Enable Supplier Action Through Decarbonization Networks

Bayer is a global life science company operating across healthcare and agriculture value chains. Its operations rely on a broad, diverse supplier base that represents a significant share of its overall environmental footprint.

The company faces substantial Scope 3 emissions and has committed to reducing these by 25% by 2029, as validated through the Science Based Targets initiative (SBTi) in 2024. To meet these targets, Bayer continues to strengthen supplier engagement as a core component of its decarbonization strategy.

Bayer is actively working with suppliers to reduce value-chain emissions by encouraging the adoption of renewable electricity, requesting disclosure of climate-action programs, and progressively integrating Product Carbon Footprint (PCF) data into its procurement decisions. The company prioritizes spending with suppliers who demonstrate credible action to decarbonize their operations. Strengthening supplier collaboration is therefore essential to accelerating progress toward its long-term net-zero ambition.

This context created the need for a structured, scalable mechanism — such as the Igniting Networks program — to support suppliers, promote transparency, and incentivize meaningful climate action across the value chain.

Figure 1: Bayer’s Sustainability Strategy & 2030 Targets

To address this, Bayer’s procurement team leveraged Igniting Networks Live—the company’s annual virtual supplier day—by integrating a dedicated decarbonization award into the existing platform. Igniting Networks Live convenes nearly 400+ key suppliers each year for a structured, collaborative experience focused on connection, innovation, and climate action.

The decarbonization award is designed to enable value-chain decarbonization, not through direct emissions reductions, but by mobilizing suppliers to implement high-impact climate measures aligned with Bayer’s Scope 3 ambitions.

Core components of the solution include:

1. Annual supplier engagement event

A curated virtual platform where suppliers gain insight into expectations, share experiences, and learn from peers.

2. Two-tiered supplier awards

• Decarbonization Excellence Award

• Decarbonization Accelerator Award

  These categories reward either mature, high-impact climate projects or rapid decarbonization progress.

3. Structured selection and case study submission process

Internal teams identify promising suppliers based on maturity and emissions relevance, then invite shortlisted candidates to submit case studies demonstrating measurable climate action.

4. Independent impact assessment (WBCSD)

WBCSD worked with finalists to assess the impact of each submission, delivering an impartial evaluation that informed the jury’s decision.

5. Scaling peer learning through public case studies

Finalists who choose to do so have their case studies published on The Climate Drive, enabling global replication of successful approaches and amplifying impact beyond Bayer’s value chain.

Figure 2: Supplier Decarbonization Roadmap

Figure 3: Ignite Networks’ Award Categories

Sustainability impact

Climate

This initiative is an enabler, rather than a direct emissions reducer. It strengthens supplier capacity to implement decarbonization measures and uses supplier progress as a multiplier to accelerate transformation across the wider value chain.

Enabling mechanisms include:

• Accelerating supplier adoption of renewable electricity

• Encouraging target-setting aligned with SBTi

• Enhancing transparency through PCF data

• Recognizing impactful climate actions, incentivizing broader adoption

Social

Potential effects include stronger partnerships, improved supplier capability, and knowledge upskilling across global value chains.

Business impact

Benefits

• Strengthens long-term supplier relationships

• Improves alignment between procurement and sustainability goals

• Increases supplier commitment to renewable electricity and emissions disclosure

• Supports risk management by identifying suppliers actively mitigating climate risks

• Drives progress toward 2029 Scope 3 targets

Costs

• Internal procurement/sustainability team time

• Digital infrastructure for hosting the event

• Time investment by suppliers to prepare submissions

Cost optimization strategies:

• Virtual format reduces logistics costs

• Standardized templates improve efficiency

• Public case study sharing multiplies impact value

Impact beyond sustainability and business

Co-benefits

Beyond climate and business impacts, the initiative contributes to several additional positive outcomes:

• Strengthened supplier relationships

  The program enhances trust and transparency between the company and its suppliers, supporting more resilient long-term partnerships.

• Culture of shared learning

  Bringing suppliers together in a single platform fosters a culture of openness, peer exchange, and mutual support across different regions and sectors.

• Increased supplier capability-building

  Suppliers gain improved understanding of decarbonization expectations, methodologies, and reporting practices, which can strengthen their organizational competencies beyond climate topics.

• Ecosystem-wide mindset shift

  The recognition component motivates suppliers to embed sustainability more deeply within strategic decision-making, potentially influencing their workforces and broader networks.

Potential side-effects

• Differences in supplier maturity may create uneven participation.

  • Mitigation: Templates and guidance reduce complexity and support less mature suppliers.

• Risk of rewarding only advanced suppliers.

  • Mitigation: Two award categories (excellence and acceleration) recognize progress at different levels.

• Administrative burden for smaller suppliers.

  • Mitigation: Streamlined submission requirements and flexible formats.

• Perceived bias in evaluations.

  • Mitigation: Independent assessment by WBCSD ensures neutrality.

Typical business profile

This initiative is relevant for companies with:

• Large, global, multi-tier supplier bases

• Significant Scope 3 Category 1 emissions

• Procurement teams involved in sustainability transitions

• Mature or maturing net-zero strategies

• Multi-industry value chains (chemicals, agriculture, healthcare, manufacturing)

Approach

1. Identify high-priority suppliers Screen the supplier base based on emissions relevance and climate maturity. Maturity is assessed using criteria such as Scope 1, 2 and 3 reporting, Product Carbon Footprint (PCF) capabilities, renewable electricity usage, SBTi commitments, and experience co-creating innovative projects with the company.

2. Define award design and criteria Set clear award categories, eligibility rules, evaluation criteria, and submission requirements, including the expected structure and data needs for case studies.

3. Mobilize internal teams to nominate suppliers Launch internal communications to procurement and category managers, explaining the award objectives, expectations, and timelines, and inviting them to nominate suitable suppliers.

4. Invite shortlisted suppliers to submit case studies Share a structured case study template with nominated suppliers and provide guidance on how to describe their decarbonization initiatives and results.

5. Conduct independent assessment Partner with an impartial organization (e.g., WBCSD) to review and score submissions against predefined criteria, ensuring transparent and unbiased evaluation.

6. Present shortlisted case studies to the jury Shortlisted suppliers present their case studies to a jury panel, enabling clarification, discussion, and qualitative assessment prior to final award decisions.

7. Leverage the Igniting Networks Live event Use the annual virtual supplier day to announce award winners and highlight leading decarbonization practices.

8. Publish finalist case studies on The Climate Drive Work with WBCSD and suppliers who opt in to translate winning and finalist submissions into public case studies that can be replicated by other companies and sectors.

9. Amplify recognition across value chains Recognize finalists and winners through social media and other communication channels, and encourage suppliers to share these outcomes in their own communications to influence and inspire their value chains.

Stakeholders involved

• Project leads: Procurement Sustainability & Risk teams

• Collaborators: WBCSD (impact assessment, case study publication)

• Participants: Shortlisted suppliers submitting climate case studies

Key parameters to consider

• Supplier maturity differences

• Data quality and comparability

• Availability of PCF data

• Jurisdictional differences in renewable electricity access

• Time required for case study preparation

• Internal procurement capacity for structured engagement

Implementation and operations tips

Common challenges:

• Large variation in supplier maturity

• Limited emissions data availability

• Varied understanding of decarbonization terminology

• Ensuring comparability of submissions

Success factors:

• Provide templates and example submissions

• Offer remote coaching sessions for suppliers

• Ensure transparent and consistent scoring

• Include independent evaluation to strengthen neutrality

• Publicly recognize efforts to incentivize engagement