Carbon as Currency: The New Language of Competitive Supply Chains

“You can’t manage what you don’t measure—and you can’t compete on what you don’t connect.” That realization is redefining how global supply chains see Scope 3. The conversation has moved beyond compliance and carbon counting to something far more strategic: Value Translation. Emissions data is emerging as a new form of currency—one that determines access to capital, shapes supplier choices, and signals credibility in low-carbon markets. What was once a sustainability ledger is becoming a balance sheet of competitiveness, where every tonne reduced strengthens operational and financial performance. In this new equation, carbon intelligence is not just an ethical commitment—it’s a business advantage, reshaping how companies Buy, Build, and Lead in the Next Economy. This Special Report explores how Scope 3 is becoming the language of growth, efficiency, and leadership in the decarbonized decade ahead.

If carbon is now the currency of competitive supply chains, then Scope 3 data is the new design code. The world’s most forward-looking companies are no longer treating emissions as an externality—they’re engineering them into the DNA of how performance is measured, decisions are made, and value is created. This marks a profound evolution: sustainability metrics are no longer adjuncts to business KPIs but integral levers of operational and strategic excellence.

By embedding emissions directly into core KPIs, organizations are translating climate ambition into everyday accountability. Cost, Speed, and Reliability still matter—but now they coexist with carbon impact as a defining measure of success. This integration is revealing unexpected synergies: efficiency gains that lower emissions, digital tools that turn carbon visibility into real-time decision power, and supplier collaborations that yield both resilience and reduction.

The shift is not just operational—it’s architectural. Companies are beginning to use Scope 3 insights as design inputs, reconfiguring supply networks, product lifecycles, and sourcing ecosystems. What began as compliance-driven reporting is evolving into a systems-level redesign of enterprise performance. Emissions intelligence is no longer a sustainability function—it is becoming a strategic capability that informs how capital is allocated, how risk is managed, and how competitiveness is defined in the low-carbon economy.

As this transformation accelerates, the question is no longer whether to manage Scope 3—but how deeply to embed it into the organization’s design logic. The firms that master this integration will not just meet regulatory thresholds; they will set new performance benchmarks for Efficiency, Transparency, and Innovation.

Industry leaders now share how they are operationalizing this shift—turning Scope 3 insights into a Blueprint for Competitive, Low-Carbon Enterprise Design.

Embedding Emissions into Core KPIs

For years, sustainability metrics lived outside the operational scorecard—tracked annually, reported externally, and rarely influencing daily business choices. That boundary is rapidly dissolving. As Scope 3 data gains granularity and credibility, organizations are beginning to integrate emissions metrics into the same dashboards that guide cost, quality, and delivery. The shift is subtle but significant: carbon is no longer a separate concern—it’s a performance variable.

Forward-looking enterprises are realizing that true efficiency cannot be achieved without accounting for emissions intensity. Procurement teams are factoring carbon cost into sourcing models; logistics leaders are using emissions data to optimize routes and modes; and finance functions are beginning to align budgets with carbon budgets. This integration is creating a new language of trade-offs—where reducing emissions can enhance resilience, supplier reliability, and even profitability. The result is a more transparent, data-driven culture—one where sustainability is not an agenda item but a measurable outcome of smarter operations.

Swaroop Banerjee, VP – Corporate Sustainability, JSW Group: Traditionally, supplier and logistics performance has been evaluated based on cost, lead time, and service levels. However, recognising the growing importance of climate resilience and low-carbon transition, companies are now aligning these KPIs with their long-term sustainability goals. Companies have initiated efforts to include carbon intensity as a measurable parameter within their supplier assessment and onboarding processes, especially for high-emission categories such as raw materials, freight, and packaging. This is complemented by the progressive application of lifecycle-based assessments. This integrated approach is already influencing decision-making across our sourcing and logistics functions. Low-emission alternatives such as rail-based freight over road or sourcing from suppliers powered by renewable energy are being prioritised where feasible. These shifts not only support the climate objectives but also enhance supply chain resilience in a future where emissions-based regulatory and market pressures are expected to increase. By aligning emissions performance with traditional KPIs, we are building a supply chain that is both operationally efficient and aligned to Net Zero ambition.

Bipin Odhekar, Head – Sustainability, EHS & Operations Excellence, Marico India Ltd.: At Marico, we are integrating emissions metrics directly into core supply chain KPIs—alongside cost, lead time, and service performance—positioning carbon intensity as a critical lever in operational decision-making.

Procurement decisions are no longer based solely on price and delivery timelines. Suppliers are now evaluated on their emissions footprint, particularly in high-impact categories such as packaging and raw materials. Vendors offering low-carbon, recyclable, or circular solutions are prioritized—not just for compliance, but for their ability to reduce long-term risks and create shared value.

Similarly, logistics strategies are being redefined through a dual lens of efficiency and emissions reduction. Our data architecture is designed to integrate carbon data with cost and service performance, enabling smarter trade-offs in transportation modes, route optimization, and warehouse locations. For instance, insights from upstream transportation emissions led us to redesign our distribution network, reducing both freight emissions and operating costs without compromising service levels.

We’ve also embedded emissions metrics into internal performance scorecards, making sustainability a shared accountability across functions. Decisions that were previously driven purely by cost are now scrutinized through a climate lens, ensuring that any short-term savings do not undermine long-term resilience.

This integration of carbon data into everyday supply chain management is shifting the focus from short-term optimization to sustainable value creation—building a more agile, low-carbon, and future-ready supply chain that balances profitability with climate responsibility.

Vishal Bhavsar, Head ESG, Multiples Alternate Asset Management: There’s a growing shift in how procurement functions operate—moving beyond cost optimization to embrace carbon reduction as a core supply chain KPI. Chief Procurement Officers (CPOs) are playing a pivotal role in embedding emissions metrics into procurement strategies, aligning their teams with broader corporate climate goals. As supply chains often account for the majority of a company’s carbon footprint, emissions data is now being tracked alongside traditional metrics like cost, lead time, and service reliability.

For companies with significant Scope 3 emissions, this integration is reshaping decision-making. Procurement teams are now evaluating suppliers not just on price and delivery, but also on CO? per unit sourced, climate resilience, and sustainability practices. This shift enables organizations to unlock efficiencies, reduce risk, and improve margins—while advancing toward net-zero targets.

Tata Motors exemplifies this approach. Recognizing that over 80% of upstream emissions lie beyond Tier 1 suppliers, the company launched a Supplier Sustainability Assessment Programme. Emissions metrics are embedded into procurement scorecards, directly influencing supplier selection and contract renewals. This has helped Tata Motors prioritize low-carbon sourcing and improve supply chain transparency.

Mahindra Logistics has gone a step further by embedding Scope 3 emissions into operational KPIs. Their Green Logistics Ecosystem includes carbon-neutral warehousing, EV fleets, and alternate fuels like LNG and hydrogen. These initiatives are measured not just by cost and delivery speed, but also by carbon intensity per shipment. For example, Mahindra Logistics uses a centralized SaaS dashboard to monitor emissions per delivery route, integrating this data with service performance metrics like on-time delivery and fill rate. This enables route optimization that balances speed, cost, and sustainability—making emissions a core part of service quality evaluation.

Jaswinder Saini, Vice President, Tata Play Ltd.: At Tata Play, we’re beginning to weave environmental performance into our traditional procurement KPIs. While cost, lead time, and serviceability remain critical, we’re now adding ESG weightage where relevant. For example, we replaced PVC flex with eco-friendly, non-PVC fabric in our non-lit branding boards, significantly reducing plastic waste. These sustainable choices are now factored into supplier evaluations, helping us make procurement decisions that balance commercial and environmental outcomes.

Smitha Shetty, Regional Director – APAC, Achilles Information Ltd.: In recent years, ESG considerations have gained significant ground within procurement functions. What was once viewed as a parallel track is now fully embedded in supplier evaluation frameworks. As a result, emissions metrics are being integrated more systematically into the core set of supply chain performance indicators, alongside cost, lead time, quality, and service levels.

Procurement teams are increasingly measuring carbon intensity per product, per transaction, or across supplier categories. This data is no longer collected solely for sustainability reporting. It is being used to inform sourcing strategies, supplier negotiations, and contract decisions.

This shift is also influencing how trade-offs are evaluated. In the past, procurement decisions often defaulted to the lowest cost or fastest delivery. Today, emissions criteria are playing an equally important role in supplier selection. This change is prompting more holistic supplier assessments, deeper engagement on improvement plans, and a stronger focus on long-term value creation.

As emissions metrics become part of the standard decision-making process, organizations are better positioned to align operational goals with climate commitments. It also supports greater resilience by anticipating regulatory shifts, investor scrutiny, and evolving customer expectations. In this way, emissions integration is not just improving environmental outcomes—it is strengthening the overall quality and accountability of supply chain decisions.

Veeshwass Kulkarni, General Manager – Procurement, Legrand: Emissions metrics have moved from being separate sustainability reports into the heart of operational dashboards. We’ve developed life cycle cost models that track CO? per INR spent, carbon intensity per product unit, and emissions per shipment—displayed alongside classic KPIs like cost, lead time, and service level. This visibility fundamentally changes decision-making. For example, when comparing suppliers with similar prices and service reliability, we now prioritize those with lower carbon footprints. Likewise, decisions about shifting transport modes—such as from air freight to sea or rail—are no longer evaluated purely on cost and speed, but also on their carbon impact.

Beyond tracking, we set explicit carbon reduction targets for procurement categories, like cost-saving targets, making carbon management an operational objective rather than an afterthought. This integrated approach ensures sustainability is embedded in the supply chain’s daily rhythm, strengthening resilience and future readiness.

Dipanjan Banerjee, Chief Commercial Officer, Blue Dart: We’ve integrated emissions as a core KPI alongside cost and lead time. At Blue Dart, we now evaluate trade-offs with a triple-bottom-line view. For example, a slightly longer delivery time might be acceptable if it drastically cuts emissions and costs. This holistic view is enabling more responsible supply chain choices—and our customers are increasingly requesting data that reflect this integrated perspective.

Sandeep Chatterjee, Growth Leader – Digital Business Solutions, Supply Chain and Sustainability Pillar, INFOLOB: Traditional KPIs like cost, lead time, and service levels remain important—but companies are increasingly introducing parallel ‘green’ KPIs, such as Green Cost, Green Lead Time, and Green Service Levels. These KPIs weigh environmental performance alongside operational metrics, providing a holistic view of supply chain health. By doing this, organizations can make trade-offs transparent understanding, for example, when a slightly higher cost or longer lead time is justified by a significant emissions reduction. This shift from purely financial KPIs to blended metrics aligns supply chain decisions more closely with corporate sustainability targets and stakeholder expectations.

Varun Chopra, Executive Chairman, GEAR: The Market regulator SEBI's board approved a balanced framework for ESG disclosures, ratings and investing. In a board meeting, the regulator said, to enhance the reliability of ESG disclosures, the BRSR (Business Responsibility and Sustainability Report) Core has been introduced. For this, the regulator prescribed a glide path for top 500 listed firms in terms of market share from FY25-26. Thus, now there is a compliance requirement to introduce supply chain emissions (Scope 1, Scope 2 and Scope 3) for organisations and these are now being embedded into organization KPIs across functions.

Turning Scope 3 Data into Competitive Wins

The real breakthrough with Scope 3 isn’t just Measurement—it’s Momentum. As organizations begin to interpret and act on emissions data, many are discovering that the path to decarbonization often mirrors the path to greater efficiency. What started as an exercise in transparency is now driving tangible competitive advantage.

By tracing carbon across suppliers, processes, and logistics networks, companies are uncovering inefficiencies that traditional performance metrics often miss—duplicate transport legs, high-emission materials, and underutilized assets. The insights are leading to smarter sourcing decisions, streamlined distribution models, and innovative collaborations with suppliers who share the same climate goals.

For some, the gains are dual: measurable carbon reduction and substantial cost savings. For others, it’s about strengthening resilience and meeting customer expectations for low-carbon products. Either way, Scope 3 data is proving its worth—not as a reporting requirement, but as a catalyst for reinvention. These success stories spotlight how leading companies are translating emissions insight into operational excellence and long-term value creation.

Swaroop Banerjee: An illustrative example of Scope 3 insights influencing strategic decision-making at JSW Steel comes from our logistics optimization efforts. Traditional cost-focused analysis had favoured conventional diesel transport for raw material movement due to its perceived cost efficiency. However, a detailed Scope 3 assessment revealed that certain long-haul routes had disproportionately high emissions intensity, exacerbated by idling, congestion, and fuel inefficiencies. Leveraging this insight, JSW Steel piloted a transition to electric vehicles (EVs) for intra-plant and short-haul logistics, coupled with route re-mapping and supplier collaboration. Contrary to initial assumptions, the shift not only reduced emissions substantially but also lowered operating costs over time due to reduced fuel dependency, fewer maintenance needs, and regulatory incentives. This counterintuitive shift driven by Scope 3 visibility demonstrates how emissions data can challenge legacy practices and deliver dual value in environmental and financial performance.

Bipin Odhekar: Yes, one such counterintuitive yet impactful decision emerged from our Scope 3 emission analysis, particularly within the category of Upstream Transportation and Logistics. While conventional thinking might suggest that faster, direct shipping methods are more efficient, network optimization tools revealed that distributed manufacturing footprint will help is reducing overall material movement.

By leveraging insights from real-time route tracking and transportation pattern analysis, we identified opportunities in our network design. Instead of increasing delivery frequency, we adopted a strategy of modal shift and shipment consolidation, complemented by the establishment of strategically located regional distribution centres. This not only enhanced vehicle fill rates and reduced empty return miles but also enabled us to shift a portion of our logistics from high-emission road transport to lower-emission rail networks wherever feasible.

This approach yielded tangible outcomes: In FY25 alone, our upstream transportation and logistics emissions intensity reduced by approximately 8%, forming a substantial portion of our Scope 3 profile. Through network reconfiguration, route optimisation, and supplier engagement for fuel efficiency improvements, we saw measurable reductions in emissions intensity. Simultaneously, the shift reduced overall logistics costs by lowering fuel consumption, minimising idle time, and streamlining scheduling inefficiencies.

Vishal Bhavsar: Scope 3 insights often reveal that the biggest emissions—and opportunities—lie in unexpected corners of the value chain. For instance, Hindustan Unilever (HUL) discovered through emissions mapping that packaging and logistics were major contributors to its Scope 3 footprint. Instead of focusing solely on manufacturing upgrades, HUL made a counterintuitive pivot: it redesigned packaging to be lighter and more recyclable, and collaborated with suppliers to optimize transport routes. These changes not only reduced emissions but also cut material costs and improved delivery efficiency—boosting margins while enhancing brand equity.

Another compelling example is Novelis’ partnership with Jaguar Land Rover (JLR). Rather than sourcing new low-carbon aluminum, Novelis increased the recycled content in its supply to JLR—a move that seemed risky given concerns about material quality. However, this shift enabled a closed-loop recycling system, where scrap from JLR’s production was returned to Novelis for reuse. The result: significant reductions in Scope 3 emissions and lower procurement costs for JLR, all while maintaining product integrity and advancing its net-zero goals.

These cases show that Scope 3 data can challenge conventional wisdom—leading companies to rethink sourcing, packaging, and supplier relationships in ways that deliver both climate and commercial wins.

Jaswinder Saini: One such example is our adoption of green electricity sourced through Waste-to-Energy initiatives for our office locations—an unconventional shift from traditional fuel-based sources. Similarly, the deployment of electric vehicles for employee commutes and last-mile material transport seemed operationally challenging at first. However, both moves proved to be not only environmentally sustainable but also cost-effective over time, offering dual benefits of emissions reduction and long-term savings.

Smitha Shetty: One of the most compelling examples we have seen involves a large utility organization that adopted a data-driven approach to Scope 3 emissions reduction across its supply chain. Initially, the company's focus was on direct emissions, but through a structured supplier engagement program and adoption of the CEMARS (Certified Emissions Measurement and Reduction Scheme) certification, the business began collecting verified emissions data from its suppliers.

This revealed that a significant share of the organization’s carbon footprint came from indirect sources within the supply chain, particularly in areas that had not been previously prioritized. Rather than pursuing cost-driven decisions alone, the company worked collaboratively with its suppliers to measure emissions and identify operational changes that could reduce their carbon impact.

In several instances, suppliers adjusted materials used, changed processes, or optimized logistics in ways that not only lowered emissions but also delivered cost savings. What made this approach effective was that the company did not rely on assumptions or generic benchmarks. Instead, it used verified, activity-based data to guide its decisions. This shifted the conversation from compliance to continuous improvement and helped build a stronger, more sustainable supplier base.

This example reinforces the idea that real Scope 3 impact comes not from top-down directives, but from equipping suppliers with the tools, incentives, and shared responsibility to innovate. It also highlights how emissions data, when verified and supplier-specific, can lead to better commercial outcomes in addition to environmental benefits.

Veeshwass Kulkarni: One illustrative example involves a product family that was historically produced at a supplier in western India, then transported to our national warehouse—also in the west—before being distributed across the country. Scope 3 analysis revealed that around 70% of demand for this product came from southern India. Recognizing this, we explored and qualified a supplier in the south, whose facility operated with solar power, modern automation, and higher energy efficiency. This change not only cut transport distances and reduced logistics emissions but also lowered overall production and logistics costs by approximately 15%.

Another case came from re-evaluating packaging. Our Scope 3 study examined how effectively we were using truck capacity—specifically CBM utilization and per-unit transport emissions. Cross-functional workshops revealed that by adjusting box orientation during loading, optimizing product mixes, and redesigning or eliminating some packaging layers, we could transport more products per trip. These changes reduced logistics costs by 7–8% while cutting emissions significantly. Such examples show how Scope 3 insights can drive decisions that simultaneously improve sustainability and financial performance.

Dipanjan Banerjee: One such instance involved a client who routinely shipped via air for speed. Our delivery modelling revealed that switching to a multi-modal solution which includes shifting consignment from air to road cut carbon emissions significantly without impacting the final delivery timeline due to smart hub placement. As expected, it also lowered total costs. Scope 3 data gave us the confidence to recommend a solution that went against conventional assumptions but delivered both environmental and economic gains.

Sandeep Chatterjee: A major automobile manufacturer discovered that chassis production from one of its suppliers had unusually high emissions based on the supplier’s Scope 1 and Scope 2 data. Instead of switching suppliers, the company collaborated closely with them to reengineer the manufacturing process, introducing energy-efficient techniques and better resource utilization. Surprisingly, this reduced not only the emissions footprint but also operating costs, thanks to lower energy consumption and reduced waste. The result was a win-win: improved sustainability metrics and direct cost savings.

Varun Chopra: I can share an example from the Material Handling Equipment (MHE i.e. Forklifts) industry, where my organisation, GEAR has been a pioneer in deploying Zero Emission MHEs in the last couple of years. Since rented assets (including MHEs) come under Scope 3 Emissions, with our customers, we demonstrated that when one transitions from lead acid powered Forklifts to lithium-ion Forklifts, there is ~30% OpEx saving due to reduced electricity consumption and zero maintenance, and all this without any compromise on performance. Thus, customers could save cost via lower OpEx and deliver the same to higher level of performance with these Zero Emission Forklifts – this really helped accelerate the transition to Zero Emission MHEs across industries in India.

Scope 3 as a Design Input—What’s Next?

Supply chains are entering a phase where carbon isn’t just measured—it’s designed for. The ability to model emissions early in the planning cycle is changing how products are developed, how suppliers are chosen, and how networks are built. What once came at the end of a reporting process is now informing the first line of a design brief.

This shift marks a decisive evolution from reactive compliance to proactive innovation. Companies are beginning to treat carbon data as a creative input—using digital simulations, predictive analytics, and supplier co-design to balance performance with sustainability from the start. The goal is no longer to offset emissions after production, but to eliminate them through smarter choices at the blueprint stage. In this emerging landscape, Scope 3 becomes both a design principle and a competitive differentiator—reshaping the architecture of supply chains built for a low-carbon future.

Swaroop Banerjee: Scope 3 emissions are increasingly emerging as a critical parameter in future-oriented supply chain design. As stakeholder expectations, global regulations, and climate commitments continue to evolve, there is a clear shift towards integrating emissions data into strategic procurement and logistics decisions alongside conventional factors such as cost, speed, and reliability.

Decarbonising the value chain is not only essential for achieving Net Zero ambition, but also a lever for long-term business resilience. In this context, companies are working and adopting to embed Scope 3 considerations into their supplier evaluation frameworks, raw material sourcing strategies, and freight optimisation models.

Looking ahead, the next frontier will involve the convergence of digital technologies and sustainability data. We foresee greater adoption of real-time emissions modelling, AI-enabled scenario analysis, and collaborative digital platforms that enhance transparency across multi-tier supplier networks. These innovations will enable the creation of adaptive, low-carbon supply chains that are agile, cost-efficient, and aligned with global climate goals.

Bipin Odhekar: Increasingly, Scope 3 emissions are no longer peripheral, they are foundational to reimagining supply chains for a carbon-constrained world. Historically, supply chain design has been governed by the holy trinity of cost, speed, and reliability. But climate intelligence is now emerging as the fourth axis of supply chain value creation and Scope 3 sits at its core.

The next frontier isn’t just digital—it’s ecosystemic. Shared data standards, sectoral alliances, co-developed supplier scorecards—these will be key in enabling full-spectrum visibility and coordinated decarbonization across complex, multi-tier value chains. So yes, Scope 3 will soon be a standard input. But more importantly, it will become a strategic lens for designing supply chains that are not only lean and agile—but also just, regenerative, and future-fit.

Vishal Bhavsar: Absolutely—it’s no longer a choice but the new norm in supply chain design. Scope 3 emissions are rapidly becoming just as critical as cost, speed, and quality, as businesses realize that climate performance is deeply entwined with operational resilience and value creation. We’re seeing early gains where companies leverage digital platforms and data intelligence to reduce emissions, drive efficiencies, and strengthen supplier partnerships.

But this is only the beginning. The journey to full decarbonization will demand large-scale, cross-industry collaboration—moving beyond isolated sustainability efforts toward ecosystem-wide transformation. While decarbonization, circularity, and transition funds have gained traction, the next frontier lies in the emergence of dedicated supply chain climate finance mechanisms—solutions that unlock investment for emissions reduction across upstream and downstream tiers.

Technology will be a decisive enabler in this shift. Real impact will come when digital tools reach deep into Tier 2 and Tier 3 supplier networks—generating insights, guiding investments, and powering collective progress. In the future, we won't just ask “how fast and how cheaply can we deliver?”—we’ll ask “how sustainably can we operate at scale?” Scope 3 will be the compass, and supply chain leaders will be the trailblazers.

Smitha Shetty: Yes, Scope 3 is becoming a critical input in supply chain design, especially in sectors where it accounts for the majority of total emissions. In industries like manufacturing, retail, Oil & Gas, consumer goods where complex supply chains dominate, emissions from suppliers and logistics can represent over 70 to 95 percent of the total footprint. As the ESG regulatory landscape continues to evolve, organizations are under growing pressure to demonstrate compliance. One of the most immediate and effective ways to do this is by tracking, managing, and monitoring Scope 3 emissions across the value chain.

This shift is pushing companies to rethink procurement and logistics strategies with emissions performance in mind. Cost and speed remain important, but they are now evaluated alongside environmental impact. The next step is full integration of emissions data into digital supply chain tools, enabling real-time analysis, carbon budgeting, and more informed sourcing decisions. Scope 3 is no longer just a reporting requirement. It is becoming a foundational element in building supply chains that are not only efficient, but also resilient, transparent, and aligned with long-term sustainability goals.

Veeshwass Kulkarni: Without a doubt… Scope 3 emissions data is already starting to influence supply chain design decisions at the earliest stages—whether it’s supplier selection, transport mode choice, or packaging design. Rather than treating emissions as a constraint checked at the end of planning, it’s becoming a standard input from the outset.

The next frontier lies in AI-powered digital twins of the entire supply chain. These models will continuously optimize trade-offs among cost, service level, and emissions, adapting in real time to shifts in energy markets, supplier performance, and regulatory changes. Over time, Scope 3 data won’t just guide operational decisions but will influence capital allocation and supplier development strategies. Suppliers who demonstrate lower carbon footprints and provide transparent data will gain competitive advantages through longer contracts and deeper collaboration.

In essence, Scope 3 is transitioning from a backward-looking compliance number to a forward-looking strategic lever for resilience, efficiency, and market leadership. Companies that act early and embed carbon intelligence into their supply chains will define the next era of sustainable value creation.

Sandeep Chatterjee: Scope 3 is definitely gaining traction as an integral design parameter—but full adoption depends on meaningful incentives and clear business value. No CEO is going to sacrifice profitability purely for sustainability unless there’s either regulatory pressure, market demand, or financial upside. The real opportunity lies in designing new supply chains from the ground up that optimize both costs and emissions, rather than retro-fitting existing networks. While redesigning legacy supply chains can be costly and complex, new supply chains increasingly factor in carbon intensity, renewable energy availability, and circularity as key criteria. The next frontier is fully integrating emissions data into digital twins and AI-driven supply chain design tools—so sustainability, cost, and speed are balanced by design rather than by afterthought.

Varun Chopra: My belief is that Scope 3 Emissions will become a source of competitive advantage for organizations that track and measure it well. In fact, going forward the carbon credit mechanism which will most likely gain pace in 2026-27 will further stimulate sophistication in tracking of Scope 1, 2 & 3 Emissions across organisations.