(9 June 2023 – Australia) Australian companies must urgently address Scope 3 emissions and sustainability claims for greenwashing ahead of new Safeguard Mechanism rules.
Recent research from Morningstar found not a single Australian listed company will attain net zero status by 2050 if current trends persist. The research revealed that while one in four companies globally provide Scope 3 data to Sustainalytics, only seven percent are comprehensively provided.
As the global focus on carbon neutrality intensifies, CFOs and treasurers must prioritise understanding and addressing Scope 3 emissions. By actively assessing their carbon footprint, collaborating with suppliers, and pursuing sustainable practices, corporates can not get caught out by damaging greenwashing claims and definitively hit net zero emission targets.
“Scope 3 emissions are the most complex, yet vitally important given this is where the bulk of a company's carbon footprint occurs” commented Morningstar ESG Strategist Erica Hall on the research results.
“For example, a car manufacturer's Scope 3 downstream emissions, resulting from its clients' use of the cars, would represent approximately 80 percent of the company's total emissions.”