GHG Assurance of Value Chain: Why It’s Now a Business Imperative (Not Just Compliance)

The Growing Spotlight on Value Chain Emissions?

If I asked you right now, “Do you know where most of your company’s emissions really come from?”, would you confidently say “Yes”?

For most businesses, the honest answer is probably not. Here’s the reality: direct operations (Scope 1) and purchased electricity (Scope 2) are just the tip of the iceberg. The bulk—a staggering 70–90% of total emissions, according to CDP comes from what’s hidden deeper in your value chain (Scope 3).

These include emissions from your suppliers, transportation partners, how your products are used, and even what happens at their end-of-life stage. Ignore them, and you’re not just missing a big piece of the puzzle you’re under-reporting your climate impact, which can derail your net-zero plans.

Why Value Chain Assurance Is Becoming Essential

Traditionally, companies relied on supplier questionnaires or estimates to report Scope 3 data. But investors, regulators, and customers are increasingly skeptical of “black box” data. What they demand now is assurance or third-party verification that supply chain emissions are real, reliable, and consistent.

Here’s why value chain assurance is moving from optional to essential:

Investor Expectations: Asset managers are asking companies to disclose verified Scope 3 emissions before they qualify for ESG investment portfolios. Unassured data is seen as a greenwashing risk.
Regulatory Pressure: Rules like the EU CSRD (2025) and SEC Climate Rule (2024) explicitly push large companies to report and assure Scope 3. This requirement inevitably cascades down to suppliers—even SMEs—in global value chains. In India, SEBI’s BRSR Core is expected to gradually expand in scope, making value chain emissions disclosure an eventual expectation for listed companies and their suppliers.
Customer Demands: Tech majors such as Microsoft now require suppliers to provide third-party assurance of their GHG emissions while Apple’s 2024 Supplier Code of Conduct mandates suppliers to maintain facility-level GHG inventories and transition to 100% renewable energy. Without assurance, suppliers’ risk being dropped.
Reputation and Market Access: Exporters to Europe, North America, and Japan are under mounting scrutiny. Buyers in these markets are starting to treat assured GHG inventories as a “license to operate.”
Risk Management: Without assurance, errors in supplier data can cascade into material misstatements in corporate ESG reports leading to regulatory fines, investor distrust, or reputational damage.

In short, value chain assurance is becoming the backbone of credible climate action—without it, climate disclosures risk losing both trust and value.

How Value Chain GHG Assurance Works in Practice

Think of GHG assurance as a rigorous health check for your emissions data only this time, the “patient” is your entire value chain.

When applied to Scope 3, assurance means independent experts verify whether your data is accurate, complete, and transparent across both upstream and downstream activities.

The most trusted assurance bodies follow global benchmarks like:

ISO 14064-3 – for greenhouse gas verification and validation
GHG Protocol Scope 3 Standard – the go-to framework for measuring value chain emissions
ISAE 3000 (Revised) – the assurance standard used by auditors and ESG specialists

And here’s the catch: it’s not just about doing things right, it’s about proving it to investors, regulators, and customers.

Why the Clock Is Ticking (2024–2026)

Can your company already report value chain emissions with the same confidence as Scope 1 and 2? If not, here’s what’s coming:

Year	What’s Changing	Why It Matters
FY 2025–26	SEBI mandates limited assurance for Scope 1 & 2 for India’s top 500 listed companies	Establishes baseline for eventual Scope 3 inclusion.
2024	SEC Climate Rule finalized in the U.S. (Scope 3 disclosure for large firms)	Global supply chains will feel the impact
2025	EU CSRD kicks in, requiring Scope 3 assurance for large companies	Will affect Indian exporters to the EU
2026	IFRS S2 & ISSB standards go global	Alignment with global financial reporting

The Hurdles Everyone Faces

Let’s be honest Scope 3 GHG assurance is not a walk in the park.

You might be dealing with:

Suppliers who’ve never calculated their emissions before
Data coming in inconsistent formats
Methodologies that don’t align across regions
Missing emission factors for certain materials or processes

Five Practical Moves to Get Ahead

If you want your next Scope 3 assurance to be smooth (and avoid last-minute panic), here’s what works in the real world:

Bring in an assurance provider early—don’t wait until year-end.
Stick to recognized tools and factors from the GHG Protocol.
Run supplier training sessions—help them help you.
Keep meticulous audit trails for every assumption and calculation.
Use assurance as a dry run before regulatory deadlines are hit.

From a Compliance Burden to a Business Edge

Here’s the mindset shift: GHG assurance is not just a checklist for regulators.

Done right, it:

Boosts investor confidence
Strengthens supply chain credibility
Opens doors to green financing
Makes you a preferred partner in ESG-conscious markets

When you assure your Scope 3 emissions, you’re not just playing defense, you’re positioning your brand as a sustainability leader.

📩 Your Turn: How is your organization approaching Scope 3 emissions? Drop us a line at info@kbscertification.com we’d love to exchange insights.

About KBS Certification Services Ltd.

Founded in 2005, KBS is a globally recognized third-party assessment body, accredited to ISO 14065 by NABCB for GHG Assurance. With expertise in climate change, sustainability assurance, ESG, CBAM, Net Zero, and product certifications, we’ve validated and verified over 2500+ projects worldwide under CDM, Verra (VCS), Gold Standard, and ISO 14064 standards. For more detail visit our website www.kbscertification.com