As environmental sustainability has become a bigger and bigger issue, more and more Fortune 500 companies have been adopting plans to reduce greenhouse gas (GHG) emissions and/or reach net-zero emissions. For instance, CVS Health - the number 4 ranked Fortune 500 company of 2022 - stated in 2018 that it is "committed to reducing absolute absolute scope 1 and 2 GHG emissions 36 percent by 2030 from a 2010 base-year...[and] 70 percent of its suppliers by emissions will set...reduction targets on their scope 1 and 2 emissions by 2023" (source: https://www.cvshealth.com/news-and-insights/articles/our-commitment-to-reducing-our-greenhouse-gas-emissions). While this a step towards environmental sustainability, notice how CVS Health has only committed to reducing Scope 1 and 2 emissions - not addressing scope 3 emissions at all. This is a noticeable trend with Fortune 500 companies and their plans for reducing GHG emissions. According to Fortune survey taken by Fortune 500 CEOs, 58% aim to be zero-emission by 2050 and have a plan to do so. However, only half of these plans will see to Scope 3 emissions.
Many Fortune 500 companies have committed to reducing Scope 1 and 2 emissions because they are straightforward to address. Scope 1 emissions are the direct emissions produced by sources owned/operated by an organization and Scope 2 emissions are the indirect emissions produced by the use of energy (electricity, steam, etc.). In comparison to Scope 3 emissions (which are the indirect emissions stemming from assets not owned by a company, but are in the company's value chain), Scope 1 and 2 emissions are much easier to tackle; Scope 3 emissions cover the upstream activities of suppliers as well as downstream activities of consumers. However, without including how to minimize Scope 3 emissions, plans to reduce and reach net-zero emissions are fruitless as Scope 3 emissions often compose the majority of a company's greenhouse gas (GHG) emissions. These same companies may also outsource their Scope 3 emissions so that it is not their duty to face.