This article originally appeared on BSR Insight, and is reprinted with permission.

With increasing pressure from investors and growing energy constraints, it's no longer a question for company leaders about whether to address climate change impacts. It's a priority. One of the surest bets for company managers to do so is to identify opportunities to reduce energy waste, whether through an organized sustainability program or as part of quality management and lean efforts.

While the opportunity begins at facilities that companies own and operate, such direct assets are the tip of the iceberg. The real potential is for company managers to work with partners, especially suppliers, to save money, minimize risks, and capitalize on leadership opportunities throughout their global value chains.

For companies that rely on manufacturing suppliers in China, the stakes are high. Last year, the government shut down factories that wasted too much energy and turned off power in order to meet national energy goals, disrupting business globally. Though officials have said those cuts were a mistake, power shortages still loom. At the same time, China is developing carbon markets with pilots planned to be in place by 2012. In this context, company leaders can choose to understand the energy risks and options of suppliers -- and thereby create an efficient network of clean and productive partners who are capitalizing on new incentives -- or they can ignore these developments and risk more unpredictable disruptions.

Effective management of supply chain energy issues requires a two-part approach: a Scope 3 strategy and a program for company managers to work directly with suppliers on their individual needs and opportunities. A Scope 3 strategy, which I'll cover in more detail when the Scope 3 guidance is issued later this year, focuses on establishing a comprehensive, global approach for waste minimization, risk reduction, and opportunity positioning. For company managers, this means identifying the general areas of opportunity across their companies' supply chain to reduce GHG emissions and better manage energy. It also means employing procurement policies that will help shift their companies' energy profile in the desired direction.

The second aspect of effective supply chain energy management is "boots-on-the-ground" supplier engagement. Working with suppliers one on one helps managers understand what is really happening on the factory floor, what it means to the company, and how to influence suppliers to make the desired investments. To do this well, company managers need to do several things: physically bring suppliers together for sharing and training, help connect them with local third-party solutions-providers like energy service companies, and help them define and communicate about their plans and opportunities.