Procurement functions increasingly find themselves at the forefront of organisations’ sustainability ambitions. Scope 3 emissions are emerging as one of the most effective ways for companies to rehabilitate their environmental impact.
Executive confidence
Many executives in the C-Suite feel as though their organisations are already making strong progress. New data points to 76% of UK C-suite leaders believing that meeting Scope 3 regulatory requirements feels well within reach. The data comes from a new study by operations strategy and transformation consultancy Argon & Co.
The findings arrive at a time when large businesses face growing pressure to improve tracking and visibility across supply networks.
Real-world readiness
There’s a problem, however. Despite this, only 37% of UK respondents believe they are investing sufficiently in technologies to track and reduce Scope 3 emissions. Worryingly, these findings suggest a potential disconnect between confidence and real-world readiness.
“Whilst our data shows that many leaders are confident they can meet Scope 3 requirements, the complexity of meeting these standards and the lack of investment suggests some over-optimism,” said Judith Richardson, Head of Sustainability at Argon & Co UK. “Tracking and reducing Scope 3 emissions demands a level of visibility that has never before been demanded of businesses, and having the right approaches in place is essential. The fact that firms are yet to invest in people, approaches, or tools, yet feel confident, rings alarm bells.”
This comes at a time when there is even greater uncertainty regarding the requirements firms face. 2025 has already seen a rollback in the scope of CSRD, CSDDD, and the EU Taxonomy. All these developments are adding to the confusion felt by firms.
Beyond a tick-box approach to compliance
“Compliance alone will always drive a tick-box mentality, which can limit firms as they approach sustainability” Richardson continues. “Now that many of the win-wins – like energy reduction, operational efficiencies, and reducing waste – are becoming exhausted, businesses are having to look at their supply chains more fundamentally. Where they once sought to leverage suppliers for competitive advantage, they need to consider new forms of collaboration. Where supply chains were linear, they need to become more circular.
“Once a supply chain has been established, it can be difficult to unpick it and reconfigure it, in any area, let alone on topics like these. Trying reverse engineer a resilient and compliant supply chain with respect to sustainability is therefore particularly challenging.
“However, the current global trade pressures – plus the need to reshape supply chains as a result – mean businesses have a rare chance to hardwire sustainability in from the outset. Businesses that are rethinking long-standing supply chain models are positioning themselves in a prime position to embed end-to-end visibility and sustainability from the outset.
“If we are ripping up the rule book, we should be writing new rules with sustainability at the centre,” Richardson concludes. “Those that act now to build transparent operations will gain a long-term advantage – securing stronger partnerships and premium positioning within the value chain. Suppliers that can prove their sustainability credentials will stand out as partners of choice.”
An industry shift
This shift is already underway. Businesses are facing greater scrutiny from regulators, investors, and customers. As a result, they are increasingly prioritising partners that can demonstrate measurable progress on emissions reduction, ethical practices, and circularity.