By Brett Wills, CEO of CarbonOne
Key takeaways:
- Scope 3 emissions are becoming mandatory for global trade, with EU Digital Product Passports requiring supplier-specific data that most North American companies lack.
- Supply chain collaboration beats compliance mandates — companies need shared carbon data infrastructure and supplier enablement tools rather than top-down reporting requests.
- Companies that digitize Scope 3 tracking now will be better positioned for global expansion and regulatory compliance.
The toughest emissions to track for food companies are often the most important. Scope 3 emissions — those tied to suppliers, transportation, packaging, and production inputs — can represent more than 80% of a company’s total carbon footprint. Yet many organizations still rely on estimates or lack visibility altogether.
As carbon reporting expectations grow more sophisticated, these blind spots carry real risk, not just reputationally, but operationally. Retailers, investors, and global buyers are asking tougher questions, while international regulations begin to take shape. Scope 3 reporting isn’t just about disclosure anymore; it’s becoming a requirement for businesses across borders.
Why Scope 3 matters now
Unlike direct emissions (Scope 1) or purchased energy (Scope 2), Scope 3 emissions span the entire upstream and downstream value chain. For the food and beverage sector, this includes everything from farm inputs and fertilizer to freight, processing, and packaging. That complexity has made Scope 3 the most elusive category for measurement and action.
But that’s starting to change. A growing number of companies are realizing that Scope 3 readiness isn’t just a compliance exercise — it’s a way to unlock supply chain efficiency, reduce exposure to trade disruptions, and build stronger relationships with strategic partners.
The global push toward product-level transparency
While Scope 3 reporting isn’t yet universally mandatory, the direction is clear. In the European Union, Digital Product Passports (DPPs) are being introduced to require product-level environmental disclosures, and other countries are moving in a similar direction. These frameworks will demand data that many North American companies simply don’t have today, particularly supplier-specific carbon footprints.
Even for businesses based in the U.S., this matters. If you export to Europe or other countries with transparency requirements, sell through multinational retailers, or source ingredients globally, DPPs and similar disclosure requirements are coming your way. Trade compliance is evolving, and carbon data will increasingly be part of the documentation required to do business in markets across the globe.
From mandates to collaboration
Meeting these expectations will require a shift in mindset — from internal reporting to supply chain collaboration. Companies can no longer rely on top-down requests for data. Instead, they need to build a shared carbon data infrastructure that suppliers can plug into easily and consistently.
This is where supplier enablement becomes critical. Rather than imposing complex reporting requirements, companies must support suppliers with education, user-friendly tools, and aligned incentives. This approach not only improves data accuracy but also strengthens relationships and creates a more agile, resilient value chain.
Technology is the enabler
Fortunately, we’re no longer in the era of spreadsheets and manual tracking. Digital platforms are helping companies automate Scope 3 data collection, reduce administrative burden, and deliver auditable, product-level insights. These technologies are especially valuable in agriculture and food, where emissions vary significantly by location, practice, and input.
By embedding real-time data collection into supplier workflows, companies can turn carbon reporting from a reactive task into a proactive tool for business improvement.
Even in the absence of universal mandates, carbon transparency is quickly becoming a cost of doing business in the global food system. Companies that act now to engage suppliers, digitize data collection, and align with emerging global standards will be better positioned to grow, export, and lead.
The food industry has spent years improving internal operations. The next wave of climate leadership will be defined by how companies extend that same discipline — and accountability — across their supply chains.
Brett is the founder and CEO of CarbonOne, a clean-tech company specializing in carbon accounting and reporting. Focused on combating climate change with food and beverage companies, Brett brings over 25 years of experience in sustainability and the agri-food sector, including teaching and authoring groundbreaking works on sustainable business.
