Tracking Multinational Corporate Climate Action from Space

In 2016, multinational companies (MNCs) and their supply chains were responsible for nearly one-fifth of global carbon emissions. Since then, MNC policies with explicit language aimed at mitigating the climate consequences of global business models have emerged. A majority of MNCs have also emphasized the importance of prioritizing supply chain emissions in their decarbonization plans. In this dissertation, the author develops a quantitative framework, combining dynamic difference-in-difference and network analysis techniques, to analyze how supply chain policies for climate change mitigation have manifested among MNCs, how their effects have migrated across borders, and whether they are effective.

The author’s results show these policies are correlated with structural changes in the supply chain, uncertain effects on supplier emissions, and varying effects on the local atmosphere. Statistically significant reductions in atmospheric CO2 in advanced economies with high innovation capacity imply these policies can lead to positive effects in some contexts, but increases in medium- and low-capacity countries suggest that issues in selection and carbon leakage simultaneously arise. The author’s satellite-based analysis also shows how the atmospheric stabilization necessary for climate change mitigation depends on persistent and comprehensive anthropogenic emissions reductions.

These findings demonstrate the need for scaling new and permanent low-carbon technology across firms globally and highlight opportunities for systematic coordination among MNCs, governments, and international bodies in a broader climate strategy and potential synergies with national policies. Such coordination is essential for addressing the market failures and collective-action challenges that decentralized, voluntary approaches cannot resolve.