Product-carbon footprints are widely accepted as the eventual gold standard for supply chain emissions accounting—but the path to get there is anything but easy. Most companies still rely on spend-based accounting. Even sustainability leaders use a blend of supplier-specific and spend-based methodologies. While product-specific data is technically possible to gather, the complexity makes it impractical for most.
Here’s where facility-level emissions data comes in. It’s a crucial stepping stone between supplier-specific data and granular product carbon footprints (PCFs). By tracking emissions at the facility level, companies can pinpoint their highest-impact supplier locations and drive targeted improvements where they matter most. By switching high-impact suppliers to facility-level data now, companies will be well positioned to make the switch to product-level data in the future.
Optera is bridging the gap between estimates and product-level emissions for our customers. Speak with our team to learn how we can do the same for you.
Why facility-level emissions are the next frontier
Current scope 3 emissions tracking is a mixed bag even at the most advanced companies—and that’s by design. It doesn’t make sense for a company with thousands of suppliers, some of whom have very low allocated emissions, to require the same level of specificity from every single one. These companies collect supplier-specific data from the highest-impact portion of their supply chain, and may use estimates for the remainder. But even supplier-specific emissions data can mask critical details—a supplier might have both efficient and inefficient facilities, and you’d never know which ones are associated with the manufacturing of your products.
Facility-level data changes the game. It shows you exactly which supplier locations need the most attention, and lets you focus your supplier engagement efforts on the facilities where your own products come from. Take Apple’s recent move: their Supplier Clean Energy Program assists with the transition to renewable energy at all supplier facilities involved in Apple products by 2030. It’s a bold statement that facility-level emissions matter—and other companies are taking notice.
This shift isn’t just about better data—it’s about better results. When you know which facilities are underperforming, you can have targeted conversations about improvements. You can track progress at a granular level and replicate successes across your supply chain. It’s the difference between shooting in the dark and having a clear target.
Plus, facility-level emissions tracking isn’t just a best practice—it’s becoming a regulatory requirement. The EU’s Carbon Border Adjustment Mechanism (CBAM) mandates facility-specific emissions data for imported goods in carbon-intensive industries, reinforcing the need for precise, auditable emissions tracking. Companies that lack facility-level transparency will struggle to comply, risking financial penalties and restricted market access.
Beyond CBAM, facility-level tracking aligns with GHG Protocol standards, particularly Scope 3 Category 1 (Purchased Goods and Services) and Category 2 (Capital Goods). As regulators and investors demand greater emissions specificity, shifting from supplier-averaged data to facility-level reporting is critical.
Key Takeaways:
- Facility-level data improves emissions accuracy
- It enables targeted supplier engagement and reduction strategies
- It’s a stepping stone toward comprehensive PCFs
- It’s required by new climate regulations and aligned with the GHG Protocol
Making emissions actionable
When suppliers implement efficiency improvements or switch to renewable energy, the impact should be clear in facility-level emissions data. Consider a hypothetical supplier producing steel components for an automotive company. Initially, the auto company relies on supplier-wide emissions data, which obscures the fact that one of the supplier’s factories is running on outdated, high-emissions equipment, while another has upgraded to energy-efficient electric arc furnaces.
By switching to facility-level tracking, the automotive company can pinpoint which plant is the problem and push for targeted improvements. Over the next year, as the supplier upgrades equipment and transitions to a cleaner energy mix, emissions from that specific facility drop by 20%—a change reflected directly in the facility-level emissions data. This level of granularity allows the company to verify emissions reductions, ensure its suppliers meet sustainability goals, and accurately report progress to regulators and stakeholders.
Without facility-level data, this kind of insight—and the ability to drive real change—wouldn’t be possible.
Key Takeaways:
- Facility-level tracking makes problem facilities visible
- Granular data enables targeted improvements associated with your company’s actual products
- When facility emissions drop, those improvements are reflected in the data
The challenges of tracking facility-level emissions
Getting facility-level data hasn’t been easy. Suppliers often lack the resources or systems to track emissions at this level. Even when they have the data to share, collecting and managing it means maintaining complex accounting across hundreds or thousands of supplier locations—and then there’s data validation to wrangle with. The sheer volume of information can overwhelm even the most advanced spreadsheet.
But new tools, such as Optera’s updated Supply Chain Manager and Outreach, are emerging to automate data collection and verification, making it practical to gather facility-level emissions at scale. The rise of standardized reporting frameworks means suppliers must increasingly track this data anyway. And as more companies demand facility-level transparency, suppliers are building the capability into their operations.
Key Takeaways:
- Data collection and management have been major hurdles
- New tools and methodologies (like Optera’s Outreach & Supply Chain Manager) are addressing these challenges—schedule a conversation with our team to learn how
How Optera makes facility-level tracking actionable
Tracking emissions at the facility level can lead to a potentially overwhelming amount of data—Optera’s Supply Chain Manager is built to make that data comprehensible and insightful. Instead of wrestling with countless spreadsheets, companies can automate data collection and validation. Plus, Optera’s Outreach makes it possible for sustainability teams to connect with suppliers at scale and automatically connect their data collection process to their data management platform.
This automation matters because it frees up time for what’s important: using the data to drive change. Procurement teams can see which facilities meet their standards and which need improvement. Sustainability leaders can track the impact of different initiatives across specific locations. And when suppliers make improvements, the results show up in the data.
Of course, not all emissions data is created equal. Poor-quality, unaudited data leads to inaccurate emissions tracking, misleading reduction claims, and compliance risks. To counter this, facility-level tracking should include:
- Data validation mechanisms to detect anomalies and prevent errors.
- Supplier and facility benchmarks to assess accuracy and identify outliers.
- Third-party assurance reports, which strengthen credibility for regulatory and investor scrutiny.
Companies relying on spend-based estimates or unaudited supplier-reported data for their scope 3 accounting are increasingly exposed to risk. Facility-level tracking with Optera ensures data integrity, compliance, and actionable insights that drive real decarbonization.
The platform also makes it possible to evolve your approach over time. Start with your highest-impact suppliers and facilities, then expand as your program matures. The system grows with you, maintaining data quality and consistency as you scale.
Key Takeaways:
- Optera’s platform reduces complexity in facility-level tracking
- Supply Chain Manager helps companies transition from supplier-specific to facility-level data
- Outreach enables more effective supplier engagement and emissions data collection
What comes after facility-level tracking?
Facility-level emissions data isn’t the endpoint—and ever more granular data collection isn’t the mission. The goal is more actionable data. Once you have facility data, you can be strategic about your next move, whether that’s PCFs, process-level emissions tracking, or something else. However granular you choose to get, actionable data lets you identify specific improvements that cut emissions while maintaining or improving efficiency, and communicate product-specific emissions with consumers.
Looking ahead, facility-level tracking positions you well for the next phase of carbon accountability. As regulations tighten and stakeholders demand more transparency, you’ll have the data infrastructure in place to be ready for product-level carbon footprints when they become standard practice.
Key Takeaways:
- Facility-level tracking is a critical step toward granular carbon accounting
- Companies should build this foundation now to improve decision-making and reduce emissions
- The long-term vision: full supply chain transparency and decarbonization
Facility-level emissions tracking is a natural next step for companies who have incorporated supplier-specific emissions data into their scope 3 inventory and want to eventually move toward PCFs. The companies moving fastest in this direction are gaining valuable insights that their competitors lack. They’re building stronger supplier relationships, finding unexpected opportunities for improvement, and preparing for increasingly stringent reporting requirements.
The technology to make the transition to facility-level data is ready now. Companies that wait will find themselves playing catch-up as facility-level tracking becomes the norm. The question isn’t whether to make the shift—it’s when you can get started.
Optera can help—talk to an expert about facility-level emissions tracking.
