Transformation Guide

Online Supplier Transformation Framework

Transform to Net Zero created the Supplier Transformation Framework to help companies identify and improve their suppliers’ climate performance.

The Framework contains:

A set of transformative, net zero-aligned climate expectations that suppliers can work towards to meet their customers’ diverse expectations.
A standardized framework for companies to assess their suppliers’ climate maturity to best support them in meeting those expectations.

Maturity Ladder

AD HOC

The company responds to basic stakeholders’ needs and regulations on climate and does not have a formal climate/sustainability/ESG function or strategic approach.

AD HOC

The company responds to basic stakeholders’ needs and regulations on climate and does not have a formal climate/sustainability/ESG function or strategic approach.

NASCENT

The company takes a varied approach of proactive and reactive responses to priority climate issues in order to reduce costs and risks. Individuals are assigned and accountable for execution.

NASCENT

The company takes a varied approach of proactive and reactive responses to priority climate issues in order to reduce costs and risks. Individuals are assigned and accountable for execution.

ESTABLISHED

The company has established sustainability-related priorities and programs tied to overall material issues. Climate considerations affect some or most core business decisions and are routinely considered by various departments. Support is provided by leadership teams and through a formal climate/sustainability/ESG function.

ESTABLISHED

TRANSFORMATIVE

The company has a system-wide ESG mandate that is fully integrated into all aspects of its business. The company’s leaders and employees are engaged in climate efforts and are creating innovative new sustainability programs or products/services and using sustainability to inform overall business growth.

TRANSFORMATIVE

The below framework presents four tiers of net zero aligned climate expectations to help suppliers more easily understand what beginner versus best practice looks like and what they need to do to achieve 1.5°C goals within their own value chains and beyond for their customers.

AD HOC

The company responds to basic stakeholders’ needs and regulations on climate and does not have a formal climate/sustainability/ESG function or strategic approach.

AD HOC

The company responds to basic stakeholders’ needs and regulations on climate and does not have a formal climate/sustainability/ESG function or strategic approach.

NASCENT

The company takes a varied approach of proactive and reactive responses to priority climate issues in order to reduce costs and risks. Individuals are assigned and accountable for execution.

NASCENT

The company takes a varied approach of proactive and reactive responses to priority climate issues in order to reduce costs and risks. Individuals are assigned and accountable for execution.

ESTABLISHED

TRANSFORMATIVE

AD HOC
The company responds to basic stakeholders’ needs and regulations on climate and does not have a formal climate/sustainability/ESG function or strategic approach.

NASCENT
The company takes a varied approach of proactive and reactive responses to priority climate issues in order to reduce costs and risks. Individuals are assigned and accountable for execution.

ESTABLISHED
The company has established sustainability-related priorities and programs tied to overall material issues. Climate considerations affect some or most core business decisions and are routinely considered by various departments. Support is provided by leadership teams and through a formal climate/sustainability/ESG function.

TRANSFORMATIVE
The company has a system-wide ESG mandate that is fully integrated into all aspects of its business. The company’s leaders and employees are engaged in climate efforts and are creating innovative new sustainability programs or products/services and using sustainability to inform overall business growth.

The below framework presents four tiers of net zero aligned climate expectations to help suppliers more easily understand what beginner versus best practice looks like and what they need to do to achieve 1.5°C goals within their own value chains and beyond for their customers.

Measurement and Target Setting

TOPICS	AD HOC	NASCENT	ESTABLISHED	TRANSFORMATIVE
GHG emissions measurements and assurance	Create an inventory of all owned and operated assets, including facilities and vehicles, and their estimated use (e.g., facilities: annual electricity consumption; vehicles: annual mileage and fuel consumption)	Measure GHG emissions across Scope 1 and 2 according to the GHG Protocol annually	Measure GHG emissions across Scope 1, 2, and 3 according to the GHG Protocol annually	Externally verify Scope 1 and 2 GHG emissions inventory via an independent and reputable third-party assurance provider. Verification of Scope 3 emissions is not required but encouraged Perform climate life cycle assessments (LCAs) for key products and services
Target setting and validation	Set loose goals and commitments to reduce emissions that are not time-bound	Set a net zero near- and long-term target in line with SBTi criteria¹ for absolute Scope 1 and 2 emissions	Set a net zero near- and long-term targets in line with SBTi criteria¹ for absolute Scope 1, 2, and 3 emissions and consider validating Scope 1 and 2 with SBTi¹	Validate absolute near- and long-term net zero targets for Scope 1, 2, and 3 with SBTi¹ Target should be to halve emissions before 2030 and achieve net zero before 2050 aligned with a 1.5°C future
Renewable energy² (RE)target setting (aligned with RE100)	Set loose goals and commitments to reduce emissions that are not time-bound	Set a public target to procure 30% RE by 2030, 70% by 2040, and 100% by 2050, and demonstrate progress yearly through concrete actions towards the purchase or generation of RE For the purchase of RE, obtain RE certificates that meet the RE100 technical criteria as proof of validity	Set a public target to procure 60% RE by 2030, 90% by 2040, and 100% by 2050, as aligned with RE1002, and demonstrate progress yearly through concrete actions towards the purchase or generation of RE For the purchase of RE, obtain RE certificates that meet the RE100 technical criteria as proof of validity	Set a public target to procure 100% RE by 2030 For the purchase of RE, obtain RE certificates that meet the RE100 technical criteria as proof of validity

TOPICS

AD HOC

NASCENT

ESTABLISHED

TRANSFORMATIVE

GHG emissions measurements and assurance

Create an inventory of all owned and operated assets, including facilities and vehicles, and their estimated use (e.g., facilities: annual electricity consumption; vehicles: annual mileage and fuel consumption)

Measure GHG emissions across Scope 1 and 2 according to the GHG Protocol annually

Measure GHG emissions across Scope 1, 2, and 3 according to the GHG Protocol annually

Externally verify Scope 1 and 2 GHG emissions inventory via an independent and reputable third-party assurance provider.

Verification of Scope 3 emissions is not required but encouraged

Perform climate life cycle assessments (LCAs) for key products and services

Target setting and validation

Set loose goals and commitments to reduce emissions that are not time-bound

Set a net zero near- and long-term target in line with SBTi criteria¹ for absolute Scope 1 and 2 emissions

Set a net zero near- and long-term targets in line with SBTi criteria¹ for absolute Scope 1, 2, and 3 emissions and consider validating Scope 1 and 2 with SBTi¹

Validate absolute near- and long-term net zero targets for Scope 1, 2, and 3 with SBTi¹

Target should be to halve emissions before 2030 and achieve net zero before 2050 aligned with a 1.5°C future

Renewable energy² (RE)target setting

(aligned with RE100)

Set loose goals and commitments to reduce emissions that are not time-bound

Set a public target to procure 30% RE by 2030, 70% by 2040, and 100% by 2050, and demonstrate progress yearly through concrete actions towards the purchase or generation of RE

For the purchase of RE, obtain RE certificates that meet the RE100 technical criteria as proof of validity

Set a public target to procure 60% RE by 2030, 90% by 2040, and 100% by 2050, as aligned with RE1002, and demonstrate progress yearly through concrete actions towards the purchase or generation of RE

For the purchase of RE, obtain RE certificates that meet the RE100 technical criteria as proof of validity

Set a public target to procure 100% RE by 2030

For the purchase of RE, obtain RE certificates that meet the RE100 technical criteria as proof of validity

Measurement and Target Setting

GHG emissions measurements and assurance

AD HOC

NASCENT

Measure GHG emissions across Scope 1 and 2 according to the GHG Protocol annually

ESTABLISHED

Measure GHG emissions across Scope 1, 2, and 3 according to the GHG Protocol annually

TRANSFORMATIVE

Externally verify Scope 1 and 2 GHG emissions inventory via an independent and reputable third-party assurance provider.

Verification of Scope 3 emissions is not required but encouraged

Perform climate life cycle assessments (LCAs

Target setting and validation

AD HOC

Set loose goals and commitments to reduce emissions that are not time-bound

NASCENT

Set a net zero near- and long-term target in line with SBTi criteria¹ for absolute Scope 1 and 2 emissions

ESTABLISHED

Set a net zero near- and longterm targets in line with SBTi criteria¹ for absolute Scope 1, 2, and 3 emissions and consider validating Scope 1 and 2 with SBTi

TRANSFORMATIVE

Validate absolute near- and long-term net zero targets for Scope 1, 2, and 3 with SBTi¹

• Target should be to halve emissions before 2030 and achieve net zero before 2050 aligned with a 1.5°C future

Renewable energy² (RE) target setting (aligned with RE100)

AD HOC

Set loose goals and commitments to reduce emissions that are not time-bound

NASCENT

Set a public target to procure 30% RE by 2030, 70% by 2040, and 100% by 2050, and demonstrate progress yearly through concrete actions towards the purchase or generation of RE

• For the purchase of RE, obtain RE certificates that meet the RE100 technical criteria as proof of validity

ESTABLISHED

Set a public target to procure 60% RE by 2030, 90% by 2040, and 100% by 2050, as aligned with RE100², and demonstrate progress yearly through concrete actions towards the purchase or generation of RE

• For the purchase of RE, obtain RE certificates that meet the RE100 technical criteria as proof of validity

TRANSFORMATIVE

Set a public target to procure 100% RE by 2030

• For the purchase of RE, obtain RE certificates that meet the RE100 technical criteria as proof of validity

Governance

TOPICS	AD HOC	NASCENT	ESTABLISHED	TRANSFORMATIVE
Organizational design	Assign individual accountability internally to drive climate related initiatives forward	Establish a sustainability function to drive climate-related initiatives forward • The size of the department can range from an individual to a large team, as appropriate • Assign CSR/ESG/ Sustainability/Climate related job titles to the individuals/department	Establish a leadership team and/or board oversight for implementation of climate related initiatives Involve supply chain, sourcing, and procurement functions in climate-related efforts, with a focus on integrating climate goals into existing supplier relationships	Involve all relevant functions³ in climate-related initiatives. All relevant functions have an individual with climate expertise to guide activities within climate priorities, and all relevant departments and processes are aligned with climate goals
Internal incentives	Discuss climate priorities in reviews of employees with leadership positions, with no impact on performance review	Integrate climate KPIs into the review of employees with accountability for climate related activities³ • e.g., emissions reduction target, RE target, % suppliers that report and reduce emissions, participation in climate related events, etc.	Integrate climate KPIs into the review of employees in relevant functions³ and those with climate-related responsibilities	Tailor and embed climate action across all relevant functions³, with climate KPIs integrated into the review of all employees across relevant functions Tie executive compensation to climate targets

TOPICS

AD HOC

NASCENT

ESTABLISHED

TRANSFORMATIVE

Organizational design

Assign individual accountability internally to drive climate related initiatives forward

Establish a sustainability function to drive climate-related initiatives forward

• The size of the department can range from an individual to a large team, as appropriate

• Assign CSR/ESG/ Sustainability/Climate related job titles to the individuals/department

Establish a leadership team and/or board oversight for implementation of climate related initiatives

Involve supply chain, sourcing, and procurement functions in climate-related efforts, with a focus on integrating climate goals into existing supplier relationships

Involve all relevant functions³ in climate-related initiatives. All relevant functions have an individual with climate expertise to guide activities within climate priorities, and all relevant departments and processes are aligned with climate goals

Internal incentives

Discuss climate priorities in reviews of employees with leadership positions, with no impact on performance review

Integrate climate KPIs into the review of employees with accountability for climate related activities³

• e.g., emissions reduction target, RE target, % suppliers that report and reduce emissions, participation in climate related events, etc.

Integrate climate KPIs into the review of employees in relevant functions³ and those with climate-related responsibilities

Tailor and embed climate action across all relevant functions³, with climate KPIs integrated into the review of all employees across relevant functions

Tie executive compensation to climate targets

Governance

Organizational design

AD HOC

Assign individual accountability internally to drive climate-related initiatives forward

NASCENT

Establish a sustainability function to drive climate-related initiatives forward

• The size of the department can range from an individual to a large team, as appropriate
• Assign CSR/ESG/ Sustainability/Climate-related job titles to the individuals/department

ESTABLISHED

Establish a leadership team and/or board oversight for implementation of climate-related initiatives

Involve supply chain, sourcing, and procurement functions in climate-related efforts, with a focus on integrating climate goals into existing supplier relationships

TRANSFORMATIVE

Internal incentives

AD HOC

Discuss climate priorities in reviews of employees with leadership positions, with no impact on performance review

NASCENT

Integrate climate KPIs into the review of employees with accountability for climate-related activities³

• e.g., emissions reduction target, RE target, % suppliers that report and reduce emissions, participation in climate-related events, etc.

ESTABLISHED

Integrate climate KPIs into the review of employees in relevant functions³ and those with climate-related responsibilities

TRANSFORMATIVE

Tailor and embed climate action across all relevant functions³, with climate KPIs integrated into the review of all employees across relevant functions

Tie executive compensation to climate targets

Reporting and Disclosure

TOPICS	AD HOC	NASCENT	ESTABLISHED	TRANSFORMATIVE
Management reporting capability	Publicly disclose energy and fuel consumption baseline for operated and owned assets and climate priorities annually • This can be disclosed on any public facing website, letter, statement, or other external media	Publicly disclose Scope 1 and 2 emissions and other climate related commitments, including progress towards targets, annually • This can be disclosed on a public facing website, letter, statement, or other forms of external media, not necessarily a traditional sustainability report	Publicly disclose Scope 1, 2, and material Scope 3 emissions and other climate-related commitments, including progress towards targets, in an annual report or dedicated annual CSR/ESG/Sustainability report using a formally recognized international reporting disclosure standard or framework • Disclosure frameworks (e.g.,GRI, CDP, TCFD, ISSB, etc.) can vary based on differing use cases and jurisdictional requirements (e.g., EU CSRD, US SEC, etc.)⁴	Publicly disclose a detailed inventory of Scope 1, 2, and 3 emissions, including rationale for emissions not included in Scope 3. In addition, publicly disclose other climate-related commitments, results of LCA’s, and abatement activities/ methodology, including progress towards targets, in an annual report or dedicated annual CSR/ESG/Sustainability report using a formally recognized international reporting disclosure standard or framework and/or via additional independent thirdparty disclosure entities (e.g., Ecovadis), and obtain thirdparty assurance
Disclosure of plans and roadmaps	Internally disclose climate priorities and assign internal responsibility for the initial development of a roadmap	Internally disseminate plans and strategies to address climate impacts and publicly communicate climate commitments	Publish time-bound climate transition plans/decarbonization roadmaps with some key elements of climate transition plans according to relevant frameworks (e.g., CDP, GFANZ, TCFD, TPT, and TONZ) and disclose progress towards emissions reduction targets annually	Have all key elements of climate transition plans according to relevant frameworks (e.g., CDP, GFANZ, TCFD, TPT, and TONZ) and disclose progress towards described actions and initiatives

TOPICS

AD HOC

NASCENT

ESTABLISHED

TRANSFORMATIVE

Management reporting capability

Publicly disclose energy and fuel consumption baseline for operated and owned assets and climate priorities annually

• This can be disclosed on any public facing website, letter, statement, or other external media

Publicly disclose Scope 1 and 2 emissions and other climate related commitments, including progress towards targets, annually

• This can be disclosed on a public facing website, letter, statement, or other forms of external media, not necessarily a traditional sustainability report

Publicly disclose Scope 1, 2, and material Scope 3 emissions and other climate-related commitments, including progress towards targets, in an annual report or dedicated annual CSR/ESG/Sustainability report using a formally recognized international reporting disclosure standard or framework

• Disclosure frameworks (e.g.,GRI, CDP, TCFD, ISSB, etc.) can vary based on differing use cases and jurisdictional requirements (e.g., EU CSRD, US SEC, etc.)⁴

Publicly disclose a detailed inventory of Scope 1, 2, and 3 emissions, including rationale for emissions not included in Scope 3. In addition, publicly disclose other climate-related commitments, results of LCA’s, and abatement activities/ methodology, including progress towards targets, in an annual report or dedicated annual CSR/ESG/Sustainability report using a formally recognized international reporting disclosure standard or framework and/or via additional independent thirdparty disclosure entities (e.g., Ecovadis), and obtain thirdparty assurance

Disclosure of plans and roadmaps

Internally disclose climate priorities and assign internal responsibility for the initial development of a roadmap

Internally disseminate plans and strategies to address climate impacts and publicly communicate climate commitments

Publish time-bound climate transition plans/decarbonization roadmaps with some key elements of climate transition plans according to relevant frameworks (e.g., CDP, GFANZ, TCFD, TPT, and TONZ) and disclose progress towards emissions reduction targets annually

Have all key elements of climate transition plans according to relevant frameworks (e.g., CDP, GFANZ, TCFD, TPT, and TONZ) and disclose progress towards described actions and initiatives

Reporting and Disclosure

Management reporting capability

AD HOC

Publicly disclose energy and fuel consumption baseline for operated and owned assets and climate priorities annually

• This can be disclosed on any public facing website, letter, statement, or other external media

NASCENT

Publicly disclose Scope 1 and 2 emissions and other climate-related commitments, including progress towards targets, annually

• This can be disclosed on a public facing website, letter, statement, or other forms of external media, not necessarily a traditional sustainability report

ESTABLISHED

• Disclosure frameworks (e.g.,GRI, CDP, TCFD, ISSB, etc.) can vary based on differing use cases and jurisdictional requirements (e.g., EU CSRD, US SEC, etc.)⁴

TRANSFORMATIVE

Publicly disclose a detailed inventory of Scope 1, 2, and 3 emissions, including rationale for emissions not included in Scope 3. In addition, publicly disclose other climate-related commitments, results of LCA’s, and abatement activities/ methodology, including progress towards targets, in an annual report or dedicated annual CSR/ESG/Sustainability report using a formally recognized international reporting disclosure standard or framework and/or via additional independent third-party disclosure entities (e.g., Ecovadis), and obtain third-party assurance

Disclosure of plans and roadmaps

AD HOC

Internally disclose climate priorities and assign internal responsibility for the initial development of a roadmap

NASCENT

Internally disseminate plans and strategies to address climate impacts and publicly communicate climate commitments

ESTABLISHED

TRANSFORMATIVE

Have all key elements of climate transition plans according to relevant frameworks (e.g., CDP, GFANZ, TCFD, TPT, and TONZ) and disclose progress towards described actions and initiatives

Internal Engagement

TOPICS	AD HOC	NASCENT	ESTABLISHED	TRANSFORMATIVE
Climate literacy, knowledge, and expertise	Implement initial education among leadership and managers on climate change and climate action to identify and define climate priorities and relevant functions³	Provide employees with educational materials on climate change and climate action for self-learning, with additional resources provided to employees in climate-related functions³	Conduct a high-level annual sustainability training and provide resources/tools for internal education of employees in climate-related functions³ • Train select members of the supply chain, sourcing, and procurement team on climate goals and highlight their roles in meeting those goals	Provide bespoke training, resources/tools, and other support/programs on climate related commitments for internal and external education (e.g., suppliers) • e.g., energy efficiency, GHG accounting, transportation optimization, etc.
Process integration	Introduce climate-related topics at regular check-ins with business units	Communicate climate expectations across the business, and integrate discussion of progress on these at regular check-ins with business units	Integrate climate expectations into internal documents, resources, and processes to help employees understand and achieve climate-related goals and commitments. Example documents and processes can include: • Employee resource/ training portals • Code of Conduct • Letter/Statement to employees Introduce climate expectations in ongoing business interactions between procurement and suppliers’ sustainability and sales representatives • For example, include climate-related goals and commitments in performance reviews of suppliers	Integrate climate expectations and clauses into supplier contracts and RFI/RFPs, as well as other internal and external documents, resources, and processes, and actively work with suppliers to implement these • External supplier-facing documents tie the buyersupplier relationship to achieving climate goals. These include, but are not limited to: • Self-assessments • Performance scorecards • Supplier Code of Conduct
Strategy development and implementation	Develop a strategy to measure Scope 1 and 2 emissions, set targets, and address climate priorities	Develop a decarbonization strategy across relevant functions³ that details specific actions to meet Scope 1 and 2 science-based targets (SBTs) and other climate-related commitments, with recognition of the social impacts of the strategy and revise the strategy on a regular basis	Develop a decarbonization strategy and/or roadmap with some key elements of climate transition plans according to relevant frameworks (e.g., CDP, GFANZ, TCFD, TPT, and TONZ) across relevant functions³ . It should detail specific actions to meet Scope 1, 2, and 3 SBTs and other climate-related commitments, including integration of the social impacts of the strategy. The strategy should be revised on a regular basis This should include alignment of R&D and innovation of existing and future products and services with net zero goals	Implement a robust decarbonization strategy encompassing all key elements of climate transition plans according to relevant frameworks (e.g., CDP, GFANZ, TCFD, TPT, and TONZ). It should detail specific actions to meet Scope 1, 2, and 3 SBTs, including a strategy to phase out products and services that do not align with net zero targets, a process to decarbonize all capital expenditures, and considerations of social impacts across all elements of the strategy. The strategy should be revised on a regular basis

TOPICS

AD HOC

NASCENT

ESTABLISHED

TRANSFORMATIVE

Climate literacy, knowledge, and expertise

Implement initial education among leadership and managers on climate change and climate action to identify and define climate priorities and relevant functions³

Provide employees with educational materials on climate change and climate action for self-learning, with additional resources provided to employees in climate-related functions³

Conduct a high-level annual sustainability training and provide resources/tools for internal education of employees in climate-related functions³

• Train select members of the supply chain, sourcing, and procurement team on climate goals and highlight their roles in meeting those goals

Provide bespoke training, resources/tools, and other support/programs on climate related commitments for internal and external education (e.g., suppliers)

• e.g., energy efficiency, GHG accounting, transportation optimization, etc.

Process integration

Introduce climate-related topics at regular check-ins with business units

Communicate climate expectations across the business, and integrate discussion of progress on these at regular check-ins with business units

Integrate climate expectations into internal documents, resources, and processes to help employees understand and achieve climate-related goals and commitments. Example documents and processes can include:

• Employee resource/ training portals
• Code of Conduct
• Letter/Statement to employees

Introduce climate expectations in ongoing business interactions between procurement and suppliers’ sustainability and sales representatives

• For example, include climate-related goals and commitments in performance reviews of suppliers

Integrate climate expectations and clauses into supplier contracts and RFI/RFPs, as well as other internal and external documents, resources, and processes, and actively work with suppliers to implement these

• External supplier-facing documents tie the buyersupplier relationship to achieving climate goals. These include, but are not limited to:
• Self-assessments
• Performance scorecards
• Supplier Code of Conduct

Strategy development and implementation

Develop a strategy to measure Scope 1 and 2 emissions, set targets, and address climate priorities

Develop a decarbonization strategy across relevant functions³ that details specific actions to meet Scope 1 and 2 science-based targets (SBTs) and other climate-related commitments, with recognition of the social impacts of the strategy and revise the strategy on a regular basis

Develop a decarbonization strategy and/or roadmap with some key elements of climate transition plans according to relevant frameworks (e.g., CDP, GFANZ, TCFD, TPT, and TONZ) across relevant functions³ . It should detail specific actions to meet Scope 1, 2, and 3 SBTs and other climate-related commitments, including integration of the social impacts of the strategy. The strategy should be revised on a regular basis

This should include alignment of R&D and innovation of existing and future products and services with net zero goals

Implement a robust decarbonization strategy encompassing all key elements of climate transition plans according to relevant frameworks (e.g., CDP, GFANZ, TCFD, TPT, and TONZ). It should detail specific actions to meet Scope 1, 2, and 3 SBTs, including a strategy to phase out products and services that do not align with net zero targets, a process to decarbonize all capital expenditures, and considerations of social impacts across all elements of the strategy. The strategy should be revised on a regular basis

Internal Engagement

Climate literacy, knowledge, and expertise

AD HOC

Implement initial education among leadership and managers on climate change and climate action to identify and define climate priorities and relevant functions³

NASCENT

Provide employees with educational materials on climate change and climate action for self-learning, with additional resources provided to employees in climate-related functions³

ESTABLISHED

Conduct a high-level annual sustainability training and provide resources/tools for internal education of employees in climate-related functions³

• Train select members of the supply chain, sourcing, and procurement team on climate goals and highlight their roles in meeting those goals

TRANSFORMATIVE

Provide bespoke training, resources/tools, and other support/programs on climaterelated commitments for internal and external education (e.g., suppliers)

• e.g., energy efficiency, GHG accounting, transportation optimization, etc.

Process integration

AD HOC

Introduce climate-related topics at regular check-ins with business units

NASCENT

Communicate climate expectations across the business, and integrate discussion of progress on these at regular check-ins with business units

ESTABLISHED

• Employee resource/ training portals
• Code of Conduct
• Letter/Statement to employees

Introduce climate expectations in ongoing business interactions between procurement and suppliers’ sustainability and sales representatives

• For example, include climate-related goals and commitments in performance reviews of suppliers

TRANSFORMATIVE

• External supplier-facing documents tie the buyer-supplier relationship to achieving climate goals. These include, but are not limited to:
• Self-assessments
• Performance scorecards
• Supplier Code of Conduct

Strategy development and implementation

AD HOC

Develop a strategy to measure Scope 1 and 2 emissions, set targets, and address climate priorities

NASCENT

ESTABLISHED

This should include alignment of R&D and innovation of existing and future products and services with net zero goals

TRANSFORMATIVE

External Engagement

TOPICS	AD HOC	NASCENT	ESTABLISHED	TRANSFORMATIVE
Industry collaboration	Develop a list of collaborations and partnerships that align with established climate priorities for company participation	Meaningfully engage in constructive dialogue through climate-related industry webinars, events, workshops, and other educational tools available and share learnings	Participate in climate-related collaborations and partnerships through membership⁵ and contribute to thought leadership and the development of webinars, workshops, and other educational tools	Have participation from senior leadership in collaborations and engage in co-creation⁶ of climate-related initiatives across industries Participate in innovation and R&D that promotes decarbonization and/or circular economy across the value chain
Policy engagement disclosure⁷	Develop a list of existing policy advocacy activities related to climate, if any	Commit to disclosing all policy advocacy activities within a certain timeline, if any	Disclose all policy engagement, advocacy, lobbying, and trade association memberships, and commit to aligning these with climate goals within a given time frame Internally define actions for industry associations identified as misaligned with climate goals	Disclose all policy engagement, advocacy, lobbying, and trade association membership, and clearly illustrate how these align with climate goals Publicly disclose processes in place to remedy misalignment of positions with climate goals

TOPICS

AD HOC

NASCENT

ESTABLISHED

TRANSFORMATIVE

Industry collaboration

Develop a list of collaborations and partnerships that align with established climate priorities for company participation

Meaningfully engage in constructive dialogue through climate-related industry webinars, events, workshops, and other educational tools available and share learnings

Participate in climate-related collaborations and partnerships through membership⁵ and contribute to thought leadership and the development of webinars, workshops, and other educational tools

Have participation from senior leadership in collaborations and engage in co-creation⁶ of climate-related initiatives across industries

Participate in innovation and R&D that promotes decarbonization and/or circular economy across the value chain

Policy engagement disclosure⁷

Develop a list of existing policy advocacy activities related to climate, if any

Commit to disclosing all policy advocacy activities within a certain timeline, if any

Disclose all policy engagement, advocacy, lobbying, and trade association memberships, and commit to aligning these with climate goals within a given time frame

Internally define actions for industry associations identified as misaligned with climate goals

Disclose all policy engagement, advocacy, lobbying, and trade association membership, and clearly illustrate how these align with climate goals

Publicly disclose processes in place to remedy misalignment of positions with climate goals

External Engagement

Industry Collaboration

AD HOC

Develop a list of collaborations and partnerships that align with established climate priorities for company participation

NASCENT

Meaningfully engage in constructive dialogue through climate-related industry webinars, events, workshops, and other educational tools available and share learnings

ESTABLISHED

Participate in climate-related collaborations and partnerships through membership⁵ and contribute to thought leadership and the development of webinars, workshops, and other educational tools

TRANSFORMATIVE

Have participation from senior leadership in collaborations and engage in co-creation⁶ of climate-related initiatives across industries

Participate in innovation and R&D that promotes decarbonization and/or circular economy across the value chain

Policy engagement disclosure⁷

AD HOC

Develop a list of existing policy advocacy activities related to climate, if any

NASCENT

Commit to disclosing all policy advocacy activities within a certain timeline, if any

ESTABLISHED

Disclose all policy engagement, advocacy, lobbying, and trade association memberships, and commit to aligning these with climate goals within a given time frame

Internally define actions for industry associations identified as misaligned with climate goals

TRANSFORMATIVE

Disclose all policy engagement, advocacy, lobbying, and trade association membership, and clearly illustrate how these align with climate goals

Publicly disclose processes in place to remedy misalignment of positions with climate goals

References

¹For companies in sectors where the Science Based Targets initiative (SBTi), the global body that defines and promotes best practice in emissions reductions and net-zero targets in line with climate science, has not released sector-specific guidance, companies should refer to the appropriate sectorial guidance for example UN Race to Zero

²Renewable energy sources include wind, solar, geothermal, sustainably sourced biomass (including biogas), and sustainable hydropower. These align with those considered by RE100.

³Relevant functions include, but are not limited to, procurement, sourcing, finance, product design, R&D, among others.

⁴Note: TONZ is keeping a close eye on regulatory developments on mandatory climate disclosure. This framework is a live document and will be updated as regulations evolve.

⁵Membership: this is defined as membership of a public partnership or industry peer-group with commitment to be involved for a minimum of a one-year period, or for the duration of the collaboration, if shorter than one-year.

⁶Co-creation: In the context of climate justice, co-creation is a collaborative process that centers affected communities in engagement with a variety of stakeholders to take collective action on issues which affect the entirety of the group, with the goal of driving positive and equitable social and environmental outcomes.

⁷The TONZ Climate Policy Engagement Guide provides additional guidance on how policy engagement can advance climate goals and progress.

References

²Renewable energy sources include wind, solar, geothermal, sustainably sourced biomass (including biogas), and sustainable hydropower. These align with those considered by RE100.

³Relevant functions include, but are not limited to, procurement, sourcing, finance, product design, R&D, among others.

⁴Note: TONZ is keeping a close eye on regulatory developments on mandatory climate disclosure. This framework is a live document and will be updated as regulations evolve.

⁷The TONZ Climate Policy Engagement Guide provides additional guidance on how policy engagement can advance climate goals and progress.

Online Supplier Transformation Framework

The below framework presents four tiers of net zero aligned climate expectations to help suppliers more easily understand what beginner versus best practice looks like and what they need to do to achieve 1.5°C goals within their own value chains and beyond for their customers.

The below framework presents four tiers of net zero aligned climate expectations to help suppliers more easily understand what beginner versus best practice looks like and what they need to do to achieve 1.5°C goals within their own value chains and beyond for their customers.

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