Wed Sep 25 04:23:37 UTC 2024: ## Companies Can Cut Costs and Mitigate Risks by Reducing Supply Chain Emissions: HSBC

**Toronto, Canada – ** According to a new study by CDP and HSBC Holdings Plc, companies can significantly reduce costs and mitigate risks by decreasing greenhouse gas emissions within their supply chains. The report highlights the substantial financial benefits of tackling Scope 3 emissions, which encompass the environmental impact of a company’s entire supply chain.

The study reveals that companies who have already reduced their Scope 3 emissions collectively saved $13.6 billion in 2023. Had all companies taken similar steps, the estimated savings would have reached $165 billion.

The report emphasizes that the potential costs of climate change are far greater than the investment required to mitigate its effects. Despite this, only 8% of companies currently prioritize supply chain emissions reductions.

Simon Fischweicher, Director of Supply Chain and Reporter Services at CDP, notes the clear correlation between efficiency, competitiveness, and ambitious climate action. He emphasizes that companies embracing the global energy transition not only enhance their resilience but also become more attractive to customers and investors, ultimately strengthening their market position. Conversely, those that fail to act will be left behind.

Marissa Adams, Americas’ Head of Global Trade Solutions at HSBC, stresses the bank’s commitment to supporting clients in mitigating risks within their supply chain operations. HSBC recognizes the vital role finance plays in decarbonizing global trade and supply chains, aiming to help corporates derisk, improve supply chain resilience, and capitalize on opportunities in the new economy.

The study underscores the potential for significant emissions reductions through supply chain optimization. The Scope 3 cuts already achieved by corporations are equivalent to 43 million tons of emissions, equal to Sweden’s annual carbon footprint. CDP estimates that there is the potential to cut a further 193 million tons of emissions.

This report serves as a strong call to action for businesses to prioritize sustainability and embrace innovative solutions within their supply chains. By doing so, companies can reap significant financial benefits while contributing to a more sustainable future.

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