Core Insights - The report from Sphera highlights the ongoing challenges and developments in sustainability reporting, particularly regarding climate-risk disclosures and scope 3 emissions [4][5][8] Regulatory Landscape - The U.S. SEC has reduced its support for climate-risk disclosure rules, while the EU has narrowed the scope of its Corporate Sustainability Reporting Directive [4] - New legislations, such as California's Senate Bill 253 and the EU's Sustainable Finance Disclosure Regulation, are emerging and applying pressure on companies to enhance sustainability practices [4] Industry Trends - Nearly 40 global jurisdictions are adopting climate disclosures aligned with the ISSB's frameworks, indicating a growing trend towards standardized sustainability reporting [5] - 73% of sustainability leaders reported that their companies are voluntarily disclosing data on scope 3 emissions, despite a fragmented regulatory environment [8] Resource Allocation - A significant challenge for companies is the lack of dedicated sustainability teams, with only 14% of leaders indicating that their sustainability efforts are led by a chief sustainability officer [6] - 27% of respondents reported having teams of 10 or fewer working on sustainability initiatives [6] Data Quality Challenges - Ensuring the quality of scope 3 emissions data remains a major issue, with only 9.25% of respondents relying solely on spend-based data, which is often less accurate [7] - 45% of leaders indicated they have limited assurance in the quality of their scope 3 emissions data [8] Budget and Reporting Trends - 59% of sustainability leaders increased their companies' sustainability budgets for 2025, reflecting a commitment to enhancing sustainability efforts [8] - 80% of leaders stated that recent regulatory changes have accelerated sustainability reporting, particularly for scope 3 emissions [8]