Over 50% of surveyed companies already reporting some Scope 3

Posted on December 2, 2023 by Editor

In line with overall trends towards environmental transparency, a recent survey conducted by Boston Consulting Group (BCG) and CO2 AI has revealed that over 50% of companies are now disclosing at least some of their Scope 3 value chain emissions. This marks a significant increase from approximately a third reported two years ago.

However, the survey also indicates minimal progress in terms of comprehensive reporting across all emissions.

Scope 3 emissions, which encompass value chain areas beyond a company’s direct control, including supply chain activities and product usage, are notoriously complex to measure and manage. Despite the challenges, they constitute a substantial portion, often exceeding 90%, of a company’s overall emissions impact. The difficulty in handling Scope 3 emissions, combined with inherent double counting issues, is underscored by the limited progress in comprehensive reporting, with only 10% of surveyed companies measuring and reporting on Scopes 1, 2, and 3.

The complexity of Scope 3 reporting has also played a role in the recent delay by the US Securities and Exchange Commission (SEC) in implementing climate reporting requirements. Concerns over the intricate nature of Scope 3 reporting has come up against increasing investor demand for this information, apparently contributing to the SEC’s extended deliberations.

Over half of respondents (53%) now include at least partial Scope 3 emissions in their carbon reporting, showcasing an upward trend from 44% in 2021 and 34% in 2020. Companies are recognising the importance of extending their emissions measurement beyond direct operations to capture the impact of their value chains – and with climate reporting mandates fast approaching, better data is on the horizon.

For those interested in delving deeper into the survey findings, the full report is accessible here.

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