CASE STUDY
Salesforce and RyeStrategy Partner to Support Supplier Sustainability
RyeStrategy helped Salesforce, the Fortune 500 cloud-based software company, support its small- and medium-sized enterprise (SME) vendors on the journey towards net zero.
Project Background
Salesforce has committed that by 2024 suppliers representing 60% of applicable scope 3 emissions will set science-based targets (SBTs) to reduce greenhouse gas emissions. Salesforce additionally includes in its supplier contracts a Sustainability Exhibit: a set of contract provisions that introduces binding climate obligations, such as disclosing emissions, delivering carbon neutral products and services, and setting science-based targets.
As a leading service provider in the SME carbon accounting and net zero strategy space, RyeStrategy was ideally positioned to provide Salesforce with a cost-effective solution and expertly guide its SME vendors through the GHG inventory process.
RyeStrategy’s approach is well-suited to SMEs, who are often coming into the process with limited resources and experience. For each vendor, the engagement was kicked-off with a meeting to clearly lay out the inventory process and set expectations. Over the next six to eight weeks, each participant worked closely with RyeStrategy to collaboratively collect all data needed for their inventory. Throughout the process, RyeStrategy maintained confidentiality commitments with each participant.
At the end of the Accelerator, RyeStrategy provided each vendor with a summary report of their inventory, complemented by tailored recommendations on emissions mitigation strategies. Vendors could also choose to contract directly with RyeStrategy for additional services outside of the Accelerator program, such as a tailored carbon offset portfolio, carbon neutral certification, and guidance on marketing, reporting, and target setting.
In addition to working individually with participants, RyeStrategy
The Supply Chain Decarbonization Membership provides a number of benefits that are otherwise unavailable in the market:
Scalable Supplier Support & Enablement: Hands-on and highly scalable supplier engagement that drives material decarbonization results and accuracy, while also fulfilling enablement goals with a best-in-class suite of discounts and resources.
Affordability & Increased Buy-in: Significant reductions to the cost of engagement for major enterprises and suppliers alike, seamlessly shifting responsibility to suppliers and increasing long-term buy-in.
A Trusted Partner: A trusted partner who can integrate with existing supply chain solutions and sustainability partners, helping to implement new requirements, features, and services for suppliers with minimal enterprise involvement.
Read more about Salesforce sustainability at www.salesforce.com/company/sustainability.
By setting ambitious expectations, engaging strategically with suppliers, and elevating sustainability in its purchasing decisions, Salesforce aims to create a cascade of impact in its value chain and beyond. RyeStrategy is proud to be a partner to Salesforce in accelerating global progress towards net zero.
“RyeStrategy understood what we wanted to deliver and followed through with a reliable, approachable process for our SME vendors that was time and cost effective for us, too.”
Louisa McGuirk, Senior Manager, Sustainable Procurement, Salesforce
Supply Chain Decarbonization Goal
“As Salesforce strives to accelerate global progress to net zero, our goal is to bring our suppliers along on that journey. We want to be sure we’re doing so in an inclusive way that supports small and diverse businesses in meeting our ambitious expectations. Our Sustainability Accelerator is one step toward aligning our equality and sustainability values with an inclusive approach to supply chain decarbonization that works at scale to advance SMEs on this journey,” shared Louisa McGuirk, Senior Manager, Sustainable Procurement at Salesforce.
With leaner operations and tighter budgets, small- and medium-sized enterprises (SMEs) typically have limited internal resources available to effectively strategize, manage, and achieve net zero goals. As sustainability grows as a business imperative, Salesforce wants to help ensure that small and diverse businesses are
Guided Support, Tailored to SMEs
1. Executive involvement increases engagement and action.
We found that participants who had an organizational leader actively involved in the process or in attendance at the kick-off meeting were able to complete the project faster, and they were more likely to implement subsequent decarbonization initiatives, such as purchasing credible offsets and implementing high-impact emissions mitigation strategies. These organizations had an easier time navigating data collection and prioritizing the project.
3. SMEs may be wary of providing financial information.
A financial statement is a key data source for calculating scope 3 emissions such as purchased goods & services, capital assets, and investments. Many suppliers were initially wary of sharing such sensitive information. We were able to ease this concern with strict non-disclosure agreements and data request forms customized to require only the minimum information needed.
equipped to build their climate resilience and meet the increasing expectations of customers and other stakeholders.
To that end, in 2022, Salesforce developed and delivered a six-month Sustainability Accelerator program to a cohort of SME suppliers, which was designed to help them make progress towards net zero and meet Salesforce’s sustainability requirements. The program was organized around four virtual workshops, each accompanied by self-guided resources and activities. Salesforce also determined that to maximize the tangible outcomes of the program, it would cover the cost for participants to complete a comprehensive greenhouse gas inventory, which is a critical step on the net zero journey. Salesforce needed a partner who had expertise working with small businesses and could deliver a supportive, accurate, and affordable GHG inventory product.
supported Salesforce in developing and delivering the Accelerator’s “Understanding Your Climate Impact” content, which included the basics of GHG accounting, carbon offset and emissions reduction strategies, and how participants would be collaborating with RyeStrategy. To inform Salesforce’s longer term objectives of creating scalable solutions for SMEs, RyeStrategy produced a final report outlining outcomes, common challenges, and key lessons learned during the process.
Ultimately, RyeStrategy’s data collection and calculation methodologies helped minimize the effort required by SME participants while still producing a complete and accurate footprint across scope 1, scope 2, and all 15 subcategories of scope 3 emissions. Time and confusion were saved with detailed review to catch frequent and material data input errors, customized data collection forms, and by plugging in directly to work streams to bolster information collection efforts. For Accelerator participants, RyeStrategy acted as an outsourced chief sustainability officer at a fraction of the cost, providing comprehensive support for all net zero-oriented ideas, initiatives, and inquiries.
Four Vendor Engagement Learnings
We’re excited to incorporate the lessons learned from our work on the Salesforce Accelerator into our new Supply Chain Decarbonization offering. You can learn more about this below. Some of the key findings that are relevant to companies looking to similarly engage with their SME suppliers include:
2. Vendors want clarity in goals and expectations.
We found that the process slowed down with vendors that were less clear about Salesforce’s goals and expectations. By proactively collaborating with Salesforce and staying informed about supply chain trends, RyeStrategy was able to help suppliers understand what was expected of them and how the product(s) we were providing would help satisfy those expectations and establish a strong foundation for future success.
4. Sharing project investment could increase scalability and buy-in.
Based on our experience, we also think that having vendors co-invested in the project, such as by sharing the cost of the inventory or attaching a subsidized inventory to a commitment to further action, will increase scalability for enterprises engaging their suppliers and increase long-term initiative ownership and implementation by SME suppliers.
“RyeStrategy was an excellent partner for the Sustainability Accelerator. Their experience working with small businesses was particularly important to us.”
Louisa McGuirk, Senior Manager, Sustainable Procurement, Salesforce
their SME vendors on that journey in a manner that is cost-effective, efficient, and impactful.
Louisa reflected on the engagement and shared, “RyeStrategy was an excellent partner for the Sustainability Accelerator. Their experience working with small businesses was particularly important to us. RyeStrategy understood what we wanted to deliver, and followed through with a reliable, approachable process for our SME vendors that was time- and cost-effective for us, too.”
Funding these inventories provided Salesforce’s SME suppliers a strategic opportunity to get a head start on a process that will likely become mandatory for many organizations in the near future. We are honored to be a partner to Salesforce and its Sustainable Procurement team and look forward to continued collaboration with Salesforce and other businesses working to enable SME vendors and decarbonize their supply chains.
Scope 3 Decarbonization Solutions
Achieving Vendor Engagement Results
With proposed legislation such as the SEC’s Climate Disclosure Rule and the State of California’s Climate Corporate Data Accountability Act, as well as supplier-oriented mandate initiatives from programs like CDP and SBTi, major enterprises are under more pressure than ever to meaningfully direct their supply chains toward a net zero future. Accounting for nearly half the U.S. GDP, SMEs in particular represent a significant portion of supply chain emissions, yet the majority have not calculated a GHG inventory or begun the decarbonization process due to bandwidth limitations. For the SME suppliers who do report emissions their results are frequently incorrect, often as a result of improperly utilized self-service calculators, ultimately making the data unusable by their corporate customers. According to a recent survey of SBTi respondents, the majority of organizations are concerned by both a lack of supplier-specific emissions data and the poor quality of what is currently available.
Major enterprises require a solution for their SME and large suppliers alike that is customizable and supportive, while enabling highly
All vendors responding to the post-Accelerator survey agreed that the program helped prepare them to strategize and implement emissions reduction activities, set science-based targets, and engage with stakeholders on sustainability. Most found the GHG inventory to be an especially impactful component with 88% reporting that they will likely use the GHG inventory to strategize carbon reduction activities. In addition to all vendors completing their GHG inventory, the most engaged participants also went carbon neutral by purchasing carbon credits with RyeStrategy’s guidance, and some have already committed to refreshing their inventory in 2023.
While the long term results of the Accelerator remain to be seen, the immediate results are clear: with RyeStrategy’s hands-on support, SMEs can get a jump start on their net zero journey. And by partnering with RyeStrategy, enterprises like Salesforce can support
accurate results and proper reporting; however, most offerings are frequently built for either procurement departments, or suppliers—rarely both.
As a partner dedicated to both the goals of large organizations and their suppliers, RyeStrategy’s Supply Chain Decarbonization Membership is an end-to-end solution made to help SME suppliers of major enterprises meet their most pressing sustainability requirements. RyeStrategy serves to streamline the path to net zero by acting as a one-stop-shop expert for your supply chain decarbonization efforts, ultimately increasing efficiencies and lowering costs for all parties involved. As a member, offer complimentary access to key guidance for your suppliers and a set of end-to-end decarbonization services for your SME suppliers, all through a suite of enterprise-focused solutions tailored specifically to your unique supply chain needs.
Learn about our supply chain decarbonization solutions to reduce scope 3 emissions through supplier engagement
Talk with a RyeStrategy sustainability manager to learn more.