Ignoring supply chain emissions (Scope 3) could cost companies over $500 billion in annual liabilities globally by 2030, according to the 2025 Carbon Action Report from EcoVadis and Boston Consulting Group (BCG).
“The financial risks of climate inaction are clear, but so are the opportunities,” says Pierre-François Thaler, co-founder and co-CEO of EcoVadis. “By addressing Scope 3 emissions, companies can protect profitability while building a more resilient supply chain. The time to act is now, and the most effective place to start is with suppliers, where the majority of emissions lie.”
"In our hope to reach 1.5°C, or even stay within 2.0°C, the next five years are crucial,” says Diana Dimitrova, managing director and partner at BCG. “Scope 3 emissions are 21 times larger than Scope 1 and 2, turning supply chain emissions from a compliance mandate into a material driver of financial performance. More than $500 billion in annual liabilities are at stake, but decisive action can unlock resilience and returns."
Key takeaways:
· For the average company, Scope 3 emissions are 21 times larger than Scopes 1 and 2 combined, but only 24% of companies report on them, and just 8% set reduction targets.
· Meanwhile, the report finds that investing in climate action for the supply chain today could achieve up to 3-6 times ROI through loss aversion from avoiding costs linked to future carbon-price regulation.
