According to a new study from operations strategy and transformation consultancy Argon & Co, 76% of UK C-suite leaders say meeting Scope 3 regulatory requirements feels well within reach.
But perhaps surprisingly, only 37% believe they’re investing sufficiently in the tools and technologies needed to track and reduce those emissions.
Argon & Co believes that these statistics are indicative of an overconfidence in business leaders’ capabilities to drive down Scope 3 emissions, and increase their visibility
Judith Richardson, head of sustainability at Argon & Co UK, said: “Whilst our data shows that many leaders are confident they can meet Scope 3 requirements, the complexity of meeting these standards and the lack of investment suggests some over-optimism.
“Tracking and reducing Scope 3 emissions demands a level of visibility that has never before been demanded of businesses, and having the right approaches in place is essential. The fact that firms are yet to invest in people, approaches, or tools, yet feel confident, rings alarm bells.”
She added: “This comes at a time when there is even greater uncertainty regarding the requirements firms face. 2025 has already seen a rollback in the scope of CSRD, CSDDD, and the EU Taxonomy, all of which are adding to the confusion felt by firms.
European Commission proposes significant CSRD exemptions and delaying requirements until 2028
“Compliance alone will always drive a tick-box mentality, which can limit firms as they approach sustainability. Now that many of the win-wins – like energy reduction, operational efficiencies, and reducing waste – are becoming exhausted, businesses are having to look at their supply chains more fundamentally.
“Where they once sought to leverage suppliers for competitive advantage, they need to consider new forms of collaboration. Where supply chains were linear, they need to become more circular.”
Richardson noted that once a supply chain has been established, it can be difficult to unpick it and reconfigure it, so trying reverse engineer a resilient and compliant supply chain with regards to sustainability is particularly challenging.
“However,” she continued, “the current global trade pressures – plus the need to reshape supply chains as a result – mean businesses have a rare chance to hardwire sustainability in from the outset. Businesses that are rethinking long-standing supply chain models are positioning themselves in a prime position to embed end-to-end visibility and sustainability from the outset.”
She concluded: “If we are ripping up the rule book, we should be writing new rules with sustainability at the centre. Those that act now to build transparent operations will gain a long-term advantage – securing stronger partnerships and premium positioning within the value chain. Suppliers that can prove their sustainability credentials will stand out as partners of choice.”
Interested in sustainability in supply chains? Come along to Logistics Manager’s Sustainable Supply Chain Conference, returning to 30 Euston Square in London on 24 June 2025.
The conference is a one-day face-to-face event where delegates can hear directly from industry-leading speakers about how business sustainability can influence their bottom line.
Amongst the list of speakers already announced for the conference are representatives of organisations such as the Department for Environment, Food & Rural Affairs (Defra), NHS England and Bidfood, as well as sponsors of the conference Descartes, Wincanton, Springpack, Mer Fleet Services and Aurora Insights.
Click here to find out more and register for this unmissable event!
