While having reliable data is essential, many companies might not know the true cost of unreliable data. A new report, the 2026 Carbon Action Report from EcoVadis and Kearney, found that companies with less reliable supplier carbon data expose themselves to greater and more costly carbon risks throughout their supply chain than they might have thought. 

The report, based on data from more than 56,000 companies assessed by EcoVadis on their carbon performance over the past year, found that only 4% of companies use primary supplier data to calculate their Scope 3 footprint.

Most either rely on industry averages or do not report on Scope 3 at all. The analysis suggests those relying on low-reliability data may be underestimating their true Scope 3 footprint by up to three times. 

EcoVadis calls this the Fragility Gap: the distance between how resilient companies believe their supply chains are, based on the volume of climate data and reporting now available, and how exposed they actually remain when that data isn't verified. As geopolitical shocks, trade disruption and physical climate impacts compound, that gap is what separates companies that absorb the next disruption from those that don't.

Ninety-four percent of North American companies reported higher costs from physical climate impacts last year, driven by supply chain disruption, commodity price shocks, and infrastructure damage. Regulation is also progressing.

In the US, under California's SB 253, large companies doing business in the state must start reporting their operational carbon emissions later this year. Scope 3 supply chain emissions reporting will follow in 2027.

In Europe, the Carbon Border Adjustment Mechanism (CBAM) now requires companies to account for embedded carbon in imported goods, with certificate purchases beginning in 2027.

As the cost of supply chain resilience becomes business critical, better data can drive cost savings of roughly $5 per metric ton of carbon across the typical supply chain by 2030. Based on an average upstream Scope 3-to-operational emissions multiplier of 27x, the cost amounts to an estimated $135 million a year for a large enterprise managing 1 million tCO2e in operational emissions.

"Companies are making capital and sourcing decisions on carbon numbers they can't actually trust," said Pierre-François Thaler, Co-CEO at EcoVadis. "This is a real blind spot in how a company manages risk, and the ones addressing it now are using verified data to decide who they buy from before a disruption, a regulator, or a competitor forces the decision for them."

Key findings include:

Supplier engagement remains rare. Only 7% of companies currently engage suppliers on carbon at all, but those with verified Scope 1&2 data are eight times more likely to do so – indicating that better data and maturity drive a reinforcing loop that fuels engagement. Companies that engage suppliers are also six times more likely to hit their science-based targets.

Carbon maturity accelerates reductions. Leaders in the network (~3% of companies) – those with the strongest governance, practices, and supplier engagement – cut operational emissions up to seven times faster than the 58% of the network still at the lowest carbon maturity levels (-6.4% vs. 0.9–1.5%).

Verified data can attract more business. Companies sharing verified Scope 1&2 emissions data (12% of reporters) average 31 buyer connections, nearly three times the 11 averaged by those with low-reliability data. The gap is almost entirely driven by collaboration through EcoVadis Sector Initiatives, suggesting companies are already seeing the commercial advantage of enhanced transparency.

Companies with reliable carbon data hit emissions targets more often. Among those with science-based targets, companies with verified data stay on track 77% of the time versus 54% of those with less reliable data.

A small number of high-impact suppliers are key to scaling progress. The top 10% of emitting suppliers account for 95% of all emissions across the network and connect to an average of 72 buyers each – double the rest of the supplier base. Improving the data of one high-emitting supplier can improve visibility for dozens of buyers at once.

"This report shows exactly where companies fall short: not on ambition, but on the data behind it,” said Angela Hultberg, global head of Sustainability at Kearney.

“The businesses that invest in real data now will spend the next five years making better decisions than everyone is still guessing. The fastest results come from focusing on your highest-emitting suppliers first, backed by contractual requirements and real incentives, rather than trying to fix your entire supply chain at once.”

While better data may initially expand a company’s footprint, it provides the critical foundation for making better decisions, driving measurable reductions, and demonstrating ROI on investment.