How SMEs can reduce scope 3 emissions and win more clients

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When it comes to carbon, the supply chain is the elephant in the room. For most companies, it’s the biggest slice of their footprint — and the hardest to reduce.

As Marc Munier of DitchCarbon explains:
“Scope 3 emissions are probably the hardest thing to reduce and probably the biggest for most companies. But they’re also where the biggest opportunities lie.”

From lip service to business imperative

Three years ago, many companies spoke about sustainability but did little. That’s changed.
“The people paying lip service aren’t even pretending anymore,” says Marc. “But those with serious reduction goals? For them, it’s just another business problem to solve — like raising money or entering a new market.”

That “business problem” comes with concrete rewards. Lower interest loans. Cheaper cost of capital. Stronger customer relationships. Marc gives one striking example:
“Two of our clients were told by their biggest customer — in this case Meta — that they weren’t decarbonising fast enough. Without action, they risked sanctions. That kind of pressure changes behaviour.”

The SME reality

Sarah Whale of Profit Impact highlights the challenge for smaller businesses:
“When I manually surveyed suppliers for a client last year, the response rate was just 10%. The pushback we hear is: what’s this got to do with me? But when you add up 99% of businesses being SMEs, it’s huge.”

For SMEs, the barrier is often time, budget, or confidence. But the opportunity is equally clear. “Big companies are desperate for lower-carbon suppliers,” Marc stresses. “If you can prove it, you’re instantly in the top 1% of your sector.”

The hidden influence of buyers

One of the simplest actions? Ask the question.
“If a customer asks me my carbon footprint and I can’t answer, I’ll be back at my boss’s desk demanding we measure it,” Marc admits. “Just asking creates pressure. SMEs massively underestimate their buying power.”

Sarah echoes this: “It’s about creating a commercial imperative. When suppliers realise clients are searching for sustainability reports, it shifts priorities fast.”

From tier one to tier 500

Large companies increasingly look beyond their top suppliers. Marc shares:
“We found one mid-tier supplier whose switch to renewable electricity would cut a customer’s footprint by 1.2%. That’s one change, in one supplier, out of 70,000. It shows how powerful smart data is.”

The long game

This isn’t about quick wins. As Sarah points out:
“We encourage businesses to think long term. The commercial upside of sustainability may take two or three years — but those that start now will reap the benefits.”

Marc agrees:
“The successful ones integrate it into everyday procurement. It only works when lower carbon is part of buying decisions. Otherwise, it’s just noise.”

Conclusion

The message is clear: measuring is only the beginning. Publishing your footprint, making “no-regret” choices (renewable energy, EVs, heat pumps), and asking smarter questions are steps every SME can take now.

Or in Marc’s words:
“Unless you’re trying to sell to Donald Trump, everyone sees this as something we have to do. Demonstrate you’re ahead, and you gain a real business advantage.”

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Listen to the whole conversation here

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