
As global interest in Environmental, Social, and Governance (ESG) reporting grows, companies are under increasing pressure to provide accurate reports on greenhouse gas (GHG) emissions. Starting January 1, 2024, the EU Directive CSRD (Corporate Sustainability Reporting Directive) requires many organizations to share sustainability information and verify its accuracy. One of the most challenging parts of GHG reporting is calculating Scope 3 emissions, which include indirect emissions throughout the value chain.

Reference Image Source: Scope 3 Standard, page 5.
The Complexity of Scope 3 Emissions
Multi-Tier Supplier Networks and Data Accessibility
Many organizations rely heavily on data shared by supply chain partners, making accurate Scope 3 emissions calculations challenging. For example, a manufacturing company may source components from multiple suppliers across various regions. If one supplier fails to provide timely or accurate emissions data, the entire calculation can be compromised. This lack of data consistency or timely sharing of data by suppliers not only leads to inaccuracies but can also expose companies to regulatory scrutiny if their reported emissions are significantly inaccurate.
Solutions like Enlighta provide a robust platform that facilitates the collection, validation and reporting of ESG data from upstream and downstream entities including suppliers, logistics partners, and third-party providers. Enlighta’s ESG solution enables organizations to gather consistent and reliable emissions data, which is crucial for accurate Scope 3 calculations. By enabling seamless data sharing, Enlighta helps mitigate the risks associated with data discrepancies and enhances the overall reliability of GHG reporting.

Lack of Standardized Measurement
Unlike Scope 1 and 2 emissions, which are easier to measure because they relate directly to an organization’s operations, Scope 3 emissions calculation methods are still evolving. Companies often encounter varying methodologies for calculating emissions associated with purchased goods, transportation, and waste disposal. For instance, a retail company may find that different suppliers use different emissions factors for the same product, resulting in inconsistent reporting; this complicates efforts to achieve reliable and comparable emissions metrics across the organization.
To effectively calculate Scope 3 emissions data from vendors, companies typically rely on two main approaches: vendor-provided data and revenue-based estimations. Each method offers unique insights but also presents certain limitations in accuracy and applicability.
Vendor-Provided Data is a more granular approach, where vendors supply emissions information directly, either by entering data into a platform like Enlighta or through automated data extraction if they’re using compatible emissions-tracking software. This approach ensures a higher level of accuracy since it is sourced directly from vendors, offering procurement teams a more dependable view of emissions impact across the supply chain.
Alternatively, Revenue-Based Estimations are used when vendor-specific data isn’t available. This method involves calculating emissions based on a vendor’s revenue figures by applying an established ratio (example, for every dollar of revenue, a proportionate amount of emissions is estimated). However, this approach can be overly generalized and may lack precision, as it doesn’t account for factors like the specific services provided or the geographic location where they are delivered, both of which can greatly influence emissions levels.
Integrating these approaches into ESG scorecards requires careful consideration. Vendor-provided data offers the most specific insight, especially when platforms like Enlighta facilitate data aggregation directly from vendor sources. However, revenue-based estimations can still serve as a baseline where direct data is unavailable, allowing procurement teams to incorporate some level of emissions data across all vendors, even if it’s at a high level.
Enlighta’s platform supports industry best practices such as standardized emissions factors and calculation of Scope 3 emissions. For example, a company can use Enlighta’s framework to apply a unified approach when calculating emissions from various suppliers and downstream entities, enabling more accurate comparisons and a clearer understanding of their overall impact.
Resource and Expertise Constraints
With even mid-sized entities having 100s to 1000s of upstream and downstream entities, calculating Scope 3 emissions requires specialized knowledge and resources, which many organizations lack. Furthermore, the complexity of gathering and analyzing data from multiple sources, along with the increasing need for transparency, can overwhelm existing teams. For example, a company may struggle to allocate sufficient resources to assess emissions from their logistics partners, resulting in incomplete data and potentially inaccurate reporting. This limitation can hinder the organization’s ability to set credible sustainability targets.

Enlighta’s automation tools streamline the data collection and reporting processes, significantly reducing the time and resources required for emissions calculations. By automating repetitive tasks, procurement leaders can allocate their teams to more strategic initiatives, such as supplier engagement and sustainability program development. For instance, a company can automate data requests to suppliers, ensuring timely responses and minimizing the manual effort involved in data collection. Enlighta also offers this data collection as a managed service thereby augmenting the team for ESG data collection, validation and reporting.
Challenges in Reporting Non-Material Categories
Organizations often find themselves reporting on non-material Scope 3 categories simply because the data is more accessible or easier to collect. According to the GHG Protocol, there are a total of 15 activity categories that fall under the Scope 3 emissions umbrella, covering areas such as purchased goods, waste management, and employee commuting. Companies might prioritize reporting on these activities not because they are material or relevant to their overall emissions profile, but simply because the data is easier to obtain. For instance, a company may focus on employee commuting emissions instead of emissions from purchased goods, even though the latter may contribute more significantly to their overall impact. This misalignment can distort a company’s sustainability narrative, making it difficult to engage stakeholders meaningfully.

Enlighta assists organizations in identifying and prioritizing the most material Scope 3 categories relevant to their business model. This guidance ensures that companies focus their efforts on emissions sources that truly matter, rather than getting bogged down by reporting on less impactful activities. For example, a food manufacturer may determine that emissions from agricultural sourcing are a top priority, enabling them to concentrate their sustainability efforts effectively.
Monitoring and Analysis of Scope 3 Emissions
With Enlighta’s real-time dashboards, organizations can continuously monitor their Scope 3 emissions. This visibility allows for timely adjustments to sustainability strategies, enabling companies to respond proactively to emerging risks or opportunities. For instance, if a significant increase in emissions is detected from a particular supplier, procurement leaders can engage with the supplier to explore mitigation strategies, ensuring that their overall emissions reduction goals remain on track.
Engaging Suppliers and Stakeholders
Engaging suppliers to obtain the necessary data for Scope 3 emissions can be a daunting task. Many suppliers lack the resources or expertise to report their emissions accurately, leading to a reliance on estimated data. For example, a large corporation may depend on a small supplier’s best guess about their emissions, which can be misleading. Building a collaborative approach with suppliers is critical but often proves challenging due to competing priorities and limited communication channels.
Enlighta’s platform includes features that promote collaboration and transparency between organizations and their suppliers. By providing a user-friendly interface for suppliers to submit emissions data and track their progress, Enlighta fosters a culture of accountability. This engagement can lead to improved data quality and accuracy, ultimately enhancing the organization’s emissions reporting.
Why wait? Contact Enlighta to discuss Scope 3 Emissions Collection & Reporting Automation
With Enlighta, organizations gain the data integration, standardization, and automation needed to overcome Scope 3 challenges and drive genuine sustainability. Ready to see how we can support your Scope 3 emissions journey?
Connect with us at info@enlighta.com to explore how Enlighta can make a difference in your emissions reporting and sustainability strategy.