Why Emissions Are a Hot Topic in 2025
Scope 3 emissions—those generated outside a company’s direct operations—are the largest share of most organizations’ carbon footprint. Yet they remain the hardest to measure, the easiest to overlook, and the most scrutinized by regulators and investors.
The Financial Times recently highlighted that, while Scope 1 and 2 emissions are now widely disclosed and audited, Scope 3 remains voluntary, patchy, and full of assumptions. The EFRAG 2025 State of Play Report echoes these concerns, citing a need for comparable, assured data across supply chains.
What Are Scope 3 Emissions?
According to the GHG Protocol, Scope 3 emissions are all indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company.
These include:
- Purchased goods and services
- Business travel
- Employee commuting
- Waste disposal
- Use of sold products
- End-of-life treatment
- Investments and franchises
For many companies, Scope 3 emissions account for up to 70–90% of total emissions.
Why They’re So Hard to Track
Data challenges stem from:
- Lack of supplier transparency
- Inconsistent boundaries across sectors
- Reliance on proxies and industry averages
- Difficulty in upstream vs downstream segregation
“Getting accurate Scope 3 data feels like trying to map a moving target,” said one sustainability director in a recent FT survey. “Everyone interprets it differently, and no one wants to share proprietary data.”
The Risk of Getting It Wrong
Failing to address emissions can lead to:
- Underreporting carbon liabilities
- Investor skepticism about net-zero plans
- Exclusion from sustainability indices or procurement bids
- Reputational damage when watchdog groups uncover hidden impacts
Regulators are taking notice. The CSRD (EU) and California’s SB 253 law now require Scope 3 disclosures in many cases—often with external assurance.
Case Example in the Automotive Sector
A European car manufacturer disclosed net-zero claims in 2024—but failed to include emissions from steel production and end-of-life recycling. Activist shareholders filed a complaint, arguing the omissions were material. Within six months, the company had to revise its disclosures, update targets, and restructure supplier contracts for traceability.
The Future of Carbon Disclosure Is in the Supply Chain
Professionals managing ESG disclosures, procurement, and operations must now:
- Engage suppliers and collect primary data
- Model emissions categories across Scope 3
- Set reduction targets tied to specific business units
- Work toward third-party assurance on carbon metrics
This shift demands new skills in carbon accounting, risk analysis, and supplier collaboration—especially across global operations.
Master Scope 3 with This Leading Online Course
To meet this growing need, the Sustainability Academy offers a comprehensive training designed for professionals who want to understand and lead carbon reduction strategies, including Scope 3 tracking and assurance.
Online Certificate on Carbon Reduction Strategy
The Online Certificate on Carbon Reduction and Net Zero Strategies is designed for Sustainability and Climate professionals who want to acquire the necessary practical skills to apply a carbon reduction strategy.
The course provides practical information, case studies and best practicies, along with information on International standards relating to Carbon Reduction, Net Zero Strategies and Reporting, such as WRI GHG Protocol, Scope 1,2,3 CDP, Science Based Targets Initiative (SBTi), GRI. The course is accredited by CPD.
This highly-rated course helps professionals:
- Understand all scopes of carbon emissions and the GHG Protocol
- Track Scope 3 emissions across complex supply chains
- Set and align science-based targets
- Integrate carbon management into ESG reporting frameworks (e.g., TCFD, CSRD)
- Explore external assurance requirements and best practices
Why choose this course?
- Developed by leading sustainability experts
- Offers real-world carbon disclosure examples and tools
- 100% online, self-paced, and CPD-certified
- Affordable and designed for professionals in procurement, ESG, or operations
Perfect for:
- ESG and sustainability managers
- Carbon analysts and climate risk officers
- Supply chain professionals
- Consultants supporting net-zero transitions
Bonus: Includes a downloadable Scope 3 tracker template, assurance checklist, and regulatory mapping tool.
Q&A: Carbon Reporting
Q1: Are companies legally required to report Scope 3?
In many jurisdictions, yes. Under the EU’s CSRD and new U.S. state laws like SB 253 (California), Scope 3 reporting is now mandatory for large companies. Even where it’s voluntary, investors expect it.
Q2: What’s the best starting point for Scope 3 tracking?
Begin by mapping all 15 GHG Protocol categories. Use available supplier data where possible and apply emission factors when needed. Prioritize high-impact categories like purchased goods, logistics, and product use.
Q3: Is it possible to get Scope 3 data externally assured?
Yes—especially for material categories. While more complex than Scopes 1 and 2, assurance providers now offer Scope 3 reviews. But it requires solid methodology, traceable data, and internal governance.
Final Thought: Scope 3 Is Hard—but Non-Negotiable
As climate accountability deepens, companies can no longer ignore emissions beyond their gates. Scope 3 is where the bulk of impact lies—and where future leaders in sustainability will distinguish themselves.
With the right tools, frameworks, and training, professionals can move from confusion to control—and drive measurable change across entire value chains.
“If you’re serious about net zero, Scope 3 is where the real work begins.”