A robust governance structure is the cornerstone of effective supply chain carbon risk management and the achievement of decarbonization goals. With a well-defined governance framework, companies can systematically identify supply chain risks, embed sustainability into decision-making, and translate strategy into tangible performance and competitive advantage.
To support enterprises in managing supply chain sustainability risks and advancing decarbonization and ESG strategies, Delta assists in establishing a dedicated Supply Chain ESG Committee. This committee provides a comprehensive governance framework that connects strategic planning with execution.
We support the design of committee structure, roles, and responsibilities (R&R), ensuring cross-functional representation from relevant departments, while also defining dedicated owners for day-to-day operations and project execution. In parallel, we help companies design meeting structures and workflows, as well as establish clear management indicators and KPIs to support decision-making and execution tracking.
This governance mechanism enables continuous review and iterative adjustment of key issues, ensuring strategies remain agile, forward-looking, and aligned with business priorities. Through this structured, strategy-driven approach, sustainability objectives become institutionalized, providing a solid foundation for long-term supply chain decarbonization and resilience. Governance design and implementation details are tailored to each company’s strategic context and operational realities, ensuring sustainability is embedded across every layer of the supply chain.
Our supply chain carbon management methodology is structured into four stages, enabling companies to address supply chain carbon risks through a disciplined, step-by-step process. From hotspot identification to strategy execution, we help organizations build a scalable and resilient low-carbon supply chain management framework.
By clearly defining management boundaries and identifying high-emission suppliers, companies can focus limited resources on suppliers with the greatest operational and carbon impact.
We begin by analyzing supplier-related data—such as carbon emissions—or by leveraging industry emission benchmarks to identify high-impact hotspot categories within Scope 3. Through close collaboration with clients, we align on priority scopes and definitions of materiality. Common approaches include focusing on direct suppliers, high-emission Scope 3 categories, or carbon-intensive materials, ensuring that decarbonization efforts are concentrated where they matter most.
For suppliers identified as hotspots, we conduct assessments across three dimensions to understand their impact on decarbonization targets and collaboration potential:
Carbon Exposure: The scale and intensity of greenhouse gas emissions associated with a supplier’s operations or products/services, indicating their contribution to overall supply chain emissions.
Carbon Reduction Potential: The extent to which a supplier can further reduce emissions in the future, reflecting the feasibility and magnitude of achievable reductions with appropriate investment.
Carbon Maturity: The level of institutionalization and capability in a supplier’s carbon management practices, with higher maturity indicating more systematic and effective management
Assessments can be conducted through flexible and pragmatic approaches—such as data collection, public information review, and questionnaires—to minimize the burden on both suppliers and enterprises. The outcome is a quantified, evidence-based view of each supplier’s carbon management status and future collaboration potential.
Given limited resources for supplier engagement, we integrate the three assessment indicators—carbon exposure, reduction potential, and carbon maturity—with additional strategic considerations such as supplier criticality, procurement volume, strategic relevance, and historical partnerships.
This analysis enables the development of prioritization matrices that classify suppliers by engagement potential and decarbonization readiness. Companies can then adopt tiered management and phased engagement strategies, focusing resources on suppliers with the highest impact. Engagement models are tailored to supplier profiles—for example, high-potential and high-readiness suppliers may be positioned as strategic partners for deep collaboration or co-investment, while mid-tier suppliers may be managed through scalable platforms and light-touch support mechanisms.
For each supplier category, we define clear carbon management requirements—such as Codes of Conduct (CoC) commitments or carbon data disclosure—along with corresponding engagement objectives and action plans. These plans are co-developed with clients to ensure feasibility and alignment with business realities.
Engagement strategies vary by supplier type. Support-oriented suppliers may benefit from training, surveys, and communication tools to enhance awareness and participation. Strategic partners may jointly set decarbonization targets, pursue energy transition initiatives, or collaborate on innovation projects. Through phased guidance and differentiated engagement models, companies can progressively convert supply chain risks into sustainable competitive advantages, ensuring decarbonization goals are realized across all critical suppliers.
Digitalization is a critical enabler of transparency, accountability, and decarbonization performance in sustainable supply chain transformation.
Through collaboration with strategic partners, Delta provides comprehensive digital support for supply chain sustainability management. One-stop supply chain management platforms enable companies to manage Scope 3 emissions, monitor supplier sustainability performance, and drive concrete decarbonization actions.
These platforms facilitate data collection from global suppliers and leverage extensive emission factor databases for accurate carbon calculations. They also support customized ESG surveys, risk assessments, and automated reporting, helping companies enhance supply chain transparency, manage risks effectively, and align with international sustainability standards.
