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Procurement Glossary

Supply Chain Carbon Footprint (SCF): measurement and management of supply chain emissions

November 19, 2025

The Supply Chain Carbon Footprint (SCF) quantifies the total greenhouse gas emissions along a company's supply chain. This key figure is becoming increasingly relevant for purchasing organizations as it creates transparency about environmental impacts and meets regulatory requirements. Find out below what the supply chain carbon footprint includes, how it is calculated and what strategic advantages it offers for Procurement .

Key Facts

  • Records all greenhouse gas emissions from raw material extraction to delivery
  • Includes Scope 1, 2 and 3 emissions from all supply chain partners
  • Is measured in CO2 equivalents (CO2e) per product unit or time period
  • Enables data-based supplier selection and risk assessment
  • Supports compliance with EU regulation and sustainability reporting

Contents

Definition and meaning of Supply Chain Carbon Footprint (SCF)

The supply chain carbon footprint forms the basis for sustainable supply chain management and strategic purchasing decisions.

Core components of the SCF

The SCF covers all greenhouse gas emissions along the value chain. This includes direct emissions, indirect energy emissions and other indirect emissions from all actors involved.

  • Raw material extraction and processing
  • Production and manufacturing
  • Transportation and logistics
  • Packaging and distribution

SCF vs. product carbon footprint

While the Product Carbon Footprint looks at individual products, the SCF systematically analyzes the entire supply chain. This holistic perspective enables strategic optimization at supplier level.

Importance in strategic Procurement

The SCF supports purchasing organizations in decarbonizing the supply chain and meets regulatory requirements. It enables data-based supplier assessments and risk management.

Measurement, database and calculation

The systematic recording of the SCF requires structured data collection and standardized calculation methods along the entire supply chain.

Data collection and sources

The calculation is based on primary and secondary data sources. Primary data comes directly from suppliers, while secondary data is obtained from industry databases and life cycle assessments.

  • Supplier surveys and audits
  • Energy consumption data and production volumes
  • Transport distances and logistics data
  • Sector-specific emission factors

Calculation methodology

The calculation is based on international standards such as the GHG Protocol. Emissions are expressed in CO2 equivalents and related to functional units.

Quality assurance and validation

External verification and continuous data updates ensure the validity of the SCF calculations. EcoVadis ratings can serve as an additional source of validation.

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Interpretation & target values for Supply Chain Carbon Footprint (SCF)

The strategic management of the SCF requires meaningful key figures and industry-specific benchmarks for continuous improvement.

Absolute and relative SCF key figures

Absolute values measure total emissions in tons of CO2e, while relative key figures represent emissions per turnover, product unit or employee. This standardization enables comparability and trend analyses.

  • SCF per million euros of purchasing volume
  • Emission intensity by Categories
  • Reduction rate compared to base year

Supplier evaluation and segmentation

SCF-based supplier categorization supports strategic sourcing decisions. High-impact suppliers receive priority treatment in ESG improvement plans.

Objectives and monitoring

Science-based reduction targets are based on SBTi targets and the 1.5 degree pathway. Quarterly progress measurements ensure continuous improvements and timely corrections.

Risks, dependencies and countermeasures

SCF implementation harbors operational and strategic risks that must be addressed through systematic risk management.

Data quality and availability

Incomplete or inaccurate supplier data jeopardizes the informative value of the SCF. Particularly in the case of complex, multi-level supply chains, data gaps arise that can lead to misjudgements.

  • Implementation of standardized data collection processes
  • Regular supplier audits and training
  • Creation of redundant data sources

Compliance risks

Regulatory requirements such as CBAM require precise SCF documentation. Insufficient compliance in Procurement can lead to financial penalties and reputational damage.

Supplier dependencies

The SCF calculation depends on the willingness of suppliers to cooperate. Resistance to transparency requirements can put a strain on supplier relationships and require alternative procurement strategies.

Supply chain carbon footprint (SCF): definition and application

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Practical example

An automotive manufacturer implements SCF management for its supply chain. The company collects emissions data from 500 Tier 1 suppliers and identifies steel and aluminum suppliers as the main emitters. Through targeted supplier development and switching to green energy sources, the company reduces its SCF by 25% within three years.

  1. Baseline recording of all Scope 3 emissions
  2. Prioritization according to issue volume and scope for influence
  3. Development of specific reduction plans with key suppliers
  4. Quarterly progress measurement and adjustment of measures

Data and market trends on supply chain carbon footprint (SCF)

Regulatory developments and technological innovations are shaping the evolution of SCF management in Procurement.

Regulatory drivers

The Corporate Sustainability Reporting Directive and the Supply Chain Duty of Care Act are increasing the demand for SCF transparency. Companies are increasingly required to disclose detailed emissions data.

Digitalization and AI integration

Artificial intelligence is revolutionizing SCF calculation through automated data collection and predictive analytics. Machine learning optimizes emission forecasts and identifies reduction potential in real time.

  • Automated supplier data integration
  • Predictive modeling for emission trends
  • AI-supported optimization algorithms

Industry standards and certifications

The standardization of SCF methods is progressing. Science-based targets and sector-specific frameworks are establishing themselves as reference frameworks for emission reduction targets.

Conclusion

The supply chain carbon footprint is becoming a strategic management tool for sustainable Procurement. Regulatory requirements and stakeholder expectations are making SCF transparency a business necessity. Successful implementation requires systematic data collection, supplier cooperation and continuous optimization. Companies that establish SCF management at an early stage secure competitive advantages and compliance security.

FAQ

What distinguishes the SCF from other emission indicators?

The SCF systematically records all emissions along the supply chain, while other indicators often only look at individual aspects. This holistic perspective enables strategic optimization at supplier level and supports regulatory compliance requirements.

How often should the SCF be updated?

Quarterly updates ensure up-to-date data for strategic decisions. Monthly updates may be necessary in the event of volatile markets or regulatory changes. The frequency of updates should be based on business dynamics and compliance requirements.

What data quality is required for meaningful SCF calculations?

At least 80% of emissions should be based on primary supplier data. Secondary data from recognized databases can close gaps, but should be regularly replaced by primary data. External verification increases the credibility of the calculations.

How does the SCF influence supplier selection?

The SCF is increasingly being considered as a selection criterion alongside price, quality and delivery time. Suppliers with lower emissions are given competitive advantages, while suppliers with higher emissions must submit improvement plans or be removed from the supplier portfolio.

Supply chain carbon footprint (SCF): definition and application

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