Two experts call on companies to calculate and report ‘scope 3’ emissions along their value chain as soon as possible
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Last year, only 22% of China’s major firms disclosed ‘scope 3’ emissions, meaning emissions along their value chain that they are not directly responsible for (Image: Cynthia Lee / Alamy)
We recently published a review of how China’s major firms are disclosing greenhouse gas emissions. Here we summarise our findings and offer recommendations to companies.
We found that nearly 80% of major firms are not yet disclosing any scope 3 emissions, meaning indirect emissions along their value chain. Our advice for them includes reporting such emissions as well as the calculation methodology and data sources they use. They should set emissions targets alongside clear action plans for achieving them. And they should work with companies across their supply chain to ensure it becomes zero-carbon.
A pressing issue
In the first nine months of 2024, the global average surface air temperature was 1.54C above the pre-industrial level. The goal of the Paris Agreement is to keep the long-term average below 1.5C. Current national policies worldwide could see a rise of 3.1C by the end of the century.
As listed firms may account for over 40% of global greenhouse gas emissions, their decarbonisation is a key part of climate governance. Emissions in the value chains of those firms – known as scope 3 emissions – have become an obstacle to goal-setting and disclosures.
