Scope 3 reporting: Businesses visa to foreign markets - Energy Partners

SOUTH African businesses are no strangers to managing through uncertainty. But as international trade becomes increasingly carbon-conscious, a new type of exposure is emerging for local exporters, one that can directly affect market access.

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Under the European Union's Corporate Sustainability Reporting Directive (CSRD) and the Carbon Border Adjustment Mechanism (CBAM), companies must now disclose their full value-chain emissions.

Those exporters able to trace and verify their Scope 3 data - the greenhouse gas emissions linked to suppliers, logistics and downstream use - will hold a decisive advantage in tomorrow’s trading environment.

Not all data is created equal

Scope 3 emissions typically account for around 70% of a company’s total carbon footprint, yet they're the most complex to measure.

Many South African supply chains are built on hundreds of smaller or informal suppliers who lack the systems or resources to measure their own footprints accurately. Even where data is available, it arrives in different formats, using outdated emission factors or broad assumptions. The result is a patchwork of information that cannot withstand the scrutiny of regulators or investors.