Etsy

At a Glance

Industry

Internet, Software, Hardware and Technology Services

Project Types

Engagement and Behavior Change, Supply Chain

Year

2024

Location

Brooklyn, NY

Summary

Abby Trusler developed a strategy for Etsy to engage with corporate suppliers and reduce scope 3 Purchased Goods & Services emissions.

Goals

As a two-sided marketplace, the majority of Etsy's emissions are in its scope 3, and the second largest is Purchased Goods & Services. Etsy engaged Abby to develop a supplier engagement strategy for corporate suppliers, with a particular focus on maturing their supplier carbon fee program, to reduce Etsy's corporate supply chain emissions in line with their SBTi-approved goal to achieve net zero emissions by 2040.

Solutions

Abby approached the strategy development in a four-part process: 1. Conduct benchmarking research on the supply chain sustainability approaches of peers and competitors. Abby documented detailed research findings and relevant case studies, highlighting successful and unsuccessful approaches. 2. Engage with suppliers and incorporate learnings. Abby conducted discussions with nine strategic suppliers to understand their current sustainability strategies, explore approaches for Etsy to incentivize climate action, and solicit reactions to the supplier carbon fee program. All feedback was embedded into the engagement strategy. 3. Engage with internal stakeholders. Abby engaged regularly with Etsy's Strategic Sourcing team, who play a key role in implementing the carbon fee during supplier negotiations. Their feedback, insights, and recommendations were incorporated into the engagement strategy. 4. Assess partnership opportunities with SaaS vendors and advisory firms. Abby engaged with six vendors to identify the ideal partner to support Etsy's supplier engagement strategy, determining whether a software vendor or a sustainability consulting firm would be more advantageous.

Potential Impact

Abby solidified a year-long partnership with an external supply chain advisory firm to deliver educational and one-on-one climate support services for strategic suppliers. These resources are focused on supporting medium-sized suppliers that represent a large portion of Etsy's Purchased Goods & Services emissions. Abby defined a supplier engagement strategy that includes a tailored approach for marketing and advertising suppliers, who account for 55% of Etsy's corporate supply chain emissions. This targeted strategy helps these suppliers comply with Etsy's guidelines by addressing the unique considerations and standards specific to their industry. Lastly, Abby developed formal collateral and documentation for both suppliers and internal teams, including Strategic Sourcing, to support and streamline the strategy's implementation.

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