Just 25% of firms are tracking Scope 3 emissions, says CIPS

Most public and private sector organisations are failing to measure the environmental impact of their supply chains, a new report by the Chartered Institute of Procurement & Supply (CIPS) and Deloitte has found.

The finding comes as national leaders are currently gathered in Egypt to discuss strengthening net zero ambitions at COP27. 

The survey of 468 global procurement and supply chain professionals found that just a quarter (26%) of public and private sector organisations have measures in place to monitor green house gas (GHG) emissions in their supply chain, which forms part of their Scope 3 emissions.

The data shows that while 75% of respondents say carbon management is important to their organisation, there is little being done to address it.

A business’s supply chain is estimated to account for 80-90% of its total carbon emissions, and progress here is vital if countries are to achieve their net zero targets by 2050. This is a goal many countries have enshrined in law. In the UK, there is The Climate Change Act, and for nations throughout the European Union there is the European Climate Law.

The findings are symptomatic of a wider trend among organisations who lack supply chain visibility. 

The report found that just 13% can map their entire supply chain network, and that up to 22% have no visibility beyond their immediate suppliers. 

Awareness key to tackling Scope 3 emissions, says CIPS 

CIPS CEO Malcolm Harrison says: "In our globalised world the vast majority of an organisation’s emissions occur far away down their supply chain. 

“For any organisation or business to make progress towards net zero they must first be aware of where and what type of emissions are being produced in their supply chain. 

“Procurement functions play a crucial role in tracking these emissions, but our report shows that too often organisations do not know how to accurately gather, calculate and monitor Scope 3 emissions data.”

Harrison adds that organisations need support with managing their carbon output if they are to make serious headway here. 

Kathryn Thompson, Partner and UK Head of Procurement Consulting at Deloitte said the findings show that there is an urgent need for organisations to accurately track supply chain emissions.

“This will be a key driver in reducing carbon emissions and reaching net zero.” she said. “It will require collaboration between organisations to solve this major challenge. 

“Organisations recognise the need for better visibility and in some cases restructuring of their supply chains, and it is important that industries and businesses work together and learn from each other to drive progress.”