Driving Business Value Through Decarbonization

17. December 2025
Blog

Robust climate strategies do more than ensure compliance; they create tangible business value.

Companies that can report emissions transparently and present credible reduction plans gain a clear competitive edge. They stand out in tenders, attract sustainability-focused investors, and minimize exposure to carbon pricing and regulatory risks.

Early adopters are also better prepared for emerging frameworks governing sustainable product claims, frameworks that will soon make product-level Scope 3 reporting unavoidable. Such as the DPP (the EU’s upcoming Digital Product Passport) which aims to create a digital sustainability passport for products that contains information about their CO2 footprint, recyclability, etc. 

Future-proofing your climate strategy starts with having the right data foundation. Scope 3 Insights provides you with product-level emissions data and supply chain specific data insights to understand, steer and reduce your emissions.

Financial & Reputational Imperative

Investors, regulators, and customers are closely monitoring how organizations manage climate risks, emissions, and their readiness for a low-carbon future.

Credible data increases investor confidence improves ESG Ratings and enables better access to capital and lower financing costs. 

With supply chain emissions on average 26x greater than operation emissions, companies must drive transparency and action down the supply chain to reduce impacts and future-proof their business.1

Return on Investment in Climate Action

Failing to address climate-related risks in supply chains can cost companies up to three times more than implementing mitigation measures, according to CDP market analysis. Proactive action delivers both business resilience and cost savings.1

Direct financial benefits come from supply chain initiatives such as adopting low-carbon energy, for example by purchasing Renewable Energy Certificates on behalf of suppliers, by improving processes, and innovating low-carbon products.

These measures also reduce exposure to carbon pricing, regulatory penalties, and trade barriers. In 2026, Germany’s National Emissions Trading System (nEHS) will shift to a price corridor of €55–€65 per ton of CO₂. In the waste management sector, this directly impacts logistics and treatment costs, with current charges at €55 per ton of CO₂ for waste-derived fuels. Waste producers can lower costs by diverting materials to recycling.

Turning data transparency into an Advantage

Uncovering efficiency and cost-saving opportunities in supply chains requires supplier-specific, activity-based data. Companies that calculate product-level emissions are four times more likely to experience significant decarbonization benefits.2

Financial and industry-average approaches on the other hand allow for broad comparisons but fall short in accurately reflecting emissions and can obscure real reductions achieved at the supplier level. A key limitation is their tendency to prioritize price over actual environmental performance, which can discourage sustainability investments.

For instance, if a company opts for a greener product that costs more, its reported emissions might increase, even though its true environmental impact decreases. Organizations that incorporate supplier-specific data are better equipped to track progress, focus interventions, and manage risks across their value chains.3

Supply Chain Resilience

ectors such as the automotive industry are heavily dependent on imported critical raw materials, which creates significant supply risks and exposure to trade tariffs. One mitigation strategy is to source recycled materials; however, this approach faces challenges such as the loss of critical raw materials during recycling due to contamination and design choices that limit circularity. To address these issues, companies should increase transparency in end-of-life processes to identify opportunities for improved sorting, invest in advanced recycling technologies, and implement circular design principles to enhance material recovery and reduce contamination.

Where Scope 3 Insights Comes In

Scope 3 Insights provides companies clarity to turn complex value-chain data into clear, actionable insights. It helps organizations

Track products and materials movements at their end of life.

Replace emission estimates with verified supplier data.

Identify emission hotspots and efficiency opportunities.

Align with EU Taxonomy, Product Carbon Footprints, and Digital Product Passport standards.

The Takeaway

Strong environmental performance is now a strategic business priority. Transparent Scope 3 data and proactive climate investment open doors to better financing, stronger partnerships, and long-term resilience.

Scope 3 Insights makes this possible by providing a solid foundation to strengthen environmental performance through improved data quality ensuring your business remains prepared for what’s next.