New research from Tata Consultancy Services (TCS) and Microsoft indicates that a massive 84% of major global companies have yet to set public science-based targets to reduce direct operational emissions from their supply chains – and that only 11% have actually disclosed science-based targets aimed at this.
TCS and Microsoft analysed public data from global companies with combined revenue of $10-trillion to produce the findings as part of its white paper studying enterprise sustainability – Decarbonisation: The Missing Link to Net Zero – to evaluate how they are using their supply chain data in the transition to net-zero emissions.
The research shows most companies are struggling to validate their data and accurately measure their decarbonisation efforts, and highlights the importance of regular engagement with extended business ecosystems including customers, suppliers, and other stakeholders to improve supply chain transparency and reduce carbon footprints.
“Our findings make clear how much innovative work remains to be done to make global business sustainable – and how critically important it is to engage with an extended ecosystem that involves all stakeholders – including customers, consumers, suppliers, service providers, and policymakers,” says Dr Swati Murthy, director for Strategic Sustainability Collaborations at TCS.
“Reimagining global supply chains and using the latest technology and analysis is a vital step towards more sustainable practices,” she adds. “Therefore, it is absolutely essential to forge stronger strategic collaborations with hyperscalers to share and scale solutions faster, bringing together the latest decarbonisation technology and expertise and making it accessible to all stakeholders across the business value chain. This collaboration is key to unlocking the potential of green transitions and mitigating the environmental and social risks we all face.”
Other key insights within the research include ways in which businesses can make data more accessible; how companies can maximise edge-to-cloud, AI/Machine learning, and digital twin technologies for decarbonisation; the sectors setting extended ecosystem targets with vendors and suppliers; and the role of regulatory pressure in Climate-Related Financial Disclosures (TCFD).
The white paper was authored by a team of sustainability experts including Dr Murthy and James Lockyer, portfolio management director, Climate Innovation Fund, Environmental Sustainability Team at Microsoft.