A minimal slice, the 10%of the companies global has measured its own emissions in 2022. The data emerged from the Carbon Emission Survey report created by Boston Consulting Group. Reducing its emissions is one of the priority objectives for companies all over the world, fundamental for the protection of the planet and for the success of business. Yet measuring emissions – a necessary step to understand how to abate them – remains a difficult task.
The investigation of BCG has calculated interviews to more than 1.600 organizations with a turnover from 100 million to 10 billion dollars, considered responsible for over 40% of production from emissions globally. Although there have been improvements compared to last year (1% more), the measurement remains weak overall in all 14 sectors examined and in the 18 countries involved in the research.
Reduction of emissions, what are the advantages?
Measure the emissions it is a necessary step for them reduction real, both for those who measure its full extent (64% of organizations), and for those who do it only partially (45%). In monetary terms, cutting emissions means a return of at least a million of dollars for more than 70% of the companies surveyed, and for 37% financial benefits equal to or greater than 100 million dollars. Companies also observed many other benefits: 54% saw an improvement in terms of reputation and 37% in their ability to attract talent.
“The results of this year’s survey give a clear picture of the situation: measuring and reducing emissions are good for the planet, but also for companies.” He claims Roberto Ventura, BCG Managing Director and Partner. “Using digital and artificial intelligence-based tools is key to accelerating the decarbonisation process for all sectors”.
There is a problem of perception. 88% of the companies interviewed consider the emissions of scope 1 and 2 as the most important to be abated, while only 12% seem to understand that it is instead the emissions of scope 3 to require the most important interventions. As evidenced by the CDP Global Supply Chain Report 2021in fact, 92% of all emissions of an organization can be traced back to category scope 3 or those generated externally by the company, but directly connected to its activities – for example deriving from the mobility of employees or the supply chain – while the emissions of scope 1 and 2 (internal to companies) represent only 8% of the total.
The importance of digital solutions
To accelerate the measurement and reduction of corporate emissions, greater support from institutions is required, but the adoption of digital tools is also essential. In fact, organizations that have automated solutions for estimating emissions, such as CO2 AI, are 2.2 times more likely to measure emissions comprehensively and 1.9 times more likely to minimize them.
“For companies, measuring their emissions is the first critical step to achieving the Net Zero goal,” he said Charlotte Degot, founder and global leader of CO2 AI by BCG. “Digital tools can offer valid support in this sense, guaranteeing accuracy and completeness, while at the same time favoring the decision-making process for reduction”.