EcoVadis Q&A: Tracking Scope Emissions & Climate Commitments

EcoVadis is continuing to strengthen its position as a global leader in business sustainability ratings, supporting companies worldwide in improving environmental, social and ethical performance across their supply chains.

Through its innovative platform and global network, the organisation enables businesses to assess, monitor and enhance sustainability practices, helping drive transparency and meaningful impact at scale.

As SVP and Climate Ambassador at EcoVadis, Dexter Galvin plays a key role in advancing these efforts, helping global companies accelerate supply chain sustainability and decarbonisation.

Building on more than 15 years at CDP leading corporate and supply chain engagement, he has supported thousands of businesses in measuring, reporting and reducing their environmental impact.

His work today focuses on tackling Scope 3 emissions, strengthening corporate climate reporting and turning climate commitments into measurable results.

Dexter shares his insights with Sustainability Magazine.

How are companies leveraging supplier engagement and data to ensure that climate targets result in emission reductions?

Right now, only 16% of companies are on track to meet net zero targets by 2050.

A key reason is that two-thirds still do not engage their suppliers to reduce Scope 3 emissions.

The majority of emissions are hidden deep within the supply chain.

Scope 3 emissions can be 21 times larger than Scope 1 and 2 combined. 

By working closely with suppliers and encouraging them to measure and share emissions data, companies gain a clearer picture of their overall carbon footprint, allowing them to better understand where emissions are concentrated across their value chain.

In fact, companies that actively engage their suppliers are nine times more likely to achieve their Scope 3 targets.

Beyond engagement, many are also investing in technology to support emission reduction efforts, EcoVadis research shows that 57% of US companies now use ESG risk mapping tools.

That visibility enables companies to identify emissions hotspots tied to key materials, products and suppliers, then focus reduction efforts where they will have the greatest impact.

In sectors undergoing rapid transformation, such as electric vehicle manufacturing, this often means working closely with suppliers of key materials like batteries, steel and electronics to understand emissions impacts across the full lifecycle.

What challenges are companies facing as Scope 3 expectations grow and how can they overcome them?

One of the biggest hurdles in Scope 3 decarbonisation is collecting high-quality primary emissions data.

Many suppliers, especially smaller suppliers, are still early in their decarbonisation journey and may not have the tools or expertise to measure and report emissions consistently.

As a result, companies often rely on estimated or modeled data, which is often inaccurate, making it difficult to make meaningful progress in Scope 3 decarbonisation.

Bridging that gap requires a more structured approach to supplier engagement.

That starts with educating and empowering suppliers by providing the tools, training and resources they need to measure and report their emissions.

It also means simplifying how suppliers share data, for example by using centralised platforms and standardised reporting tools that reduce manual effort while improving data quality and accuracy.

How are emerging climate disclosure regulations and voluntary initiatives influencing corporate sustainability strategies?

Emerging regulations are pushing companies to move beyond high-level commitments and build systems that measure and manage emissions across their value chains.

California’s climate law SB-253 will require large companies doing business in the state to disclose Scope 1, 2 and 3 emissions, while New York has proposed similar disclosure requirements through Senate Bill 9072A.

In Europe, the Corporate Sustainability Reporting Directive (CSRD) will require thousands of companies operating in the EU to disclose detailed environmental data, including Scope 3 emissions.

Because the regulatory environment remains in flux, voluntary initiatives are playing a stronger role to help companies prepare in the interim.

But no matter where the regulatory landscape lands, global companies must build the capability to report emissions across all scopes.

For example, both regulatory and market pressure are driving 69% of companies to adopt science-based targets specifically to address Scope 3 emissions.

We're already seeing this play out in the automotive industry.

The updated SBTi Automotive Standard puts a stronger focus on Scope 3 Category 11, “use of sold products,” because emissions from the use of vehicles account for roughly 70–80% of an automaker’s footprint.

It also gives automakers an option to set targets through either Category 11 emissions reductions or a ZEV sales-share metric, bringing target-setting more in line with evolving disclosure and market expectations.

That means automakers are being asked not just to disclose supply chain emissions, but to show a credible pathway for reducing the lifecycle footprint of the vehicles they sell.

What is the difference between companies reducing Scope 3 emissions and those that are not?

The difference ultimately comes down to risk management and long-term competitiveness.

Approximately 65% of US companies see supply chain sustainability as a competitive advantage that helps them grow faster through risk reduction, resilience, brand enhancements, supply chain performance and cost savings.

The flip side is that companies that fail to address Scope 3 face growing financial exposure and operational risk.

By 2030, unmanaged supply chain emissions could translate into more than US$500bn in annual liabilities globally, equivalent to roughly 15–20% of EBIT for S&P 500 companies.

How can transparency and collaboration across supply chains accelerate climate action?

Transparency and collaboration are critical because no single company can decarbonise a supply chain.

Many suppliers serve multiple customers and are often asked to report sustainability data in different ways, which creates unnecessary complexity and slows progress.

Aligning expectations and reporting frameworks helps reduce that burden and allows suppliers to focus more resources on actually reducing emissions.

Industry collaboration is becoming an important accelerator.

In the automotive sector, initiatives such as the Accelerate Initiative, launched by General Motors, John Deere, Stellantis and Tenneco, bring industry leaders together to collectively engage suppliers, improve sustainability performance and speed up decarbonisation across the automotive, vehicle and mobility supply chain.

This type of collective approach also increases leverage.

When multiple large buyers send the same signal on climate expectations, suppliers are more likely to invest in the technologies and operational changes needed to reduce emissions.

As industries like automotive transition toward EVs and lower-carbon materials such as green steel and battery components, that level of coordination will be essential to accelerating climate action.