Why Scope 3 Emissions Remain Logistics’ Biggest Sustainability Challenge

As sustainability expectations continue to rise, organisations across the logistics sector are being asked to look beyond their own operations and better understand the environmental impact of their entire supply chain.

While many businesses have made progress in measuring and reducing their direct emissions, Scope 3 emissions remain one of the most significant sustainability challenges facing the industry today.

For logistics providers, the complexity is clear. Modern supply chains are built on extensive networks of customers, suppliers, carriers, warehouses and distribution partners, often spanning multiple countries and transport modes. This makes gathering accurate emissions data and achieving full transparency across the value chain a considerable undertaking.

However, despite these challenges, Scope 3 emissions are becoming an increasingly important focus for businesses seeking to improve sustainability performance and meet growing stakeholder expectations.

Commercial Operations Director, Mark Wraight said, “Sustainability is no longer a standalone business objective; it is becoming increasingly integrated into how supply chains operate and evolve. As an industry, many organisations have made good progress in understanding and reducing direct emissions, but Scope 3 remains one of the most significant challenges we face. Improving visibility across the supply chain is critical if we are to make meaningful progress and support our customers in achieving their own sustainability goals.”

The visibility challenge

Unlike Scope 1 and Scope 2 emissions, which originate from a company’s own operations and purchased energy, Scope 3 emissions occur across the wider value chain.

For many organisations, these emissions represent the largest proportion of their total carbon footprint.

As customers, investors and regulators demand greater transparency, businesses are recognising that understanding Scope 3 emissions is essential to identifying opportunities for improvement and building more sustainable supply chains.

The challenge lies in the availability and consistency of data. Emissions information often needs to be collected from multiple partners and suppliers, each using different systems, methodologies and reporting standards.

As a result, improving visibility has become one of the logistics industry’s most important sustainability priorities.

Progress through measurement and transparency

At Simarco, sustainability remains a key business priority and an area of continuous development.

Our recently published Sustainability Report 2025 demonstrates the progress we continue to make in understanding and managing our environmental impact across the business.

In 2025, Simarco reported combined Scope 1 and Scope 2 emissions of 3,556.13 tCO₂e, representing a 3.1% reduction compared with 2024. Scope 1 emissions were reduced by 4.1% year-on-year, while Scope 2 emissions decreased by 10.7%, reflecting ongoing efforts to improve operational efficiency and energy management.

The report also highlights Simarco’s continued reporting of Scope 3 emissions, including purchased goods and services (warehouse packaging and paper usage), employee commuting, home working and waste generation. In 2025, reported Scope 3 emissions totalled 614.21 tCO₂e, representing a 1.5% reduction compared with the previous year.

Importantly, Simarco’s current Scope 3 reporting does not include transport-related emissions across the wider logistics network. Expanding Scope 3 reporting in this area remains a focus for future development as data availability, visibility and reporting capabilities continue to evolve across the industry.

Commercial Operations Director, Mark Wraight said, “Our Sustainability Report reflects both the progress we have made and the work that still lies ahead. While we have continued to reduce our Scope 1 and Scope 2 emissions, we recognise that addressing Scope 3 emissions requires a collaborative approach across the wider supply chain. Transparency, engagement and shared responsibility will be essential if the logistics sector is to achieve meaningful long-term reductions.”

Sustainability progress at Simarco

While Scope 3 emissions remain an important area of focus, sustainability progress is driven by a combination of emissions reduction, energy efficiency and responsible operational practices.

At Simarco, this approach is supported by a wider sustainability framework focused on energy efficiency, emissions reduction and continuous improvement.

In 2025, gas consumption across the business decreased by almost 30%, while Scope 1 emissions from gas usage fell by 29.7% compared with the previous year. Alongside this, Simarco maintained its structured energy management framework, based on continuous monitoring, auditing and improvement initiatives across its operations.

Alongside emissions management, Simarco continues to invest in responsible operational practices. During the year, 99.38% of all waste generated was recovered, recycled or converted to energy, supporting the company’s commitment to minimising waste sent to landfill.

These initiatives form part of a broader strategy built around two key pillars: energy efficiency and the expansion of renewable energy sources, helping to create a more sustainable and resilient business for the future.

Looking ahead

The conversation around Scope 3 emissions is only likely to grow in importance over the coming years.

As reporting expectations increase and businesses seek greater transparency throughout their supply chains, collaboration, data quality and visibility will become critical to delivering meaningful progress.

While Scope 3 remains one of logistics’ most complex sustainability challenges, it also presents one of the industry’s greatest opportunities. Organisations that can successfully measure, understand and reduce emissions across their value chains will be better positioned to meet customer expectations, improve efficiency and support long-term sustainability goals.

Managing Director, Trevor Scott said, “The logistics industry has a vital role to play in supporting a more sustainable future. By continuing to invest in operational efficiency, innovation and stronger partnerships across the supply chain, we can help our customers reduce their environmental impact while building more resilient and effective logistics networks.”

Simarco’s Sustainability Report 2025 highlights the progress already being made and reinforces our commitment to supporting a more sustainable future for logistics.

Download the Sustainability Report 2025 to learn more about our environmental, social and governance initiatives and the steps we are taking to drive continuous improvement across our business.