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Business fails to keep pace in supply chain emissions reporting

[ September 24, 2025   //   ]

UK businesses are nowhere near the level they need to be in dealing with their supply chain emissions, although they are outperforming other major economies according to a report published by sustainability firm EcoVadis and Boston Consulting Group on 24 September.

It says that this could threaten national net zero targets, given that supply chains form up to 95% of total emissions produced in the UK.

The findings come as the British government is considering aligning UK carbon reduction reporting rules with international sustainability standards, making them mandatory in the future to disclose supply chain emissions – the indirect greenhouse gas emissions that take place outside of a company’s direct operations but are a consequence of its activities, such as sourcing and manufacture, transportation, product use and disposal.  

According to a the Carbon Action Report, just 6% of UK businesses have set targets for supply chain emissions and are either on track or ahead of schedule to achieve it. Only 14% of UK businesses are setting targets for supply chain emissions and some two thirds of companies are not reporting their supply chain emissions at all.

UK businesses are falling behind its European and major economy peers on some key metrics, including developing climate transition plans, collecting primary data from suppliers and collecting product level data.

EcoVadis co-founder and co-chief executive, Pierre-François Thaler, said: “While the UK may be outperforming the other major economies in terms of supply chain emissions reporting and target achievements, the overall performance is still very low and nowhere near the level it needs to be if it’s going to meet its net zero ambitions.

“This exposes UK businesses to significant financial risks and puts national and global climate goals under threat. We are at a pivotal point in carbon action globally and the UK is no exception. 

“Tackling supply chain emissions, whilst undoubtedly complex and challenging due to their global nature, arguably holds the key to securing the biggest environmental prize of them all, borne out by the British government’s acknowledgement that Scope 3 emissions can account for 80-95% of total emissions for a large number of its companies.”
On a global scale, the report says that ignoring supply chain emissions could cost companies $500 billion in annual liabilities worldwide by 2030. At the same time it highlighted that investing in climate action for the supply chain could achieve up to three to six times return in investment through averting costs associated with future carbon-price regulation.

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