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BCG Survey: Limited Progress in Comprehensive Emissions Reporting Despite Increased Scope 3 Disclosure

ESGBCG Survey: Limited Progress in Comprehensive Emissions Reporting Despite Increased Scope 3 Disclosure

The latest survey by Boston Consulting Group (BCG) and CO2 AI revealed that over half of companies now disclose at least some of their Scope 3 value chain emissions, up from around a third two years ago. However, the study also found virtually no progress in companies comprehensively reporting across all emissions scopes, and fewer companies are on track with their emissions reduction ambitions compared to the previous year. Only 10% of surveyed companies comprehensively measure and report Scope 1, 2, and 3 emissions, with no improvement from the previous year. Nevertheless, there are signs of improvement, with 53% of respondents reporting that their carbon emissions reporting includes at least partial Scope 3 emissions, up from 44% in 2021. Despite increasing numbers of companies setting targets, fewer are on track to meet their current goals, and macroeconomic conditions, capital constraints, and immature abatement technology were cited as significant challenges to achieving emissions reduction goals. Recognizing the business benefits of decarbonization, over half of respondents cited reputational value, and 40% estimated annual financial benefits for meeting emissions reduction targets of at least $100 million. Technology adoption was identified as a significant enabler for emissions reduction initiatives, with 39% of executives citing it as one of the most significant contributors. Many companies expect to use AI-powered technology for emissions management in the future, with 38% expecting to use AI for baseline emissions management within the next three years.

By FCCT Editorial Team

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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