Supply chain decarbonization in chemical procurement

Supply chain decarbonization is becoming a strategic priority for chemical procurement teams as companies face growing pressure to reduce emissions beyond their own operations. In the EU, net greenhouse gas emissions fell by 40% between 1990 and 2024, according to the European Environment Agency’s official assessment of key trends and drivers in EU greenhouse gas emissions, while the EU continues to pursue climate neutrality by 2050. This transition increasingly puts the carbon footprint of raw materials, manufacturing and supply chains under scrutiny.

For the chemical industry, the shift is particularly significant. According to the European Environment Agency, in 2021, the EU chemical industry emitted 155,495 kilotonnes of CO₂ equivalent, accounting for 5% of total net EU greenhouse gas emissions. Of these chemical-industry emissions, 67% came from fuel combustion and 33% from industrial processes and product use.

As a result, sustainable sourcing, green chemistry, and lower-carbon alternatives are becoming increasingly relevant to procurement decisions. At Nedstar, we help businesses source bio-based solvents and renewable alternatives that support broader sustainability and supply chain decarbonization targets.

What is supply chain decarbonization?

Supply chain decarbonization is the process of reducing greenhouse gas emissions generated across a company’s supply chain and wider value chain. This includes emissions from raw material extraction, manufacturing, transportation, energy consumption, and other activities beyond a company’s own operations.

For many companies, a significant proportion of these impacts fall under Scope 3 emissions, which include indirect upstream and downstream emissions. Decarbonization therefore requires businesses to look beyond their direct carbon footprint and work with suppliers and partners to identify carbon hotspots across the entire supply chain.

In chemical procurement, this can involve selecting lower-carbon raw materials, improving energy efficiency, optimising transportation emissions, and choosing renewable alternatives where technically appropriate. Procurement teams can also use supplier data and life cycle assessment information to compare options and support measurable emission reduction strategies.

Why is supply chain decarbonization important?

Decarbonization of the supply chain helps companies address emissions beyond their own operations and respond to the urgent need for action on climate change. It can also support regulatory requirements and wider sustainability goals aligned with the Paris Agreement through sustainable sourcing, emission reductions, and the transition to renewable energy sources. 

Reducing the carbon footprint of the supply chain

Reducing carbon emissions across the supply chain can lower the overall carbon footprint of products and business activities. Companies can identify carbon hotspots in raw material extraction, manufacturing, energy consumption, and transportation. This lets procurement teams prioritise emission-reduction strategies where they can have the greatest impact.

Addressing Scope 3 emissions

Scope 3 emissions include indirect emissions generated across a company’s upstream and downstream value chain, from suppliers and raw material sourcing through to customers and the use of sold products. For many businesses, these supply chain emissions can represent a substantial share of total emissions. Working with suppliers, improving emissions data, and considering lower-carbon materials can help companies address this broader climate impact.

Supporting regulatory compliance

Climate and sustainability requirements are increasing the need for reliable emissions data and greater supply chain transparency. A proactive approach to sustainable sourcing can help companies prepare for evolving regulatory compliance requirements. Traceable materials and robust supplier documentation can also support more credible sustainability reporting.

Meeting science-based targets and net-zero goals

Companies with science-based targets or net-zero commitments often need emission reductions across both their own operations and value chains. Decarbonization of supply chains can help translate these targets into practical procurement and operational changes. Collaboration with suppliers, renewable energy use, and lower-carbon raw materials can help companies achieve long-term decarbonization targets.

The role of procurement teams in supply chain decarbonization

Every sourcing decision has an impact beyond price and availability. By choosing the right raw materials, suppliers, transportation, and sourcing standards, procurement teams can influence supply chain emissions while balancing carbon intensity with quality, cost, availability, and regulatory compliance.

In chemical procurement, that influence can translate into practical action. Companies looking to decarbonise their chemical supply chain can explore bio-based solvents, renewable alternatives, and traceable supply chains while maintaining essential quality and performance requirements.

At Nedstar, we help businesses source bio-based chemicals globally, combining reliable supply, quality assurance, and documentation to support their sustainability goals.

What are supply chain decarbonization strategies?

Effective supply chain decarbonization strategies address emissions across sourcing, manufacturing, energy use, and transportation. Businesses can focus on several practical measures to reduce emissions across the value chain, including:

• Identifying carbon hotspots across the value chain;
• Prioritising sustainable sourcing;
• Reducing transport and logistics emissions;
• Working with suppliers on emission reductions;
• Supporting the energy transition through renewable energy.

How can chemical procurement support supply chain decarbonization?

Chemical procurement decisions can influence emissions long before a product reaches the manufacturing line. Choosing the right raw materials, suppliers, and sourcing routes can therefore turn procurement into a practical driver of supply chain decarbonization.

Nedstar’s bio-based alternatives for chemical procurement

At Nedstar, we offer a range of bio-based chemicals and renewable alternatives that can help procurement teams reduce reliance on fossil-based raw materials across suitable industrial applications.

Challenges of supply chain decarbonization

Turning decarbonization targets into measurable progress is rarely straightforward. Complex supplier networks, limited emissions data, inconsistent reporting, and hidden carbon hotspots can make it difficult to see where the biggest opportunities for reducing emissions actually lie.

The challenge becomes even greater when cost, quality, availability, performance, and regulatory compliance enter the equation. Stronger supplier partnerships, better supply chain transparency, reliable data, and innovation can help businesses move from ambitious targets towards practical, scalable change.

Making supply-chain decarbonization happen: a proactive approach

Meaningful supply chain decarbonization starts with practical procurement decisions. Setting clear targets, engaging suppliers, improving emissions data, and exploring renewable alternatives can turn climate ambitions into measurable action across the value chain.

For chemical procurement, choosing traceable, responsibly sourced materials is a practical place to start. Partner with Nedstar to explore bio-based chemicals and sourcing solutions that align with your quality, supply, and sustainability requirements.

Source bio-based chemicals with Nedstar

Building a lower-carbon chemical supply chain requires more than choosing renewable raw materials. Nedstar supports responsible chemical procurement with a growing portfolio of bio-based and sustainably sourced products, backed by traceability, quality control, and recognised sustainability frameworks.

Nedstar is ISO 14001 certified for environmental management and holds an EcoVadis Silver Medal, placing the company among the top 10% of organisations assessed by EcoVadis. For relevant biochemicals, Nedstar also offers ISCC+ certified supply, including physical segregation and mass balance options, alongside GHG add-on documentation to support emissions transparency and Scope 3 reporting.

Beyond certified sourcing, Nedstar’s CSR initiatives support wider climate and environmental action. Through Tree-Nation, Nedstar contributes to reforestation and carbon-offset projects, while its partnership with The Green Intelligence supports regenerative agriculture, biodiversity, and climate-resilient forestry.

Ready to make sustainable sourcing part of your decarbonization efforts? Contact Nedstar to explore bio-based chemicals and sourcing solutions tailored to your supply chain, quality, and sustainability requirements.

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