A major study by Microsoft and global IT consultancy TCS has found that 84% of major firms are yet to set science-based targets for supply chain emissions.

Companies are struggling to measure progress on reducing carbon impacts, so TCS and Microsoft teamed up to conduct research to find how supply chain data could unlock answers, measuring transition into a net-zero business ecosystem.

The analysis is based on 400 randomly selected public companies accounting for revenues of more than $10 trillion.

This is particularly important for Australian companies off the back climate change regulation which came into effect in last September legislating the nation’s commitment to reduce greenhouse gas emissions by 43% below 2005 levels by 2030, and net zero by 2050.

Worryingly however, of the companies studied, only 16% have publicly set science-based targets for operational carbon emissions and even less, 11% of companies have committed science-based targeting for carbon reduction in supply chains.

By improving the quality of global supply chain data, enterprises can better measure their true carbon footprint—and ultimately help find the missing link to a net-zero business ecosystem.

Guy Ferrier, Consulting Director, Managing Practice, TCS Australia & New Zealand said that globally, Europe and specifically the UK were moving very quickly towards the new standard of supply chain.

Ferrier continued: “These regions will set the pace and lead globally, and it’s up to businesses in Australia and New Zealand to keep up to ensure they’re part of the global solution to what is truly a global problem.

“The only way to do this is through new tech and analytics expertise – both of which will become vital for firms looking to adapt and reduce supply chain emissions in a transparent and scientific way”.