The CBAM Verification Readiness Rating helps you understand how prepared each installation in your supply chain is to meet CBAM data and verification requirements. It's designed to help you prioritise supplier engagement, spot data gaps, and manage your CBAM cost exposure.
How the rating scale works
Ratings run from 1/5 (best) to 5/5 (highest risk). A lower number means higher readiness and lower risk that the installation's data will not obtain verification.
1/5 – High Readiness: Strong evidence across multiple layers that the installation's reporting infrastructure and data quality support accurate CBAM cost calculation. Low data risk.
2/5 – Moderate-High Readiness: Good evidence of transparency with most key indicators present. Some gaps, but reasonable confidence in reporting maturity.
3/5 – Moderate Readiness: Meaningful transparency signals are present, suggesting a foundation of reporting infrastructure, but material gaps remain.
4/5 – Limited Readiness: Limited transparency signals. Reporting infrastructure appears partial or early-stage. Treat CBAM cost data with caution and prioritise engagement.
5/5 – Low Readiness: Minimal or no observable transparency signals. Significant data risk - direct supplier engagement is strongly recommended.
What does the ^ symbol mean?
When you see a ^ next to a rating (e.g. 3^/5, 4^/5, or 5^/5), this means the rating is indicative. An indicative rating is based solely on publicly available information - such as sustainability reports, ISO certifications, voluntary framework participation, and EU market presence - and has not yet incorporated data submitted by the installation to CarbonChain.
Because of this, indicative ratings are capped at a best possible score of 3^/5. Ratings of 1/5 or 2/5 can only be achieved once CarbonChain has reviewed actual CBAM data submitted by the installation (the "Validated" layer). When that validated assessment is complete, the ^ symbol will no longer appear.
In short: the ^ tells you that the rating is an informed starting point, not a final verdict. It's useful for prioritisation, but the installation still needs to submit and have its data reviewed before full confidence can be established.
What does the rating assess?
The rating evaluates an installation's carbon transparency infrastructure and reporting maturity - whether the systems, processes, and disclosures needed to produce verifiable CBAM data appear to be in place. It looks across areas including management system certifications (e.g. ISO 14001, ISO 50001), sustainability reporting practices, product-level transparency (such as EPDs or product carbon footprints), decarbonisation activity, EU market engagement, voluntary framework adoption (SBTi, CDP, TCFD), and carbon pricing exposure.
What the rating is not
The rating is not a verification of actual emissions, a legal compliance assessment, or a financial recommendation. It does not confirm that a specific emissions figure is accurate or that any party has met their CBAM obligations. It is CarbonChain's opinion, based on available evidence, of an installation's readiness to support accurate CBAM cost calculation.
How should I use it?
Use the rating to focus your efforts where they matter most. Installations rated 5/5 or 4/5 should be at the top of your engagement list - these are the suppliers where CBAM cost data carries the most uncertainty. An installation rated 3^/5 is better positioned, but still needs to submit data and go through the validation process before you can treat its figures with full confidence. Ratings of 1/5 and 2/5 give you the strongest basis for relying on the data, though no rating removes the need for your own due diligence.
How often are ratings updated?
Indicative ratings are reassessed at least annually, and can also be updated when specific events occur - such as the publication of a new sustainability report, a change in certification status, or a shift in corporate ownership.
You can read our full methodology document detailed below.
Questions? Reach out to your Customer Success Manager or contact us at support@carbonchain.com.