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Solving Scope 3 Challenges: A Practical Guide to Supply Chain Carbon Footprinting
2025-07-02
Carbon Footprint ESG
A Practical Guide to Supply Chain Carbon Footprinting
Why Scope 3 Matters—And Why It’s Hard
  • Many companies today are making progress in tracking their direct emissions—those that come from company-owned operations. But a far greater challenge lies in what’s known as Scope 3 emissions: the carbon footprint across the supply chain. These indirect emissions, from raw materials, outsourced manufacturing, logistics, and even product use, often make up the largest share of a company’s climate impact.
    The difficulty comes from complexity. One product may pass through dozens of suppliers across multiple countries, each using different energy sources and processes. Collecting reliable data across this chain is slow, inconsistent, and frequently incomplete.

Why Estimation Isn’t Enough
  • Many companies rely on industry averages or standard databases to estimate supply chain emissions. While helpful as a starting point, these figures often fail to reflect the real practices of your specific suppliers. This limits your ability to pinpoint high-impact areas and develop targeted carbon reduction strategies.
    Estimation may meet short-term needs, but it cannot provide the accuracy required for meaningful change—or for supporting claims to customers and stakeholders.

Digital Tools That Make It Work
  • The good news is that smarter solutions are now available. Digital carbon footprinting platforms allow businesses to connect directly with suppliers and collect data in a standardized, secure way. This reduces the need for emails and spreadsheets, and increases consistency across global operations.
    In addition, many of these tools come with pre-built emission models. These libraries help fill in gaps when supplier data is missing, giving businesses a much clearer overview of emissions hotspots and improvement areas. What once took months can now be done in days or even minutes. And with automation, there is less risk of human error.

Turning Insight into Action
  • Ultimately, supply chain carbon data should not just sit in a report—it should guide business decisions. With real-time carbon visibility, companies can choose lower-emission materials, redesign processes, and engage with suppliers to reduce impact together.
    In addition, faster and more accurate footprinting helps businesses respond quickly to customer requests and align procurement with climate goals. Solving Scope 3 emissions starts with better visibility—and ends with smarter, more sustainable operations.

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