92%
of major buyers now require Scope 3 supplier data (BDC 2023)
70-95%
of company emissions are Scope 3 (value chain)
67%
of supplier emissions required for SBTi targets
What is CSRD?
The Corporate Sustainability Reporting Directive (CSRD) is an EU regulation that requires large companies to disclose their environmental, social, and governance (ESG) impacts. Under CSRD, companies must report their full value chain emissions, including Scope 3 emissions from suppliers.
This means your EU-based customers will be asking you for activity data to support their CSRD compliance—even if you're not based in the EU.
Key insight: The CSRD creates a "cascade effect" where reporting obligations flow from large EU companies down through their supply chains. Suppliers who can't provide data risk being dropped from vendor pools in favor of those who can.
CSRD Timeline
What Your Buyers Are Asking For
Under ESRS E1 (Climate Change), your customers need activity data for these Scope 3 categories:
Category 1: Purchased Goods & Services
Energy consumed in manufacturing, fuel used in production
Category 3: Fuel & Energy-Related Activities
Upstream emissions from energy procurement
Category 4: Upstream Transportation
Emissions from transporting goods to your facility
What You Need to Provide
Required Data
- ✓Electricity consumption (kWh)
- ✓Natural gas usage (therms or MMBtu)
- ✓Fuel consumption (gallons or liters)
- ✓Transportation data (ton-miles or km)
- ✓Allocation basis (revenue % or volume %)
Document Format
- •Structured PDF with methodology disclosure
- •Emission factors with sources cited
- •Data quality tier classification
- •Declaration of accuracy
- •CSV for portal upload (EcoVadis, etc.)
No Data = No Contract
Companies that can't provide compliant emissions data risk being dropped from preferred supplier lists. Procurement teams are making CSRD compliance a qualification requirement for RFPs starting in 2026.
According to industry research: Suppliers who demonstrate transparent, measurable progress on decarbonization will be prioritized. Those who can't provide data—even spend-based estimates—will be at a competitive disadvantage.
Data Quality Tiers (GHG Protocol)
The GHG Protocol defines three tiers of data quality. All tiers are acceptablefor Scope 3 reporting, but higher quality data provides more accurate emissions estimates.
Tier 1: Primary Data (Highest)
Supplier-specific data from utility invoices, meter readings, or measured fuel consumption. This is the "gold standard" and what buyers prefer.
Tier 2: Hybrid Data (Medium)
Combination of supplier-specific activity data with industry-average emission factors. Acceptable when complete primary data is not available.
Tier 3: Secondary Data (Starting Point)
Spend-based estimates using economic input-output models or industry averages. Per GHG Protocol Scope 3 Guidance, this is an acceptable starting point— most companies begin here and improve data quality over time.
PACT V2 Framework
The Partnership for Carbon Transparency (PACT) V2 framework, developed by WBCSD, provides a standardized format for exchanging Product Carbon Footprint (PCF) data across supply chains.
PACT V2 Output Units:
- • kgCO2e/unit — Emissions per product unit
- • kgCO2e/kg — Emissions per kilogram of product
- • kgCO2e/$ — Emissions per dollar of spend (for spend-based calculations)
Our Supplier Data Statements are formatted to be compatible with PACT V2 data exchange requirements.
Generate Your Supplier Data Statement
Create a procurement-portal-ready Supplier Data Statement in under 10 minutes. No emissions expertise required.
Official CSRD Resources: European Commission CSRD Page