You Cannot Set SBTi Targets Without Better Scope 3.1 Data, Here’s Why

Setting Science-Based Targets (SBTi) is now a key part of corporate climate leadership. It shows that a company is committed to aligning its emissions reductions with the 1.5°C global warming pathway. But what many companies overlook is that without accurate Scope 3.1 data, emissions from purchased goods and services, setting realistic and credible targets is almost impossible. This blog explores why high-quality Scope 3.1 data isn’t optional; it’s foundational.

Why Scope 3.1 Matters to SBTi?

Scope 3.1 emissions typically account for the largest share of a company’s total carbon footprint, especially in sectors like manufacturing, retail, electronics, and FMCG. This category includes emissions from raw materials, components, packaging, and outsourced services.

According to SBTi guidelines, if Scope 3 emissions account for more than 40% of a company’s total footprint, they must be included in the target boundary. For most companies, this means that Scope 3.1 is unavoidable.

If you’re not measuring Scope 3.1 properly, you’re leaving out the majority of your climate impact, and setting targets that can’t be trusted.hat supplier data not only “looks right” but is accurate, from both a technical and reporting standpoint.

The Problem with Incomplete or Estimated Data

Most companies begin their Scope 3.1 journey using spend-based estimates or industry-average emission factors. While useful at an early stage, this approach quickly becomes a bottleneck for meaningful target setting.

Why estimates fall short:

• They don’t reflect supplier-specific emissions
• They’re often outdated or inconsistent
• They can’t support year-over-year progress tracking
• They reduce the credibility of disclosures

The SBTi expects companies to move toward actual, primary data from suppliers, especially for top-emitting categories.

Without reliable data, your targets may meet the formality of SBTi submission but fail to reflect reality, or achieve measurable results.

Targets Are Meaningless Without Measurability

To be approved by the SBTi, targets must be:

• Specific: Define what will be reduced, and by how much
• Measurable: Quantify progress over time
• Time-bound: Commit to a deadline (usually 5–15 years)
• Verifiable: Supported by transparent data and reporting

Poor Scope 3.1 data breaks this chain. If you can’t measure your baseline accurately, tracking reductions or course-correcting becomes impossible.

Data is not just a reporting requirement, it’s what gives your targets credibility.

Key Dependencies for Better Scope 3.1 Data

Getting Scope 3.1 right means investing in the processes, partnerships, and platforms that improve data quality and integration across the business.

1. Supplier-Specific Data

Collect product-level or facility-level emissions data from suppliers. Focus first on Tier 1 and high-impact categories.

2. Cross-Functional Involvement

Procurement, finance, sustainability, and operations must work together to define requirements, gather data, and integrate it into planning.

3. Digital Systems for Data Collection

Use sourcing platforms, supplier engagement tools, or ESG software that allow direct emissions data input and validation.

4. Carbon Ownership and Governance

Assign roles for who collects, validates, reports, and acts on Scope 3.1 data. Governance structures ensure accountability and continuity.

How SBTi Progress Relies on Better Scope 3.1 Data?

➤ Supplier Engagement Needs a Data Foundation

You can’t reduce what you can’t see. Without accurate Scope 3.1 data:

• You won’t know which suppliers to prioritise
• You can’t tailor reduction programs to actual hotspots
• You can’t track whether interventions are working

Engaging your supply chain in emissions reduction becomes performative rather than transformative.

Quality data empowers smarter supplier engagement and more impactful climate action.

Data Strengthens Validation and Avoids Rework

The SBTi validates submitted targets based on the methodology and data quality used. Weak Scope 3.1 data can lead to:

• Delays in validation
• Requests for resubmission
• Lower confidence in public disclosures

With regulatory frameworks evolving (e.g., CSRD, SEC climate disclosures), it’s critical to align SBTi submission with regulatory-grade data.

Strong Scope 3.1 data now prevents future compliance failures.

What Good Looks Like: A Checklist for SBTi-Ready Scope 3.1 Data

The Business Case for Getting Scope 3.1 Right

Investing in better Scope 3.1 data doesn’t just support target setting, it delivers a competitive edge.

Cost Savings and Margin Improvement

High-quality emissions data helps you identify inefficiencies, waste, and cost hotspots across your supply chain, improving operational margins and reducing unnecessary spend.

Optimized Supplier Choices

With better visibility, you can benchmark suppliers on both emissions performance and total cost, enabling smarter sourcing decisions and more resilient supply chains.

Operational Efficiency and Risk Reduction

Understanding Scope 3.1 emissions highlights process bottlenecks and supply chain risks, supporting productivity gains and lowering exposure to volatility.

Better ESG Ratings and Access to Capital

Reliable Scope 3.1 data improve CDP scores, Sustainability ratings, and other ESG benchmarks, enhancing credibility with investors and opening the door to sustainability-linked loans and green bonds.

Credibility with Stakeholders

Customers, regulators, and financial institutions are more likely to trust disclosures backed by transparent, auditable data.

Scope 3.1 isn’t just a reporting exercise, it’s a lever to strengthen profitability, resilience, and long-term growth.

Final Thoughts

Setting Science-Based Targets is an important step, but it’s only as strong as the data behind it. Without accurate, complete, and validated Scope 3.1 emissions data, your targets may be unmeasurable, unachievable, or unverifiable.

Scope 3.1 data is no longer just the concern of the sustainability team. It requires the buy-in of procurement, finance, operations, and your suppliers, and the systems to support that collaboration.

If your organisation is serious about achieving its climate goals, it’s time to stop treating Scope 3.1 data as a bottleneck and start treating it as a business asset.

Better data leads to better targets. And better targets lead to real climate impact.

Want to simplify Scope 3.1 supplier reporting?

FAQs

Why is Scope 3.1 data critical for setting SBTi targets?

Scope 3.1 emissions—those from purchased goods and services—often make up the largest share of a company’s footprint. The SBTi requires companies to include them if they exceed 40% of total emissions. Without accurate data, targets are unreliable and unmeasurable.

What are the risks of relying on spend-based estimates for Scope 3.1?

Spend-based or industry-average estimates don’t reflect supplier-specific emissions, are often outdated, and can’t track year-over-year progress. This weakens the credibility of your targets and disclosures.

How does better Scope 3.1 data improve supplier engagement?

Reliable data allows you to identify high-impact suppliers, tailor reduction programs to real hotspots, and monitor progress effectively. It moves supplier engagement from symbolic to strategic.

What does SBTi expect in terms of Scope 3.1 data validation?

SBTi requires transparent, verifiable data and documentation. Weak or incomplete data can cause delays in validation or rejections of submitted targets.

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