Supply Chain Logistics Emissions Data Collection: Why It’s Critical for Businesses

As climate change continues to shape regulatory landscapes and consumer expectations, companies across industries increasingly recognise the importance of monitoring and managing carbon emissions within their supply chains. A significant portion of a company’s overall carbon footprint originates from its supply chain, specifically in Scope 3 emissions — indirect emissions arising from its external activities. Within Scope 3, categories 4 and 9, which cover emissions from the movement of goods (both to and from a company’s sites), can account for a substantial part of their environmental impact.

Yet for many businesses, managing these emissions is not straightforward. The process involves complex data collection, effective collaboration with suppliers and the correct application of methodologies for measuring and reporting emissions accurately. This article examines why carbon emissions data collection is essential, particularly regarding Scope 3 logistics emissions, and explains how businesses can address common challenges in tracking and managing their supply chain’s carbon footprint.

Understanding Scope 3 Emissions in Logistics

Scope 3 emissions encompass all indirect emissions that occur outside a company’s immediate control but are still within its broader value chain. For logistics, this includes emissions from transporting products, raw materials or parts to a business (category 4, “Upstream transportation and distribution”) as well as emissions from delivering products to customers (category 9, “Downstream transportation and distribution”). These categories are often overlooked as they involve indirect operations, yet they account for a considerable percentage of a company’s overall carbon footprint, frequently outpacing direct emissions (Scope 1) and indirect emissions from purchased electricity, steam, heating and cooling (Scope 2).

Read more about Scope 3 emissions within a business’s supply chain here.

The Strategic Imperative: Why Carbon Emissions Data Collection Matters

For businesses, collecting carbon emissions data on their supply chain is no longer a ‘nice-to-have’. Environmental, Social, and Governance (ESG) considerations are now integrated into mainstream business strategy. From managing brand reputation to fulfilling investor demands for transparent sustainability practices, understanding and acting on supply chain emissions is an increasingly critical component of business resilience and responsibility.

Additionally, sustainable procurement — factoring in environmental considerations when selecting suppliers — is becoming standard practice. Companies are expected to consider the environmental performance of their suppliers alongside cost and quality. Those that fall behind risk facing reputational harm and potential exclusion from procurement opportunities where sustainability is prioritised.

Collecting data from suppliers forms an integral part of carbon emissions reporting. For companies’ supply chains, where emissions can vary significantly based on factors like transport mode, distance and fuel type, having reliable data is essential. As suppliers hold the activity data necessary to convert into accurate carbon emissions estimates, businesses are reliant on regular and precise reporting.

Yet despite the urgency, this is where key challenges arise and where many businesses hit a snag in their carbon reporting journey.

The Three Key Challenges in Scope 3 Logistics Emissions Data Collection and how to overcome them

1. Encouraging Supplier Compliance with Carbon Reporting

One of the biggest hurdles companies face is getting their suppliers to report on emissions and carbon-intensive activities. Supply chains are often complex, with numerous tiers of suppliers, each varying in its sustainability commitments and data collection capabilities. For example, a company may work with a primary logistics provider, who in turn subcontracts to other transport companies. The further removed the supplier is from the core business, the harder it can be to obtain reliable emissions data.

What you should do to overcome this:

To drive compliance, companies need to prioritise supplier engagement by:

• Including carbon reporting requirements in contracts

• Offering guidance on how to measure emissions

• Emphasising the mutual benefits of transparent data sharing

These steps can encourage suppliers to participate in carbon data collection, helping to create a more consistent and accurate picture of supply chain emissions.

2. Selecting the Right Methodologies and Tools for Accurate Carbon Measurement

Even when supplier data is available, it can be challenging to translate this information into accurate emissions estimates. Factors such as the mode of transport, vehicle type, distance, fuel type and load all influence the emissions output for each shipment. To convert these variables into emissions data, companies must apply the right methodologies and tools.

What you should do to overcome this:

Make sure you use accounting tools accredited to industry standards, such as the GLEC Framework (developed by the Global Logistics Emissions Council) or ISO 14083-aligned carbon calculators. This ensures consistency and accuracy by providing a standardised approach to logistics emissions calculation. You should also stay informed about updates to these methodologies as advancements in emissions science and transportation technology evolve.

3. Managing Data Effectively for Scope 3 Emissions Accounting

Data management is another core component of successful carbon emissions reporting. Companies must ensure that their emissions data, particularly Scope 3 data, is collected, stored and managed with accuracy and diligence. Poor data management can lead to inconsistencies, errors and even the loss of critical information, which undermines both compliance and the credibility of a company’s environmental commitments and puts them at risk of incurring fines and penalties.

What you should do to overcome this:

• Establish a centralised data management system for emissions data

• Implement a data management tool that’s specifically designed for collecting, storing and managing carbon emissions data.

• Verify data quality through regular audits

• Train internal teams on data accuracy, consistency and relevance

By setting up processes that ensure accurate data collection, storage and quality control, companies can create a dependable foundation for emissions reporting and carbon reduction strategies.

Looking Ahead: Carbon Reporting Will Soon Be a Requirement for All Businesses

As global regulations tighten around carbon reporting, compliance with Scope 3 emissions reporting requirements is becoming unavoidable. For businesses with significant logistics supply chains, this means proactively adopting tools accredited to industry-recognised methodologies that strengthen the data management processes.

Ultimately, preparing for mandatory emissions reporting in supply chain logistics will better equip businesses for a sustainable future, but in the short term, it will position them as leaders in responsible sourcing and climate action.

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