Growing Scrutiny of Emissions Calculations, Targets and Decarbonisation Plans
Increasing Regulations on Scope 3 Emissions
Across the globe, jurisdictions such as the European Union have mandated enterprises to disclose climate-related information. As an increasing number of countries - including the US, Singapore, and Australia - move towards similar requirements, enterprises must now measure and report Scope 3 emissions.
Inability to Measure Scope 3 Accurately
Not all carbon footprints are of equal quality. 90% of enterprises currently lack comprehensive carbon emissions measurement, while 40% are ill-equipped to manage Scope 3 activities. The absence of granular data exacerbates uncertainty, creating reputation risk and making it harder to identify impactful decarbonisation initiatives.
Source: BCG - Carbon Emissions Survey Report 2022
Lack of Progress on Decarbonisation Targets
Despite the growing number of enterprises setting targets for Scope 3 reductions, implementation remains ineffective. Limited in-house skills, sluggish data collection, manual processes, vague strategies and organisational silos all impede progress on decarbonisation.