New Research: Immediate Solutions Needed as Companies Struggle to Make Progress on Scope 3 Targets
Corporate scope 3 decarbonization is hindered by a combination of cross-sector and industry-specific barriers, new research by Ramboll has found.
The report by global consultancy Ramboll, commissioned by VCMI, reveals that while the majority of companies are confident in their ability to overcome barriers within a decade, during this time systemic challenges will continue to slow their progress towards scope 3 targets.
Corporate progress on scope 3 decarbonization remains mixed: 46% of companies reported a decrease in scope 3 emissions, but 38% saw an increase — underscoring the challenges in translating ambition into tangible emissions reductions. Most companies assessed their progress on scope 3 ‘as expected’ (46%) or ‘below expectation’ (36%) with only a minority exceeding expectation.
The research shows that as companies work towards their scope 3 targets, most of which are set for between 2030 and 2040, a range of techno-economic and supply chain barriers will mean companies continue to have unabated scope 3 emissions. The findings point to the need for stronger incentives, clearer guidance, and new solutions to close the gap between scope 3 ambition and action.
“Most companies understand what’s at stake—but they’re held back by challenges they can’t fix on their own,” said Niki Bey, Decarbonisation Lead at Ramboll. “This research highlights the pressure points where better coordination, clearer expectations, and targeted support could unlock real progress.”
Why are companies stuck?
The report, Scope 3 Decarbonisation: Practitioner Challenges, draws on a detailed market assessment, analysing survey responses from corporate sustainability leaders and market data across multiple sectors, to identify the key systemic and structural barriers that continue to impede progress to close the scope 3 emissions gap—even among those with high climate ambition.
The majority (55%) of survey respondents indicated that their company is targeting a reduction in scope 3 emissions between 2030 and 2040. The findings reveal that while companies are increasingly committed to addressing scope 3 emissions, they are often held back by conditions beyond their control. Specifically, the report highlights two major themes around techno-economic barriers to upstream decarbonization and supply chain coordination and emissions reporting:
1. High costs and limited access to low-carbon solutions
The transition to low-carbon alternatives remains costly and, in many cases, logistically or technologically out of reach, with 1 in 5 companies citing the price of carbon-free energy as a top challenge, and many others highlighting the unaffordability of low-carbon alternatives. In some sectors, like heavy industry and food systems, low-carbon options are either not yet commercially viable or require significant infrastructure investments. In many geographies, especially across emerging markets, companies also face inadequate access to scalable, affordable low-carbon technologies and services.
2. Lack of supplier emissions data and limited data standardization
Even when companies want to take action, they are often missing the data needed to do so credibly. Supplier emissions data unavailability was identified as a critical barrier to decarbonization, cited by 14% of companies surveyed. Due to the complexity of global value chains and the variability in supplier capabilities, many companies are still relying on estimations, industry averages, or incomplete datasets — undermining the credibility of scope 3 accounting and slowing down decarbonization efforts.
3. Minimal leverage over indirect suppliers deep in the value chain
Scope 3 emissions frequently originate several tiers upstream or downstream from a company’s direct control—often involving small and medium-sized enterprises (SMEs) with limited climate capacity. Companies report limited influence over their indirect suppliers. The report finds that 1 in 5 companies feel they have sufficient influence over indirect suppliers to drive decarbonization. Without clear market signals or incentives, many suppliers remain disengaged or unable to respond to buyers’ climate expectations. This is especially true in fragmented supply chains, where governance and transparency are weak.
“Even where long-term scope 3 targets exist, the solutions identified in the Ramboll report are not quick fixes and many companies lack clear plans to overcome systemic barriers in the near term,” said Nick Corbett, VCMI Technical Associate. “High-quality carbon credits — used transparently and within a credible strategy — can help close the scope 3 emissions gap while longer-term solutions take shape, enabling near-term action and unlocking urgently needed climate finance.”
Overcoming barriers to scope 3 decarbonization
The report identifies practical solutions to help companies overcome systemic barriers to scope 3 decarbonization — spotlighting the complementary role of using high-integrity tools to drive near-term emissions reductions. Among these, the use of high-quality carbon credits emerges as an enabler for companies to make progress on currently hard-to-abate emissions while working on long-term value chain decarbonization.
When used transparently, and as part of a broader mitigation strategy, high-quality carbon credits enable companies to go further, faster, incentivizing decarbonization and delivering finance to projects reducing and removing emissions.
The Scope 3 Action Challenge: Mobilizing corporate action to close the scope 3 emissions gap
In response to this critical gap, VCMI and the International Chamber of Commerce (ICC) are launching the Scope 3 Action Challenge, alongside a growing coalition of global organizations. The Action Challenge will provide recognition for businesses and non-state actors committed to tackling scope 3 emissions, raise awareness of the importance of closing the ‘scope 3 gap’ and signpost practical tools for companies to take action.
The Challenge will:
- Recognize companies committed to addressing scope 3 emissions;
- Raise awareness of the scale and urgency to close the scope 3 emissions gap;
- Promote credible solutions that prioritize science-aligned direct emissions reductions and complementing that with the use of high-quality carbon credits; and
- Demonstrate corporate leadership in climate accountability and ambition.
The window to act on scope 3 emissions is closing—fast. Companies can no longer wait for perfect conditions.
The Scope 3 Action Challenge is an opportunity to lead from the front. By joining, your organization will stand among global corporates and other non-state actors driving real change—demonstrating that ambition, transparency, and integrity are not just words, but a strategy for long-term value and resilience.
We must act now—Accelerate Scope 3 Action.