Scope 3 emissions are often the most difficult part of a business’s carbon footprint to measure.
Unlike Scope 1 and Scope 2 emissions, which largely relate to activities under a company’s direct control, Scope 3 emissions occur across the wider value chain. This includes purchased goods and services, business travel, employee commuting, transportation, waste and the use of sold products.
For many businesses, one of the biggest challenges is a lack of supplier data.
Suppliers may not have calculated their own emissions, may not be able to provide product-level carbon information, or may use different approaches to measuring their footprint. This can leave businesses wondering whether they can produce a meaningful Scope 3 assessment at all.
The good news is that you can measure Scope 3 emissions without having detailed data from every supplier.
The important thing is to use an appropriate approach, understand the limitations of the data available and have a plan for improving data quality over time.
Can you measure Scope 3 emissions without supplier data?
Yes. A lack of supplier-specific information does not mean you cannot calculate your Scope 3 emissions.
In many cases, businesses will need to work with a combination of available business data, industry information and recognised emissions factors to estimate their value chain emissions.
The exact approach will depend on your organisation, the Scope 3 categories that apply to your activities and the quality of the data available.
This means your first Scope 3 assessment may not provide a perfectly detailed picture of every supplier or product. Instead, it provides a baseline that can be refined as better information becomes available.
Why is supplier data important for Scope 3?
Supplier data can provide a more accurate picture of the emissions associated with the goods and services your business purchases.
For example, two suppliers providing a similar product may have significantly different emissions depending on their production processes, energy sources, materials and supply chains.
Generic industry data cannot always capture these differences.
However, expecting every supplier to provide detailed carbon information is rarely realistic, particularly for SMEs or businesses with large and complex supply chains.
This is why Scope 3 measurement often involves a balance between the data you can obtain directly and other reliable sources of information.
What can you use if suppliers don’t provide emissions data?
There are several recognised approaches that can be used when supplier-specific information is unavailable.
Depending on the Scope 3 category, businesses may be able to use existing purchasing or operational information alongside relevant emissions factors and industry-average data.
Financial and procurement information can also provide a useful starting point where detailed product information is unavailable.
The most appropriate approach will depend on the type of emissions being measured and the information your business already holds.
You don’t necessarily need to wait for every supplier to start measuring your Scope 3 emissions.
Which Scope 3 emissions are most affected by missing supplier data?
Supplier data is particularly relevant to emissions associated with purchased goods and services and capital goods.
These categories can represent a significant proportion of a company’s overall carbon footprint, particularly for businesses that purchase large quantities of materials, products or equipment.
Supplier information can also be valuable when assessing upstream transportation and distribution.
However, supplier data is not equally important across every Scope 3 category.
For example, emissions associated with business travel, employee commuting or waste may be assessed using information that is already available within your organisation.
This means a lack of supplier data should not prevent you from assessing the wider picture of your Scope 3 emissions.
How accurate is Scope 3 data without supplier information?
The quality of a Scope 3 footprint depends heavily on the quality of the underlying dat
Where supplier-specific information is available, it can provide a more detailed understanding of the emissions associated with particular products and services. This can then be apportioned and incorporated into your measurement.
Where it isn’t available, estimates can still provide a useful indication of your emissions profile.
However, it is important to understand the limitations of your data and be transparent about where estimates have been used.
A professional Scope 3 assessment should therefore consider not just the emissions figure itself, but also the quality, completeness and reliability of the data behind it.
Should you ask your suppliers for carbon data?
Yes, but supplier engagement should be approached strategically.
Trying to collect detailed emissions information from every supplier at once can create a significant administrative burden for both your business and your suppliers.
Instead, businesses can identify which suppliers and purchasing areas are likely to have the greatest impact and prioritise engagement accordingly. This could be based on the largest spend categories for your business or critical suppliers used more frequently. We would recommend focussing on your top 10-15 to start with.
Over time, this can help move your Scope 3 assessment towards more detailed, supplier-specific data.
Supplier engagement can also form part of a wider sustainability strategy, helping businesses understand where emissions are concentrated across their value chain and where reduction opportunities may exist.
What if your suppliers have no carbon data at all?
This is increasingly common, particularly among smaller suppliers. It does not mean your Scope 3 assessment has to stop.
Instead, you can use the information that is currently available to establish an initial picture of your emissions while identifying where better data is needed.
Your first assessment can then become the foundation for a longer-term data improvement strategy.
As suppliers develop their own sustainability capabilities, you may be able to incorporate more detailed information into future carbon footprints or host an information session to support these suppliers to measure their emissions.
Why your first Scope 3 footprint doesn’t need to be perfect
One of the biggest mistakes businesses can make is waiting for perfect data before starting.
Scope 3 emissions are complex by nature, and data quality is likely to improve over time.
A first assessment can help you understand where your biggest emissions are, identify gaps in your data and determine where further work will have the greatest impact.
The goal is not necessarily to have perfect supplier information immediately. It is to build a credible understanding of your value chain emissions and create a pathway towards better data and meaningful reductions.
How can a sustainability partner help?
Working out how to measure Scope 3 emissions can be challenging when information is incomplete or inconsistent.
A sustainability consultant can help you determine which Scope 3 categories are relevant to your organisation, assess the data you already have and identify appropriate ways to address data gaps.
They can also help you understand where improving supplier data is likely to have the greatest value, rather than creating unnecessary work across your entire supply chain.
This can make the process more efficient while giving you greater confidence in your emissions reporting.
Start measuring your Scope 3 emissions
Not having supplier data shouldn’t stop your business from measuring Scope 3 emissions.
There are established approaches for dealing with data gaps, and the right solution will depend on your business, supply chain and available information.
The most important thing is to start with a robust methodology, understand the limitations of your data and develop a plan to improve it over time.
At Positive Planet, we help businesses measure their carbon emissions across Scope 1, 2 and 3, including where supplier information is incomplete or difficult to obtain.
Want to understand your Scope 3 emissions?
Talk to our sustainability experts to find out how we can help.