Companies step up efforts to curb supply chain emissions as focus shifts to Scope 3 decarbonization

Published 31 July 2026 · india

As companies make progress in reducing emissions from their own operations, the spotlight is increasingly shifting to emissions generated across their supply chains. Corporate sustainability

As companies make progress in reducing emissions from their own operations, the spotlight is increasingly shifting to emissions generated across their supply chains. Corporate sustainability leaders say collaboration with suppliers, access to finance and better data will be critical to achieving net-zero targets. Speaking at the Mint Sustainability Summit 2026 on value-chain decarbonization, executives from TVS Motor, Larsen & Toubro (L&T), Apollo Tyres, Deloitte India and Amazon said Scope 3 emissions—which include emissions from purchased raw materials, logistics and product use by customers—account for the overwhelming majority of corporate carbon footprints and remain the hardest to measure and reduce. Measurement challenge For TVS Motor, more than 95% of its carbon footprint falls under Scope 3 emissions, largely from customers using its motorcycles over their lifetime. "More than 95% of our carbon footprint is sitting in Scope 3... the biggest challenge is how to measure, map and report it appropriately," said Thakur Pherwani, chief sustainability officer, TVS Motor. "Recording is more important before reporting because carbon is going to get taxed. We really don't want to report something which becomes a liability." Pherwani said current methods rely heavily on estimates because two customers riding the same motorcycle may have vastly different usage patterns, making accurate emissions accounting difficult. As carbon pricing evolves, inaccurate reporting could create both financial and reputational risks.

TVS has adopted a phased approach to decarbonize its supply chain. It has localized nearly 96% of its supplier base within a 500-km radius to reduce transport-related emissions while improving oversight. It has also developed a proprietary ‘My Sustainability Index’ to assess suppliers on environmental, social and governance metrics. According to Pherwani, 116 suppliers have achieved the gold category under the programme, while more than 30 have attained platinum status. Suppliers that fail to meet sustainability requirements within six months risk losing business. The company also plans to extend low-cost sustainable financing to suppliers. "Our sustainable finance framework has unlocked financing at 8%, 9% and 10% based on their commitment towards sustainability," he said, adding that the objective is to help suppliers transition rather than impose compliance requirements. Supplier partnership Apollo Tyres, where nearly 80% of emissions originate from Scope 3 activities, is taking a similar collaborative approach, particularly with natural rubber suppliers. "When you're looking at Scope 3 overall, it's not something within your control. When it's not in your control, you have to work with your value chain partners, otherwise it's going to be a fruitless effort," said Rinika Grover, global head, sustainability, HSE and CSR, Apollo Tyres Ltd. Also Read | Mint Sustainability Impact Summit 2026: the new economics of responsibility Natural rubber, one of the company's largest raw material inputs, is sourced largely from smallholder farmers.