Emissions Measurement in Supply Chains: Business Realities and Challenges

This paper provides an overview of the measurement of supply chain emissions in three key sectors, focusing on businesses’ challenges and preparedness, and flags some important issues for policy action.

Measuring and reporting emissions in supply chains is key for decarbonization. Knowing where the emissions come from can inform businesses’ decisions on procurement, product design, research and development, as well as finance and investment. Although companies are moving from voluntary to mandatory reporting, requirements must be clear and the data generated trustworthy to have the intended impact.

Industry initiatives have played an important role in testing different measurement approaches and harmonizing these in some sectors. This paper maps developments in three sectors: agriculture and food; mining; and steel. Based on a series of interviews, it offers a snapshot of the preparedness and challenges, and concludes with crucial issues for policymakers, particularly trade and economic officials, to address.