More companies are reporting Scope 3 emissions, study finds

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🗞️ Driving the news: A new report from sustainability consultancy Sphera reveals that 79% of surveyed companies now report their Scope 1, 2, and 3 carbon emissions, marking a 27% increase in Scope 3 disclosures over the past year
• Despite political shifts and ongoing resistance to mandatory reporting, the study finds that most companies are voluntarily disclosing this information to meet growing investor demands

🔭 The context: Scope 3 emissions, which include indirect emissions across the value chain, are the most challenging to measure and manage, historically facing strong corporate resistance
• However, investor pressure, evolving voluntary frameworks, and upcoming regulatory changes — such as the EU’s CSRD and the SEC’s proposed climate rules — are driving more firms to enhance transparency
• This shift occurs despite broader political debates questioning the pace and cost of climate regulation

🌍 Why it matters for the planet: Scope 3 emissions often represent the largest share of a company’s carbon footprint, meaning that improved reporting is critical for genuinely meaningful decarbonization efforts
• Increased voluntary disclosure strengthens market accountability, encourages supply chain action, and supports global efforts to reach net-zero targets
• Without standardized mandatory frameworks, data quality and comparability remain significant concerns

⏭️ What's next: Global regulatory momentum for mandatory Scope 3 reporting continues to build, with the EU and US leading efforts
• Companies that proactively improve Scope 3 transparency will likely be better positioned to meet forthcoming compliance requirements and investor expectations
• The next year will be crucial, as regulators finalize new climate disclosure rules and companies refine emissions tracking systems

💬 One quote: “While mandatory frameworks are important, it’s clear that companies recognize the strategic value of voluntarily disclosing their full emissions footprint,” notes the Sphera report

📈 One stat: Scope 3 emissions reporting has increased by 27% globally in the past year among surveyed companies.

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