Only 6% of UK businesses are on track to meet their Scope 3 supply chain emissions targets, according to a new report.
Despite outperforming many major economies on some measures, the Carbon Action Report 2025 study warns that low overall action “poses significant financial risks” and could derail national and global climate goals.
The authors, EcoVadis and Boston Consulting Group, estimate that ignoring supply chain emissions could create more than US$500bn (£371bn) in annual liabilities by 2030 as carbon pricing and mandatory disclosure regimes tighten.
They argue the business case for action is now clear, with companies able to unlock three-to-six-times returns by cutting supplier emissions today and avoiding future carbon costs.
For the average company globally, Scope 3 emissions are 21 times larger than direct Scopes 1 and 2, yet just 24% report on them and 8% have set reduction targets.
In the UK, the report finds that only a minority of companies are setting or meeting credible supply chain goals and that two-thirds are not reporting Scope 3 at all.
Where progress is being made, it tends to be in supplier engagement, monitoring and team resourcing, but performance lags European peers on climate transition plans and the collection of primary and product-level data that underpin verifiable claims.
Pierre-François Thaler, co-founder and co-CEO of EcoVadis, said: “While the UK may be outperforming the other major economies in terms of supply chain emissions reporting and target achievements, the overall performance is still very low and nowhere near the level it needs to be if it’s going to meet its net zero ambitions.
“This exposes UK businesses to significant financial risks and puts national and global climate goals under threat. The time to act is now, and the most effective place to start is with suppliers, where the majority of emissions lie.”
The findings land as the UK considers aligning climate reporting with International Sustainability Standards Board rules, which would make Scope 3 disclosure effectively mandatory for many companies.
For logistics operators and their customers, Scope 3 sits squarely in purchasing, transport and warehousing footprints, covering upstream material flows, contract logistics, ocean, air and road freight, and last mile.
The report urges businesses to move from awareness to delivery by engaging suppliers on emissions reduction, measuring with primary data, appointing a climate-aligned management team, defining a transition plan and allocating a dedicated budget.
Boston Consulting Group’s analysis suggests firms can abate around half of supplier emissions at or below current EU ETS-equivalent prices, with roughly a third achievable for less than US$12 (£9) per tonne of CO₂e, pointing to near-term economics for targeting hotspots in freight, packaging, energy use and materials.
Thaler added: “By addressing Scope 3 emissions, UK companies can protect profitability while building a more resilient supply chain.”
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