The EU Carbon Border Adjustment Mechanism (CBAM) is reshaping how companies account for the carbon embedded in imported goods. As the transition phase gives way to full implementation, accuracy, traceability, and verification of emissions data become non-negotiable.
CBAM aims to level the playing field between EU producers subject to carbon pricing and importers whose goods may originate in regions with weaker carbon regulations. To comply, organizations must report verified emissions data for specific products—steel, aluminium, cement, fertilizers, electricity, and hydrogen—with more categories expected to follow.
The Challenge
Collecting reliable emissions data from upstream suppliers is a major hurdle. Many suppliers lack the systems, expertise, or incentive to provide accurate information. As a result, importers often rely on default values—acceptable in the short term, but unsustainable for long-term compliance or competitive advantage. Furthermore, legally, default values cannot be used anymore.
The verification process adds another layer of complexity. Data must be transparent, auditable, and consistent with the methodologies prescribed by the European Commission. Manual data gathering and spreadsheet-based workflows can no longer scale to meet these expectations.
The Strategy
To prepare for full CBAM enforcement, organizations should focus on three key actions:
- Standardize Data Collection: Establish clear data templates and collection protocols aligned with CBAM reporting requirements. Train suppliers early and provide guidance on emission factor calculations and documentation standards.
- Centralize and Automate: Consolidate emissions data across suppliers, materials, and geographies into a unified system. Automate aggregation, audit trails, and reporting to reduce manual effort and errors.
The Tools
Solutions like Supplier Engagement solution help organizations:
- Gather primary emissions data directly from suppliers
- Apply standardized calculation methods
- Validate and document supplier-level emissions for audit readiness
- Automate data verification and CBAM reporting workflows
The Takeaway
CBAM readiness is about more than compliance—it’s about credibility. Importers that refine their data collection and verification processes now will gain early visibility into carbon-intensive suppliers, reduce reporting risk, and position themselves as leaders in low-carbon procurement.
Accurate data isn’t just a reporting requirement—it’s a strategic asset under CBAM.
Ensure your CBAM compliance with confidence. to see how our Supplier Engagement solution can streamline emissions data collection, automate verification, and simplify reporting.
