Corporates’ Supply Chain Scope 3 Emissions Are 26 Times Higher Than Their Operational Emissions
Despite the Disproportionate Scale, Supply Chain Scope 3 Emissions Continue to Be Overlooked, with Only 15% of Corporates Having Set a Supply Chain Emissions TargetThree Significant Drivers of Action in Supply Chain Emissions Are a Climate-Responsible Board, Supplier Engagement, and Internal Carbon PricingIn 2023, Disclosed Upstream Emissions from the Manufacturing, Retail, and Materials Sectors Alone Suggest a Carbon Liability1 of over $335 BillionScope 3 Emission Blind Spots Drive Significant Unreported Risks for Both Investors and CorporatesOnus of Action and Accountability Falls on Corporates (Both Management and the Board of Directors) and InvestorsLONDON & BOSTON—In 2023, corporates reported that their Scope 3 supply chain emissions were, on average, 26 times greater than their emissions from direct operations (Scopes 1 and 2).2 According to the new Scope 3 Upstream: Big Challenges, Simple Remedies report, published today by Boston Consulting Group (BCG) and CDP, upstream emissions from the manufacturing, retail and, materials sectors had a footprint 1.4 times the total CO2 emitted in the EU in 2022.