Your business may have set bold climate targets and begun taking visible steps to meet them, but when it comes to reducing Scope 3 emissions, progress is likely stalling. You’re not alone. 

According to research by leading consultancy Ramboll, commissioned by the Voluntary Carbon Markets Integrity Initiative (VCMI), more than half of companies are off-track in tackling Scope 3 emissions. For those with targets approved by the Science Based Targets initiative (SBTi), that’s more than a setback—it could mean losing validation altogether. 

So what’s getting in the way? Ramboll’s research points to five common challenges. 

Ramboll’s research reveals that structural obstacles—embedded across industries and supply chains—are the primary roadblocks to reducing Scope 3 emissions. Here are the ones that come up most often: 

1. Lack of supplier control or influence

Scope 3 emissions come from upstream and downstream sources outside of your direct operations. Many businesses lack leverage over suppliers, especially those further down the supply chain (the suppliers of your suppliers and so on), which makes it difficult to push for emission reductions or help them implement sustainable practices. 

2. Limited access to verifiable emissions data

Many companies face challenges accessing reliable, standardized data needed for accurate tracking. Without this data from suppliers, they’re essentially working in the dark. 

3. High cost of decarbonized inputs

Switching to sustainable services and solutions, like renewable fuels or low-carbon construction materials, can be expensive either in ongoing expenses or upfront investment. 

4. Lack of internal ownership or cross-functional alignment

The entirety of a business’ Scope 3 emissions isn’t owned by a single team. It spans across various departments and often lacks clear accountability. 

5. Limited in-house expertise to interpret standards

While emissions standards from organizations like the Greenhouse Gas Protocol, SBTi, and CDP are largely aligned, companies without deep sustainability experience may find them difficult to navigate. Understanding and applying these frameworks often requires specialized knowledge, and that’s something many organizations are still building internally. Without that expertise, even well-aligned standards can feel overwhelming. 

These aren’t small hurdles; they’re complex challenges that require clarity, commitment, and collaboration to overcome. They make it significantly harder for companies to move from ambition to action in multiple ways: 

• Setting credible Scope 3 targets and action plans is difficult without reliable data or supplier engagement. And with few case studies available—since many companies are still focused on Scopes 1 and 2—there’s limited precedent to guide the way. 

• Many companies deprioritize Scope 3 emissions because they lack the human and financial resources to take effective action. Even with ambitious targets in place, limited capacity can slow or stall progress despite Scope 3 often making up the largest share of total emissions.  

• Scope 3 disclosure isn’t always required, but it’s becoming increasingly important. For example, ESRS E1 is pushing for greater Scope 3 reporting transparency, SBTi mandates it when those emissions exceed 40% of a company’s total carbon footprint, and CSRD requires it when those emissions are deemed material under double materiality. 

• Reputational risks grow when claims outpace real reductions, and people are quick to call out greenwashing. Conversely, staying silent to avoid scrutiny can lead to accusations of greenwashing, especially as stakeholders expect greater transparency.   

• Engaging suppliers is essential, but real impact depends on their ability to act. In many regions, sustainable solutions are limited, so even engaged suppliers may be unable to decarbonize.

Now that you know what’s holding Scope 3 progress back, here’s how to start moving forward practically and effectively: 

1. Prioritize supplier engagement, as they often account for the largest share of your Scope 3 emissions. Focus on those who show a willingness to decarbonize, as these relationships offer the greatest potential for near-term progress. 

2. Launch a pilot program and focus on a single supplier group or product category to test out reporting and reduction methods. 

3. Start with data that is available but fine-tune it over time. If you're early in your decarbonization journey, industry averages, life cycle assessments, and proxy data can provide a useful starting point. But as you advance, especially beyond Scope 1 and 2, refine your strategy with more accurate, company-specific data. 

4. Integrate Scope 3 decarbonization into procurement processes and contract language to ensure accountability is part of how your business operates and not a separate initiative.

5. Support supplier action through influence and, where possible, incentives. While co-investment is ideal, many companies rely on procurement power to drive change by setting clear expectations tied to purchasing decisions. Where relationships allow, exploring shared value approaches can help accelerate progress and build longer-term resilience.