IEKView: Increasing Requirements for Carbon Reduction Across the Supply Chain Shift Corporate Governance Toward Behavior Management
2026/09/24
As net-zero policies continue to gain momentum around the world, corporate carbon management is rapidly evolving from emissions tracking within production facilities to governance across the value chain. This shift is also fostering the development of an ecosystem of net-zero technology services that integrates carbon accounting, data, consulting, and decarbonization solutions to address carbon management needs spanning multiple organizations and diverse data sources. According to research by the World Economic Forum (WEF), approximately 70% of a company's total carbon footprint originates not from its own factories or offices, but from indirect emissions generated throughout its upstream and downstream supply chains, employee commuting, and product use phases. As a result, Scope 3 emissions have become the most critical and the most challenging aspect of corporate decarbonization efforts.
Scope 3 falls outside Scope 1 (direct emissions) and Scope 2 (indirect emissions from purchased energy) and refers to all other indirect carbon emissions occurring across a company's value chain, including upstream activities such as supplier production, raw material transportation, and outsourced manufacturing, as well as downstream activities such as product use, disposal, and recycling. Scope 3 has become the central challenge of corporate decarbonization because its emission sources are highly dispersed, spanning multiple organizations and geographic regions. As a result, companies have a limited ability to measure, monitor, and control their actual emissions.
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