Report: Most Companies Have Set Some Form of Supply Chain Emissions Reduction Targets

Supply Chain Emissions

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by | Aug 18, 2022

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Supply Chain Emissions

(Credit: Pixabay)

Progress is being made in key initial supply chain emissions reduction phases, including most companies setting Scope 1 and 2 emissions reduction goals, according to a report from EcoVadis.

EcoVadis released its Carbon Maturity Report, which outlines how companies in its network are faring in their decarbonization efforts. It has issued 15,000 scorecards, which are customized based on company size and industry, revealing how far along businesses are in meeting their goals with five ratings ranging from insufficient to leader.

The analysis rates companies based on their commitments, actions, and reporting across 10 data points. Those include progress across Scope 1, 2, and 3 emissions, action plans, tracking, and supply chain monitoring.

The report finds that proactive companies of all sizes have at least set Scope 1 or 2 emissions reduction targets. Scope 3 goals, however, are less common. Most small- and medium-sized companies, which make up 70% of the world’s supply chains, are just getting started in their efforts, with the majority being considered “first-time reporters,” according to the report.

Overall, 60% of the companies surveyed have emissions reduction targets in place and say they are on track to hitting those goals. Large companies, according to the report, were the most likely to score at an advanced or leader maturity level, with 10% of them falling into those categories.

Of the companies that have been rated with the carbon scorecard, 7,500 are reporting their greenhouse gas emissions. Of those companies, 16% have begun providing carbon intensity metrics alongside their broader emissions data, and 14% of them are reporting publicly.

A number of the companies that are reporting their emissions progress have used third parties (8%). Four percent of them are screening their Scope 3 emissions to identify their most material categories, according to the report.

The main steps companies are taking to reduce their carbon impacts are using renewable energy (26.5%), upgrading and implementing technology to improve energy efficiency (19.5%), and training employees on energy conservation and sustainability efforts (21.5%). Some companies are also using methods such as heat recovery systems and carbon offsetting.

More businesses are using sustainability tools to help them track progress within their supply chains. Tracking systems, better data insights, and technology to improve tough targets like Scope 3 emissions are all more widely used across industries.

EcoVadis also says it is starting to see companies receive scores for their carbon efforts a second time. For those businesses that have been scored more than once, half have scored higher on their second assessment and a third have moved up a rating level.

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