Findings from a New Report by EcoVadis and BCG Reveal Scope 3 Emissions as a Financial Risk and Provide a Roadmap to Protect Profits and Strengthen Supply Chain Resilience
Ignoring supply chain emissions (Scope 3) could cost companies over $500 billion in annual liabilities globally by 2030, according to the 2025 Carbon Action Report from EcoVadis and Boston Consulting Group (BCG), titled Scope 3: From Unmanaged Risk to Untapped Opportunity.
The warning comes as companies face mounting pressure on two fronts: physical risks driven by the direct impacts of a changing climate, and transition risks arising from shifts in policy, markets, and technology as the global economy transitions toward a low-carbon future.
For the average company, Scope 3 emissions are 21 times larger than Scopes 1 and 2 combined, but only 24% of companies report on them, and just 8% set reduction targets. Meanwhile, the report finds that investing in climate action for the supply chain today could achieve up to three to six times ROI through loss aversion from avoiding costs linked to future carbon-price regulation.
"The financial risks of climate inaction are clear, but so are the opportunities," said Pierre-François Thaler, co-founder and co-CEO of EcoVadis. "By addressing Scope 3 emissions, companies can protect profitability while building a more resilient supply chain. The time to act is now, and the most effective place to start is with suppliers, where the majority of emissions lie."
The report builds on these insights with five most impactful actions that companies can use to move from awareness to action, and accelerate supply chain decarbonization:
- Supplier engagement Engage suppliers on ambition and need for climate action, and partner to launch joint emissions reduction activities.
- Emissions measurement: Set up a greenhouse gas (GHG) inventory, with monitoring across operations (including product-level data as a late-stage action).
- Climate-aligned management team: Establish a dedicated management team that sets and owns the companywide low-carbon agenda.
- Climate transition plan: Define a companywide plan to transition to a low-carbon business model.
- Emissions reduction budget: Allocate a dedicated budget to fund companywide decarbonization initiatives.
"In our hope to reach 1.5°C, or even stay within 2.0°C, the next five years are crucial," said Diana Dimitrova, managing director and partner at BCG. "Scope 3 emissions are 21 times larger than Scope 1 and 2, turning supply chain emissions from a compliance mandate into a material driver of financial performance. More than $500 billion in annual liabilities are at stake, but decisive action can unlock resilience and returns."
The report's core analysis is based on EcoVadis data from 133,000+ carbon ratings across 83,000 companies worldwide, combined with BCG's statistical and data-led analysis to identify the most impactful drivers of Scope 3 performance.
To explore the full findings and recommendations in the 2025 Carbon Action Report, Scope 3: From Unmanaged Risk to Untapped Opportunity, download it here.
About EcoVadis
EcoVadis is a purpose-driven company dedicated to embedding sustainability intelligence into every business decision worldwide. With global, trusted and actionable ratings, businesses of all sizes rely on EcoVadis' detailed insights to comply with ESG regulations, reduce GHG emissions, and improve the sustainability performance of their business and value chain across 220 industries in 185 countries. Leaders like Johnson Johnson, L'Oréal, Unilever, Bridgestone, BASF and JPMorgan are among 150,000+ businesses that use EcoVadis ratings, risk, and carbon management tools and e-learning platform to accelerate their journey toward resilience, sustainable growth and positive impact worldwide.
Learn more on: ecovadis.com, X or LinkedIn.
About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders-empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.
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