Making the business case for renewable energy as a supplier
How to comply with customer requests for procurement
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As more and more organizations with large supply chains approach scope 3 target deadlines or set new scope 3 targets, they’ll need the help of their suppliers to meet their emissions reduction goals. This has led customers to increasingly ask their suppliers around the world to make changes in support of the clean energy transition.
One of the first steps to meeting customer expectations is to review your greenhouse gas (GHG) emissions and identify where to begin making reductions. Electricity emissions often represents one of the largest opportunities for suppliers because:
- They are often a large portion of total emissions
- It’s an area where most suppliers can take action
- And a scope 3 renewable energy strategy can deliver significant reductions quickly, even in the absence of formal guidance or goals
There are many reasons for suppliers to start procuring renewable energy. Meeting and exceeding customer expectations is an obvious one, but renewable energy purchasing also makes good business sense. Procuring renewable energy is proven to be good for both the planet and your business as a supplier: according to a 2025 survey by Bain & Company, 49% of corporations spend more with their most sustainable suppliers, and 68% plan to increase that spend in the next three years. Further, a full 49% plan to drop unsustainable suppliers from their networks by 2028.
Other studies show the growing importance of sustainable supplier operations. ESG Today reports a shift in buyer focus from supplier operations to sustainability. That same piece projects “sustainability of offers” becoming the second most important purchasing criteria for B2B buyers in the next three years – with “quality” the only criteria ahead of it. Deloitte and the Wall Street Journal highlight how corporations are 1.7 times more likely to pay a premium for a sustainable product alternative, and 2.3 times more likely to go out of their way to purchase from suppliers that demonstrate care for the environment.
To help your organization gain internal approval for a renewable energy purchase and get on board with the clean energy transition, we’ve created a practical guide.
Step-by-step renewable energy procurement guide
To get started with renewable energy, you’ll need to estimate your needs and build an accurate budget. To simplify the process, we’ve laid out some of the key steps you’ll need to take:
Your electricity emissions fall under scope 2 in your GHG inventory. Start by collecting or estimating power usage by country so you know where procurement will be needed. You may also want to determine how much electricity you should attribute to the customer(s) asking you to take action. Once you have that data, estimate how both numbers might change over time.
While, you can procure selectively to match electricity attributed to specific customers, going 100% renewable is recommended from a reputational perspective. Assess how much you would need to procure, where it would come from, and the associated cost.
3Degrees’ Supplier REach portal allows you to easily explore your global procurement options, allowing you to evaluate and formalize a plan.
Create a summary of your findings including, indicative pricing, product availability, and recommended steps to action. Use that information and resulting plan to build stakeholder support for a strategic renewable energy purchase.
Work with a renewable energy expert to put your plan in motion, using the most viable procurement method that fits your company’s needs.
Let your customers, prospects, employees, and other stakeholders know that you are powering your operations with renewable energy and have started your sustainability journey.
Use Supplier REach to help set annual budgets, track market availability, and buy energy attribute certificates (EACs).
Making the switch to renewable energy
Building your business case is often the most difficult step in renewable energy purchasing. But once that’s complete, it becomes clear that renewable energy procurement makes strong business sense. Not only does it help you meet your customer expectations, but it also provides a great way to differentiate yourself from competitors.
There are tools, like SupplierREach, that can help make the creation of a successful business case easier. Supplier REach provides the key information necessary to build an effective business case. The portal offers data on every global renewable energy instrument 3Degrees recommends, along with current indicative pricing. With these insights, you can forecast the effort and investment required for a procurement against potential new business, and chart a sustainable course for renewable energy adoption across your organization.
