Companies struggle to measure carbon-cutting across supply chains

Most top firms (84%) have yet to set public science-based targets to reduce direct operational emissions from their supply chains.

And only 11% have disclosed science-based targets to reduce emissions in their supply chains.

The findings are revealed in a new study by Tata Consultancy Services (TCS) and Microsoft which analysed public data from global companies with combined revenue of $10 trillion. They are included in a white paper studying enterprise sustainability, Decarbonization: The Missing Link to Net Zero which evaluates how companies are using their supply-chain data in the transition to net-zero emissions.

The research shows most companies are struggling to validate their data and accurately measure their decarbonisation efforts. It also highlights the importance of regular engagement with extended business ecosystems, including customers, suppliers, and other stakeholders, to improve supply chain transparency and reduce carbon footprints.

Other key insights include ways in which businesses can make data more accessible, how companies can maximise edge-to-cloud, AI/Machine learning and digital twin technologies for decarbonisation, the sectors setting extended ecosystem targets with vendors and suppliers, and the role of regulatory pressure in Climate-Related Financial Disclosures (TCFD).

The white paper was authored by a team of sustainability experts, including Dr Swati Murthy Practice Head, Strategic Collaborations for Sustainability at TCS, and James Lockyer (Portfolio Management Director | Climate Innovation Fund | Environmental Sustainability Team) at Microsoft. The authors believe that, by reimagining global supply chains, enterprises can better measure their true carbon footprints as a critical step towards the UN’s Science Based Targets Initiative (SBTi) for sustainable development.

 Swati Murthy, TCS, said, “Our findings make clear how much innovative work remains to be done to make global business sustainable – and how critically important it is to engage with an extended ecosystem that involves all stakeholders – including customers, consumers, suppliers, service providers and policymakers.

“Reimagining global supply chains, and using the latest technology and analysis, is a vital step towards more sustainable practices. Therefore, it is absolutely essential to forge stronger strategic collaborations with hyperscalers to share and scale solutions faster, bringing together the latest decarbonisation technology and expertise and making it accessible to all stakeholders across the business value chain. This collaboration is key to unlocking the potential of green transitions and mitigating the environmental and social risks we all face.”


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