Knowledge & Insights about Environmental Impact & Carbon Management | Carbmee

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Expertise to drive sustainable transformation

The Greenhouse Gas (GHG) Protocol provides the global standardized framework for measuring and managing greenhouse gas emissions. It classifies emissions into three distinct categories, or "scopes," to help organizations account for their direct and indirect environmental impact.

Scope 1: Direct emissions from sources that an organization owns or controls, such as company vehicles and manufacturing facilities.

Scope 2: Indirect emissions from the generation of purchased electricity, steam, heating, or cooling consumed by the company.

Scope 3: All other indirect emissions that occur in a company's value chain, including both upstream and downstream activities.

What Are the Three Scopes of GHG Emissions?

According to the GHG Protocol, Scope 3.1 emissions include all upstream (cradle-to-gate) emissions generated during the production of goods and services purchased by your company. This category is often the largest and most complex part of an organization’s carbon footprint, as it spans the entire supply chain; from the extraction of raw materials to the manufacturing, processing, and transportation of materials and components between suppliers up to your Tier 1 partners.

Recognizing the importance of Scope 3.1 emissions is key to aligning sustainability goals with business outcomes.

Significant Portion of Carbon Footprint: For sectors like manufacturing, retail, and consumer goods, Scope 3.1 emissions can represent the vast majority of the total GHG inventory. Addressing this category is not just a matter of compliance; it is essential for any credible net-zero strategy and provides the greatest potential for decarbonization.

Increased Regulatory Pressure: New regulations place a strong emphasis on value chain transparency. The Corporate Sustainability Reporting Directive (CSRD) in Europe and the Carbon Border Adjustment Mechanism (CBAM) require detailed reporting on supply chain emissions. Accurately measuring Scope 3.1 is critical for compliance and avoiding penalties.

Supply Chain Decarbonization Opportunities: By analyzing Scope 3.1 data, you gain deep insights into your supply chain's emission hotspots. This allows you to identify the 20% of suppliers or materials that may be causing 80% of your emissions, enabling you to focus reduction efforts for the highest return on investment.

These proven best practices will help you calculate Scope 3.1 emissions with precision and achieve measurable results.


Organizations can calculate emissions using either a spend-based or activity-based method, depending on their needs and available data. The spend-based model estimates emissions by multiplying the monetary value of purchases with industry-average emission factors—helpful as a starting point but less precise. In contrast, the activity-based calculation relies on detailed information such as quantity, weight, or volume of goods purchased, combined with specific emission factors, providing far more accurate and actionable insights.

Depending on the chosen approach, you will need to know:

product-specific GHG emissions originating at the direct supplier level (Tier 1) as well as in the upstream chain (Tier 2 to Tier n),

quantities for purchased items and components (e.g. the number of units, weight, volume),

the cost of purchased goods and services,

activity data at the supplier level, such as proportional energy and fuel consumption, waste, etc.

Primary data relates to specific activities within a company’s value chain that is provided and validated by the source. It is generally more accurate than secondary data, which reflects industry averages or benchmarks. However, detailed primary data on product-related GHG emissions from Tier 1 suppliers is often unavailable or lacks sufficient quality.

Carbon management is an ongoing process, and companies can start their decarbonization journey with secondary data. It provides a solid foundation that can later be refined with primary data, enabling more targeted reduction strategies.

Step 3: Choose the Right Emission Factors

Identifying the right secondary data sources and emission factors can also be a challenge when calculating your company’s carbon footprint. Emission factors are used to determine GHG emissions based on different types of data, such as:

purchase spend (e.g. kg CO2e per euro purchase value for a particular product group),

unit (e.g. kg CO2e per kg weight of a particular good),

The type of emission factors required depends primarily on the calculation method your company chooses.

Initially, many companies may only be able to include a portion of their purchased goods and services in Scope 3.1 emissions calculations. 

Consequently, they will need to consider the level of validity when extrapolating the collected emissions data for the remaining purchases for which no data was collected. Similarly, emission factors may not be available for some specific processes, resulting in data gaps that must be filled over time—either by collecting primary data or using suitable proxy data from reliable databases.

How Do You Calculate Scope 3.1 Emissions?

Cutting Scope 3.1 emissions isn’t just about knowing your numbers. It’s about driving real change where it matters most: across your supply chain. By integrating sustainability into purchasing and building stronger partnerships with suppliers, you can unlock meaningful reductions and accelerate your path to net zero.

Drive Reduction Through Sustainable Procurement

When assessing and reducing your company’s Scope 3.1 emissions, the procurement team plays a central role as they manage purchase orders and supplier relationships. By embedding sustainability criteria into purchasing decisions, they can prioritize low-carbon suppliers, choose recycled or low-impact materials, and directly influence the company’s environmental footprint at its source.

Foster Collaboration with Supplier Engagement

Net-zero can't be achieved alone.It requires your organization to lead and mobilize stakeholders toward your goals. Directly engaging your suppliers and inviting them to collaborate is an effective way to gain their buy-in and identify your most strategic partners. By working closely with them, you can obtain accurate and validated data to develop actionable insights into how your purchased goods are manufactured and distributed. This is key to differentiating the emissions you produce from those you receive, allowing your teams to plan and execute targeted, high ROI reduction initiatives.

Key Strategies for Reducing Scope 3.1 Emissions

Carbmee helps companies drive their sustainable transformation by applying the 80/20 rule: focusing on the 20% of value chain activities that cause 80% of emissions. With the carbmee EIS™ carbon management platform, you can gain hotspot transparency for Scope 3.1 within days and empower your teams to make bold, data-driven decarbonization decisions.

Activity-based calculation for optimal transparency: To achieve full Scope 3.1 transparency, carbmee EIS™ uses an activity-based approach built on ecoinvent models, carefully selected for their best fit to the materials or services being analyzed. You can also use a supplier-specific approach, which follows the same methodology but replaces generic data from the database with enriched primary data obtained directly from customers or suppliers. This enables you to calculate emissions more precisely and to plan efficient reduction initiatives.

Collaboration for granularity: The platform’s collaboration feature enables you to engage suppliers directly, helping secure their buy-in and identify your most strategic partners. By inviting them to validate or refine emission factors for materials, energy mix, transportation, and more, your company can significantly increase the granularity of its Scope 3.1 data.

High ROI: By aligning suppliers with your sustainability objectives, applying activity-based carbon accounting, and strengthening data quality through collaboration, you gain the insight and confidence to implement high-impact, cost-effective emission reduction measures.

Ready to turn data into action? Talk to one of our industry experts to discover how carbmee EIS™ can help you achieve Scope 3.1 transparency and accelerate your carbon reduction goals.

Simplify Scope 3.1 Management with Carbmee

Scope 3.1 includes the cradle-to-gate emissions of all goods and services purchased or acquired by the reporting company in the reporting year. This encompasses raw material extraction, processing, manufacturing, and transportation of products before they reach your company.

Why Are Scope 3.1 Emissions the Hardest to Measure?

Scope 3.1 emissions are challenging to measure because they occur outside a company's direct control. Accurate calculation requires collecting vast amounts of data from a complex, multi-tiered supply chain where information is often unavailable, inconsistent, or of poor quality.

What Is the Difference Between Upstream and Downstream Emissions?

Upstream emissions are indirect emissions related to purchased goods and services, occurring before they reach your company (e.g., Scope 3.1). Downstream emissions are indirect emissions that occur after a product leaves your company's control, such as distribution, customer use, and end-of-life treatment.

How Can a Company Reduce Its Scope 3.1 Emissions?

Companies can reduce Scope 3.1 emissions by engaging directly with suppliers to encourage them to decarbonize, redesigning products to use low-carbon materials, switching to suppliers with lower carbon footprints, and incorporating sustainability criteria into their procurement policies.

What Is the 80/20 Rule for Scope 3 Emissions?

The 80/20 rule, or Pareto principle, suggests that approximately 80% of a company's supply chain emissions often come from just 20% of its suppliers or purchased goods categories. Identifying and focusing decarbonization efforts on these "hotspots" is the most efficient way to achieve significant reductions.

Definition: Scope 3.1 emissions cover all upstream greenhouse gas (GHG) emissions from the production of goods and services your company purchases. This includes everything from raw material extraction to transport to your direct suppliers.

Importance: For many companies, Scope 3.1 is the largest category of their carbon footprint, often exceeding 75%. It is a major focus of new regulations like the CSRD and offers the greatest opportunity for decarbonization.

Core Challenge: The main difficulty lies in collecting accurate data from extensive and complex supply chains.

Solution: Effective reduction requires a combination of activity-based calculation methods, strong supplier engagement, and a focus on emission hotspots to achieve high-impact results.


Depending on the industry, Scope 3 emissions can make up over 75% of a company’s total carbon footprint. Within this category, Scope 3.1 (Purchased Goods and Services) typically has the greatest impact. This guide outlines how to identify, calculate, and reduce these emissions efficiently to drive decarbonization across your value chain.

Scope 3.1: Your Roadmap to High-Impact Reductions

Struggling with Scope 3.1 emissions? Use these best practices to calculate and reduce them effectively. Get informed with Carbmee!

Scope 3.1 Emissions: Your Roadmap to High-Impact Reductions

The European Union (EU) has set itself as a global leader in climate action, implementing a robust regulatory framework to achieve carbon neutrality by 2050. The primary goal of these regulations is to curb greenhouse gas emissions, promote sustainability, and ensure that companies, both within the EU and those trading with it, are actively contributing to the fight against climate change.

For businesses, navigating these regulatory requirements is crucial not only to avoid penalties but also to seize opportunities for growth and market leadership in an increasingly climate-conscious global economy. To help companies stay ahead, Carbmee offers state-of-the-art tools for emission tracking, supply chain transparency, and sustainability reporting. With a dedicated focus on meeting the unique challenges of these regulations, Carbmee ensures compliance and optimizes corporate sustainability efforts across various industries.

This guide delves into key EU climate regulations, providing a comprehensive understanding of how businesses can stay compliant and competitive.

The European Union’s climate framework is built around a set of flagship policies that translate the bloc’s net-zero ambition into concrete, enforceable requirements for businesses. These measures work in tandem to curb greenhouse gas emissions, accelerate the transition to clean technologies, and ensure that companies operating in—or trading with—the EU actively contribute to climate objectives. 

For most organizations, the practical implications are clear: price signals on emissions (e.g., EU ETS), border measures that level the playing field for imports (CBAM), rigorous corporate disclosure and assurance standards (CSRD/ESRS), sector-specific guidance for land-based emissions (FLAG), and credible target-setting aligned with climate science (SBTi).

Together, these policies reshape how firms measure, manage, and report their environmental impact—requiring auditable data, product- and supplier-level transparency, and integration of carbon risk into strategic and financial decision-making. 

The European Green Deal is the EU’s overarching climate and industrial policy roadmap to make Europe the first climate-neutral continent by 2050. It bundles legislative, market, and investment measures to decarbonize energy, industry, buildings, transport, and agriculture while safeguarding competitiveness and social fairness. In practice, the Green Deal drives new rules for emissions measurement and reduction, cleaner technologies, and more sustainable resource use across the entire economy.

What is the goal of the European Green Deal?

Core objectives include cutting EU greenhouse gas emissions by at least 55% by 2030 versus 1990 levels, fostering innovation in clean technologies, and advancing a circular, sustainable economy that decouples growth from resource consumption. For companies, this translates into new expectations around energy efficiency, product- and supplier-level emissions transparency, and integration of carbon risk into operations and finance. 

Is the European Green Deal legally binding?

The European Climate Law makes the 2050 climate-neutrality objective legally binding for the EU and enshrines the 2030 target in law. The Green Deal itself is not a single law; it is implemented through a mix of binding and non-binding instruments—such as regulations, directives, and funding programs (e.g., the Fit for 55 legislative package). As these instruments enter into force, businesses face enforceable requirements (with audits and penalties in scope), alongside incentives and finance mechanisms to accelerate the transition.

The Green Deal has implications for all industries, driving businesses to adopt new practices around energy consumption, emissions tracking, and supply chain management. Carbmee helps businesses align with the European Green Deal’s ambitious targets by providing a comprehensive platform that integrates real-time emissions data and offers actionable insights into optimizing energy efficiency and reducing carbon footprints. Discover how the European Green Deal impacts your industry and how to stay compliant.

What is the EU ETS emissions trading system?

The EU Emissions Trading System (ETS) is a cornerstone of EU climate policy. It’s a cap-and-trade program that sets a declining cap on total emissions from covered sectors—such as power generation, energy-intensive industry, and aviation (with maritime shipping being phased in). Companies must hold tradable allowances (EUAs) for every tonne of CO₂ they emit. As the cap tightens each year, the total supply of allowances falls, creating a price signal that drives efficiency improvements, fuel switching, and investment in low-carbon technologies.

Yes. Operators in covered sectors must monitor, report, and verify (MRV) their emissions and surrender allowances equal to their verified annual emissions. Non-compliance can trigger significant financial penalties and a requirement to make up any allowance shortfall in subsequent years.

No. ETS is not a tax—it is a market-based pricing mechanism. The carbon price emerges from the balance of supply (the cap/allowances available) and demand (actual emissions and abatement costs). While it functions like a carbon price signal, it differs from taxation in design and governance; allowances are traded on the market and many are auctioned by Member States.

For businesses under ETS regulation, carbmee’s Environmental Intelligence Solution (EIS™) allows for real-time tracking of emissions, offering insights to help reduce carbon footprints, stay within allowance limits, and avoid penalties. By optimizing emissions management, businesses can mitigate the costs of participating in ETS while contributing to broader climate goals. Learn more about how to manage your emissions effectively under the EU ETS.

What is the Carbon Border Adjustment Mechanism?

CBAM is the EU’s carbon-leakage instrument. It is being phased in to ensure that imports of carbon-intensive goods face a carbon price comparable to EU-made products. Importers of certain goods (e.g., steel, cement, fertilizers, aluminum, electricity, hydrogen, and selected downstream products) must report embedded emissions and—at full phase-in—purchase CBAM certificates reflecting the EU carbon price, adjusted for any verified carbon price paid in the country of origin. The aim is to level the playing field, discourage offshoring of emissions, and drive global decarbonization.

Exemptions or adjustments may apply where a carbon price broadly comparable to the EU’s is paid, or for specific territories closely aligned with the EU ETS framework. Exact eligibility, methodologies, and documentary requirements are defined in implementing acts and guidance and are updated over time.

CBAM currently targets a defined set of carbon-intensive goods—such as iron and steel, cement, fertilizers, aluminum, electricity, hydrogen, and certain downstream products. Coverage, calculation rules, and data requirements are evolving through implementing legislation, with scope expected to broaden over time as the mechanism matures.

With CBAM's phased implementation, companies that import goods into the EU must develop strategies to meet compliance requirements. Carbmee simplifies this process by offering tools that calculate and report the carbon content of imported goods, ensuring that companies stay compliant while minimizing carbon tariffs. Explore carbmee’s solutions to streamline CBAM compliance and reduce tariff impact.

Carbon Border Adjustment Mechanism (CBAM)

What is the Corporate Sustainability Reporting Directive?

The CSRD expands the former Non-Financial Reporting Directive (NFRD) and requires in-scope companies to publish assured sustainability information aligned with the European Sustainability Reporting Standards (ESRS). Disclosures span environmental, social, and governance topics, including GHG emissions across Scopes 1–3, transition plans, targets, policies, risks, and KPIs. Reports must follow principles such as double materiality and enable digital tagging to improve comparability and investor use.

Yes. CSRD is a mandatory EU directive with phased timelines by company type. In-scope entities must establish robust processes to collect, control, and obtain assurance over sustainability data, and to publish ESRS-aligned reports as part of the management report.

Large EU companies meeting EU size criteria,

EU-listed SMEs (with certain phase-in relief), and

Non-EU companies with substantial EU activity (meeting EU turnover and presence thresholds).
 Always confirm your status against the latest applicability thresholds, exemptions, and effective dates.

Under CSRD, businesses must implement transparent reporting processes and meet high standards of accuracy. Carbmee’s automated reporting tools allow companies to track their sustainability metrics efficiently, generate auditable reports, and ensure compliance with CSRD’s requirements. Find out more about Carbmee's support for CSRD compliance. Find out how carbmee’s reporting tools make CSRD compliance straightforward and efficient.

Corporate Sustainability Reporting Directive (CSRD)

What is the Forest, Land, and Agriculture Guidance?

FLAG covers emissions and removals from land use, land-use change, forestry, and agriculture. These land-based systems are both major sources of greenhouse gases (e.g., from deforestation, soil disturbance, enteric fermentation) and powerful sinks via carbon sequestration in forests and soils. Guidance in this area focuses on avoided deforestation, improved land management, restoration, and sustainable agricultural practices to unlock significant mitigation potential.

In practice, FLAG refers to sector-specific accounting for land-based emissions (e.g., livestock, manure management, fertilizer use, soil carbon changes, deforestation) and removals (e.g., afforestation, reforestation, improved forest management). Because these dynamics differ from energy and industrial sources, FLAG often requires tailored methodologies, activity data, regional factors, and time-bound treatment of biogenic carbon flows.

Carbmee helps companies monitor and manage their emissions in these sectors through its Supply Chain Emissions Solution, enabling businesses to adopt sustainable land management practices and reduce their overall carbon footprint. Discover how Carbmee can help with FLAG compliance. Discover more about FLAG.

What is the Science Based Targets initiative?

The SBTi enables companies to set science-based climate targets aligned with the Paris Agreement—typically consistent with a 1.5°C pathway. It provides a clear framework to commit to, quantify, and reduce greenhouse-gas emissions across the value chain so corporate action aligns with global climate goals.

Organizations generally follow a five-step journey:

Develop targets covering Scopes 1, 2, and—where material—Scope 3, using sectoral and, when relevant, FLAG guidance.

Disclose progress publicly on an annual basis.

Take action to implement decarbonization measures and update targets as methodologies evolve.

To ensure credible, measurable decarbonization trajectories that align corporate emissions reductions with the scientifically required pace to limit warming to 1.5°C—meeting rising expectations from regulators, investors, customers, and employees.

Carbmee’s Emission Intelligence Solution supports companies in calculating, tracking, and reducing their emissions across all three scopes (Scope 1, 2, and 3), helping them meet SBTi standards. Learn more about how Carbmee supports SBTi alignment. Learn how you can set and achieve science-based climate targets.

In addition to the key regulations discussed above, businesses should also be aware of other emerging and evolving EU climate regulations:

What is the Sustainable Finance Disclosure Regulation?

The SFDR requires financial market participants and financial advisers to disclose how they integrate sustainability risks, principal adverse impacts, and ESG characteristics/objectives into their investment products and processes. It forms part of the EU’s broader sustainable-finance framework alongside the EU Taxonomy, which classifies environmentally sustainable economic activities.

EU-based asset managers, institutional investors, and financial advisers must meet SFDR disclosure requirements. Depending on their activities and how products are marketed, certain non-EU firms may also be in scope when offering financial products within the EU.

Potentially. Non-EU firms can fall under SFDR where they market financial products in the EU or otherwise become in scope through EU-facing activities. Applicability depends on the firm’s structure, distribution channels, and the nature of products offered.

Sustainable Finance Disclosure Regulation (SFDR)

The EU Taxonomy is a classification system that defines when an economic activity is environmentally sustainable. It uses technical screening criteria and “do no significant harm” safeguards across objectives such as climate change mitigation and climate change adaptation, alongside minimum social safeguards. By setting clear thresholds and metrics, it establishes a common language for sustainability across sectors and asset classes.

Why is the EU Taxonomy Regulation important?

The Taxonomy brings clarity, consistency, and comparability to sustainable finance and corporate disclosures. It guides capital toward activities aligned with EU climate and environmental objectives, and underpins reporting under CSRD and disclosures under SFDR—helping companies and investors demonstrate which portions of their activities are Taxonomy-eligible and Taxonomy-aligned as the EU intensifies its focus on sustainable finance.

Fit for 55 is the EU’s economy-wide legislative program to cut greenhouse gas emissions at least 55% by 2030 (vs. 1990). It’s a suite of laws—reforming and expanding the EU ETS, introducing CBAM, raising renewable and efficiency targets, tightening transport standards, and updating land-use rules—that together align energy, industry, and mobility with the EU’s 2030/2050 climate goals.

The European Commission has unveiled the "Simplification Omnibus" proposal, aiming to reduce regulatory burdens on businesses and enhance competitiveness. This initiative focuses on streamlining sustainability reporting and supply chain transparency rules, addressing concerns from industries about complex regulations.

Corporate Sustainability Reporting Directive (CSRD): The proposal suggests limiting CSRD requirements to companies with over 1,000 employees, exempting approximately 80% of businesses currently obligated under the directive.

Corporate Sustainability Due Diligence Directive (CSDDD): Proposed changes involve delaying the directive's implementation by a year to 2028 and narrowing its scope to direct suppliers only, reducing the compliance burden on companies.

Carbon Border Adjustment Mechanism (CBAM): The proposal plans to exclude about 90% of importers from the carbon border fee, focusing only on those importing goods exceeding 50 metric tons annually.

The EU’s Simplification Omnibus proposal seeks to reduce administrative burdens while ensuring sustainability efforts remain impactful. By cutting reporting obligations by 25%, European businesses could save up to €40 billion, allowing them to redirect resources toward meaningful emissions reductions. At the same time, the Clean Industrial Deal proposes a €100 billion investment to support clean manufacturing and simplify state aid rules for energy-intensive industries—helping companies decarbonize where it truly counts.

While regulatory streamlining aims to enhance efficiency, companies must remain committed to real carbon reduction. A lighter reporting load does not mean a free pass on sustainability. Businesses should seize this opportunity to focus on direct emissions reductions, cleaner supply chains, and innovative green technologies. The EU maintains its net-zero goals, and industry leaders must continue driving tangible progress rather than seeing these changes as a rollback of environmental responsibility.

Focusing on Emissions Where It Matters Most

On the 10th of Stepember, 2025, the EU Parliament gave its final green light to targeted changes to the Carbon Border Adjustment Mechanism (CBAM) as part of the “Omnibus I” simplification package to cut red tape and bolster competitiveness. The amendments introduces a de minimis mass threshold designed to relieve SMEs and occasional importers while maintaining climate ambition: about 90% of importers would be exempt, yet ~99% of total CO₂ emissions from covered CBAM goods remain within scope, backed by strengthened anti-abuse safeguards.

New de minimis threshold (50 metric tons/year): Imports up to 50 t per importer per year would be fully out of CBAM scope, replacing the previous negligible-value exemption.

Certificate purchase timing: Buying CBAM certificates would start in February 2027 (not 2026). Costs are deferred, not avoided: importers must still purchase certificates retroactively for goods imported in 2026.

Certificate management: The quarterly minimum holding requirement falls from 80% to 50%, giving companies more flexibility to optimize CBAM costs.

CBAM declaration deadline: The annual filing deadline moves to end-October, allowing more time to collect and verify emissions data.

Recognition of third-country carbon prices: Declarants may deduct CO₂ prices paid in third countries other than the country of origin, improving fairness and flexibility.

Authorized CBAM representative: Companies may appoint a CBAM representative dedicated to CBAM administration (independent of customs filings), enabling leaner processes and clearer accountability.

Process simplifications: Rules for authorization, embedded-emissions calculation, verification, and the financial liability of authorized CBAM declarants are streamlined.

The legislative process is now in its final phase, pending Council approval.

CBAM: Simplifications to the EU Carbon-Leakage Instrument

As climate regulations in the EU continue to evolve, businesses must adopt robust systems to manage their carbon emissions, track supply chain sustainability, and ensure compliance with a growing range of regulations. Carbmee provides a comprehensive solution that integrates emissions tracking, supply chain transparency, and sustainability reporting to help companies meet their climate goals.

Environmental Intelligence System (carbmee EIS™) : 
Enables businesses to monitor emissions across their entire operation in real time, helping them stay compliant with ETS, CBAM, SBTi, and FLAG regulations.

Automated ESG Reporting:
 Helps businesses streamline their reporting processes for CSRD and other ESG-related disclosures, reducing the complexity of meeting these stringent requirements.

Supply Chain Emissions Management: 
Provides insights into the carbon footprint of supply chains, ensuring transparency and sustainability across sourcing, production, and distribution networks.

How Carbmee Helps Businesses Navigate EU Climate Regulations

The EU’s climate regulations are reshaping the global business landscape. Companies that adapt quickly and invest in sustainable practices not only meet regulatory demands but also position themselves as leaders in the green economy. By leveraging carbmee’s cutting-edge tools, businesses can ensure they meet all reregulatory requirements, reduce their emissions, and build a more sustainable, resilient future.

Explore how carbmee can help your business navigate the complexities of EU climate regulations and achieve long-term sustainability.

Future-Proofing Your Business with Carbmee

A Comprehensive Guide to EU Climate Regulations | Carbmee

Your guide to EU climate rules: Green Deal, ETS, CBAM, CSRD. See how Carbmee helps teams track emissions, meet requirements, and accelerate green growth.

A Comprehensive Guide to EU Climate Regulations: Everything you need to know about CBAM, ETS, CSRD and more

McKinsey estimates that Scope 3 emissions typically represent around 90 percent of a company’s total emissions. Despite this, many companies struggle to accurately measure and manage these emissions due to a lack of reliable supplier data.

As regulatory frameworks like the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS E1) increase transparency requirements, organizations must go beyond estimations and adopt supplier-specific carbon scoring to reduce Scope 3 exposure and ensure compliance.

Why Supplier Carbon Scores Are Critical for Scope 3 Management

Measuring and reducing Scope 3 emissions is a big challenge for companies wanting to protect the climate. Unlike direct emissions (Scope 1) and emissions from purchased energy (Scope 2), Scope 3 includes all indirect emissions from a company's value chain. This is a broad area, so it's important to understand where these emissions come from, especially from suppliers. General data is often not precise enough for good insights and reduction plans. Getting specific data from suppliers is therefore key for businesses aiming for real Scope 3 reductions.

To know what data to measure from suppliers, a company needs to carefully look at its value chain and the activities that produce the most emissions. This means sorting and prioritizing different Scope 3 emission sources, such as purchased goods and services, equipment, energy-related activities not in Scope 1 or 2, transport of goods to the company, waste, business trips, employee commutes, rented buildings used by the company, transport of sold products, processing of sold products, use of sold products, disposal of sold products, rented buildings owned by the company but used by others, and franchises.

Once the most important Scope 3 categories are found, the specific data needed from suppliers can be defined. For example, for "Purchased Goods and Services," important supplier data could be:

Origin of raw materials and how they are processed: Knowing where materials come from and how energy-intensive their production is can show major emission sources. Suppliers should provide data on the specific materials, their origin, and the energy used and efficiency of their production.

Energy used in manufacturing: Detailed data on electricity and fuel used to produce goods and services, including renewable and non-renewable sources, is important for calculating emissions.

Transportation data: Information on how goods are transported, distances, and fuel efficiency helps understand transport emissions in the supply chain.

Waste and waste management: Data on the types and amounts of waste from production and how it's disposed of or recycled helps quantify the environmental impact of waste.

Carbon footprint data per product: More and more, suppliers are expected to provide carbon footprint data for their products or services, which allows for more accurate allocation of emissions.

Similarly, for other relevant Scope 3 categories, specific data from suppliers is needed. For equipment, this could include the carbon footprint of the machinery. For downstream transport, it would involve data on the transport of finished products.

Collecting this detailed supplier data can be done in different ways, such as with questionnaires, data platforms, and systems for managing suppliers. Good relationships and clear communication with suppliers are very important for getting accurate information on time. Providing suppliers with clear guidelines, templates, and support can make data collection easier.

What to Measure: Supplier-Specific Scope 3 Data Points

Get a more accurate picture of their total carbon footprint: Moving beyond estimates gives a true view of emission sources in the value chain.

Find key areas for reducing emissions: Detailed data shows where the biggest opportunities for improvement are.

Work better with suppliers on sustainability: Sharing specific emission data can encourage cooperation and joint efforts to reduce environmental impact.

Track progress and measure the success of reduction plans: Regular data collection helps monitor the impact of sustainability efforts and make necessary changes.

Meet growing requirements from regulations and stakeholders: More pressure from governments, investors, and customers requires clear reporting of Scope 3 emissions.

Even though it's a challenge, measuring specific Scope 3 data from suppliers is essential for companies that seriously want to tackle their entire carbon footprint. By focusing on getting detailed and accurate information from their partners in the value chain, businesses can gain valuable insights, achieve significant emission reductions, and contribute to a more sustainable future.

Measuring supplier-specific Scope 3 data has many advantages. It allows companies to:

Supplier Emissions Intensity: CO2 emissions per unit of product or service provided.

Verification or Audit Status: Whether supplier emissions data is verified by third parties.

Scope 3 Tier Classification: Categorization of supplier impact based on position in the supply chain and emissions relevance.

These metrics form the foundation for credible Scope 3 accounting and drive informed sourcing decisions.

To manage Scope 3 effectively, companies must collect and monitor key supplier-level metrics:

Low Transparency Across Supply Chains: Suppliers, especially in lower tiers, often lack emissions tracking capabilities.

Manual Supplier Outreach and Data Collection: Relying on surveys and emails creates inefficiencies and data inconsistencies.

Estimation-Based Modelling: Generic emissions factors do not reflect supplier-specific realities, increasing compliance risks.

According to a CDP Global Supply Chain Report, only 37% of suppliers currently engage in Scope 3 emissions tracking, highlighting the data gap companies must bridge.

Challenges in Obtaining Accurate Supplier Carbon Data

Implementing supplier carbon scores offers multiple benefits:

Supports Low-Carbon Sourcing – Enables procurement teams to prioritize suppliers with lower carbon intensity.

Reduces Scope 3 Emissions Exposure – Identifies high-impact suppliers for targeted emissions reduction efforts.

Improves ESG Ratings and Investor Confidence – Demonstrates proactive supply chain management and transparency.

With growing emphasis on supply chain emissions, supplier carbon scores are becoming a competitive differentiator in procurement and ESG strategies.

Strategic Importance of Supplier Carbon Scores

Carbmee’s Custom Properties allow companies to capture detailed supplier emissions data without altering core systems. Examples include:

Supplier Carbon Score: Quantifies supplier emissions intensity and integrates it into the emissions model.

Verification Level: Tracks data assurance status for each supplier.

Scope 3 Tier Assignment: Classifies suppliers based on emissions relevance and supply chain position.

These custom fields feed into a centralized carbon model, enabling real-time Scope 3 tracking and supplier performance benchmarking.

Carbmee Custom Properties: Enabling Supplier-Level Emissions Visibility

Carbmee’s Carbontology framework links supplier entities to products, materials, and processes within your emissions model. This ensures:

Supplier carbon data flows automatically to product-level Scope 3 footprints.

Changes in supplier performance dynamically update emissions calculations.

Compliance reports reflect live, accurate supply chain data.

This level of connectivity transforms Scope 3 management from manual estimation to real-time carbon intelligence.

Carbontology: Connecting Supplier Data to Scope 3 Models

To implement effective supplier carbon scoring:

Map Key Suppliers: Identify high-impact suppliers across your value chain.

Define Custom Properties: Establish fields for carbon scores, verification levels, and tier classifications.

Integrate Supplier Data: Collect and connect verified supplier emissions data.

Automate Reporting: Use dashboards to track Scope 3 emissions and supplier performance.

Book a demo with Carbmee to see how supplier carbon scores can transform your Scope 3 strategy.

Getting Started with Supplier Carbon Scores

For benchmarks and insights on Scope 3 supplier transparency, download the Sustainability Intelligence Report 2025.

Download the Sustainability Intelligence Report 2025

Supplier carbon scores are essential for accurate Scope 3 accounting, regulatory compliance, and strategic emissions reduction. With Carbmee’s Custom Properties and Carbontology, companies can:

Achieve supplier-specific Scope 3 visibility.

Why Supplier Carbon Scores Are Key for Scope 3 Management | Carbmee

Learn how supplier carbon scores improve Scope 3 emissions tracking, support CSRD compliance, and enable low-carbon sourcing with Carbmee