The Evolution of Scope 3 Reporting: From Sustainability Teams to Core Business Functions

In recent years, the approach to Scope 3 emissions reporting has undergone a significant transformation. Historically, this responsibility primarily lay with sustainability teams, but shifts in regulatory landscapes are now pushing the accountability into procurement, logistics, finance, and operations departments. This change underscores the growing importance of integrating emissions tracking into everyday supply chain management.

The Regulatory Landscape Driving Change

New regulations, such as the EU’s Corporate Sustainability Reporting Directive and California’s SB 253, have redefined how companies approach Scope 3 emissions. What was once seen as a long-term concern has quickly become a pressing necessity. Organizations are now compelled to gather and validate emissions data concerning suppliers, transportation networks, materials, and product usage—all of which often exist beyond their direct influence.

Current Insights from Industry Leaders

According to Sphera’s 2026 Scope 3 Report, a survey conducted among over 1,000 sustainability leaders across 15 different sectors reveals a common sentiment: existing teams are struggling to meet the increasing demands. The scope of this work is outpacing traditional sustainability functions, with only 14% of teams reporting to a Chief Sustainability Officer and 27% consisting of 10 or fewer members.

The Challenges of Data Management

Despite the urgency surrounding Scope 3 reporting, confidence in the accuracy of emissions data remains a concern. While 75% of respondents acknowledge that regulatory pressures have accelerated their reporting efforts, 45% express skepticism regarding the reliability of their Scope 3 data. This discrepancy poses substantial risks, including potential regulatory penalties and damaging reputational fallout from inaccurate disclosures.

Data complexity stands out as one of the most formidable barriers. Scope 3 emissions data resides in a patchwork of systems—including supplier portals, ERP platforms, logistics tools, spreadsheets, and third-party databases. Furthermore, emissions resulting from purchased goods and services, which typically represent the largest portion of Scope 3 emissions, are often substantially underreported.

Adapting to New Realities

In response to these challenges, organizations are beginning to adapt their strategies. A notable trend is the transition from purely spend-based estimates to directly collecting data from suppliers, particularly those in the Tier 1 category. Additionally, many companies are leveraging automation to streamline operations, thereby minimizing manual efforts and enhancing data validation processes.

Conclusion

The shift in Scope 3 reporting from sustainability teams to broader business functions reflects the increasing importance of comprehensive emissions management in today’s corporate environment. As regulations tighten and the pressure to deliver accurate data mounts, companies that prioritize integration and automation in their reporting processes will be better positioned to navigate the evolving landscape of sustainability.