Bridging the Gap: Tackling Scope 3 Emissions in Corporate Decarbonization Strategies

Only 18% of companies have included Scope 3, or value chain, decarbonization initiatives as part of their transition plan.

The 2024 EY Global Climate Action Barometer reveals that most emissions reduction efforts are focused on Scope 2 emissions—those indirect emissions from purchased energy—which represent 55% of disclosed decarbonization initiatives.

In contrast, only 18% of companies have included Scope 3 emissions—those stemming from their value chain—in their transition plans, despite Scope 3 often representing the largest share of a company’s total carbon footprint.

This highlights a critical gap in addressing emissions across the full value chain, underlining the need for companies to work closely with their suppliers to tackle Scope 3 emissions effectively. Companies that do not engage their supply chains in decarbonisation efforts risk missing significant opportunities for meaningful action.