A new study by Microsoft and global IT consultancy TCS has revealed that the vast majority of major firms are yet to set science-based targets for supply chain emissions. The analysis was based on 400 randomly selected public companies accounting for revenues of more than $10 trillion. The research was conducted to find how supply chain data could unlock answers, measuring the transition into aRes net-zero business ecosystem.
According to the study, only 16% of the companies have publicly set science-based targets for operational carbon emissions. Even fewer, just 11%, have committed science-based targeting for carbon reduction in supply chains. Companies are struggling to measure progress on reducing carbon impacts, which is why TCS and Microsoft teamed up to conduct this research.
This is particularly important for Australian companies following climate change regulation that came into effect in September last year. The legislation committed the nation to reduce greenhouse gas emissions by 43% below 2005 levels by 2030 and net zero by 2050.
By improving the quality of global supply chain data, enterprises can better measure their true carbon footprint and ultimately help find the missing link to a net-zero business ecosystem. This requires the adoption of new technologies and analytics expertise to adapt and reduce supply chain emissions in a transparent and scientific way.
Guy Ferrier, Consulting Director, Managing Practice, TCS Australia & New Zealand, noted that globally, Europe, and specifically the UK, are moving very quickly towards the new standard of supply chain. These regions will set the pace and lead globally, and it’s up to businesses in Australia and New Zealand to keep up to ensure they’re part of the global solution to what is truly a global problem.
“The only way to do this is through new tech and analytics expertise – both of which will become vital for firms looking to adapt and reduce supply chain emissions in a transparent and scientific way,” said Ferrier.
The study can be viewed in full here. As companies around the world increasingly commit to achieving net-zero emissions, the need for better supply chain data and analytics will become even more critical.