Another way companies majorly undercount their emissions

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🗞️ Driving the news: Many companies are significantly undercounting their supply-chain (Scope 3) emissions because widely used models assume all suppliers are based in one country—often the U.S.
• New research in Nature Communications finds U.S.-centric models can underestimate real emissions by up to 10%
• The gap arises because global supply chains rely heavily on regions with more carbon-intensive energy systems, such as coal-dependent manufacturing hubs

🔭 The context: Scope 3 emissions are typically estimated using “spend-based” models that multiply purchasing data by average emissions factors
• These models are popular because supplier-level emissions data is scarce
• But single-region assumptions distort where emissions actually occur, weakening companies’ ability to target real hotspots
• Researchers and climate software firms are now pushing for multi-region models that reflect how global trade truly works

🌍 Why it matters for the planet: Undercounting supply-chain emissions slows real decarbonisation
• Companies may prioritise the wrong suppliers or regions, missing the most carbon-intensive parts of their value chains
• More accurate modeling could redirect climate action toward regions and activities where emissions cuts matter most for global climate outcomes

⏭️ What’s next: As carbon accounting standards are revised, pressure is growing to adopt multi-region Scope 3 methodologies
• Researchers and partners are developing open-access tools to improve data quality
• If adopted, these approaches could reshape corporate climate strategies and emissions reduction pathways

💬 One quote: “When those estimates don’t take into account country of origin, they don’t give companies an accurate picture of which parts of their supply chains need the most attention,” said Steven Davis, lead author of the study

📈 One stat: Up to 10% of supply-chain emissions may be missing from corporate carbon footprints due to U.S.-only modeling assumptions

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