62% of businesses failing to track supply chain emissions
Companies failing to measure Scope 3 emissions says report
Despite the fact that greenhouse gases in supply chains represent the largest source of carbon for most industries, only 38% of businesses are tracking their Scope 3 emissions, according to a new report from IBM.
Scope 3 includes all emissions resulting from operations that are not directly emitted by an organisation, and so have been typically harder to measure.
However, many jurisdictions are introducing legal requirements to fully disclose Scope 3 emissions. They cover everything from raw materials, third-party manufacturing, freight to end-of-life product cycles.
Despite this, just 45% of companies say they will be in a position to report such emissions by 2024, and Scope 3 does not rank particularly high on the list of key performance indicators for sustainability.
Even hi-tech firms, with a history of data collection, are finding the levels of deep visibility required difficult to reach.
A lack of access to supplier data is often cited as a key challenge. CEO of Science Based Targets initiative, Luiz Amaral, said: “Getting a clearer picture of your supply chain emissions is a vital starting point for any science-based target. One does not manage what one does not measure.”
There are challenges to using information technology to track these emissions, particularly in terms of budget allocations, according to the IBM survey.
The survey was undertaken by Morning Consult in August 2023, drawing from a sample of 3,250 business leaders from 13 countries. Respondents were defined as decision-makers in IT and sustainability for their organisations.