Scope 3.1: Where decarbonisation is won or lost

Most organisations have Scope 3 targets for reducing emissions in the supply chain, especially in the category of Purchased Goods and Services (Scope 3.1) which is the carbon footprint hot spot for many companies. Few have built the operating model to deliver them.

Scope 3.1 is no longer new territory. Footprints are calculated, targets are approved, and supplier engagement has started across many organisations. Yet, despite this apparent maturity, measurable and sustained reductions in Purchased Goods and Services remain the exception rather than the rule.

Creating value and leading in this space requires not just greater ambition, more advanced methodologies, or better tools. The organisation needs to mature and address how decarbonisation can be embedded across Procurement, Sustainability, Finance, R&D, and the business.

Rising expectations are reshaping the business case for decarbonisation

The next phase of decarbonisation is not only about commitment but about achieving credibility – with regulators, the capital markets and customers – Scope 3.1 plays a key role.

Regulatory frameworks such as CSRD/ESRS demand increasing carbon footprint transparency in the value chain and the Science Based Targets initiative (SBTi) requires Scope 3 inclusion whenever upstream and downstream emissions exceed 40% of the company’s total emissions. Near-term targets must cover at least 67% of Scope 3 emissions, while long-term net-zero targets must increase this coverage to at least 90%, which mostly stem from purchased goods and services – Scope 3.1.

An update of the SBTi Corporate Net-Zero Standard is expected around mid-2026, and it is likely to mean that companies will be assessed not just on whether Scope 3 is addressed, but also on whether the planned reductions are aligned with business strategy and anchored in operations.

At the same time, customer expectations – particularly in B2B markets – are fundamentally reshaping the business case. Buyers increasingly request product carbon footprints, integrate emissions criteria into tenders, and steer volumes toward lower-carbon alternatives. For many suppliers, credible carbon footprint data is no longer just a reporting exercise, but a prerequisite if they are to maintain their key customer relationships.

This shift has direct commercial implications. Companies need to decarbonise in order to access low-carbon tenders. They need, too, to collaborate closely with customers on lower-footprint products. GHG emission performance is not just a question of risk management. It is increasingly linked to protecting revenues and growing them.

The differentiator: Scope 3.1 maturity

The impact of Scope 3.1 increases as decarbonisation is embedded into core business processes.

Across industries, organisations progress through distinct maturity levels in Scope 3.1 decarbonisation. Early stages are characterised by fragmented ownership and limited traction; advanced stages by integrated governance, decision-grade data, and coordinated action across functions .

The maturity levels reveal a critical insight: decarbonisation accelerates when Procurement works together closely with Sustainability, Finance, R&D, and the business – not in isolation. Scope 3.1 is a team sport.

The inflection point: from transparency to reduction

The real impact comes when carbon moves from reporting into sourcing and product decisions.

Many organisations stall after achieving transparency. As suppliers respond to data requests, dashboards are populated, but sourcing decisions remain largely unchanged.

The shift from “emerging” to “advanced” maturity marks the inflection point. At the advanced level, carbon metrics are embedded into product category strategies , supplier evaluation, and product design discussions. Procurement engages with suppliers to effect targeted reduction initiatives. Sustainability ensures that robust methodologies are used. Finance aligns incentives. And R&D enables lower-carbon specifications.

At this point Scope 3.1 transitions from compliance to execution.

Data maturity enables action across different functions

Decision-grade data – not perfect data – is what unlocks progress.

Even mature organisations struggle with inconsistent supplier data, limited visibility on their Tier 2 and Tier 3 suppliers , and unclear rules for the use of primary versus proxy data. These challenges cannot be solved by Procurement or Sustainability alone.

Leading companies establish clear governance models. Procurement owns supplier engagement and data collection. Sustainability, Finance, and R&D co-own emission factors, product boundaries, and quality rules. Carbon data is treated like financial data – standardised, validated, and fit for decision-making.

Product-level insight turns decarbonisation into value creation

Product and category insights reveal where emissions – and opportunities – actually lie.

As organisations advance along the maturity curve, they move beyond portfolio averages toward product- and category-level emissions intelligence. This shift enables targeted action where it matters most.

Procurement, R&D, and commercial teams jointly redesign specifications, prioritise high-impact materials, and collaborate with suppliers on cost-effective reductions, strengthening both climate performance and competitiveness.

Tools enable scale – but maturity drives impact

Digital tools facilitate decarbonisation, but integration and governance determine success.

Digital solutions have become a baseline for managing Scope 3.1. According to the Scope 3 Peer Group, 78% of surveyed companies already use a digital tool, and 55% are actively searching for one, or for better alternatives compared to what they currently use¹. The key insight: no single platform can do it all.

In practice, most organisations operate a modular decarbonisation stack that combines:

• Carbon management platforms, such as carbmee and Watershed, to calculate value-chain footprints and support reduction planning.
• ESG suites (e.g. Sphera, SAP Sustainability Control Tower, EcoVadis) for integrated sustainability and risk management.
• Procurement systems (e.g. Ivalua, SAP Ariba) embedding emissions into sourcing and category workflows.
• Supplier collaboration tools (e.g. Vizibl, Watershed, EcoVadis) to drive joint reduction initiatives.

When selecting tools, companies prioritise strong data collection, accurate measurement, cost-effectiveness, and seamless integration with existing systems. The differentiator is no longer access to tools, but how well they are embedded into business processes. High-maturity organisations integrate emissions data directly into sourcing, category management, and supplier performance management and thereby ensure that carbon considerations inform everyday decision-making.

From emissions reporting to competitive gains

Scope 3.1 ambition only delivers results when the organisation is ready to execute. Understanding where your organisation stands on the maturity curve is the first step toward scaling impact.

We help companies turn GHG emission data from a reporting burden into a competitive advantage. Our approach puts Procurement at the centre, enabling category strategies built on product-level emissions, credible supplier data, and smart tooling.

Companies can download our Scope 3.1 maturity model (PDF) to assess their current state, identify gaps, and define the next steps toward advanced and leading decarbonisation practices.
 

Authors

• Bastien Girod, Swiss Strategy, Risk & Transactions Adv
• Flora Borek, Senior Manager, Decarbonization & Circular Economy Advisory

Sources

¹ Scope 3: What we need to do differently in 2025 (PDF)