Companies worldwide risk more than $500 billion in annual liabilities by 2030 if they fail to tackle supply chain emissions, according to the 2025 Carbon Action Report from EcoVadis and Boston Consulting Group (BCG). The study, Scope 3: From Unmanaged Risk to Untapped Opportunity, highlights that supply chain emissions—known as Scope 3—are on average 21 times larger than firms’ direct operational emissions (Scopes 1 and 2 combined).
Despite this, only 24 per cent of companies currently report on Scope 3 emissions, and just 8 per cent have established reduction targets. The report stresses that supply chain decarbonisation is not only critical to meeting climate goals, but also makes financial sense: investing today could yield three to six times return on investment by avoiding future carbon-pricing costs.
Pierre-François Thaler, co-founder and co-CEO of EcoVadis, said: “By addressing Scope 3 emissions, companies can protect profitability while building a more resilient supply chain. The time to act is now, and the most effective place to start is with suppliers, where the majority of emissions lie.”
The report outlines five priority actions: engaging suppliers in joint reduction efforts; building comprehensive GHG inventories; embedding climate-aligned management structures; developing transition plans; and allocating budgets for decarbonisation initiatives.
Diana Dimitrova, managing director and partner at BCG, added: “Scope 3 emissions are 21 times larger than Scope 1 and 2, turning supply chain emissions from a compliance mandate into a material driver of financial performance. More than $500 billion in annual liabilities are at stake, but decisive action can unlock resilience and returns.”
Drawing on data from more than 133,000 carbon ratings across 83,000 companies, the report underscores the urgency of addressing supply chain emissions in the next five years to remain within 1.5°C climate targets.
