How to Prepare Your Scope 3 Baseline for SBTi V2.0

Understanding the SBTi V2.0 Shift for Scope 3

The Science Based Targets initiative (SBTi) has long been the gold standard for corporate climate commitments. With the introduction of the Corporate Net-Zero Standard V2.0, the bar for credibility and rigour has been raised, particularly for value chain emissions. For organisations serious about decarbonisation, the immediate challenge is clear: you need to prepare your Scope 3 data to meet these enhanced expectations. This isn't just about compliance; it's about building a credible, actionable foundation for your entire net-zero journey.

Previously, companies had more leeway in using industry averages and less granular data for their Scope 3 reporting. The V2.0 standard signals a decisive shift towards greater accuracy, transparency, and accountability. It places a stronger emphasis on using primary data where possible and engaging directly with suppliers to drive reductions across the value chain. This change reflects a broader understanding that for most companies, the vast majority of emissions lie outside their direct control, within their supply chain. Therefore, tackling Scope 3 is not optional, it is the core of any meaningful climate strategy.

This guide provides a practical roadmap for sustainability and procurement teams. We will walk through the essential steps to prepare your Scope 3 baseline, moving from fragmented data and annual exercises to a dynamic, audit-ready system that empowers you to make real progress.

A Step-by-Step Guide to Prepare Your Scope 3 Baseline

Building a robust Scope 3 baseline under the new standard requires a systematic approach. It’s about moving beyond a simple calculation to creating a trusted data asset that can inform strategy, guide procurement, and stand up to scrutiny. Here’s how to get started.

Step 1: Re-evaluate Your Scope 3 Boundary and Materiality

The first step is to revisit your GHG inventory. The SBTi requires targets to cover all significant Scope 3 categories. This means you need a clear, documented process for determining which of the 15 categories are material to your business. For most companies, Purchased Goods and Services (Category 1) is the largest contributor, but others like capital goods, transportation, and use of sold products can also be significant.

Your materiality assessment should be defensible and repeatable. Analyse your procurement spend data to identify emission hotspots and document why certain categories are included or excluded. This initial mapping is the blueprint for your entire data collection effort and is a foundational piece that auditors will review.

Step 2: Consolidate All Existing Data Sources

Most organisations already have more data than they realise, but it's often scattered across different systems and formats. The old way of working involved chasing data from spreadsheets, PDFs, and siloed procurement platforms. To prepare your Scope 3 data effectively, you must first consolidate these disparate sources into a single source of truth.

Gather information from:

• Procurement and ERP systems for spend data.
• Existing supplier surveys or responses to platforms like CDP.
• Product lifecycle assessments (LCAs).
• Logistics and freight reports.
• Published emissions data from large, publicly listed suppliers.

The goal is to create a unified view of what you already know. This process will inevitably highlight gaps and inconsistencies, which is a crucial step in understanding where to focus your data collection and engagement efforts next.

Step 3: Prioritise Supplier Engagement for Primary Data

While spend-based calculations using industry averages are a necessary starting point, SBTi V2.0 pushes for the inclusion of supplier-specific (primary) data. Since engaging every single supplier is impractical, prioritisation is key. Focus your efforts where they will have the most impact.

Create a tiered list of suppliers based on criteria such as:

1. Spend Volume: Your largest suppliers are often the biggest source of emissions.
2. Strategic Importance: Key partners whose collaboration is essential for your business and decarbonisation goals.
3. Emissions Intensity: Suppliers in carbon-intensive sectors (e.g., manufacturing, logistics, raw materials) who represent a disproportionate share of your footprint.

By segmenting your supply chain, you can tailor your engagement strategy, dedicating high-touch efforts to your most critical partners while using more automated, scalable methods for the long tail.

Improving Data Quality and Provenance for Validation

Under SBTi V2.0, simply having a number is not enough. The credibility of your baseline hinges on the quality and provenance of the data behind it. Auditors and stakeholders will increasingly ask, “How did you get this number, and can you prove it?” This is where having an audit-ready data management system becomes non-negotiable.

“We used to spend weeks before an audit just trying to trace our Scope 3 numbers back to their original sources. It was a chaotic process of digging through old emails and spreadsheets. Now, the expectation is that this evidence is available on demand, with a clear version history.” - A Sustainability Director at a global consumer goods company.

To prepare your Scope 3 data for this level of scrutiny, focus on establishing clear data provenance for every data point. This means tracking:

• The Source: Was the data from a supplier disclosure, an internal calculation, or a third-party database?
• The Timestamp: When was the data collected or last updated?
• The Methodology: How was the emission factor applied or the calculation performed?
• The Evidence: Can you link back to the original source document or supplier submission?

This commitment to data hygiene does more than satisfy auditors. It builds internal trust in the numbers, giving leadership the confidence to set ambitious targets and make investment decisions based on a solid foundation.

From Baseline to Action: Making Your Scope 3 Data Work for You

The ultimate goal when you prepare your Scope 3 baseline is not just to get a target validated. It is to create a tool that drives decarbonisation. A static, annual baseline is of limited use in a dynamic business environment. The real value is unlocked when your Scope 3 data becomes a live, decision-making asset.

Integrating Emissions into Procurement

One of the most powerful levers for reduction is procurement. By equipping your buying teams with clear, simple emissions data, you can start making carbon-aware decisions before a purchase order is ever signed. This means integrating supplier emissions scorecards or an “emissions signal” directly into existing sourcing workflows. It transforms sustainability from a separate reporting exercise into a core part of how your business operates, empowering procurement to become a key agent of change.

Forecasting and Tracking Progress

With a validated target and a robust baseline, the focus shifts to implementation and progress tracking. Are you on track to meet your near-term and long-term goals? A modern approach involves forecasting your emissions trajectory based on planned activities and supplier-level reduction commitments. This allows you to see your pathway to net-zero, identify potential shortfalls early, and model the impact of different reduction initiatives. It moves the conversation from a retrospective report to a forward-looking strategic plan, ensuring your climate ambitions translate into measurable action.