Despite the recent easing of global climate controls, such as the rollback of the U.S. SEC climate disclosure rule and the introduction of the EU Omnibus Simplification Package, many large companies are still moving forward with plans to reduce emissions.
According to Sphera’s new 2025 Scope 3 Report, a majority (87%) of respondents who report on emissions did so voluntarily, with a growing number including Scope 3 in their disclosures.
The report reveals a growing number of companies reporting Scope 3 emissions as part of their overall sustainability risk identification and mitigation efforts. Of the companies disclosing greenhouse gas (GHG) emissions, 79% now report on Scopes 1, 2, and 3—up from 52% in 2024.
These organizations recognize the strategic, reputational and operational value of managing their carbon footprint. Scope 3 data helps them reduce risks and meet demands for transparency from investors, customers and communities.
In other words, Scope 3 still matters, for reasons beyond basic regulatory compliance.
Identifying the barriers to Scope 3
Yet, despite its benefits, Scope 3 reporting remains out of reach for many companies. Their number one obstacle is the collection of usable data from complex emission data sources.
It’s much easier to collect data from Scope 1, which includes direct emissions from company-owned or controlled resources, and Scope 2, which covers emissions from purchased energy.
Scope 3 emissions data is more challenging to collect, measure and report because it encompasses indirect emissions generated throughout a company’s entire value chain, from upstream suppliers to downstream product use. Companies can’t get complete data on their own, they need to engage vendors and suppliers.
Scope 3 data can originate from a range of activities, including the suppliers’ own activities; the use of sold products; employees commuting or traveling for business; waste disposal; transportation and distribution; and leased assets. Data from these sources can be inconsistent and unreliable. In addition, reporting requirements can be uncertain, raising questions about who supports the data and how it’s collected.
Key steps toward major data improvements
Our 2025 Scope 3 Survey reveals what we already knew: companies are at varying stages in their measurement and disclosure of GHG emissions. And few sophisticated global companies have accurate, fully formed Scope 3 disclosures.
Moving from basic data collection and calculation methods to more mature emissions reporting involves incremental improvements in people, processes and platforms. Two key enablers that effectively advance Scope 3 reporting include effective supplier engagement and integrated technology.
In 2025, 54% of survey respondents reported asking suppliers for data on their carbon emissions. Additionally, 29% of respondents requested that suppliers set emissions reduction targets. This collaborative engagement enables all parties to co-develop reduction targets, and support each other with resources or training and aligned reporting standards.
Integrated technology has been shown to streamline Scope 3 reporting by overcoming potential data silos by gathering data across internal and external sources, providing consistency, transparency and assurance across disclosures.
Whether through APIs that connect to supplier portals, tools that calculate emissions using industry-specific methodologies, or dashboards that enable real-time insights, integrated systems shift companies from periodic compliance-driven reporting to proactive sustainability management.
By taking these important steps, organizations can enhance the accuracy of data collection, calculations, and reporting processes, yielding more accurate results and improved transparency across their own value chains and those of their suppliers.
Additional findings and recommendations can be found by downloading the Sphera 2025 Scope 3 Report.
New Scope 3 Summer Webinar Series
For a deeper dive into Scope 3 reporting, Sphera is offering a three-part summer webinar series that will take companies through the full Scope 3 process. It includes an actionable roadmap to help prepare for their first Scope 3 inventory, evaluate the materiality of categories, identify data availability, and select appropriate emission factor sources and methodologies.
This information will enable companies to iteratively improve reporting accuracy and create an inventory that best represents their operations.
The Scope 3 summer webinar series will cover how to:
- Establish a Scope 3 methodology for continuous improvement
- Assess the business relevance (e.g., reputational risk, supply chain resilience, stakeholder pressure) of Scope 3 categories
- Establish a comprehensive Scope 3 methodology enabling continuous improvement across all relevant value chain categories
- Strategically apply spend-based, industry average and supplier-specific emission factors for purchased goods and services and capital goods
- Navigate quantification challenges for downstream Scope 3 emissions, including downstream transportation and distribution, use of sold products, and end-of-life treatment of sold products
- Understand the GHG Protocol guidance and the reporting requirements of major frameworks and regulations
- Identify sector-specific requirements: FLAG, Financial Institutions, Energy, Transportation
- Learn best practices for implementing and leveraging specialized software to streamline data collection, calculation, and reporting
For more information and to register, view our Events.
Sessions and dates
June 26th – Part I | Navigating the glide path to Scope 3 spend-based reporting and related considerations
July 30th – Part II | Utilizing mass-based data to identify hotspots and opportunities in your scope 3 reporting
August 27 – Part III | Leveraging supplier-specific product carbon footprint (PCF) data for enhanced scope 3 reporting
