Like many of you, we are busy wrapping up the year and preparing for 2024 and the opportunities it will bring. For Sphera, this last year brought developments that helped us advance our mission of creating a safer, more sustainable and productive world. Every day, we work toward this mission by enabling companies around the world to manage ESG-related risks and continually enhance their sustainability performance.
Helping companies with their compliance responsibilities is one way we do this. The year brought several regulatory developments, starting with the Corporate Sustainability Reporting Directive (CSRD), which went into effect on January 5. And while the U.S. Securities and Exchange Commission (SEC) has not yet released its finalized climate-related disclosure rules, California moved forward with its Climate Corporate Data Accountability Act, or SB 253. Both the CSRD and SB 253 require the disclosure of Scope 3 emissions.
California passed the Climate-related Financial Risk act (SB 261) as well, which requires public and private companies operating in the state to report on their climate-related financial risks. For information on other regulatory changes we saw this year, I invite you to review our regulatory updates.
These new climate-related disclosure regulations are prompting companies to assess their reporting capabilities and identify the tools and expertise they need to build or enhance their reporting practice. Under the CSRD, some businesses will need to report on FY 2024, so they need to act quickly. However, public and private companies should start preparing now, even if their reporting obligations kick in later. As always, Sphera stands ready to support companies with their reporting responsibilities.
To that end, Sphera launched an iteration of its powerful LCA Automation solution in 2023, this time for discrete manufacturing. The solution allows companies to calculate their GHG emissions across entire product portfolios by importing primary product data based on the bill of materials (BOM).
The measurement, reporting and management of GHG emissions is rapidly becoming compulsory for many companies. And several Sphera software products were highlighted this year for their ability to assist with these tasks.
Verdantix, an independent analyst firm, recently recognized Sphera as a leader in the enterprise carbon management software market, citing Sphera for capabilities in net-zero strategy development, data management, data acquisition and Scope 3 data aggregation. Verdantix also identified Sphera as a leader in the ESG reporting and data management software market.
Sphera prides itself on our solutions that not only enable companies to produce transparent and auditable ESG reports, but also ensure safe and productive operations. This year, Verdantix recognized Sphera as a market leader in process safety management (PSM) software and environment, health and safety (EHS) software. Both solutions help organizations prioritize the safety of their employees and assets, which is essential for operationalizing ESG.
The year brought us awards as well. Sphera won Top Product of the Year awards for our SpheraCloud Operational ESG and SpheraCloud Environmental Accounting solutions in the 2023 Environment + Energy Leader Awards. Sphera also won a Sustainability Leadership Award from the Business Intelligence Group for helping companies understand, improve and report on their corporate sustainability performance. Additionally, the Business Intelligence Group gave Sphera a Stratus Award for our Supply Chain Risk Management (SCRM) software, which relies on AI to monitor, identify, assess and mitigate the risks that threaten global supply chains. This solution was also named Risk Management Solution of the Year in the 2023 SupplyTech Breakthrough Awards.
Supply chains are the focus of increasing scrutiny, which adds to the operational challenges faced by companies with complex supply chains. So, to ensure that our SCRM software continues to meet their needs, we enhanced our Compliance Incident Management solution, which helps supply chain managers detect and understand possible regulatory violations so they can address them quickly. With the final text of the Corporate Sustainability Due Diligence Directive under negotiation and similar laws already in force, this capability is a must-have for supply chain managers.
With a new year right around the corner, business leaders are thinking about what they need for a successful 2024. While they likely see challenges on the horizon, there’s an abundance of opportunities there too. At Sphera, we look forward to helping you navigate new challenges and seize new opportunities in 2024. In the meantime, we wish you the very best for the holiday season.