Cracking Scope 3: why resolving data confidence is crucial
Decades later and sustainability leaders are still wrestling with the same challenge: how to track (and trust) what’s happening beyond their direct operations. Scope 3 emissions, which make up the majority of a company’s environmental impact, remain the least visible and least verified.
‘I think Scope 3 is, when you look at it, it's your biggest impact where you have the least visibility, and that makes anybody nervous because that's where you really need those insights,’ Erin Lyon, LRQA’s Global Head of Partnerships, said. ‘And historically, we've just not been able to get that with the right degree of confidence, and investors are relying on that information increasingly. So, we have to get to a point of confidence in Scope 3 data really, really quickly.’
This lack of confidence makes it difficult for businesses to effectively manage risks and cut emissions, as well as meet investor expectations. Without reliable Scope 3 data, companies are facing hidden liabilities that can directly affect production costs. This is especially heightened in an increasingly volatile trade environment, where vulnerabilities are being amplified by geopolitical tensions and energy price shocks.
To avoid falling behind carbon targets and becoming exposed to these risks, organisations must prioritise their environmental data, improve energy tracking and implement technology to fill the holes and accelerate efforts to achieve Scope 3 data confidence.
If we're reducing energy consumption or if we're moving towards more renewable forms of energy, we have opportunities to, A) save money, and B) to be building more resilient supply chains
The reliance on self-assessment is holding us back
Most companies are still relying on self-assessment questionnaires from suppliers which can be prone to error, misreporting and sometimes outright fabrication. This exacerbates holes in transparency and poor data quality, making it difficult to 1) understand the clear picture of emissions data and 2) properly report to external stakeholders and meet carbon targets.
Investors are paying attention. Scope 3 data is increasingly required by stock exchanges, state-level regulations and mechanisms like the EU’s CBAM (Carbon Border Adjustment Mechanism) and ETS (Emissions Trading Scheme). Without verified data, companies risk not only reputational backlash from regulatory bodies, investors and even consumers, but real financial hits as well.
Consumer perspectives are becoming increasingly important as well. Buyers are asking harder questions: Where is the product from? What is its true impact? Scope 3 data could be the missing link that empowers consumers to make more informed choices and even support offsetting emissions voluntarily.
AI and technology will not stop being a part of the conversation
The shortage of qualified verifiers globally and inability to rely solely on self-reported supplier data means traditional methods won’t scale. AI and digital verification tools must step in to fill the gap. These technologies can enable more real-time visibility across complex supply chains and fill in data gaps based on more granular metrics and analytics.
This must be paired with standardised data formats, targeted audits for higher risk suppliers, as well as capacity building to increase training and awareness around environmental data collection. This type of training can in turn align suppliers on goals and targets and promote site improvement and collaboration.
How EiQ supports carbon data collection and management
EiQ’s mission is total supply chain confidence. This includes helping companies manage and analyse environmental data amd improve visibility over their Scope 3 emissions. EiQ offers several tools to support this:
- On-site energy data collection during ERSA audits (LRQA’s proprietary audit standard)
- A dedicated environmental audit module covering emissions, water and waste
- A carbon maturity self-assessment questionnaire, used by clients to support sustainability-linked loans
Beyond audits, EiQ’s platform includes benchmarking and trend analysis, allowing both corporates and suppliers to view and compare their emissions data by geography and product line. This dual visibility helps drive accountability across tiers.
EiQ is also integrating generative AI to support emissions modeling which will enable companies to estimate broader Scope 3 exposure from representative data samples, even when full supply chain visibility is limited.
EiQ also implements capacity building, offering bespoke digital learning modules on energy, water, waste and carbon accounting. With more than 1.5 million course completions, these tools help suppliers not just understand sustainability concepts but train their teams to report accurately and confidently.
Shifting to Scope 3 first
The carbon conversation has continued, but true action is overdue. Scope 3 is a critical piece of the puzzle to building resilient supply chains and achieving total supply chain confidence. This means it’s time for a mindset shift and to start integrating Scope 3 into audits, leveraging technology for verification and treating data not as a reporting requirement but as the foundation of your due diligence.
I think we've sat in a very comfortable space for a long time, which is collecting information that's adjacent. Whereas, actually, we should have looked to sit the other way around. We'll lead with Scope 3 because that's where we've got the biggest impact and we'll have a lot more Scope 3 confidence.
