GHG Emissions Data Management

Business Case

Informed decision making

Scope 3 emissions typically represent the majority of a company's total carbon footprint. Without visibility into supply chain emissions, procurement teams cannot identify where the highest-impact reduction opportunities lie, prioritize resources effectively or make sourcing decisions that deliver measurable progress against climate targets.

Investor confidence

Companies that can demonstrate accurate, verified emissions data attract stronger ESG ratings and reduced divestment pressure from climate-focused investors.

Legal and regulatory compliance

Emissions reporting requirements are expanding across jurisdictions. Companies without robust supplier emissions data face compliance gaps as disclosure obligations increase in scope and enforcement.

Market access

Companies with mature emissions management capabilities gain competitive advantage in tenders, as institutional buyers and government procurement bodies increasingly require emissions data from their supply chains.

Strategy & Planning

Assessment

Initial Action

Complete a Scope 3 screening to identify procurement categories with the highest carbon intensity using industry or product averages if supplier data is not available, including:

  • collecting procurement spend data by category, supplier or commodity (as available)
  • mapping spend to relevant Scope 3 categories (Category 1: Purchased Goods & Services, Category 2: Capital Goods, for some organizations Category 4: Upstream Transportation, Category 5: Waste, Category 6: Business Travel, Category 8: Leased Assets)
  • applying spend-based emission factors from recognized databases (DEFRA, EPA EEIO, Exiobase, ADEME) to estimate emissions by category with documentation on data sources, assumptions and data quality limitations
  • ranking categories by estimated emissions contribution to identify the top 10-20 spend categories driving Scope 3 footprint
Intermediate Progress

Establish GHG emissions baseline for purchased goods for priority suppliers as identified through segmentation process, evaluating the gap between current supplier emissions data quality and the measurement standards set in your climate policy.

Advanced Practice

Conduct comprehensive Scope 3 emissions analysis across all procurement categories using primary supplier data, identifying remaining data gaps and estimation dependencies.

Policy

Initial Action

Establish climate policy requiring suppliers to commit to calculating and reporting their scope 1, 2 emissions.

Intermediate Progress

Require suppliers in priority categories to measure and report their scopes 1, 2 & 3 GHG emissions using recognized methodologies (GHG Protocol, ISO 14064) with documented boundaries, methods, baseline year and emission factors.

Advanced Practice

Require third-party verification of supplier emissions data for strategic suppliers and high-emitting categories, with sensitivity to supplier size, capacity and regulatory context.

Targets

Initial Action

Set time-bound target for percentage of suppliers disclosing emissions data as per SBTi Supplier Engagement Guidance and determine supplier segmentation strategy to select suppliers most relevant for data collection based on relevant factors such as emissions footprint, spend, size, geography, strategic importance, sustainability commitments and maturity, relationship/influence, etc.

Intermediate Progress

Set targets with progressive annual increases for percentage of Scope 3 emissions covered by third-party verified supplier data or based on primary (activity-based) data from suppliers, with sensitivity to supplier size and capacity.

Advanced Practice

Identify and set targets with select suppliers (or a certain percentage of upstream Scope 3 emissions) to commit to allocating more precise emissions that reflect direct decarbonization actions.

Supplier Selection

Screening

Initial Action

Add basic emissions measurement questions to pre-qualification and RFPs, such as:

  • current state of measuring and reporting greenhouse gas emissions
  • emissions disclosure practices
  • methodology used for emissions measurement, including the baseline year
Intermediate Progress

Expand climate-related questions to require emissions data for procured products in RFPs and details on how the emissions were calculated (boundaries, methodology, emission factors, source data lineage, primary vs. secondary data sources).

Advanced Practice

Require suppliers to provide verified product carbon footprints as a prerequisite to apply for RFP.

Selection

Initial Action

Prioritize suppliers that demonstrate basic emissions measurement capability.

Intermediate Progress

Allocate points in selection criteria for suppliers demonstrating emissions measurement maturity, data completeness, willingness to share product-level carbon footprints and year‑over‑year improvement in emissions‑data coverage.

Advanced Practice

With sensitivity to supplier size, capacity and operating context, give preference to suppliers which:

  • can demonstrate third-party verified emissions data and transparent measurement methodology,
  • participate in recognized climate‑data programs (CDP Supply Chain, SBTi Supplier Engagement)

Contracts

Initial Action

Include contractual clauses requiring suppliers to maintain stated climate commitments and notify buyer of any material changes to climate performance or targets.

Intermediate Progress

Include clauses requiring suppliers to provide annual emissions data for procured products using agreed methodology and boundaries, with evidence as possible.

Advanced Practice

Add requirements for suppliers such as :

  • maintain emissions data that is verified by a third party and participate in annual emissions reporting aligned with agreed upon Scope 3 methodology
  • cascade emissions‑data requirements to their own suppliers (Tier‑2+)
  • make multi‑year commitments for accuracy improvement
  • for select suppliers, commit to allocating more precise emissions that reflect direct decarbonization actions

Supplier Engagement

Goal Setting

Initial Action

Communicate time-bound request for emissions data from priority suppliers, establishing shared expectations on measurement standards and reporting timelines.

Intermediate Progress

Set specific, time-bound targets with suppliers for improving emissions data quality, expanding measurement boundaries and transitioning from spend-based to activity-based data.

Advanced Practice

Set goals with Tier 1 suppliers on collecting and sharing product specific verified emissions data from their own suppliers (Tier 2 and 3) to improve upstream data coverage, as well as goals to finalize migration to fully activity‑based and third‑party‑verified datasets for Tier 1 suppliers.

Capacity Building

Initial Action

Host introductory sessions on emissions and decarbonization fundamentals, covering what GHG emissions are, how to compute GHG emissions, why they matter for supply chains, an overview of Scope 1/2/3 and how to begin identifying emissions hotspots in their operations.

Intermediate Progress

Provide in-depth training on conducting a GHG inventory, selecting appropriate emission factors and methodologies, setting measurement boundaries, improving data quality from spend-based to activity-based approaches and preparing for third-party verification of emissions data.

Advanced Practice

Provide advanced training on product carbon footprinting, lifecycle assessment and advanced accounting methodologies to capture emission reductions from direct decarbonization actions.

Data

Initial Action

Support suppliers with obtaining baseline emissions data from priority suppliers using standardized templates or platforms and determine data collection method (paid platform or software, survey, company's own software, etc.).

Intermediate Progress

Determine best- fit platform that enables emissions data collection and expand the group of suppliers that are supported in providing emissions data, starting to move from secondary emissions calculations to primary data from suppliers, with year of year data quality improvement milestones.

Advanced Practice

Work with suppliers to collect detailed primary emissions data such as product carbon footprints for procured products and implement real‑time emissions‑data interfaces, enabling API‑level data exchange instead of manual submissions.

Advisory

Initial Action

Provide guidance to suppliers on how to begin measuring emissions, including recommended tools, free resources, databases and methodologies.

Intermediate Progress

Support suppliers in improving data quality by helping them identify primary data sources, refine measurement boundaries and select appropriate emission factors.

Advanced Practice

Facilitate peer learning among suppliers on successful emissions measurement approaches and support suppliers in embedding emissions measurement into their own supplier engagement practices.

Financial Support

Initial Action

Provide overview of costs associated with emissions measurement platforms; and provide and/or fund access to training resources and emission factor databases.

Intermediate Progress

Provide commercial incentives to suppliers that achieve emissions data quality improvement milestones, such as preferred supplier status or contract extensions.

Advanced Practice

Co-invest in supplier emissions measurement infrastructure and fund third-party verification of supplier emissions data for priority products and sites.

Audits

Initial Action

Require suppliers to complete self-assessment questionnaires on emissions measurement practices, covering current measurement capability, data availability and reporting history.

Intermediate Progress

Conduct desktop supplier emissions data quality reviews, verifying methodology, boundaries, assumptions and data sources against recognized standards.

Advanced Practice

Engage third party verification auditor to ensure allocated supplier emissions data is accurate.

Project Partnerships & Innovation

Initial Action

Launch pilot projects with suppliers in priority categories to jointly test emissions measurement approaches, such as collecting activity-based data for a specific product line or trialling a shared emissions data collection tool.

Intermediate Progress

Co-invest in decarbonization projects with suppliers and run supplier innovation challenges for emissions reduction solutions.

Advanced Practice

Engage in industry or topic-specific coalitions with suppliers and peers to drive adoption of consistent Scope 3 measurement practices across shared supply chains, co-funding verification processes and sharing best practices to make credible emissions measurement accessible at scale.

Continuous Improvement

Metrics

Initial Action

Track metrics such as the following:

  • percentage of suppliers with formal climate policies or commitments
  • percentage of suppliers disclosing emissions data
  • percentage of spend covered by emissions data
  • number / percentage of suppliers engaged in buyer emissions management programs
Intermediate Progress

Track progress indicators such as:

  • data completeness (percentage of requested emissions data provided)
  • data quality (accuracy, boundary consistency, factor validity)
  • variance between supplier‑reported emissions and buyer‑estimated values, flagging high‑risk discrepancies
  • percentage of Scope 3 emissions covered by primary vs. estimated data
  • number of suppliers transitioning from spend-based to activity-based measurement
Advanced Practice

Track indicators such as:

  • percentage of Scope 3 emissions covered by third-party verified data
  • percentage of Scope 3.1 (purchased goods and services) emission covered by PCF disclosure
  • supplier emissions data accuracy (variance between estimated and measured emissions)

Scorecards

Initial Action

Include basic emissions measurement indicators in supplier scorecards (climate policy in place, emissions measurement capability, data disclosure status).

Intermediate Progress

Integrate emissions data quality KPIs and methodology adherence (alignment with GHG Protocol, ISO 14064 or PACT standards) into supplier scorecards and contract renewal decisions; and require corrective action plans for suppliers not meeting data disclosure commitments.

Advanced Practice

Weigh emissions data quality and completeness in supplier scorecards based on strategi impact (linking data quality to the supplier’s share of total Scope 3 emissions), with top performers receiving preferential weighting in tenders and bottom performers required to submit improvement plans.

Impact Verification

Initial Action

Gather feedback from suppliers on effectiveness of emissions measurement engagement programs and feasibility of data requests.

Intermediate Progress

Assess whether supplier engagement initiatives are improving emissions data coverage and quality across the supply chain.

Advanced Practice

Calculate improvement in Scope 3 data quality attributable to engagement programs.

Sources consulted

Water GHG Emissions Reduction