Company reports lack supply chain and Scope 3 information
Published March 27, 2020
More than three-in-four of companies do not
provide information about supply chain transparency in their reports.
A study of non-financial reporting found that that less than 1% of 1,000 companies surveyed publicly list their suppliers, even in high-risk sectors.
The failure to adequately address the
supply chain is seen even in the reporting of greenhouse gas emissions,
according to a study by the Alliance for Corporate Transparency.
While more than two-thirds of companies
provide specific key performance indicators for direct emissions (Scope 1),
this drops to little more than half when upstream emissions from purchased energy
are taken into account (Scope 2). When applied to the company’s value chain (Scope
3), reporting drops even further, to just over one-third.
A notable exception is the apparel sector in which 36% of assessed companies provide at least a general description of the location of their supply chains. An additional almost 14% disclose the list of the actual suppliers.
Alfa Energy’s Sustainability Analyst, Nick
Fedson, said: “Scope 3 emissions (which include the supply chain) usually
represent the vast majority of corporate emissions. Supply chain emissions
reductions happen through collaboration and knowledge-sharing with suppliers.
Saying ‘Scope 3 emissions reductions’ can sound like a coercive approach to
reducing supply chain emissions (and it certainly can be), but the Scope 3
guidance makes it clear that the spirit of achieving these reductions is really
in collaboration between companies.”
Greenhouse Gas Emission