Supply chain targets

We can’t achieve our decarbonisation targets without working closely with our suppliers. As we invest more in energy infrastructure to facilitate decarbonisation of power generation, we procure more goods and services and that can increase our Scope 3 (value chain) emissions. That’s why we focus on collaboration that helps reduce emissions across the wider construction and utilities supply chain.

 

Our supply chain targets

We’re engaging our suppliers to support progress towards science‑based emissions reductions. 

  • United States: we aim to engage the top 50% of suppliers by emissions to establish a decarbonisation roadmap or action plan towards a Science Based Target by 2030/31*.  
  • United Kingdom: we aim for the top 80% of suppliers by emissions to have formally committed to set a Science Based Target by 2030/31*.  

*SBTi is currently consulting on the standards used to set validated science-based targets, with new standards expected to be formally in place at the start of 2027. Because of this, we are recommitting to our supply chain engagement, retaining the target but extending the target date to 2030/31 and reporting a percentage of emissions rather than a percentage of suppliers. We had stated that this target was under review in our 2024/25 disclosure. 

 

How we're mobilising change with suppliers

Our Responsible Supply Chain strategy focuses on:

  • how we contract and build long‑term relationships
  • how we embed sustainability in sourcing and category strategies
  • how we engage suppliers and improve data quality and accountability 

1) Longer term partnerships

We’re using longer‑term partnership models to create certainty for suppliers to invest in skills, capacity, and low‑carbon solutions. In the UK, for example, National Grid launched the Great Grid Partnership, a collaborative “enterprise model” with seven partners supporting major infrastructure delivery as part of The Great Grid Upgrade and a wider £9bn supply chain framework. 

2) Procurement processes and standards

All suppliers are expected to meet our Supplier Code of Conduct, which sets out requirements across ethics, people, and environment (including expectations on issues like modern slavery/human rights, environmental management, and conflict minerals). We are also strengthening how we collect and use supplier sustainability information, including the use of third‑party tools to support consistent supplier engagement and reporting.  

This year we transitioned our supply chain ESG disclosure to EcoVadis, helping us improve visibility and assurance over suppliers’ sustainability practices. Over 50% of key suppliers now hold EcoVadis scorecards, and we will continue engagement to increase coverage and accountability.  

3) Supplier and employee capability 

Suppliers are at different stages of their net zero journey. We support capability building through training resources and industry collaboration, including partnerships with the Supply Chain Sustainability School to upskill suppliers.

 

Examples in action

Low-carbon construction in the UK

Supply chain emissions are a material part of our Scope 3 footprint, largely driven by construction materials and activities needed to deliver the energy transition.  

In UK Electricity Transmission, we’ve been reducing carbon in construction for almost a decade, including:

  • Weighting carbon as part of commercial evaluation in construction tenders.
  • Mandating lower‑carbon approaches in specifications, including the record‑breaking continuous pour of cement‑free Earth Friendly Concrete at London Power Tunnels, following extensive testing with contractors and suppliers.
  • Aligning with PAS 2080 carbon management best practice. 

As part of our RIIO‑T3 business plan development, we consulted external carbon experts and assessed opportunities, costs and constraints. We’re using targets for key “hotspot” materials, such as increasing the use of lower‑carbon concrete and steel, to influence how manufacturers and suppliers respond over time. 

 

Working with suppliers in the US

In the US, we’re working with strategic suppliers to identify, test and scale lower‑carbon alternatives and to embed them into contracts where appropriate. Strategic supplier partnerships can help us jointly evaluate materials and methods, accelerate innovation, and share learning across the supply base.  

We’re also strengthening the foundations that support responsible and resilient supply chains:

  • Supplier ethics and expectations: suppliers are required to acknowledge and comply with our global standards, and we hold suppliers to clear ethics requirements before work starts. 
  • Social value, supplier diversity, and local content: we promote equity and inclusion in our supply chain and promote opportunity for all suppliers to participate in National Grid's procurement opportunities across our US jurisdictions.
  • Circular economy and waste reduction: we work with partners such as Northeast Transformer Services (NETS) to refurbish end‑of‑life distribution transformers to “like‑new” standards, reducing waste and avoiding the need to manufacture as many new units.
  • Training and capability: we support supplier capability through shared training and resources. In the US construction sector, the Supply Chain Sustainability School launched in 2025 with National Grid named among founding partners, providing free learning resources to strengthen sustainability skills across supply chains. 

 

Find out more

For more detail on our approach to supplier expectations and responsible procurement, see our Supplier Code of Conduct.