Get information on contract emissions

This guide enables organisations to:

• get data on contract-related greenhouse gas emissions 
• better understand, measure and reduce emissions arising from contractual performance, especially where such performance involves large emissions
• consider and comply with reporting and disclosure requirements, especially on scope 3 emissions
• calculate and manage carbon budgets for existing and future contracts
• monitor the performance of counterparties against the emissions-reduction targets which they commit to.

Commit counterparties to measure, manage and report on emissions

Whether counterparties commit to reduce emissions is a matter of negotiation before entering into a contract. Ideally, they will commit to measure, manage and report on:

• the emissions arising from their performance of the contract (scope 1 and 2)
• the emissions arising from the value chain which is related to the performance of their contract (scope 3).

Agree on a reporting standard or a common supplier to measure and calculate emissions. Domestic law may mandate a reporting standard, which may be helpful to the parties agreeing to adopt a mutually acceptable reporting standard. Where there is no legal requirement, use internationally recognised standards for:

• reporting on emissions. For example, the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (as amended or replaced).
• emissions-reporting frameworks. For example, the International Financial Reporting Standards (IFRS)).

Require counterparties to reduce emissions during the contract term

If possible, have your counterparties agree on the emissions reductions as part of the contractual obligations. Ideally, the emissions-reduction targets will:

• define the scope of emissions covered by the target. Best practice is to set absolute targets relating to an organisation’s own emissions (scope 1 and 2) and emissions from its value chain (scope 3) 
• include short- (annual) and medium-term (2 to 5 years) interim targets
• be validated by the Science Based Targets initiative
• align with Paris Agreement goals and latest Intergovernmental Panel on Climate Change findings.

Establish reporting content and frequency

Ensure the contract specifies:

• a frequency for parties to report on emissions arising from contractual performance. For example, every 3, 6 or 12 months from the contract start date.
• minimum requirements for the content of emissions reports.

Verify emissions reports

As part of the contract, agree a process to independently verify emissions reports. For example, the parties may agree to appoint an external auditor to verify their emissions reports. The auditor should be an impartial third party and subject matter expert who can provide independent climate-impact assessment and emissions reporting (for example, The Carbon Trust).

The party responsible for appointing the auditor and paying their fees is a matter for commercial negotiation.

Updates

December 2025

This guide was updated following a quality assurance maintenance review.

Case studies using the contractual solutions in this guide

Case study

Cambridge University Press & Assessment

Requiring alignment of net zero targets through the value chain, supported with emissions reporting and reductions

Case study

Salesforce

Requiring suppliers to set ambitious science-based emissions reduction targets by 2024

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