Europe is locking in a new norm: If you make it or import it, you need credible carbon data for it. Two policies are driving this shift. The Carbon Border Adjustment Mechanism (CBAM) has moved from a 2023–2025 reporting-only phase to full operation from 2026, putting a price on the embedded emissions of key imports such as steel, cement, aluminium, fertilisers, electricity and hydrogen. In parallel, the Corporate Sustainability Reporting Directive (CSRD) requires thousands of companies to disclose standardised, assured sustainability information and use the ESRS framework. Together, they turn carbon transparency from avant-garde into a market requirement.
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For most companies, the largest figure in the carbon inventory is not the office, the vehicle fleet, or the electricity bill. It sits upstream, in the goods and materials a business buys to make and sell its products. These purchased inputs form the bulk of a company’s Scope 3 emissions, which routinely exceeds everything the business controls directly, and can add up to 90% of their global footprint.
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