Many companies have made meaningful progress in managing their Scope 1 and 2 emissions. Fuel switching, electrifying fleets, and improving energy efficiency are now standard practices that target emissions directly under operational control using mature technologies and established reporting.

But beyond the company fence line lies a more complex and often overlooked challenge: Scope 3 emissions. These indirect emissions, generated throughout the value chain, are typically the largest portion of a company’s carbon footprint. According to CDP, Scope 3 emissions account for an average of 75 percent of total corporate emissions. In sectors such as consumer goods, pharmaceuticals, and technology, the figure often exceeds 90 percent.

Despite this, many companies have yet to make meaningful progress. The reasons are clear. Scope 3 emissions are harder to measure, more difficult to influence, and widely distributed across suppliers, partners, and end-users. But they are critical to address and offer the greatest opportunity to drive meaningful climate action.

Why Scope 3 Cannot Wait

The pressure to act is intensifying. Regulations such as the EU’s Corporate Sustainability Reporting Directive are making Scope 3 disclosure mandatory. Investors and lenders are embedding value chain emissions into risk and credit models. Customers increasingly expect companies to take responsibility for their full impact.

Scope 3 is also an opportunity. Decarbonising the value chain can build more resilient operations, unlock cost efficiencies, and strengthen commercial relationships. Yet for many sustainability leaders, the first step feels overwhelming.

What Leading Companies Are Doing

Some organisations are already setting the pace. Walmart’s Project Gigaton, launched in 2017, aims to avoid one billion metric tons of emissions by 2030. More than 5,900 suppliers are participating, supported by tools, education, and clear expectations. Together, they have already avoided over 750 million metric tons of emissions.

Apple has committed to making every product carbon neutral by 2030, including all emissions across its manufacturing supply chain and product lifecycle. More than 300 suppliers have pledged to use 100 percent renewable electricity, enabled by Apple’s clean energy programs and strong procurement frameworks.

In the last few days, Apple announced plans to repatriate a portion of its manufacturing operations to the United States. While partly driven by rising global tariffs, this also addresses the need for greater supply chain resilience, which was heavily impacted during the COVID outbreak. Repatriating production reduces dependence on long-haul air freight and allows more goods to be transported domestically using lower-emission options such as electric trucking. This transition enables measurable reductions in both upstream and downstream logistics emissions and improves environmental oversight across the supply chain.

These companies demonstrate that progress on Scope 3 is not just about asking for data. It is about enabling action, building internal and supplier capability, and embedding climate performance into procurement, operations, and commercial strategy.

Taking the First Steps

For companies beginning this journey, the starting point is understanding where emissions are concentrated. Purchased goods and services, logistics, and product use are typically high-impact areas. Establishing a baseline requires measuring emissions using supplier data where possible, supported by credible industry benchmarks.

Early supplier engagement is critical. Companies must go beyond data requests and explain what is needed, why it matters, and how to respond. Simple tools such as data templates and emissions calculators can accelerate adoption and consistency across the chain.

Procurement teams play a vital role. Embedding climate performance into supplier evaluations, tenders, and contracts sends a clear signal that emissions reduction is a business priority. Over time, this creates stronger partnerships aligned to shared sustainability goals.

Enabling Broader Impact

Pioneering companies are raising standards across entire industries by sharing playbooks, offering supplier training, and contributing to common measurement platforms. Some are pairing internal experts with suppliers to co-develop reduction plans, helping build capability where it may not yet exist. These actions not only accelerate decarbonisation but also reinforce commercial bonds.

When peers align around shared expectations, it reduces friction for suppliers and creates more consistent market signals. Industry-wide collaboration in sectors like fashion, automotive, and agriculture is already proving what is possible.


Redefining Leadership in the Climate Era

Scope 3 emissions are central to a company’s climate impact and increasingly under the spotlight from regulators, investors, and customers. They also present a powerful opportunity to lead with purpose and accelerate systemic change.

Companies that look beyond their operations and bring others with them will shape the future of sustainable business. Having the right tools, skills, and partners makes this journey manageable. It enables companies to navigate regulation, unlock commercial and reputational value, and strengthen the foundation of their business.

XPS helps companies move from complexity to clarity and from compliance to leadership. Let’s go further together.