Scope 3 Emissions: A Practical Guide

The Biggest Climate Challenge Companies Face: Supply Chain Decarbonization

Companies worldwide are setting ambitious climate targets, yet many face a significant challenge: Scope 3 emissions. These indirect emissions, spanning supply chain activities, logistics, procurement, and business travel, often make up the largest share of a company’s carbon footprint. Without a structured approach, reducing these emissions can feel overwhelming, delaying climate action and increasing regulatory risk.

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Why Scope 3 Emissions Can’t Be Ignored  

Sustainability expectations are shifting rapidly. New regulations, such as the Corporate Sustainability Reporting Directive (CSRD) and Carbon Border Adjustment Mechanism (CBAM), are tightening corporate climate accountability.

At the same time, consumers and investors now expect companies to act beyond their direct operations. Addressing Scope 3 emissions is no longer optional. It is a strategic business need.

Key Barriers to Scope 3 Decarbonization 

Tackling Scope 3 emissions isn’t easy. Companies face several roadblocks, including:

• Data Complexity: Collecting accurate emissions data from suppliers, logistics providers and service partners is difficult, especially when reporting maturity varies across the supply chain.
• Supplier Engagement Gaps: Many suppliers lack the knowledge, incentives or resources to decarbonize, creating a misalignment with corporate sustainability goals.
• Limited Access to Renewable Solutions: Businesses often struggle to help suppliers transition to lower-carbon alternatives due to financial and regulatory barriers.

A Practical Roadmap for Scope 3 Reductions  

To help businesses navigate these challenges, STRIVE by STX has developed a comprehensive white paper: Mastering Scope 3 Emissions: Strategies for Supply Chain Reductions. This resource provides a clear, structured approach to:

• Defining a Scope 3 strategy aligned with business goals.
• Setting science-based emissions targets.
• Engaging suppliers effectively to accelerate reductions.
• Implementing sustainable procurement and logistics solutions.