A new study by Standard Chartered has revealed that multinational companies will cut suppliers for failing to curb carbon emissions, with 78% of multinationals (MNCs) planning to remove suppliers that endanger their carbon transition plan by 2025.
For South African suppliers who fail to transition alongside their MNC partners, this could mean a loss in export revenue of US$33.7 billion. However, the study also reveals a US$1.6 trillion market opportunity for suppliers who decarbonise in line with MNC net zero plans.
According to Carbon Dated, which looks at the risks and opportunities for suppliers in emerging and fast-growing markets as large corporates transition to net zero, 15% of MNCs have already begun removing suppliers that might scupper their transition plans. In total, MNCs expect to exclude 35% of their current suppliers as they move away from carbon.
Kweku Bedu-Addo, CEO, Standard Chartered South Africa and Southern Africa, said: “There is growing acceptance that decarbonisation is vital for the future of the planet Earth to remain hospitable as we have known it for millennia. What is required is the collective will to act with urgency to manage the transition towards Net Zero in a co-ordinated approach.”
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