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CBAM business impact: Supply chain and Procurement

Discover how you can play a key role in transforming your company’s supply chain and procurement strategy, to ensure a sustainable and smooth operating supply of goods

CBAM Business Impact

Sourcing of data

As a CBAM declarant, will have to articulate the data and quality required from your suppliers in order to modify current ERP-systems to consider new parameters, while overarching, collaborative systems should be developed and implemented across business units to ensure real-time data reflecting the production process.

When actual emissions cannot be adequately determined, default values will be used. The Commission will proportionately determine the designed mark-up (%) in the implementing act of the CBAM Regulation.

Supply Chain transformation

The supply chain of products manufactured from in-scope materials needs to be reviewed, to shift to less carbon intensive producers where possible. This should lead to discussions with supply chain partners to align on your GHG footprint strategy and the effects of CBAM on specific materials and products.

This can radically change the way of engaging with suppliers, leading to a complete overhaul of material sourcing, with new competitors throughout the value chain and manufacturers relocating their production.

Key actions for the Supply Chain Manager

  • Design and implement internal data monitoring systems collecting emissions data and scheduling verifications.
  • Maintain stable relationships with suppliers as well as customers to achieve more information for your strategic decision-making.

Key actions for the Procurement Manager

  • Analyse the carbon footprint of sourced materials.
  • Review your supply chain in order to attract and keep on board third parties fit for your business.


  • The supply chain manager and the procurement manager will be better off only if working in close cooperation.
  • Screening the carbon footprint of sourced materials and engaging with suppliers will become a key activity when sourcing outside of the EU.
  • Identify weak links within the supply chain and target new partnerships.