["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis paper advances understanding of corporate carbon accountability and stakeholder evaluations by examining Scope 3 greenhouse gas disclosures in Australia's energy sector. Using data from vertically integrated utilities, we introduce a location‐based framework that enhances methodological transparency, mitigates double counting, and aligns with emerging international standards. Our contribution is timely: We reveal divergent reporting practices that hinder meaningful disclosures. Our framework shows that location‐based Scope 3 estimates enhance the rigor of reported emissions relative to market‐based approaches. Drawing on stakeholder theory, we show how methodological inconsistencies reduce the usefulness of global value chain emissions reporting. We specify conditions under which Scope 3 disclosures create value for stakeholders and inform decarbonization strategies. Rather than merely reporting Scope 3 data, organizations should ensure disclosures are meaningful, comparable, and communicated to enable stakeholders to assess performance across similar firms. We also highlight double counting challenges and call for further research to improve methodologies.\n"]