Supplier engagement
Addressing Scope 3 emissions together
Why supplier engagement is important
95% of our baseline total emissions are Scope 3. 76% of these relate to materials purchased from our suppliers and the use of our sold products that we source from our suppliers.
We can only decarbonise our supply chains and achieve our Net Zero SBTi targets by collaborating with our key suppliers.
Engaging with our top suppliers in 2023
During the first part of 2023, we engaged with our top 28 suppliers. It then became clear that we were likely to learn more by narrowing this down and concentrating in depth on our top six suppliers, who account for 25% of our total supplier emissions.
Whilst these six were the largest suppliers by spend, and the most critical to our business, they also covered a variety of business structures, product types, and geographies.
Engagement in action: supplier ESG collaborations
In July 2023, we co-hosted our first ESG supplier collaboration summit in Venice in partnership with one of our largest cabinet frontal suppliers, Friul Itntagli. Together we invited and gathered Friul’s key suppliers from around the world to share decarbonisation initiatives and to discuss solutions for future emissions reductions and other ESG priorities.
Our joint aim for the conference was to send a strong message to our Tier 2 and further upstream suppliers and focus on shared ESG objectives that will give mutual benefit. Main outcomes were:
- Giving a strong demonstration of industry leadership and a message to our wider supply chain.
- Confirming that whilst at different stages, all the suppliers are active on ESG, from emissions reduction to sustainable material innovation.
- Discussing and sharing Initiatives which are already underway, including: MDF recycling; renewable energy; Net Zero targets, and product circularity.
- Encouraging future investments in resource, technology and data verification.
In November we applied this successful format for a collaboration summit in Turkey, with appliance supplier BEKO and their parent company. Seven of their main material suppliers shared their ambitions and decarbonisation plans with us and we discussed how their own Net Zero plans could work alongside ours, for our mutual benefit.
Engagement in action: Net Zero commitments strengthen bonds with long-term supply partners
Our sustainability strategy hinges on working with engaged and proactive suppliers. Many have been working on improving efficiencies and adding value for some time, however, understanding the investments required to gather the data and turn it into meaningful sustainable actions remains a challenge.
Our biggest chipboard supplier, Egger, has always placed sustainability at the heart of its operations, in line with its founder’s belief that ‘wood is far too valuable to just throw it away’. As a result Egger has defined emissions targets, aiming to achieve Net Zero by 2050, with near term 2030 targets, many of which were initiated to support and align to our SBTI targets. Egger has committed significant investments to ensure delivery of its, and our, Net Zero plan.
Engagement in action: ESG objectives included in standard supplier terms of business
Initial ESG objectives were introduced into our Supplier Code of Conduct in 2022. Throughout this year we have worked to increase our understanding of the complexities around gathering and sharing good quality data, particularly around Scope 3, and how this effects the way we do business.
In 2024 we introduced clauses into our standard supplier terms and conditions making it clear that we expect our suppliers to comply with Net Zero obligations and carbon data reporting.
Agenda for the future
Key points for the future agenda on supplier engagement will be:
- Improving accuracy of supply chain emissions data to ensure a robust emissions figure.
- Working with our main suppliers to capture real emissions data from the value chain, supported by science-based targets.
- Continuing to lead and work with our supply partners to encourage actions that support our Net Zero emissions reduction targets.
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