Why Averages Will Not Enough for SBTi V2.0 Scope 3 Targets

Why Averages Will Not Enough Under SBTi V2.0

For years, organisations have relied on spend-based calculations and industry averages to get a handle on their Scope 3 emissions. It was a pragmatic first step, a way to map the vast territory of the value chain and understand the scale of the challenge. However, the landscape is changing. With the introduction of the Science Based Targets initiative (SBTi) Corporate Net-Zero Standard V2.0, the era of estimation is drawing to a close. The new standard signals a clear shift towards greater accuracy, accountability, and, most importantly, action. It sends a clear message to sustainability and procurement teams: for credible decarbonisation, relying on broad-brush estimates and industry averages will not enough.

The core of this shift lies in the SBTi's renewed focus on measurable progress. The V2.0 standard emphasizes that targets must be “grounded in emissions associated with the underlying emissions-generating activities within each company’s operations and value chain.” This language is a direct challenge to the use of averages, which, by their nature, are disconnected from the specific activities of individual suppliers. An average tells you nothing about the real-world performance of the partners you actually work with. It masks the leaders and laggards, treating a supplier that runs on renewable energy the same as one powered by coal.

This lack of granularity makes meaningful action impossible. You cannot engage a supplier to improve an industry average. You cannot reward a high-performing partner if their efforts are diluted in a sea of generalised data. The new standard implicitly understands this. It pushes companies to move beyond simply accounting for a number and towards actively managing emissions. To do that, you need data that reflects reality, not a statistical model. It has become clear that for building a robust and auditable climate strategy, averages will not enough.

The Shift to Actionable, Supplier-Specific Data

The transition mandated by SBTi V2.0 is from estimation to measurement. It requires a fundamental change in how companies approach their value chain data, moving from a top-down, spend-based view to a bottom-up, supplier-specific one. This is not just about better reporting; it is about enabling effective decarbonisation.

Supplier-specific data, whether it is primary data collected directly or high-quality secondary data from verified disclosures, provides the actionable insights that averages lack. It allows you to see your supply chain with clarity, identifying the true emissions hotspots that require urgent attention. These hotspots are often not just with the suppliers you spend the most with, but with those whose operations are particularly carbon-intensive, a fact completely obscured by spend-based models.

To genuinely manage Scope 3 emissions, you need to move from accounting for an estimate to accounting for actual supplier performance. That is the core of the new standard, and it confirms that averages will not enough to drive real change.

This shift empowers procurement and sustainability teams to work together more effectively. When procurement leaders have access to reliable emissions data alongside cost and quality metrics, they can make more informed sourcing decisions. This is the essence of procurement enablement: embedding climate considerations into the heart of the purchasing process, long before a contract is signed. It transforms procurement from a transactional function into a strategic lever for decarbonisation. It also means that for forward-thinking organisations, averages will not enough to maintain a competitive edge.

Practical Steps to Move Beyond Averages

Moving away from a long-established reliance on averages can seem daunting, but it is achievable with a structured approach. The goal is to build a data foundation that is both credible for reporting and useful for driving reductions. Here are four practical steps to begin the transition:

• Enrich Your Baseline with Real Data: Start by replacing broad industry averages with actual data wherever possible. This involves tapping into the vast pool of publicly disclosed emissions data from suppliers who are already reporting. Platforms like Ditch Carbon, which map over 2 million organisations, can rapidly provide significant coverage, giving you an immediate and substantial upgrade in data quality without having to survey a single supplier.
• Engage Your Supply Chain at Scale: For suppliers who do not publicly disclose their data, a scalable engagement programme is essential. The key is to make the process as simple as possible for them. Use smart platforms that can pre-fill information, localise questionnaires, and send automated reminders. The aim is to lower the barrier to response and gather high-quality primary data from a larger portion of your value chain, including the long tail.
• Prioritise and Collaborate on Hotspots: With granular data, you can pinpoint your true emissions hotspots with confidence. Focus your engagement efforts on these key suppliers. Instead of just asking for data, collaborate with them on reduction initiatives. Share benchmarks, provide resources, and create joint plans. This turns a data collection exercise into a true partnership for decarbonisation.
• Integrate Emissions into Procurement Workflows: Equip your procurement team with the tools they need to act on this new insight. Simple supplier scorecards that rank partners on their emissions performance, reduction targets, and data transparency can be integrated directly into existing sourcing platforms. This makes emissions a visible and tangible metric in every purchasing decision, proving that averages will not enough for strategic sourcing.

By taking these steps, organisations can build a dynamic and accurate picture of their value chain emissions, creating a foundation fit for the new era of climate accountability.

The Benefits of Granularity: Why Averages Will Not Enough for Credibility

Embracing a more granular, supplier-specific approach to Scope 3 is not just about compliance with the latest SBTi standard. It is about building a more resilient, efficient, and credible climate programme. The reality is that for long-term success, averages will not enough, and the organisations that move beyond them first will reap significant benefits.

First and foremost is credibility. Stakeholders, from investors and regulators to customers and employees, are increasingly scrutinising corporate climate claims. A Scope 3 inventory built on averages looks like guesswork and undermines trust. In contrast, an inventory grounded in actual supplier data, with clear provenance and an audit trail, demonstrates rigour and commitment. It provides a defensible basis for setting targets and reporting progress.

Second is efficiency. Chasing thousands of suppliers for data is resource-intensive. A data-driven approach allows you to focus your efforts where they matter most. By identifying your true hotspots, you can channel your engagement resources towards the suppliers with the greatest potential for impact, rather than wasting time on those who are already high performers. This strategic allocation of resources accelerates decarbonisation and delivers a greater return on your efforts.

Finally, moving beyond averages unlocks new opportunities for collaboration and innovation. When you understand a supplier's specific emissions profile, you can have a meaningful conversation about joint decarbonisation projects, from process improvements to renewable energy adoption. This transforms the supplier relationship from a simple transaction into a strategic partnership, driving innovation and building a more resilient, low-carbon value chain. It confirms that for future-proofing your business, averages will not enough.

The SBTi V2.0 standard is a catalyst for change, pushing the corporate world towards a more mature and impactful approach to value chain decarbonisation. The message is clear: the time for high-level estimates is over. The future of climate leadership belongs to those who embrace the complexity, seek out granular data, and work collaboratively with their partners to drive measurable reductions. It is a challenging journey, but one that is essential for building a credible pathway to net-zero.