What Carbon Information Do International Brands Demand from Their Suppliers?

Carbon Transparency in the Supply Chain: New Expectations of International Brands

As the rules of competition are being rewritten in the global market, international brands are taking new steps to make their supply chains more transparent and sustainable. At the center of these steps is the demand for carbon data from suppliers. So what exactly do big brands want from their suppliers and is this a threat or an opportunity for local producers?

From Corporate Footprint to Product Footprint: Shifting Demands

We can evaluate the carbon information requests of international brands in two main categories:

Corporate Carbon Footprint: Especially for companies that are new to this field, a corporate carbon footprint report covering all activities of the company may be requested. In some cases, brands may send self-prepared forms and say, "Give us your consumption data and we will calculate it for you."
Product Carbon Footprint: However, the general trend of the market is now shifting from the corporate level to a more specific area, namely product-based carbon footprinting. Brands are coming to their suppliers with direct requests such as, "Tell us about the embedded emissions of product X that we buy from you through 2025." This shows that the ecosystem is now focused on product lifecycle analysis and product-specific data.

"Suppliers who can calculate are preferred"

So why do brands want this information so insistently? The answer is simple: Big global brands in particular have to calculate their carbon footprint in line with their sustainability goals. An important part of this calculation is indirect emissions, i.e. emissions from their supply chains.

If a brand cannot get this information from its supplier, it means that it has to sit in the shoes of that supplier and do the calculation, which is a tedious process that no company wants to go through. This is why brands send a clear message to their suppliers: "If you want to work with me, you have to calculate and verify these parameters and present them to me." As a result, companies that can provide this information in their supplier selection are becoming more reliable and preferable.

A Threat or an Opportunity for Local Producers?

Local or more boutique producers may think that these demands will not touch them because they are not final product manufacturers. However, this is a big misconception. Every supplier is a critical link that provides the raw material or intermediate product for a final product and is therefore part of the indirect emissions.

Local companies working with global companies are already facing these demands. For those that have not yet faced these demands, it is inevitable that this will become standard within a year or two.

But this obligation is also a strategic opportunity for local producers. A local company that can present its carbon data transparently has the potential to leapfrog larger competitors that have not yet taken this step. Utilizing this transparency as an investment that will accelerate growth and provide a competitive advantage in international markets is one of the smartest steps for the future of local producers.