BCG and EcoVadis: How to Drive Supply Chain Decarbonisation
Many business leaders see decarbonisation as a regulatory standard, but it can also result in long-term business improvements.
By tackling Scope 3 â indirect greenhouse gas emissions in the value chain â companies can see real financial impacts.
In the Carbon Action Report 2025, Boston Consulting Group (BCG) partners with EcoVadis to explore the high costs of inaction.
Identifying patterns in emissions management
BCG is dedicated to partnering with business leaders to overcome their biggest obstacles. Through organisational growth, sustainable strategies and the implementation of ESG practices, it is creating long-lasting changes.
The consulting firm sparks change throughout supply chains, focusing on a collaborative model throughout all levels of client organisation in order to promote real growth.
Its Carbon Action Report, produced alongside EcoVadis, explores how companies can take Scope 3 action plans into recognisable supply chain results.
Using data from 133,000 EcoVadis carbon scorecards from 83,000 companies, it has created a straightforward argument for supply chain decarbonisation across businesses, showcasing the benefits it can create.
EcoVadis provided the core data, with BCG conducting the statistical and data-led analysis to identify patterns in emissions management and supplier engagement.
"Supply chains are critical," says Pierre-François Thaler, Co-Founder and Co-CEO of EcoVadis. "Upstream Scope 3 emissions are 21x higher than corporatesâ direct emissions. This presents a significant risk. Yet our analysis finds corporates can decarbonise supply chains with a 3-6x return on investment (ROI)."
"Our message to business leaders: grasp the opportunity to be an early mover and reap the rewards."
Supply chain financial impact
Mandatory supplier sustainability disclosures are coming into focus for businesses, but, across many industries, Scope 3 emissions are still the largest source of emissions exposure.
However, more than 90% of corporates assessed through the EcoVadis Carbon Action Manager (CAM) do not have any Scope 3 supply chain reduction targets.
Due to the deregulation of Scope 3 plans, transition risk from these emissions could cause more than US$500bn in global annual liabilities from carbon pricing by 2030.
The report states that, by investing now in supply chain climate action, firms could achieve up to 3-6x ROI through loss aversion, avoiding costs from future carbon-price regulation.
Potential carbon pricing is sure to rise over the next few years, so, while the cost of switching to more sustainable practices or embedding sustainability throughout the supply chains is high, the cost of action could be higher.
"Climate change has become a financial and strategic reality for business leaders as physical and transition risks are already shaping outcomes for corporates, investors and society," says Diana Dimitrova, Managing Director and Partner at BCG.
"By 2030, corporates could face over US$500bn in global liabilities from potential carbon pricing of Scope 3 supply chain emissions. However, targeted actions to reduce supplier emissions can help to mitigate this risk and deliver real value."
"Climate risk in supply chains is a business risk for corporates. Leaders must act now to safeguard value and secure a long-term advantage."
By engaging with suppliers, businesses are 9x more likely to see an improvement in meeting their Scope 3 targets. Those leading the charge have already begun reshaping portfolios and supply chain relationships.
BCG and EcoVadis contend that companies must launch holistic supplier engagement programmes in order to achieve meaningful transformations.
BCG's powerful insight
BCG is able to help businesses transform their supply chains and tackle Scope 3 emissions.
Its five key principles are:
- Bring insight to light through bringing in new persepctives
- Drive inspired impact by close collaboration and long-term futures
- Conquer complexity by discovering hidden truths
- Lead with integrity by staying true to its values
- Grow by growing others and helping clients reach their full potential
BCG has a range of specialty solutions to suit each client's needs, from procurement to technology transformation.
For companies facing difficulties when tackling Scope 3, BCG offers tailored solutions to provide sustainable strategies. Its 'Supply Chain Net Zero Academy' service, for example, upskills suppliers and procurement teams to accelerate Scope 3 decarbonisation.
EcoVadis and BCG's report sends a strong message to organisations, imploring them to view supply chain transformation as a strategic measure which is set to create long-term business success.
