For sustainability leaders, collecting Scope 3 emissions data can feel like an impossible task. You’ve tackled Scope 1 (direct emissions) and Scope 2 (indirect emissions from energy), but Scope 3, which covers all other indirect emissions, presents a whole new level of complexity.
With emissions spanning across the entire value chain—think everything from business travel to supplier manufacturing processes—getting accurate, timely data from suppliers leave even the most seasoned sustainability professionals pulling out their hair.
But if this process is so difficult, why bother? The answer lies in the growing demand for transparency around Scope 3 emissions. This is no longer a ‘nice to have’ — it’s becoming a requirement.
For example, Australia’s new climate legislation, Australian Sustainability Reporting Standards (ASRS), mandates Scope 3 reporting starting in 2025. This Act introduces mandatory sustainability reporting, ensuring greater transparency and accountability in Australia’s business practices.
According to the Carbon Disclosure Project (CDP), Scope 3 emissions can account for an average of 75% of an organisation’s total Greenhouse Gas (GHG) emissions, with the supply chain being one of the largest contributors.
This version makes the tone clearer and tighter while connecting the difficulty with the need for action, emphasising both compliance and sustainability benefits.
But here’s the good news: while Scope 3 reporting is complex, it’s not impossible. With the right approach, tools, and processes, your business can confidently gather and report this essential data.
This article will break down the complexities of Scope 3 reporting, outlining its challenges and offering practical guidance, including key tips on avoiding common pitfalls.