EcoVadis & BCG: Supporting Scope 3 Emissions Reductions

Usually, around 70% of a company’s emissions are Scope 3 according to the World Economic Forum (WEF).

These emissions are produced throughout a company’s entire value chain from suppliers through to customers. 

EcoVadis and Boston Consulting Group (BCG) have collaborated to create The Carbon Action Report 2025. 

The report outlines what is driving Scope 3 decarbonisation and what the benefits are when companies take action. 

Pierre-François Thaler, Co-Founder and Co-CEO, EcoVadis says: “As we launch this report at New York Climate Week and look toward COP30 in Brazil this year, the world is at a critical crossroads: cling to the old model and face increasing climate disasters and financial risk or embrace the shift to a net zero economy.”

Why are supply chain emissions being missed?

The report outlines that businesses have been making efforts to improve Scope 1 and 2 emissions, with less concentration on Scope 3.

These supply chain emissions are 21 times higher than both Scope 1 and 2 combined, the report says.

EcoVadis and BCG found that one in four companies actually measure supply chain emissions and just one out of 100 set science based targets.

Not addressing these emissions could have significant impacts on businesses.

The report found that 20% of global assets that represent around US$222tn support the ISSB or IFRS. 

Many places are now implementing mandatory climate disclosure, with 55% of global gross domestic product covered across more than 20 countries.

EcoVadis provides end-to-end solutions to support companies combatting supply chain emissions. 

Services the company provides include personalised risk maps, actionable score cards and decarbonisation toolkits.

Pierre says: “Supply chains are critical. Upstream Scope 3 emissions are 21x higher than corporates’ direct emissions. This presents a significant risk.

“Yet our analysis finds corporates can decarbonise supply chains with a 3-6x return on investment.”

What should be priorities for corporates?

If Scope 3 emissions continue to be unmanaged, the report says that corporates could be faced with an annual liability of US$500bn by 2030. 

The report outlines top priorities for corporates, including:

• Establish a baseline for supplier emissions
• Prioritise suppliers by emissions footprint and climate risk exposure for profit pools 
• Launch holistic supplier engagement and activate targeted levers by segment
• Kick-start action through setting a climate agenda 
• Lay foundations for low-carbon transformation by integrating Scope 3 into wider business strategy.

The report says that companies should incorporate climate into financial processes and investor communications. 

Advice is also given for companies to adopt a five year climate plan through creating a culture of climate risk awareness and innovation, creating linked goals to incite advancement in the sector. 

About EcoVadis

EcoVadis was founded in 2007 as a service to support companies to assess ESG performance and risk across supply chains. 

It has a mission to provide reliable sustainability ratings and insights that support companies in the journey to reduce risk and accelerate positive impacts on the planet and society. 

The company collaborates with industry leaders such as Unilever, JPMorgan and L’Oréal, supporting the biggest brands in the world to reduce the impact of climate change.

Pierre says: “For this iteration of the EcoVadis Carbon Action Report, we are proud to collaborate with Boston Consulting Group (BCG), which provided invaluable expert insight and analysis. 

“Our message to business leaders: grasp the opportunity to be an early mover and reap the rewards.”