New findings show companies remain committed to corporate sustainability reporting with increased demand for transparency from investors and customers
Paul Marushka, CEO and president of Sphera
Chicago, IL, April 29, 2025 (GLOBE NEWSWIRE) — A new report from Sphera, a leading provider of integrated sustainability, operational risk management software, data and consulting services, reveals a 27% increase in companies reporting on Scope 1, 2 and 3 in 2025, with 79% of companies now disclosing emissions across all three scopes. The 2025 Scope 3 Report examines how organizations worldwide are addressing emissions data challenges and advancing supplier collaboration to meet evolving sustainability goals.
The 2025 Scope 3 Report shows companies are responding to increased demand for transparency from investors and customers and are guided by their risk management priorities and long-term sustainability goals, even as regulatory requirements evolve in key regions. Despite this momentum, 62% of organizations currently reporting on Scope 3 cite internal data quality as a major barrier, while 79% say supplier data availability remains a top challenge in achieving accurate Scope 3 disclosures.
“The findings in this year’s Scope 3 Report highlight the tension between sustainability reporting ambition and operational reality,” said Paul Marushka, CEO and President of Sphera. “Despite changing regulations, most companies understand that Scope 3 emissions management is a strategic necessity. Sustainability is fast becoming an extension of business best practices, with suppliers no longer merely competing on price and quality, but also on sustainability. Firms should strive to incorporate sustainability requirements like Scope 3 emissions reporting into their core business operations, investing in robust data infrastructure and deepening supplier engagement to meet both market expectations and long-term sustainability goals.”
Shift from spend-based to hybrid data models
As reporting efforts evolve, companies are increasingly moving away from spend-based estimations. Only 15% of respondents now rely solely on spend-based methods, down from 30% in 2024. At the same time, use of hybrid data models has jumped 17 points, with 65% of companies now combining spend-based, activity-based, and supplier-specific data to improve accuracy.
Supplier engagement is increasing
Supplier transparency is critical to value chain emissions reporting. The report shows that 54% of companies are requesting emissions data directly from suppliers, and nearly one-third (29%) are asking those suppliers to set their own reduction targets, signaling a shift toward deeper collaboration and shared climate accountability.
Reporting maturity varies by region but Scope 3 is growing in prominence
European companies continue to lead Scope 3 reporting, supported by established regulatory frameworks and cultural commitment to sustainability. However, North American and Asian companies are showing significant momentum. Globally, 47% of currently non-reporting firms plan to begin disclosing Scope 3 emissions within two years, marking a worldwide shift towards Scope 3 reporting.
Key findings also include:
- 87% of companies who currently report on emissions do so voluntarily: The majority of surveyed organizations continue to disclose emissions data proactively, demonstrating a commitment to transparency despite relaxed reporting requirements.
- 85% of companies report Scope 3 emissions including Category 1, consisting of purchased goods and services: This reflects growing alignment between emissions tracking and procurement functions.
- 57% of the respondents who are currently reporting on Scope 3 using supplier-specific data indicated supplier data collection is a top challenge. Mature reporters still struggle with supplier participation, accuracy and consistency.
For more information about Sphera’s 2025 Scope 3 Report, click here.
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About the 2025 Scope 3 Survey
Sphera’s second annual Scope 3 Survey offers a global snapshot of how companies measure, manage, and report on Scope 3 GHG emissions. Conducted between November 2024 and February 2025, the survey gathered responses from 315 sustainability professionals across 18 industries, with participants ranging from small enterprises to multinational corporations with over $1 billion in annual revenue.
About Sphera
Sphera is the leading provider of integrated sustainability and operational risk management software, data and consulting services focusing on Environment, Health, Safety & Sustainability (EHS&S), Process Safety, Product Stewardship and Supply Chain Transparency. For more than 30 years, we have served 8,500 customers and a million-plus users in 100 countries to help companies keep their people safe, their products sustainable and their operations productive. Learn more about Sphera at https://sphera.com/. Follow Sphera on LinkedIn.
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- Paul Marushka, CEO and president of Sphera
CONTACT: Polina Simakova Sphera press@sphera.com
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