At Bowmark, one of our key priorities is to support our portfolio companies in implementing resilient sustainability strategies, by sharing practical approaches for reducing carbon emissions, and enabling collaboration and communication across our network.
The carbon reporting and reduction process is integral to this. By focusing efforts on four key activities – data collection, working with the results, supplier engagement and adopting Science Based Targets – we work with our portfolio companies to create a roadmap for success.
Robust data collection: the key to accountability and success
Efficient and comprehensive data gathering is critical to effective carbon reporting. Kyoko Yamafuji, senior climate analyst at Green Element, a Bowmark portfolio environmental consultant, emphasises that “understanding where your data sits within the organisation and clearly communicating the purpose of footprinting to relevant teams are essential first steps in data gathering” However, she also highlights that “carbon footprinting is an annual, iterative process, and data collection is often the largest blocker for organisations." Wendy Drury from Bowmark-backed Totalmobile confirms the importance of embedding data collection in business operations to ensure consistency and accuracy over time.
Quality data is key. Moving beyond proxy measures, such as spend data, to more detailed, activity-based inputs must be a priority. Capturing specifics like transport modes and travel distances provides actionable insights that can drive measurable emissions reductions.
From insight to action: driving engagement
Scope 3 emissions, the indirect emissions that occur in a company’s value chain, including purchased goods and services, homeworking and business travel, are often the among the biggest carbon contributors and the most challenging to measure and manage. Collecting accurate data often relies on individuals, though reducing emissions requires collaboration across teams. From socialising the need for action, to identifying business practices that need to change, each employee has a role to play in the decarbonisation process.
Gillian Mahon, chief people and places officer at Totalmobile, stresses the impact of employee-led initiatives in carbon reduction, emphasising that genuine engagement must go beyond simply raising awareness. “Embedding sustainability into organisational culture and decision-making processes is essential,” she explains. Senior leaders play a pivotal role in championing sustainable initiatives that empower employees to take ownership, creating a workplace where sustainability – and accountability for it – become second nature. Kyoko Yamafuji confirms that “engagement increases when everyone sees how their efforts contribute to the bigger picture.”
PORTFOLIO AVERAGE SCOPE 3 EMISSIONS %
Empowering suppliers: progress through partnership
For many businesses, supply chain emissions make up a significant proportion of their carbon footprint. At Bowmark, our analysis reveals that 47% of Scope 3 emissions from across our portfolio come from purchased goods and services. Anne Sheedy, ESG director at Bowmark, notes: ‘While the quality and range of data captured varies between businesses, this presents a clear opportunity to share best practice and collectively drive reductions.”
To address this, Adam Whitfield, head of compliance and ESG at Achilles, a Bowmark portfolio ESG partner, recommends integrating sustainability criteria into supplier contracts and offering incentives for transparency and progress. He explains how collaboration with suppliers helps realise shared sustainability goals: “Your Scope 3 emissions are your suppliers’ Scope 1 emissions. Establishing a common purpose with suppliers and using technology to access supply chain data can turn this challenge into a shared opportunity.” A collaborative framework fosters accountability while strengthening relationships and ensuring long-term alignment on sustainability objectives.
Science Based Targets: a blueprint for change
Ken McRae, chief operating officer at Bowmark-backed Cornwall Insight, and Ben Culverwell, investment manager at Bowmark, both point to the Science Based Targets initiative (SBTi) as the gold standard for reducing emissions. Cornwall Insight’s experience with SBTi verification demonstrates how setting both short- and long-term targets can strengthen a company’s climate strategy and enhance its credibility with investors and customers.
“SBTi provides a rigorous framework that ensures targets are both ambitious and achievable. For businesses serious about tackling climate change, it’s an invaluable tool,” says Ken.
Delivering a sustainable future
The journey towards carbon neutrality is not only essential, it presents a significant opportunity for businesses. Analysis carried out by McKinsey reveals that “financially successful companies that integrate ESG priorities into their growth strategies outperform their peers.”¹
Sustainable initiatives have the potential to support profitable growth, drive long-term financial performance, improve regulatory resilience and strengthen investor confidence.
At Bowmark, we believe there is significant strategic value in embedding sustainability into every facet of business operations. By leveraging shared strategies, practical templates and collective experiences, companies can approach their carbon reduction goals with confidence.
