BCG and EcoVadis: Decarbonisation as a Procurement Advantage

Many leaders still treat decarbonisation as a compliance exercise. Procurement teams know it can be a source of advantage and measurable value, especially when they target Scope 3, the indirect emissions embedded across the supply base.

In their Carbon Action Report 2025, Boston Consulting Group (BCG) and EcoVadis lay out the business case for moving now. Drawing on 133,000 EcoVadis carbon scorecards across 83,000 companies, the research links supplier action to hard financial outcomes and puts a price on inaction.

"Supply chains are critical," comments Pierre-François Thaler, Co-Founder and Co-CEO of EcoVadis.

"Upstream Scope 3 emissions are 21x higher than corporates’ direct emissions. This presents a significant risk. Yet our analysis finds corporates can decarbonise supply chains with a 3-6x return on investment (ROI). Our message to business leaders: grasp the opportunity to be an early mover and reap the rewards.”

BCG’s analysis of EcoVadis data identifies clear patterns in emissions management and supplier engagement that procurement can convert into results. The report shows companies that actively engage suppliers are 9x more likely to improve against Scope 3 goals.

The cost of waiting

While disclosure requirements are accelerating, Scope 3 remains the largest exposure in most sectors – and most companies simply aren't ready.

More than 90% of corporates assessed via EcoVadis’ Carbon Action Manager (CAM) still lack formal Scope 3 supply chain reduction targets.

The potential financial impact is significant. By 2030, corporates could face more than US$500bn in annual global liabilities tied to carbon pricing on Scope 3 supply chain emissions.

According to the report, moving now can deliver a 3-6x ROI, largely through loss aversion, by avoiding future costs as carbon prices rise.

"Climate change has become a financial and strategic reality for business leaders as physical and transition risks are already shaping outcomes for corporates, investors and society," says Diana Dimitrova, Managing Director and Partner at BCG.

"By 2030, corporates could face over US$500bn in global liabilities from potential carbon pricing of Scope 3 supply chain emissions. However, targeted actions to reduce supplier emissions can help to mitigate this risk and deliver real value."

What this means for procurement

CPOs are uniquely positioned to translate climate ambition into P&L outcomes.

Priorities include:

• Set targets and embed them in sourcing: Establish Scope 3 reduction goals, cascade expectations in RFPs, contracts and supplier scorecards, and align award decisions with emissions performance.
• Focus where it matters: Segment categories and suppliers by emissions intensity and readiness; prioritise the highest-impact spend.
• Engage and enable suppliers at scale: Provide training, playbooks and joint roadmaps; use platforms like EcoVadis CAM to baseline, track and collaborate.
• Build commercial levers: Incorporate incentives and requirements, agree longer-term contracts for low-carbon solutions, and co-invest where needed to unlock supplier abatement.
• Measure, govern, improve: Run regular business reviews on carbon KPIs and link a portion of commercial outcomes to verified reductions.

BCG’s support for Scope 3 delivery

BCG partners with leadership teams to turn decarbonisation into supply chain results, combining growth strategies, ESG implementation and deep procurement expertise.

Its principles – bringing insight to light, driving inspired impact, conquering complexity, leading with integrity and growing by growing others – guide programme design and delivery.

For teams tackling Scope 3, BCG offers tailored solutions across procurement and technology transformation. The Supply Chain Net Zero Academy upskills suppliers and procurement organisations to accelerate reduction at scale.