A recent report by The Carbon Trust, an organisation founded by the UK government in 2001 to drive decarbonisation for businesses, governments and financial institutions, has said that one of the greatest obstacles for large businesses to achieve net zero is their ability to manage their supply chains.

The report says that businesses urgently need to break barriers to net zero, however almost one-third of large businesses are struggling to make the business case for doing so.  A survey of over 400 sustainability leaders carried out by the Carbon Trust’s Net Zero Intelligence Unit reported barriers to net zero, including fears of unfair scrutiny of climate efforts and how to address supply chain emissions.  

Supply chain (or Scope 3) emissions, which typically account for over 70% of business emissions, were given as a reason for inaction, with prohibitive costs and the complexity of managing and measuring carbon footprints given as barriers for progress. To tackle Scope 3 emissions effectively, the report recommends that large businesses take a hard line with suppliers who do not meet environmental expectations.

The report also showed that many companies are concerned about external scrutiny, with 26% of respondents saying companies are avoiding taking climate action for fear of being criticised for getting it wrong. The report calls it ‘greenstalling’.

Simon Retallack, Director of the Carbon Trust’s Net Zero Intelligence Unit said: “It is no surprise that some businesses are nervous about how their actions to address climate change will be judged. However, that mustn’t stop them. Net zero is all about actively reducing emissions from businesses and their supply chains, and we know the best thing businesses can do is get started on that journey today by creating a credible transition plan and implementing it."

The moving industry, by the nature of its function, is responsible for a high proportion of these companies’ Scope 3 emissions.  This report illustrates clearly the importance of movers ensuring they do all they can to reduce their emissions to support their best customers in their own quests to do the same.

Download the full report here.