Engage suppliers to cut Scope 3 emissions

Vivo (Telefônica Brasil) has made climate change mitigation a strategic priority due to its urgency and environmental impact. The company has already reduced its Scope 1 and 2 emissions by 90% and now faces the challenge of reducing emissions across its value chain (Scope 3) to achieve Net Zero by 2035.

A detailed assessment showed that a limited number of suppliers were responsible for the majority of supply chain emissions. However, most of these suppliers lacked the capability or maturity to measure and manage their greenhouse gas (GHG) emissions, creating a significant barrier to Scope 3 reduction.

Location of the initiative: Brazil

The company implemented a structured supplier engagement initiative—the Carbon in the Supply Chain Program—to enable emissions reduction across its value chain.

Key steps included:

• Identifying the most carbon-intensive suppliers

• Assessing supplier climate maturity through diagnostics

• Providing targeted capacity building via webinars

• Offering free individualized consulting in exchange for climate commitments

The initiative focused on collaboration and capability building rather than compliance, supporting suppliers to develop GHG inventories and set voluntary emissions reduction targets.

Sustainability impact

Climate

The initiative enables emissions reductions by improving supplier capability to measure and manage emissions. By 2024, 87% of participating carbon-intensive suppliers made voluntary climate commitments. These commitments are expected to drive measurable Scope 3 reductions over the medium to long term as suppliers implement their targets.

Nature

Improved emissions management contributes to reduced pressure on ecosystems through lower energy consumption, optimized logistics, and more efficient use of materials across the supply chain.

Social

The program strengthened supplier knowledge and professional skills by training more than 220 professionals, supporting workforce upskilling and long-term supplier resilience.

Business impact

Benefits

• Improved visibility of Scope 3 emissions and supplier risks

• Stronger supplier relationships based on collaboration and trust

• Increased alignment of suppliers with the company’s Net Zero strategy

• Reduced long-term transition and regulatory risks in the supply chain

Costs

• Operating costs: Internal staff time for coordination and monitoring

• Investment required: Costs related to webinars and external consulting support

Costs were minimized by focusing on the most carbon-intensive suppliers (covering over 80% of supplier emissions) and using group training formats combined with targeted individual support.

Typical business profile

• Large companies with complex supply chains

• High Scope 3 emissions concentration among a limited number of suppliers

• Organizations with advanced Scope 1 and 2 decarbonization maturity

• Applicable across sectors with procurement-driven emissions

Approach

1. Identify suppliers responsible for the majority of Scope 3 emissions

2. Conduct a climate maturity diagnostic for selected suppliers

3. Design a tailored capacity-building program based on identified gaps

4. Deliver webinars covering GHG accounting and target setting

5. Provide free one-to-one consulting support

6. Request voluntary climate commitments from participating suppliers

7. Monitor progress and continue supplier engagement over time

Stakeholders involved

Project leads: Sustainability team

Company functions:

• Procurement

• Supply chain management

Main providers: External climate consulting partners

Others: Tier-1 suppliers from carbon-intensive categories

Key parameters to consider

• Initiative maturity: Established best practice (supplier engagement and capacity building)

• Implementation timeline: Initial rollout completed within one year

• Average lifetime: Ongoing program with continuous engagement

• Technical prerequisites: Supplier access to operational and energy data

• Geographical relevance: Applicable globally, adapted to local supplier maturity

Implementation and operations tips

• Focus efforts on suppliers representing the largest emissions share

• Combine group training with individualized support to maximize impact

• Frame commitments as voluntary to increase supplier participation

• Maintain continuous follow-up to ensure targets translate into action

• Plan recognition mechanisms to incentivize high-performing suppliers