Scope 3 Emissions: What Businesses Still Fail to Address

If carbon emissions were an iceberg, Scope 3 would be the massive chunk hidden below the surface. And in 2025, most companies are still sailing straight into it.

While Scope 1 (direct emissions) and Scope 2 (purchased energy) are increasingly accounted for, Scope 3—all indirect emissions across a company’s value chain—often remains a blind spot. That includes everything from raw material sourcing to customer use and end-of-life product disposal.

And yet, Scope 3 accounts for up to 90% of a company’s total emissions, according to CDP (2024).

Why the Blind Spot?

• It’s complex. Tracking emissions across thousands of suppliers and product lifecycles is no small feat.

• It’s uncomfortable. Measuring Scope 3 means confronting inconvenient truths—like the carbon footprint of your best-selling product.

• It’s unregulated (for now). Many jurisdictions still don't legally mandate Scope 3 disclosures, although the EU and SEC are inching closer.

  
  

Scope 3 Emissions 2025: Lessons from the Fashion Industry

Fashion giants like H&M and Zara have pledged carbon neutrality, but most of their emissions stem from supply chain energy use and consumer washing/drying—Scope 3 categories that are notoriously under-reported.

Compare that to Levi Strauss, which tracks product lifecycle emissions and now designs jeans to reduce water and energy in both production and wear.

The 2025 Wake-Up Call

According to McKinsey, only 43% of companies have started measuring Scope 3 emissions seriously. And even fewer tie it to decision-making.

But the tide is turning. Investors want clarity. Regulators want numbers. Consumers want truth.

Your Role in This Chain

Are you a consumer? Start asking how products are made, delivered, and disposed of.

A supplier? Push for cleaner processes and transparent reporting.

A business leader? Don’t wait for laws—lead the shift.

Because ignoring Scope 3 today is betting against sustainability tomorrow.