Reliable Supplier Data Critical as Companies Underestimate Scope 3 Emissions by Up to 3x
Event summary
- Only 4% of companies use primary supplier data for Scope 3 emissions calculations, with most relying on industry averages or no reporting.
- Companies with low-reliability data may underestimate their Scope 3 footprint by up to three times.
- Climate-related costs are rising, with 94% of North American companies reporting higher costs from physical climate impacts last year.
- Better data can drive cost savings of roughly $5 per metric ton of carbon across supply chains by 2030.
- Top 10% of emitting suppliers account for 95% of all emissions across the network.
The big picture
The 2026 Carbon Action Report from EcoVadis and Kearney highlights a critical gap in supply chain emissions data, with most companies relying on unreliable or incomplete information. As regulatory pressures mount and climate-related costs rise, the ability to accurately measure and manage Scope 3 emissions will become a key competitive differentiator. The report underscores the need for better data to drive cost savings and ensure compliance with emerging regulations.
What we're watching
- Data Reliability
- How the accuracy of supplier carbon data will impact regulatory compliance and operational decisions.
- Regulatory Pressures
- Whether companies can adapt quickly enough to new carbon reporting requirements in Europe and the US.
- Supplier Engagement
- The pace at which companies will increase engagement with high-emitting suppliers to improve data quality.