October 3rd 2023
FTSE 100 supply chains emit 3bn tonnes of CO2
New figures from supply chain specialist INVERTO reveal a pressing need for Britain’s biggest companies to up their efforts in climate and environmental areas.
Combined, the supply chains of the top 100 companies trading on London’s FTSE100 stock exchange produced 3billion tonnes of carbon dioxide in 2022 alone. The top five emitters accounted for 86% of this, with more than 90% coming from the top 10, which was dominated by oil and gas, mining, and engineering firms.
Scope 3 emissions – indirectly caused through the supply chain and actions of third parties – have received increasing attention this year as new legislation, including the EU Sustainability Directive and new deforestation laws, has been drafted. For many organisations, this is where the vast majority of emissions come from, and the area is among the most complex and difficult to tackle.
The research also shows that while the average target date for decarbonisation of supply chains among FTSE businesses is 2043, just 53 of the 100 listed companies have set an explicit target for this. Undoubtedly contributing to this is the fact the quality of reporting around environmental and social governance varied significantly. Just over half – 57 – had reporting in place, but only 44 employed clear metrics.
‘Even though there’s still a long way to go, we’re in a much better place than we were on supply chain decarbonisation just a couple of years ago. There’s now a lot of awareness and strong senior sponsorship, but many are still in the process of turning that into concrete action,’ said Sushank Agarwal, Managing Director at INVERTO. ‘Those businesses that have started their journey are mainly focusing on reducing their Scope 3 emissions through embedding sustainability measures into their sourcing processes and working directly with key suppliers to reduce emissions throughout the value chain.’
More on supply chains and emissions:
Report signposts cleaner construction supply chains, waste management
Modern slavery target of new solar supply chain procurement guide
Image: frank mckenna