Scope 3 emissions reporting is increasingly critical for suppliers and service providers across APAC and globally as it is embraced by customers. This is due to growing regulatory pressure on customers, heightened investor scrutiny, and the desire for enhanced sustainability performance by stakeholders.
Many large and listed companies across the region are mandated or voluntarily opting to account for their entire carbon footprint, including the emissions from their supply chains (Scope 3). Scope 3 emissions often constitute the largest portion of their overall impact. This shift necessitates that suppliers actively measure, report, and reduce their Scope 3 emissions to meet client demands and stay competitive.
By Rebecca Jinks, Director, ESG & Sustainability, Taronga Group
Even with rollbacks of the U.S. SEC climate disclosure rule and as the EU Omnibus Package that eases reporting obligations, large corporations continued to report that they’re pressing forward with emissions reduction plans. Even more surprising, they continued reporting on a voluntary basis, opting for transparency over obligation.
According to a 2025 Scope 3 Disclosure Report, 87% of respondents who report on emissions do so voluntarily, with a growing number including Scope 3 data in their disclosures. Even without governmental mandates, organisations recognise the strategic, reputational and operational value of managing their carbon footprint. According to the report, 79% of companies now report on Scopes 1, 2 and 3, up from 52% in 2024. Nearly 73% of businesses that don’t yet report on Scope 3 intend on doing so soon, with 47% of non-reporting companies planning to begin within two years and 26% having the intention without firm timelines.
What’s driving this voluntary transparency activity? Companies have acknowledged the size of the opportunity carbon transparency offers. They recognise that Scope 3 disclosure isn’t simply a compliance exercise, it is a strategic advantage that builds consumer trust, strengthens stakeholder relationships and creates long-term value.
In Australia, the disclosure of Scope 3 emissions is being mandated for certain entities, from January 1, 2025. This is part of a broader mandatory climate-related financial disclosure regime coordinated by The Australian Accounting Standards Board (AASB). In Singapore, listed qualifying organisations will be required to disclose indirect emissions from 2026 and 2029 for non-listed organisations, in alignment with the International Sustainability Standards Board (ISSB) standards. Likewise in Canada, the initially timeframe of mandating corporate Scope 3 disclosure for 2025 as been delayed to 2028 and 29. This demonstrates a global shift towards mandating scope 3 reporting for large listed and non-listed corporations.
Many suppliers, including cleaners, and product providers, such as furniture hire companies, are being asked by their clients to support them firstly with their Scope 3 disclosure burden, but also to reduce the emissions footprint associated with their supply chain.
Suppliers and service providers that can offer customers easy reporting of their carbon impact based on the scope of the relationship, and then actively contribute to the reduction of that footprint become an ally with a customer, beyond just being a service provider. Resulting in a stronger relationship with customers, service differentiation and strengthened brand reputation.
See how Valiant provided accurate, real-time carbon reporting for their customers
This means many suppliers and service providers are pursuing solutions to track and report the carbon footprint associated with the services, at the customer level. This can be a complicated and technical journey, especially for organisations that may not have deep experience with mapping carbon emission chains and allocating whole of emissions to customers. A depth of experience with carbon accounting, and a nuanced understanding of the particular services being provided, and how customers buy is critical to the success of a program that provides Scope 3 transparency to customers.
Finding a unique and bespoke solution to support customers with Scope 3 reporting can be difficult and overwhelming. However, experts such as Taronga Group’s Advisory team are here to support. To learn more, get in touch at [email protected].
About Taronga Advisory
Taronga Advisory supports governments, institutional real asset owners, operators, suppliers and technology companies across Asia-Pacific and globally with strategic guidance on real assets, innovation, and climate resilience.
As a team of former top-tier management consultants and real estate, ESG and technology experts, we provide:
- Climate & Resilience Advisory: Our Climate & Resilience Advisory team supports values aligned real asset clients to benchmark their own sustainability performance against peers, set sustainability goals, quantify value at stake, and develop roadmaps for improving performance. Key services include corporate sustainability strategy development, operational transformation and digital enablement to support clients from conception and design to execution.
- Innovation Advisory: Our Innovation Advisory team has experience working across the innovation lifecycle, from research and development, through emerging technology companies, to innovation strategy, project implementation and transformation to assist public and private sector institutions with their innovation goals. Our team focuses on creating actionable strategies that drive innovation activity, culture and commercial outcomes.
- Real Asset Advisory: Our Real Assets Advisory team has deep experience working within global investment managers and development companies – raising capital, executing investments and developing and managing assets across the US, UK & Europe, Asia, and the Middle East. Our advice is centred on supporting clients with superior value creation in their assets and portfolios through forward-thinking strategies, technology implementation and performance uplifts.
Taronga Advisory leverages Taronga Group’s global ecosystem, including investment funds and innovation programs like RealTechX, to bring together insights into the built environment, direct access to leading technology companies, and long‑standing relationships with institutional stakeholders.
Whether you’re working to meet evolving regulatory requirements, embed sustainability across your operations, or deploy innovative carbon‑reduction technologies, our Advisory team guides clients from strategy to execution – creating measurable value, differentiated assets and sustainability outcomes. Visit https://tarongagroup.com/advisory/ to get in touch.
