Why Scope 3 Emissions Data is a Challenge — and How to Improve It

When it comes to Scope 3 emissions, one of the biggest challenges is data quality. Because these activities are outsourced, companies must rely on multiple actors in the supply chain to provide accurate and transparent emissions data. However, there is often a lack of willingness to share energy consumption data in addition to transport activity data, creating barriers to accurate emissions reporting and reduction efforts.

The Challenge: Data Sharing and Governance
Scope 3 emissions, particularly from logistics, involve multiple stakeholders: shippers, logistics service providers (LSPs), and carriers. Each entity holds different pieces of data, and the ability to track and calculate emissions depends on how openly these actors share their information.
Shippers and LSPs often face difficulties because they do not always receive primary fuel or energy consumption data from carriers. Instead, they must estimate their logistics emissions by converting transport activity data, including distance traveled and or mass transported—into emissions using industry averages or models. While estimations provide a general understanding of emissions, they lack the accuracy that primary data would offer.

How to Improve Scope 3 Emissions Data:

Encouraging Data Transparency Among Supply Chain Actors

The key to improving emissions reporting lies in fostering collaboration between shippers, LSPs, and carriers. Companies can benefit from seamless data exchange that fosters collaboration, where business partners can work together & optimize operations thanks to higher visibility.

Moving Beyond Industry Averages

While using industry averages is a common practice, it should not be the default solution. Companies should explore ways to obtain more specific data from their logistics partners. For example, including data reporting in procurement processes can be a step towards data sharing and enhanced transparency.

Implementing Data Governance Strategies

Companies must endeavor to receive quality emission and activity data by setting up ISO 14083 compliant reporting mechanisms.

Leveraging Digital Tools and Technologies

Emissions tracking tools can help bridge the data gap by integrating different sources of information. Companies can use these tools to track shipments, collect real-time emissions data, and improve the accuracy of their reports.
Scope 3 emissions reporting remains a challenge due to the complexity of outsourced logistics and the sensitive nature of the data shared. However, with the right data governance and by improving collaboration, refining data collection methods, and using digital tools, companies can work toward more accurate and transparent emissions reporting.

To understand more, enroll in the courses below.

Courses related to this subject: