Scope 3 greenhouse gas (GHG) emissions—those indirect emissions across the value chain—often represent a major slice of climate impact for most businesses. In some cases, they account for over 90% of a company’s carbon footprint, or 11.4 times the emissions generated by its own operations.  

Despite their significance, tracking Scope 3 emissions can be challenging. Whether it’s quantifying supply chain emissions from outsourced materials, or those from the products you manufacture and sell, simply put, Scope 3 includes a lot of factors out of your control. 

While tracking these emissions can be difficult, they’re not something that should be overlooked. Investors globally are demanding greater transparency around Scope 3 emissions to make well-informed investment decisions. Regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) now require Scope 3 emission disclosures. 

With more than half of Fortune Global 500 companies reporting Scope 3 emissions in 2023, businesses are under mounting pressure to disclose their complete GHG inventory to remain competitive and meet evolving consumer demands. 

This is where Scope 3 reporting software comes into play: digital tools specifically designed to measure, manage, and report on emissions throughout your value chain. These tools streamline data collection and analysis, ensuring accurate tracking to help you reduce your carbon footprint and comply with environmental regulations.

This article will discuss the importance of Scope 3 software for tracking indirect emissions, highlight the best tools available on the market, and offer some practical tips for choosing the right solution based on your unique needs. 

How Scope 3 software helps to report on emissions reporting

Scope 3 reporting software simplifies emissions tracking by automating data collection from various supply chain sources. It aggregates data for analysis and provides accurate calculations of indirect emissions.

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These platforms deliver real-time data visibility and analytics, helping businesses to identify emission hotspots and make data-driven decisions when it comes to reducing emissions.

With built-in alignment to frameworks like the Greenhouse Gas Protocol (GHG Protocol) or CSRD, the software streamlines compliance and produces audit-ready reports to help companies demonstrate their climate initiatives.

What is Scope 3 reporting software exactly?

Scope 3 reporting software is a specialized tool designed to help companies measure, manage, and report indirect GHG emissions across their value chain.

It consolidates emissions data from different activities outside a company's own operations—such as corporate travel, waste management, or product use—into one platform. 

This streamlines the often complex measurement process and gives businesses a more accurate understanding of their total environmental impact. It can also help with regulatory compliance and identifying carbon reduction opportunities.

Reporting on Scope 3 emissions according to the GHG Protocol

The GHG Protocol sorts Scope 3 emissions into 15 upstream and downstream categories:

Upstream emissions (everything to produce your product):

• Purchased goods and services
• Capital goods
• Fuel- and energy-related activities not included in Scope 1 or 2
• Transportation and distribution (upstream)
• Waste generated in operations
• Business travel
• Employee commuting
• Upstream leased assets

Downstream emissions (everything to consume your product):

• Transportation and distribution (downstream)
• Processing of sold products
• Use of sold products
• End-of-life treatment of sold products
• Downstream leased assets
• Franchises
• Investments

Reporting on Scope 3 involves gathering data from all of these sources, calculating emissions using emission factors and models, and aligning with the relevant categories. 

The protocol requires companies to disclose their emissions methodologies, identify data limitations, and outline reduction targets. 

Scope 3 reporting software helps by automating all of these processes, ensuring consistent and transparent emissions calculations, and creating detailed reports that align with the protocol's guidelines.

The best Scope 3 reporting software of 2024

With only 37% of Scope 3 emissions from EU businesses currently being addressed with decarbonization measures, it’s clear many are struggling to implement effective strategies to reduce emissions.

Companies are turning to Scope 3 reporting software to improve the accuracy of their emissions tracking so they’re in a better position to reduce them. Below are 12 of the best tools currently on the market helping to close the gap between climate commitments and effective action:

1. Coolset

Coolset - that’s us, by the way - is an Amsterdam-based sustainability platform that helps growing businesses measure, analyze, and reduce their emissions. Our scope 3 reporting software tool is particularly aligned with the European Sustainability Reporting Standards (ESRS) and is designed to help accelerate CSRD compliance, specifically.

If you’re looking to get audit-ready for CSRD, measure emissions or build carbon reduction plans, look no further. Our platform offers an integrated double materiality assessment as well as scope 1-3 GHG assessments and reductions. Whether you’re new to the topic or you’re a seasoned sustainability manager, Coolset helps bridge the knowledge gaps for you and your team. 

• Website: ​​https://www.coolset.com/ 
• Best for: Startups, small to medium enterprises (SMEs), and mid-market companies
• Features: Automated emissions measurement, analysis and reporting across Scope 1, 2, and 3, CSRD compliance module, ability to identify emission hotspots and suggest sustainable alternatives.

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2. Persefoni

Persefoni is an AI-powered carbon measurement and reporting platform tailored for enterprises and financial institutions. It’s designed to handle the complexities of Scope 3 emissions, offering dynamic tools for data collection and management, helping businesses improve their reporting accuracy and compliance.

• Website: https://www.persefoni.com/ 
• Best for: Enterprises and financial institutions
• Features: Carbon footprint measurement and analytics, regulatory and investor emissions reporting, decarbonization management, Scope 3 supplier engagement.

3. Greenly 

Greenly specializes in helping businesses manage and reduce their carbon footprint. It supports engagement with suppliers to ensure emissions throughout the supply chain are considered, helping to create a clear and actionable path towards carbon reduction​.

• Website: https://greenly.earth/ 
• Best for: Companies of all sizes
• Features: Carbon footprint analysis, decarbonization strategies, Life Cycle Assessment, sustainable procurement, offsetting, Scope 1, 2, and 3 emissions tracking.

4. Plan A

Plan A is a carbon management platform that helps businesses manage their emissions and decarbonize their operations. It offers guidance and solutions to enhance the accuracy of emissions calculations and simplify complex data collection across teams and suppliers.

• Website: https://plana.earth/ 
• Best for: Companies aiming for net zero
• Features: Carbon accounting, CSRD readiness, decarbonization plans, regulatory compliance. 

5. Sweep 

Sweep facilitates deep collaboration within the supply chain, enabling businesses to not only track and reduce their carbon footprint but also engage their partners in meaningful climate action. The platform helps companies to enhance their sustainability efforts and meet regulatory requirements.

• Website: https://www.sweep.net/ 
• Best for: Businesses of all sizes across various industries
• Features: Corporate and financial carbon tracking, emission factor database, supply chain tracking, compliance with major sustainability standards, ESG reporting.

6. IBM Envizi

IBM Envizi is a software designed to manage the complexities of Scope 3 emissions. It uses AI and a powerful calculation engine to streamline the measurement and reporting process, making it easier for companies to identify emissions hotspots and improve their overall sustainability reporting. 

• Website: https://www.ibm.com/products/envizi 
• Best for: Large enterprises
• Features: Supply chain intelligence, enhanced analytics, standardized frameworks, regulatory compliance, collaboration tools, integrations.

7. Diligent

Diligent is a governance, risk, and compliance (GRC) software that helps businesses manage and report their ESG data, including Scope 3 emissions. It supports companies in becoming audit-ready with automated data collection and reporting tools, simplifying the complex tasks of managing and disclosing extensive ESG data.

• Website: https://www.diligent.com/ 
• Best for: Large corporations and enterprises
• Features: Automated data collection, audit-ready reports, a vast library of emissions factors, compliance with climate reporting standards.

8. Sphera

Sphera provides ESG performance and risk management solutions. Its services are designed to help businesses manage their ESG goals effectively, with a focus on enhancing environmental compliance and sustainability across the value chain.

• Website: https://www.sphera.com/ 
• Best for: Companies with complex supply chains such as manufacturing, consumer goods, paints, and chemicals
• Features: Scope 3 emissions tracking and management, Life Cycle Assessment (LCA) Automation software integration, compliance and reporting under various regulatory frameworks.

9. IBM Environmental Intelligence Suite

The IBM Environmental Intelligence Suite helps organizations assess, plan, and respond to the impact of environmental conditions on their operations. It leverages AI and weather technology to provide actionable insights that enhance business resilience against climate-related disruptions.

• Website: https://www.ibm.com/products/environmental-intelligence-suite 
• Best for: Large enterprises across various industries
• Features: AI capabilities for predicting and managing climate and weather-related risks, real-time environmental monitoring, climate risk insights​, carbon accounting.

10. Microsoft Sustainability Cloud

Microsoft Sustainability Cloud is designed to help businesses streamline their sustainability practices and meet regulatory requirements. It includes features like automated data collection, extensive reporting capabilities, and integrations with existing business systems to simplify Scope 3 emissions calculations and reporting.

• Website: https://www.microsoft.com/en-us/sustainability/cloud 
• Best for: Organizations of all sizes
• Features: Emissions tracking, management, and reporting, predictive modeling, sustainability goal setting.

11. Net Zero Cloud by Salesforce

Net Zero Cloud is a sustainability management platform that helps organizations enhance their environmental responsibility across their entire value chain. It supports detailed ESG reporting aligned with recognized standards like CSRD, and enables companies to set, track, and report on sustainability goals efficiently.

• Website: https://www.salesforce.com/products/net-zero-cloud/overview/ 
• Best for: Enterprises of all sizes
• Features: Tracking, management, and reporting of Scope 1, 2, and 3 emissions.

12. Sinai Technologies

Sinai Technologies focuses on providing decarbonization solutions, leveraging science-based targets to help organizations reduce their carbon footprint effectively. The platform allows for detailed emissions tracking, analysis, and reporting, helping firms make informed decisions and meet their sustainability goals.

• Website: https://www.sinai.com/
• Best for: Organizations in industries with significant carbon emissions such as manufacturing, energy, and transportation.
• Features: Managing Scope 1, 2, and 3 emissions, scenario analysis, internal carbon pricing, decarbonization strategies, predictive analytics, value chain management.

How to select Scope 3 emissions software for your business

Choosing the right Scope 3 emissions software requires careful consideration of several factors to ensure it meets your business’s needs. Here are some tips to help you identify the most important aspects:

Company size and complexity

Choose software tailored to your organization's size and structure. If your business has a large and complex supply chain, prioritize tools with advanced data collection and analysis capabilities.

Sustainability goals 

Make sure that the software aligns with your sustainability goals. If you're aiming to reduce emissions by a certain percentage or meet specific regulatory standards, ensure the software can provide accurate reporting and track progress toward these targets.

Budget

Determine your budget and find software that offers the most value. Many tools provide different tiers of service, so select one that provides the features you need without overspending.

Coverage

Assess the coverage of the software. Ideally, it should help you track all Scope 1, 2, and 3 emissions while focusing on areas crucial to your business.

Integrations

Check for compatibility with existing systems. The software should seamlessly integrate with your current data management, ERP, or other tools to streamline data collection and analysis.

Why is Scope 3 difficult to measure? 

Scope 3 emissions are tricky to measure due to several reasons. Suppliers often lack the necessary systems or capabilities to effectively track and share their emissions data, creating information gaps. 

There’s also not yet a standardized framework for reporting emissions from products and services, making it difficult for companies to disclose Scope 3 emissions in a way that's both consistent and comparable. 

Value chains are also inherently complex which can obscure the trail of emissions as materials and goods move through multiple suppliers. Services pose unique challenges because their intangible nature makes their emissions hard to quantify and report accurately.

Encouraging your suppliers to track emissions, using recognized frameworks like the GHG Protocol or ESRS as guides, and relying on secondary data when direct data is unavailable can help tackle these challenges. Paired with reporting software, these solutions will make your Scope 3 emissions tracking more accurate and reliable.

Measure Scope 3 faster and with more emission insights

With so many moving parts in your supply chain, accurately measuring Scope 3 emissions can seem like an impossible undertaking. Thankfully, Scope 3 reporting software tools like the ones listed above can simplify the process, helping you track, analyze, and reduce emissions efficiently. 

Coolset uses cutting-edge data collection methods to measure your Scope 1, 2, and 3 emissions according to the GHG Protocol. It also ensures compliance with the latest sustainability requirements like the CSRD and generates audit-ready reports automatically based on your needs.

Curious to learn more? Schedule a free demo to discover how Coolset can streamline your emissions management today.