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VIDEO: The Week in Sustainability – October 24–28, 2022

October 31, 2022
Article

Missing emissions reduction targets & the importance of scope 3 emissions.

This week

Boston Consulting Group study on the state of corporate emissions coverage

A recent BCG study shows that only 10% of companies fully measure their emissions. Big picture, this should be alarming because it means companies struggle to measure emissions completely and accurately. Also alarming: Only 12% set scope 3 as a priority emissions reduction area, even though scope 3 comprises 92% of emissions.

Analysis of CDP study: Role companies have to play in driving transition to net-zero 

Unsurprisingly, the Inflation reduction Act (IRA) will only get us about one-third of the way to where we need to be to curb climate change. Given the current political climate, additional U.S. regulation won’t be enough to make up the remaining two-thirds reduction. That means corporations must play a key role in emissions reductions.

Countries are missing their climate targets

According to The New York Times, “Just 26 of 193 countries that agreed last year to step up their climate actions have followed through with more ambitious plans.” That means we’re now on track for warming anywhere from 2.1 to 2.9°C and 1.5°C seems increasingly out of reach.

Will COP27 shed more light on this?

IFRS unanimous vote to include scope 3 emissions

Although the SEC proposed climate risk disclosure rule looks like it’ll be pushed back, we saw a big win for climate disclosure this week. The International Sustainability Standards Board (ISSB) confirmed it would require companies to include scope 3 emissions in company disclosures.  

Additional reading

• “BCG Survey: Only 10% of Companies Fully Measuring Emissions” (ESG Today)
• “How companies can strong-arm their suppliers into cutting carbon emissions” (Phys.org)
• “ISSB unanimously confirms Scope 3 GHG emissions disclosure requirements with strong application support, among key decisions” (IFRS)
• “Climate Pledges Are Falling Short, and a Chaotic Future Looks More Like Reality” (New York Times)
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About The Week in Sustainability

Each week, Sustain.Life’s sustainability team offers commentary about the week’s most pressing issues and stories in sustainability and ESG. Watch every episode here.

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The takeaway

• New studies shed light on the bleak state of both corporate and country emissions calculations and targets
• On the plus side, the IFRS says companies will need to disclose scope 3 emissions