Most companies and investors are not adequately measuring and targeting reductions in Scope 3 value chain emissions, leading to significant overlooked and unreported financial risks in their supply chains. A report by Boston Consulting Group and CDP reveals that supply chain emissions reported to CDP were on average 26 times higher than combined Scope 1 and 2 operational emissions. The lack of measurement and management of Scope 3 emissions can lead to significant unreported risks for companies and investors. The report found an implied carbon liability of more than $335 billion, at the IMF-proposed 2030 $75 floor carbon price.

Source: ESG Today