KUALA LUMPUR, 16/6/2021 – A new study by Standard Chartered reveals that multinational companies (MNCs) will cut suppliers for failing to curb carbon emissions, with 78 per cent of MNCs planning to remove suppliers that endanger their carbon transition plan by 2025.
For Malaysian suppliers who fail to transition alongside their MNC partners, this could mean a loss in export revenue of USD65.3 billion. However, the study also reveals a USD1.6 trillion market opportunity for suppliers who decarbonise in line with their MNC partners’ net zero plans.
According to the study, Carbon Dated, as large corporates transition to net zero, 15 per cent of MNCs have already begun removing suppliers that might scupper their transition plans. In total, MNCs expect to exclude 35 per cent of their current suppliers as they move away from carbon.