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Embodied carbon emissions in the supply chains of multinational enterprises

Zhang, Z; Guan, D; Wang, R; Meng, J; Zheng, H; Zhu, K; Du, H; (2020) Embodied carbon emissions in the supply chains of multinational enterprises. Nature Climate Change , 10 pp. 1096-1101. 10.1038/s41558-020-0895-9. Green open access

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Abstract

Enterprises are at the forefront of climate actions and multinational enterprises (MNEs) engage in foreign direct investment, allowing them substantial influence over the entire supply chain. Yet emissions embodied in the international supply chains of MNEs are poorly known. Here we trace the carbon footprints of foreign affiliates of MNEs and show that the gross volume of global carbon transfer through investment peaked in 2011, mainly driven by the decline in carbon intensity. Despite declining carbon footprints of developed country-based MNEs, there has been a notable increase in carbon transfer sourced from the Chinese mainland. We propose an investment-based accounting framework to allocate carbon footprints of MNEs to the investing country. Investment-based accounting of emissions could inform targeted and effective climate policies and actions. For instance, some large MNEs play a crucial role in carbon transfer, therefore their originating country should bear more responsibilities of carbon emission reduction as an investor.

Type: Article
Title: Embodied carbon emissions in the supply chains of multinational enterprises
Open access status: An open access version is available from UCL Discovery
DOI: 10.1038/s41558-020-0895-9
Publisher version: https://doi.org/10.1038/s41558-020-0895-9
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: Business and industry, Carbon and energy, Climate-change mitigation, Interdisciplinary studies
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL BEAMS
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment
URI: https://discovery-pp.ucl.ac.uk/id/eprint/10109801
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