Multinationals’ supply chains account for a fifth of global emissions

A fifth of carbon dioxide emissions come from multinational companies' global supply chains, according to a new study led by UCL and Tianjin University that shows the scope of multinationals' influence on climate change. The study, published , maps the emissions generated by multinationals' assets and suppliers abroad, finding that the flow of investment is typically from developed countries to developing ones - meaning that emissions are in effect outsourced to poorer parts of the world. The research shows the impact that multinationals can have by encouraging greater energy efficiency among suppliers or by choosing suppliers that are more carbon efficient. The authors proposed that emissions be assigned to countries where the investment comes from, rather than countries where the emissions are generated. Professor Dabo Guan (UCL Bartlett School of Construction & Project Management) said: "Multinational companies have enormous influence stretching far beyond national borders. If the world's leading companies exercised leadership on climate change - for instance, by requiring energy efficiency in their supply chains - they could have a transformative effect on global efforts to reduce emissions. "However, companies' climate change policies often have little effect when it comes to big investment decisions such as where to build supply chains.