Stakeholder Pressure Drives Firms to Measure Supply Chain Emissions
The study looked at why some companies measure their indirect emissions in the supply chain, known as Scope 3 emissions. They found that firms are more likely to measure these emissions if stakeholders like investors and customers ask them to reduce greenhouse gas emissions. Companies that disclose information to customers are also more likely to measure Scope 3 emissions. When companies work with suppliers and customers to measure these emissions, requests from downstream in the supply chain are important. Being part of the Carbon Disclosure Project or answering their questionnaire also encourages firms to measure Scope 3 emissions.