BCG survey: Only 10% of enterprises have implemented carbon reduction in the past five years, and more than 90% have not been able to complete carbon inventory

“Carbon reduction” has become an important issue for companies in recent years. Although most companies have called for carbon reduction, according to the results of a global corporate carbon inventory survey released by BCG GAMMA, a data science team under the Boston Consulting Group, many companies have carbon emissions. There is still much room for improvement in computing and carbon reduction capabilities.

BCG’s “Using AI to Achieve Complete, Accurate, and Rapid Carbon Emissions Calculation” report pointed out that although 85% (85%) of global companies are deeply concerned about emission reduction issues, only about 10% (11%) of companies have successfully achieved carbon emission reductions in the past five years. The carbon vision (achieving more than 75% of the carbon reduction target) highlights the difficulties companies face in translating ideas into concrete actions.

The BCG survey covers 1,290 companies across nine industries around the world to see how companies are doing carbon inventory and emission reductions. The survey shows that only 9% of companies have the ability to fully calculate emissions in all categories (Scope 1, 2, 3). The companies participating in the survey even estimated that the error rate of carbon emission calculation results is about 30% to 40%.

BCG believes that Scope 3 emissions account for the majority of corporate emissions in all categories. At present, more than 90% of enterprises are unable to complete a complete carbon inventory, and the calculation of carbon emissions in Scope 3 is a hurdle that enterprises need to break through. The higher the enterprise’s mastery of carbon emission calculation, the more significant the reduction effect will be.

BCG has found that a growing number of international brand customers, affected by pressures such as carbon taxes, will soon turn to suppliers to comply with its carbon reduction norms. Many Taiwanese companies are manufacturing OEMs in the upper reaches of the value chain, so they must accelerate their pace and build carbon reduction capabilities in order to maintain their competitiveness.

Chen Meirong, managing director and global partner of BCG, said that many companies’ low-carbon strategies are still at the stage of setting goals and reporting, and have not yet realized that they are completely unable to cope with the impact of the carbon tax brought about by the net-zero policy.

BCG observes that compared with international companies, Taiwanese companies have been slower to reduce carbon emissions, and even if they set carbon reduction goals, they rarely have the ability to implement the plans. If companies are to halve their emissions by 2030 under the Paris Agreement and ultimately achieve net-zero emissions, companies must be able to measure comprehensively, accurately and regularly to understand the extent of emissions and the benefits of various carbon reduction measures , in order to achieve carbon reduction goals strategically.

Carbon emissions related to the company’s internal, one is the emissions directly from the company’s activities (direct emissions, or Scope 1), such as emissions from the company’s facilities or vehicles; or emissions from the energy purchased by the company (indirect emissions). emissions, or Category 2). These may be referred to as internal emissions. External emissions, on the other hand, refer to emissions associated with a company’s supply chain (Scope 3), whether upstream – such as purchased goods, or downstream – such as the transportation and distribution of a company’s products, or the use of products and associated end-of-life emissions. deal with.

According to the survey, only nearly 10% (9%) of companies can accurately calculate their carbon emissions, and more than half (55%) of the respondents believe that detailed emission factors are “difficult” or “very difficult” to find. Only about two-in-ten (22%) respondents work with the majority (over 50%) of third-party customers and suppliers to obtain external emissions data. Eight out of 10 (81%) companies admit to ignoring some internal (Scope 1 and 2) emissions. At the same time, nearly seven in 10 (66%) of the companies surveyed did not report any external emissions (Scope 3).

How to accurately grasp Scope 3 emissions is the most troublesome thing for most companies; BCG found that even if the industry is different, Scope 3 accounts for 60% to 80% of all carbon emissions of enterprises. Respondents estimated that they had an average error rate of 30% to 40% in calculating carbon emissions. If companies don’t have a complete and high-quality emissions baseline, how will they analyze their current carbon footprint, set reasonable targets, develop appropriate plans, and track carbon emissions results?

Companies that only calculate direct emissions from their own production processes (Scope 1) may significantly underestimate their total emissions, including emissions from production to transport, packaging of products, and emissions after use by consumers. For example, a US-based home goods retailer initially excluded emissions from the use of ovens and microwaves it sells. Including emissions from the use of these products, the retailer’s emissions in that product category (which is also the largest category) would increase by 130 percent.

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