Why Large Corporations Must Demand Carbon Data from Vendors and Suppliers
As companies set ambitious sustainability targets, the focus must extend beyond internal operations. In fact, 80-90% of a corporation's total emissions typically come from Scope 3 emissions — those from the entire supply chain. Without accurate carbon data from vendors and suppliers, businesses are missing the bulk of their carbon footprint.
The Numbers Matter:
A study by McKinsey revealed that over 90% of Fortune 500 companies fail to comprehensively address supply chain emissions, leaving significant gaps in their carbon reporting.
The Carbon Disclosure Project (CDP) found that only 37% of suppliers currently track their emissions in alignment with their customers' reporting needs.
Companies that successfully engage suppliers in emissions tracking saw an average 19% reduction in supply chain emissions over five years, as per a 2023 CDP report.
The Business Case:
By demanding carbon data from suppliers, companies not only gain transparency but also unlock opportunities for cost reductions, risk management, and innovation. Leading organizations such as Unilever and Walmart have saved millions by optimizing their supply chain through carbon tracking, improving both their sustainability and bottom line.
Large corporations must actively push for better carbon accounting across their supply chains, and create partnerships that enable data transparency and emission reductions. It's time to take sustainability leadership seriously—starting with holding suppliers accountable.
Let’s lead the change.
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