“Placing Scope 3 emissions at the center of a corporate net-zero strategy ensures true lifecycle accountability”: GNFZ CEO

pv magazine: Why should Scope 3 emissions be at the core of corporate net-zero strategies?

Mahesh Ramanujam: Scope 3 emissions often represent the largest portion of a company’s carbon footprint, typically over 70% (and often as high as 80-90% in buildings). These emissions are beyond an organization’s direct control but are indirectly affected through its value chain, including raw material extraction, logistics and transportation, construction, product end-of-life and more.

Many organizations choose to focus only on tackling their Scope 1 and 2 emissions because addressing Scope 3 emissions can be difficult and time-consuming. But without addressing Scope 3, organizations create a false sense of progress – where reductions in direct emissions are offset by uncontrolled upstream and downstream emissions.

For example, a large office development in India can achieve impressive energy savings through efficient lighting and HVAC systems, yet the embodied carbon in steel, cement, and imported materials account for the majority of its lifecycle emissions. And once these materials are procured and used, you can never reduce their carbon contribution.

By integrating Scope 3 considerations into procurement and design decisions, organizations are able to source low-carbon materials, optimize supply chains, and embed circularity into operations. Placing Scope 3 at the center of a corporate net-zero strategy ensures true lifecycle accountability. It aligns sustainability with global investor expectations, strengthens regulatory readiness, and drives innovation across the value chain, unlocking both environmental impact and long-term business value.

How is the global regulatory landscape around Scope 3 evolving, and what is India’s position on mandatory disclosures?

Globally, regulators are moving toward comprehensive value-chain emissions disclosure. The European Union’s Corporate Sustainability Reporting Directive (CSRD) now mandates Scope 3 reporting for high-emission sectors, while the state of California in the United States has moved to require Scope 3 emissions reporting starting in 2027. Investors are increasingly scrutinizing value-chain emissions to assess climate-related risks and long-term sustainability of businesses.

The sustainability regulatory landscape in India has advanced considerably over the past few years, but Scope 3 reporting is still largely voluntary. Frameworks such as the BRSR (Business Responsibility and Sustainability Report) and alignment with the Task Force on Climate-Related Financial Disclosures (TCFD) encourage companies to measure and report their value-chain emissions.

Forward-looking and market leadership-centered Indian corporates are now voluntarily assessing Scope 3, recognizing that proactive measurement enhances transparency, strengthens stakeholder trust, and positions them ahead of regulatory requirements as India charts its path to a net-zero economy by 2070. Additionally, India also ranks sixty globally in terms of the number of companies who have made SBTi commitments, which requires annual measurement, disclose, and reporting of Scope 3 emissions.

What role can independent certification bodies like GNFZ play in verifying full-cycle emissions data and building trust?

Independent certification bodies are essential to bridging the gap between ambition and verifiable action in the journey to net zero. At GNFZ, our approach goes beyond issuing certifications. We partner with organizations to bring clarity, accountability, and measurability to their emissions strategies. We strive to be partners in success with our clients ensuring that every action and step that they take leads to affordable efficiencies that directly connect to net-zero.

We analyze complex lifecycle data across Scopes 1, 2, and 3, turning it into actionable insights that inform procurement, design, and operational decisions. This includes auditing supplier-reported emissions, evaluating embodied carbon in materials, and validating energy use across facilities.

In a recent engagement with a commercial portfolio, we discovered significant discrepancies in supplier emissions reporting, which could have undermined the credibility of their sustainability claims. By standardizing reporting frameworks and implementing rigorous verification protocols, we not only ensured data integrity but also built confidence across investors, regulators, and tenants.

The process revealed high-impact areas for emissions reduction that had previously been overlooked, allowing the client to prioritize initiatives that deliver measurable impact. Certification, in this sense, becomes more than a badge of compliance: It is a strategic tool that drives systemic change across the value chain, incentivizes suppliers to decarbonize, and transforms sustainability from a reporting requirement into a tangible, scalable business advantage. Organizations gain the confidence to claim net-zero credibly while embedding a culture of continuous improvement that extends across every partner, facility, and process in their ecosystem.

Can you share a case study where GNFZ has helped an organization design or implement a customized pathway to tackle Scope 3 emissions?

We recently supported a leading diamond manufacturer in India with a global supply chain that contributed significantly to its Scope 3 emissions. The bulk of these emissions originated from material sourcing, transportation, and energy-intensive processing stages.

GNFZ conducted a full lifecycle assessment to quantify emissions across every stage, from mining and processing to distribution. Based on these insights, we developed a phased decarbonization roadmap tailored to the company’s operations. This included optimizing procurement by prioritizing low-carbon sourcing, enhancing energy efficiency in processing facilities, engaging suppliers in emissions reduction programs, and implementing transparent reporting mechanisms.

Real-time monitoring and predictive analytics enabled the company to track reductions continuously and make iterative improvements. Within months, measurable reductions in upstream emissions were achieved, and the framework now serves as a replicable model for other facilities. The project demonstrates that with the right expertise and systems thinking, even complex supply chains can be decarbonized without compromising operational efficiency.

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