Over 80 % of Combient companies are working actively with their suppliers on Scope 3 decarbonization*. Like with many companies, this work spans diverse activities, from active supplier engagement to requests for high quality data to track companies' Scope 3 emissions. What's surprising, is that even those companies receiving high quality data from their suppliers are still feeling unprepared for the coming wave of EU regulations on climate and Scope 3 action.
How do we go beyond emissions data collection to bridge this gap? Ultimately, companies looking to not only survive the regulatory wave, but lead their decarbonization journey need to engage with customers and integrate decarbonization into their corporate strategies.
Data only gets you so far
Data is often cited as the biggest challenge for Scope 3 work in companies, and indeed accurate and granular emissions data is a key enabler for tracking and planning Scope 3 decarbonization strategies. Data is critical, but data alone is not enough to keep companies on track with their climate targets.
Surveying Combient companies shows that organizations that do feel prepared for incoming regulation often don’t receive high-quality supplier data beyond tier 1. This suggests that their confidence may stem from broader decarbonization strategy rather than a fully transparent and data-driven supply chain. If strong data processes don’t guarantee success in decarbonization, what can adequately prepare companies for a low-carbon future?
Integrating decarbonization into the core of the business
Companies that treat emission reductions as a core business priority - rather than a compliance exercise - will better prepare themselves for innovating and capturing market opportunities.
Regulation can help: for example, the double materiality assessment required for EU CSRD reporting can help pin down stakeholder needs and expectations, clarifying strategic sustainability areas for the company. From there, deeper customer dialogue can help identify new strategic areas in value chain decarbonization and new ways to serve customer needs. More collaborative relationships with suppliers and value chain partners can result in co-developed, novel low-carbon solutions that can strengthen the market position of all value chain partners.
Finally, tools like internal carbon pricing mechanisms can help align strategy with decarbonization, linking financial goals with climate targets and preparing the company for its part in a decarbonizing world. By building the business case for decarbonization, the company can identify new revenue opportunities in low-carbon products and services.
Despite these benefits, just under half of companies in the Combient network who say decarbonization is part of their corporate strategies have not engaged with customers on the topic, nor have they assessed the business case for Scope 3 decarbonization. This suggests that Nordic companies still have untapped potential in business innovation for decarbonization.
From passive compliance to active business innovation
Only by embedding emission reductions into strategic decision-making and commercial engagements, can companies make the most of decarbonization. While emissions data plays an important role in regulatory compliance and can help track progress, data alone won’t help decarbonize value chains.
By combining effective strategy work with value chain-oriented business innovation, companies can better position themselves to seize the opportunities decarbonization can provide. With active customer and supplier dialogue, companies can accelerate value chain decarbonization. Only once business fundamentals are aligned with a low-carbon future, will data have an impact beyond compliance.
Interested in hearing more about how Combient Pure can support you with value chain decarbonization? Sign up for Combient Pure’s next Scope 3 Decarbonization Accelerator workshop, happening May 6th here (Combient companies only), or reach out to anna.pakkala@combient.com for more information.
*Combient Pure’s State of Value Chain Decarbonization Survey 2024