Now more than ever, companies are having to adapt to a rapidly changing global business environment. Over the past two years, companies’ supply chains have been impacted by a global pandemic and climate change. In addition to the supply chain issues and climate-related disruptions that companies are facing, emerging regulations may create new compliance challenges for some.
Investor demands for climate-related disclosures have contributed to the development of the European Sustainability Reporting Standards under the Corporate Sustainability Reporting Directive (CSRD) and the climate-related disclosure requirements proposed by the U.S. Securities and Exchange Commission (SEC). Both reporting frameworks respond, in part, to stakeholder interest in understanding the impact of climate change on companies, as well as the impact companies have on climate change.
Collecting and reporting quality data are just some of the roadblocks companies face on the path to greater regulatory compliance and sustainability performance. The CSRD and SEC reporting frameworks require companies to report their Scope 3 greenhouse gas (GHG) emissions, which include a company’s supply chain emissions. Companies will need the right data, software and expertise to comply with these regulations and mitigate supply chain risks.
To help our customers address these challenges, I’m excited to announce that Sphera has entered into an agreement to acquire riskmethods, a leader in artificial intelligence (AI) supply chain risk management (SCRM) software based in Munich, Germany. Founded in 2013, riskmethods’ software as a service (SaaS) solution protects its customers’ supply chain networks and helps to prevent business disruption risk before it happens through harnessing cutting-edge AI, big data and machine learning. Its platform collects supplier data and real-time information, distinguishes critical signals from “noise” and provides users with detailed status of suppliers, so they can achieve supply chain transparency.
riskmethods’ cloud-based software identifies, analyzes and mitigates all types of supply chain risk, including monitoring sustainability practices and ESG compliance in the supply chain. The company’s SCRM software solution is a robust tool for managing risk in increasingly complex supply chains. It also helps companies comply with emerging ESG and operational regulations. With riskmethods, Sphera is well-positioned to provide an enhanced ESG operational risk offering that will allow customers to manage sustainability and ESG compliance in their supply chains. This will bolster Sphera’s capabilities in offering a Scope 3 emissions monitoring and reporting solution.
Growing Sphera’s software offerings helps us provide the tools companies need to become sustainability leaders. We’re dedicated to helping companies set and meet sustainability goals, no matter how complex their operations may be. In fact, Sphera received a Sustainability Leadership Award from the Business Intelligence Group in its 2022 Sustainability Awards Program for our role in helping businesses take measurable, proactive steps to meet ESG goals. The Sustainability Awards honor organizations that have made sustainability an integral part of their mission or their overall business practices. We’re honored to be recognized by the Business Intelligence Group for our role in helping companies achieve sustainability success.
Mitigating supply chain risk and improving sustainability performance is not a sprint but a journey that requires strong partnerships, innovative tools and expert insights. Companies that leverage data, software and expertise to manage their supply chain risk will ensure they are prepared for the challenges of today, as well as tomorrow.
Learn more about Paul Marushka.