As we navigate through a period marked by unprecedented warmth, with global average temperatures 1.46°C above pre-industrial levels, the urgency to address climate change has never been greater.
The rise in temperature is not merely a statistic; it signals an increase in extreme weather events with profound impacts on the environment and communities. World Weather Attribution highlights that many recent extreme events would have been "virtually impossible" without human-induced changes, primarily from greenhouse gas emissions.
The Carbon Disclosure Project reveals that over 80% of global emissions stem from Scope 3, encompassing the value chains of organisations, their users, and supply chain partners. Scope 3 includes all indirect emissions within an organisation's value chain, significantly contributing to its carbon footprint.
The critical role of procurement
There is a clear connection between procurement practices and carbon emissions. However, despite growing regulatory pressure for disclosure and reduction, many organisations are constrained by cost pressures, which hinder action on Scope 3 emissions.
The Scope 3 Benchmark report indicates a significant gap between ambitions and practical measures to reduce emissions, coupled with insufficient investment in procurement capabilities.
Bridging the gap: From ambition to action
Reducing supply chain emissions is crucial for global emission reductions, yet many organisations remain at an early stage of maturity, struggling with the "what" and the "how."
Addressing Scope 3 emissions requires collective action, clarity, and collaboration with supply chain partners. Despite some setbacks, momentum is building in the fight against the climate crisis.
Since the last edition of Proxima’s Scope 3 Benchmark report, over 5,000 additional organisations have disclosed their emissions to the Carbon Disclosure Project, bringing the total to more than 23,000. By October 2023, 6,000 organisations had set or committed to setting carbon reduction targets in line with the Science Based Targets initiative, a significant increase from just 500 in 2018.
In perspective: Challenges and progress
While setting targets indicates intent, it does not ensure a credible climate strategy. A recent report found that 93% of organisations with Net Zero targets for 2030 will fail to meet them unless they significantly accelerate their emission reduction efforts. Some of the world’s largest companies are re-evaluating their ambitious plans, acknowledging the challenging realities of achieving these targets.
The factors hindering progress are multifaceted. Organisations are balancing immediate operational challenges with long-term climate goals. Nonetheless, the effects of climate change are evident, underscoring the need for robust climate strategies and practical steps to reduce carbon emissions across supply chains. Collaboration and clear plans are essential for making a substantial environmental impact.
Gain valuable insights and practical guidance on addressing Scope 3 emissions by downloading the Scope 3 Maturity Benchmark report 2024. Stay informed and equipped to lead your organisation towards a sustainable future.