HSBC: Reducing Supply Chain Emissions Can Mitigate Risks and Cut Costs

Companies can reduce risks and save money by cutting greenhouse gas emissions in their supply chains, according to HSBC Holdings Plc.
Marissa Adams, the Americas’ head of global trade solutions at HSBC, emphasized the importance of considering climate risks and the financial and environmental benefits of addressing supply chain emissions. Her comments were linked to a study by CDP, which collaborated with HSBC to assess the financial advantages of emissions reductions.
The report highlights that the potential costs associated with climate change are nearly three times higher than the investments needed to mitigate these impacts. Currently, only 8% of companies focus on reducing emissions in their supply chains.

In 2023, companies that targeted Scope 3 emissions—those related to supply chains—saved a total of $13.6 billion. If all companies had implemented similar measures, savings could have reached $165 billion, according to CDP data from 23,000 companies representing two-thirds of global market capitalization.
Simon Fischweicher, director of supply chain and reporter services at CDP, noted that efficiency, competitiveness, and ambitious climate action are interconnected. He warned that companies failing to take action may be left behind.
The emissions cuts achieved by these corporations amounted to 43 million tons, equivalent to Sweden's annual carbon footprint. CDP estimates that there is potential to reduce an additional 193 million tons.
Adams stated that HSBC is committed to assisting clients in mitigating various risks within their supply chain operations. The bank recognizes the critical role finance can play in decarbonizing global trade flows and aims to help companies enhance supply chain resilience and capitalize on new opportunities in the evolving economy.