KUALA LUMPUR – Multinational companies (MNCs) will cut suppliers for failing to curb carbon emissions, with 78% of them planning to remove suppliers that endanger their carbon transition plan by 2025, according to a new study by Standard Chartered.
For Malaysian suppliers who fail to transition alongside their MNC partners, this could mean a loss in export revenue of US$65.3 billion (RM268 billion).
“However, the study also reveals a US$1.6 trillion market opportunity for (Malaysian) suppliers who decarbonise in line with their MNC partners’ net zero plans,” it said in a statement today.
According to the Carbon Dated study, as large corporates transition to net zero carbon goals, 15% of MNCs have begun removing suppliers that may scupper their transition plans.
The study said MNCs expect to exclude 35% of their current suppliers as they move away from carbon. – Bernama, June 16, 2021
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