The Scope 3 Emissions Reporting Challenge

As the Corporate Sustainability Reporting Directive (CSRD) takes full effect across the EU, Scope 3 emissions have become a central focus in sustainability reporting. For large and listed companies, the requirement to disclose value chain emissions marks a significant step up in climate accountability.

Unlike Scope 1 and 2 emissions—relating to direct operations and purchased energy—Scope 3 encompasses all other indirect emissions across an organisation’s value chain. These include transport, procurement, subcontractors, materials, and waste. It’s where the majority of emissions typically occur—and where the biggest challenges lie.

The Key Challenges

Data Gaps
One of the most pressing issues is the lack of reliable data from third parties. Many organisations find it difficult to obtain emissions figures from their suppliers, subcontractors, or downstream partners—especially in sectors with complex logistics chains.

Lack of Standardisation
There is currently no universal approach to calculating and reporting Scope 3 emissions. Variations in methodology across industries and regions make it difficult to consolidate data or compare performance accurately.

SME Readiness
Many small and medium-sized enterprises (SMEs)—particularly in construction, logistics, and manufacturing—are not equipped to meet the emissions reporting demands now being placed on them by larger contractors or clients.

Emerging Trends

Supply Chain Pressure
Larger firms are increasingly pushing Scope 3 compliance downstream. Suppliers and hauliers are being asked to provide real, verifiable carbon data—or risk losing tenders, funding, or contract opportunities. This pressure is accelerating digital transformation across the value chain.

Digital Reporting Tools
New platforms such as Hub360 are being adopted to streamline Scope 3 reporting. These systems allow organisations to track emissions tied to specific jobs, loads, or suppliers—automating data collection and enabling audit-ready transparency.

Mandatory Assurance
With CSRD enforcement underway, external assurance is becoming the norm. Companies can no longer rely on spreadsheets and assumptions. Instead, they need systems that provide traceable, standardised, and verifiable data—capable of withstanding regulatory and investor scrutiny.

Conclusion

The reporting of Scope 3 emissions is no longer a peripheral issue—it’s now a critical compliance requirement. As regulators, investors, and clients demand higher levels of accuracy and transparency, organisations must move beyond estimates and towards data they can stand over.

Those who act now will gain a competitive advantage. Those who delay risk falling behind—not just on compliance, but on credibility.