The report builds on research BCG began conducting in 2021 on the progress made by organizations around the world in measuring and reducing their carbon emissions. While there have been improvements over the past year, they have generally been slow across all sectors and regions – only 10% of companies measure their emissions comprehensively (Scope 1, 2 and 3) in 2022 compared to 9% in 2021. Furthermore, respondents estimate an average error of between 25% and 30% in emissions measurements. And, although 92% of all emissions are external (Scope 3) according to the Carbon Disclosure Project (CDP), only 12% of the organizations interviewed consider the Scope 3 as your top priority.
“These metrics are critical in helping companies achieve their zero emissions targets,” says Charlotte Degot, founder and global leader in the area. CO2 AI of CG. “There is an increasing need for them to rely on digital tools to help them achieve greater accuracy and completeness, to help them in decision making.”
Reducing emissions brings important benefits
There is progress, but it is slow. The data from this year’s edition reinforce the fact that the better a company measures its emissions, the more effectively it can reduce them: 64% of respondents measuring the full extent of their emissions and 45% of those measuring them They partially observed a significant reduction in the same. In terms of business, on the other hand, over 70% of respondents expect at least one million euros a year of financial impact from the reduction of emissions and 37% calculate benefits of up to 100 million euros or more. Additionally, companies reported other benefits, such as improved reputation (54%) or the ability to attract more talent (37%).
To conduct this survey, BCG surveyed more than 1,600 organizations with 1,000 or more employees and revenues ranging from around € 100 million to over € 10 billion, across 14 major industries and 18 countries. Together, these organizations are responsible for over 40% of global emissions.
Digital solutions are needed
Respondents believe that more leadership, better political incentives (e.g. regulation, tax incentives) and the adoption of digital solutions are needed to accelerate the measurement and reduction of emissions. On the digital front, in particular, organizations with automated emissions metering solutions are 2.2 times more likely to measure emissions comprehensively and 1.9 times more likely to reduce emissions in line with their ambitions.
“The results of this year’s survey reveal a clear fact: the time has come to urgently accelerate progress in terms of measuring and reducing emissions,” explains Hubertus Meinecke, BCG’s Global Practice Leader for Climate and Sustainability. “Leaders must demonstrate their beliefs and willingness to drive change in the culture of their organizations, both at the corporate level and in the public sector. For their part, organizations must embrace the digital and artificial intelligence tools available to them. as accurate and complete as possible. “
