across industries.” The Compact plans for a series of educational webinars, peer-to-peer sessions, and industry roundtables to build resources and relationships that will help equip businesses across Georgia with the tools they need to take on the Scope 3 emissions challenge.

Under the Securities and Exchange Commission’s Climate Disclosure Rule, approximately “7,000 domestic companies will be required to report climate-related disclosures, along with 900 foreign private issuers,” according to reporting from ESG Dive. However, unlike Scope 1 and 2 emissions, SEC-required reporting is not currently compulsory for Scope 3 emissions. In the spring of 2024, the agency dropped plans to include Scope 3 emissions in companies’ reporting requirements after receiving a large volume of comments that pointed to concerns over the cost of compliance and dependability of data. While federal level reporting may not be currently required, companies operating in California must report their Scope 3 emissions beginning in 2027, just two short years away.

“We’re already hearing from Compact members based in Georgia but who do business in California that tracking of their Scope 3 emissions is ramping up,” says Allison Bridges, program manager for the Ray C. Anderson Center for Sustainable Business. “Having reliable, consistent ways of tracking and reducing these emissions is critical, since Scope 3 emissions make up a significant portion of total carbon emissions.” With programming to address these emissions, the Compact is focused on strong industry leadership and cross-sector collaboration to move the needle on supply chain decarbonization in the state.

Tools under consideration for tracking Scope 3 emissions include: 

• Carbon Footprint Calculators: Helping companies measure and manage their carbon emissions

• Energy Management Systems: Supporting end-to-end management of carbon emissions

• Transportation Optimization: Improving transportation routes to reduce emissions

• Sustainable Sourcing: Following suppliers’ sustainable performance helps companies make better choices

• Circular Economy Tools: Tracking products through their full lifecycle to reduce materials and promote reuse and recycling

• Nature-Based Solutions: Developing opportunities to offset indirect and residual carbon emissions through investment in forest and agricultural resources.

In April 2025, David Eady will lead a panel on supply chain decarbonization at Super South. The conference gathers together innovators, experts, and visionaries to promote a circular economy, showcase sustainable technologies, and accelerate climate action. Registration is open for the event (taking place from April 15-17) for professionals, academics, early stage small and medium-sized businesses, students, and groups.

Stay tuned for the latest developments in supply chain decarbonization and how the Compact is facilitating cooperative and collaborative efforts to reduce Scope 3 emissions.

If you are interested in science-based decarbonization strategies for Georgia, email David Eady, director of industry engagement for the Ray C. Anderson Center for Sustainable Business. Are you a business leader in the state committed to sustainable solutions? Join other leading companies leveraging the collective impact of the Georgia business community to achieve net zero carbon emissions in the state.