Kenyan suppliers risk losing $3.9 billion (about Sh377.2 billion) unless they cut carbon emissions, a new study by Standard Chartered reveals. Multinational firms plan to cut-off suppliers who fail to curb carbon emissions, with 78 per cent of multinationals (MNCs) planning to remove suppliers that endanger their carbon transition plan by 2025. Some 64 per cent of MNCs believe emerging market suppliers are struggling more than developed market suppliers with their net-zero transition, and 57 per cent are prepared to replace emerging market suppliers with developed market suppliers to aid their transition. MNCs are concerned that emerging market suppliers are failing to keep pace with for two key reasons insufficient knowledge and inadequate data. Some 56 per cent of MNCs believe that the lack of knowledge among emerging market suppliers (41 per cent for developed market suppliers) is a barrier to decarbonisation.

Source: The Star July 13, 2021 00:56 UTC