Multi-national corporations as a catalyser for small and medium enterprises green transition : an Eni explorative case study

Abstract

The decarbonization of economic activities is an urgent priority to avoid the rise of global temperatures over 1.5° Celsius. In this context, the GHG Protocol’ Scope 3 is gaining mounting attention worldwide. Multi-National Corporations rely on their market power and coercive measures to force suppliers in emissions’ reporting and abatement. However, this approach is failing to deliver the expected results. This paper aims at informing managers and contributing to Scope 3 literature by presenting a Toolbox of instruments based on Eni’s Net-Zero strategy. The findings will show that a more pragmatic strategy should be implemented. Companies should focus on engaging with stakeholder to better understand their limitations and shape behaviour-based and outcome-based incentives to tackle obstacles and enhance reciprocal decarbonization. As Small and Medium Enterprises and Multi-National Corporations green transitions are fundamentally interconnected, framing Scope 3 achievement as a shared value creation process may constitute the winning strategy.