Supply chain contracts that cut Scope 3 emissions
Supply chain coordination is growing in the operations research journals, along with emissions trading and carbon pricing. For most firms, the Scope 3 emissions of their supply chains dwarf their own, yet "Scope 3 emissions" appears on only 9 recent papers. Which contracts get suppliers to decarbonize, and who pays?
What prompted this#
In the operations research journals, "supply chain coordination" had 19 papers in July–September 2026 against 11 expected, "emissions trading" 7 against 3 and "carbon pricing" 5 against 3 (see the operations research dashboard). Since October 2025, 77 papers carry a supply-chain-coordination or supply-chain-contract keyword (58 in operations research journals); 16 of them carry an emission, carbon or Scope 3 keyword, and "Scope 3 emissions" appears on 9 papers in all.
Questions#
- Which contract forms (cost sharing, price premiums for low-carbon inputs, long-term purchase commitments) lead suppliers to invest in abatement, and at what cost to the buyer?
- How do carbon prices on the supplier's side, such as the EU ETS and the EU's border carbon adjustment, change the best contract?
- Can buyers verify supplier emissions well enough to write contracts on them?
Data that could help#
Supplier-level emissions (the CDP supply chain programme), carbon prices, and purchasing contracts from case firms.
Next step#
Model a buyer and a supplier that can invest in abatement under a carbon price, and compare cost sharing with a price premium in a two-stage Stackelberg game.