Data gaps in climate data are derailing corporate climate goals: Why companies struggle to tackle the climate crisis

The Science Based Targets initiative (SBTi) just downgraded the climate commitments of some of the world's biggest companies.

239 major companies, worth over $4 trillion combined, just got dropped from the Science Based Targets initiative (SBTi) dashboard. The list includes major companies that largely contribute to carbon emissions like Microsoft, Walmart, P&G, and Unilever.

Interestingly, the stumbling block is not about money or technology anymore. It's about data.

These companies, with all their resources and expertise, are facing the same challenge that many businesses encounter: they simply can't get accurate greenhouse gas emissions data from their supply chains. And without reliable data, reducing emissions becomes a guessing game rather than a strategic initiative.

For businesses watching from the sidelines, this shows a crucial insight about corporate climate strategies: even the most ambitious goals fall flat without the right data infrastructure to measure and track carbon emissions.

In this article, we'll break down what went wrong, examine the real business implications of this setback, and most importantly, explore practical solutions for procurement and sustainability teams who want to avoid similar pitfalls in their own climate initiatives.

Why climate data gaps are blocking Net Zero progress

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When companies like Microsoft miss their SBTi deadlines, it's not because they weren't trying hard enough.

This points to a bigger issue that's plaguing businesses everywhere: we're attempting to transform our operations and supply chains without having the full picture of our emissions.

When you try to cut costs, you must know firstly where you're spending money on, right? Otherwise, achieving your goal will just be frustrating and ineffective.

There's a fundamental gap in how businesses track and manage their carbon footprint, especially when it comes to their supply chains.

How to tackle Climate Action through better supply chain data

So, what's the missing factor here? The heart of the challenge lies in Scope 3 emissions - the indirect emissions occurring throughout a company's value chain.

According to SBTi's survey of 971 companies representing $21 trillion in market capitalization, approximately half of them cited Scope 3 measurement as their primary barrier to setting net-zero targets.

This is particularly significant for procurement professionals, who find themselves at the frontline of emissions reduction efforts without adequate tools to measure or influence supplier behavior.

Making your sustainability goals actually achievable: Actions to achieve them

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For those of us managing procurement or sustainability programs, their challenges spotlight what we really need to get right:

Get real data, not just estimates: Let's face it - industry averages and supplier surveys aren't cutting it. You need verified, primary emissions data from your suppliers.
One source of truth: Stop juggling multiple spreadsheets and platforms. You need a single, comprehensive system that automatically consolidates and normalizes your emissions data. Just like you have one financial system, you need one emissions data hub.
Make sense of your data: Having data is one thing - knowing what to do with it is another. Look for tools that don't just collect data but give you actionable insights. Which suppliers should you engage with first? Where are your biggest reduction opportunities? You need answers, not just numbers.
Track real progress: With only 5 years left to hit 2030 targets, you can't afford to rely on rough estimates. You need to show concrete progress to stakeholders, identify what's working, and adjust what isn't.
Future-proof your operations: Modern carbon tracking platforms aren't just nice-to-have anymore - they're essential business infrastructure for the next decade.

And here's why this matters beyond just hitting environmental targets:

Your reputation is on the line: Missing climate targets isn't just about numbers - it's about trust. Without accurate data, you risk accusations of greenwashing and the reputational damage that follows.
Business relationships are at stake: Major companies are already dropping suppliers who can't demonstrate emissions reductions. Don't lose business because you can't prove your progress.
Compliance is getting serious: New regulations are coming, and they're getting stricter. Without granular emissions data, you'll struggle to comply and could face significant fines.

Learning from 2023: How major companies commit to Net-Zero targets

Even companies with proven track records in sustainability face data hurdles:

Walmart, despite eliminating over 1 gigaton of emissions from its supply chain since 2017, is still working to finalize its Scope 3 analysis.
Microsoft maintains its ambitious goals but couldn't meet SBTi's specific validation requirements.
Unilever's experience highlights how methodological differences can complicate target validation, even with comprehensive sustainability plans in place.

Taking action: Strategic recommendations

Start with available data: Begin measuring what you can while building capacity for comprehensive reporting.
Invest in technology: Evaluate and implement specialized tools designed for supply chain emissions tracking.
Build supplier relationships: Develop collaborative approaches to data sharing and emissions reduction with key suppliers.
Stay flexible: Maintain ambitious goals while being prepared to adjust strategies as better data becomes available.

Looking ahead

The SBTi is reviewing its Corporate Net-Zero Standard, with potential changes coming by 2025, particularly around Scope 3 measurement.

This will give an opportunity for organizations to reassess their approach to emissions data collection and management.

Drawing from here, we can safely say that the success in corporate climate initiatives depends as much on robust data infrastructure as it does on ambitious targets.

As we move forward, the companies that invest in solving the data challenge today will be better positioned to meet the environmental demands of tomorrow.