SUPPLY CHAIN MANAGEMENT concerns. Effective materials management in speciality chemicals also includes staffing and training, safety protocols, regulatory compliance and facilities oversight, highlighting the sector’ s reliance on people as a critical asset.
In recent years, firms across the industry built up just-in-case inventories to protect against widespread supply chain disruptions. As global trade conditions begin to normalise after several highly disrupted years, those inventories are now being scaled back. Inventory levels are expected to stabilise within the coming months, bringing a greater degree of predictability and resilience to the supply chain.
Defining Scope 3 in a fragmented sector
In sectors like pharmaceuticals and agrochemicals, Scope 3 emissions are amplified by the use of rare inputs, long development cycles and global sourcing. Many speciality chemical firms work with thousands of suppliers, some of which are SMEs without the tools or capacity for accurate carbon accounting.
Data quality and consistency remain significant obstacles. Emission factors may vary widely, and inconsistent standards make comparability difficult. Moreover, environmental justice considerations, including labour conditions and community impact, are becoming an integral part of the procurement process.
New regulations, such as the EU Corporate Sustainability Reporting Directive( CSRD), the EU Deforestation legislation( EUDR) and the UK’ s Net Zero Strategy are driving companies to ensure traceability, mitigate risks and disclose impacts across the whole value chain. Frameworks like the Task Force on Climate-related Financial Disclosures( TCFD) and Science Based Targets initiative( SBTi) are also pushing for full lifecycle carbon accounting.
Investors and customers alike are demanding climate transparency.
Forward-thinking companies that lead on Scope 3 reporting and reduction will benefit from contract wins, improved brand reputation, and operational efficiencies.
Digital innovation
Digital platforms are accelerating Scope 3 management. ESG tools and carbon accounting software now allow companies to:
• Map supply chains & improve traceability
• Automate data collection & validation
• Apply standardised emission factors
• Generate compliance-ready reports
By integrating with procurement systems, these platforms can automatically gather data on volumes, transport routes, and energy use. This improves accuracy and reduces manual data input.
Traceability tools, including digital product passports and blockchain systems, have made it possible to ensure far more transparency from source to site and onto the final products. These tools are especially useful for verifying supplier credentials or responding to audits.
Artificial intelligence( AI) and machine learning simplify sustainable supply chains by identifying emission patterns, forecasting the impact of procurement changes, and suggesting more sustainable alternatives. Crucially, these tools are enabling action, not just analysis. Supplier engagement platforms now support target setting, decarbonisation guidance, progress tracking and scenario modelling to test different sustainability strategies.
Towards collaborative supply chains
No company can decarbonise by itself. Collaboration and standardisation across the value chain are critical. Shared digital platforms allow secure data exchange and alignment across a range of
metrics, creating uniformity across Scope 3 emissions.
Industry groups and NGOs are working to streamline and unify carbon accounting methodologies and establish shared databases to remove inconsistencies and create a level benchmark. One good example is Chem-X, an open data source compiled by some of the world’ s major speciality chemical players. They are building a platform to document the origin, emissions footprint, and compliance requirements of a wide range of materials.
Conclusion
The speciality chemicals sector has a vital role in the net-zero transition as it extends across so many different industries by reducing its emissions and embracing sustainable progress in industries worldwide.
Sustainable products, green processes and circular systems are the keys to a low-carbon future in the speciality chemicals industry. Technology is now available to help companies achieve those goals. What is needed now is leadership, investment and cross-sector commitment to reimagine future supply chains. ●
J j
Daniel Usifoh
CO-FOUNDER
AXIOM SUSTAINABILITY SOFTWARE daniel @ axiom-sustainability. com https:// axiom-sustainability. com
JUL / AUG 2025 SPECCHEMONLINE. COM
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