Sphera, a global leader in Environmental, Social, and Governance (ESG) solutions, has announced its acquisition of SupplyShift, a company specializing in supply chain sustainability and responsible sourcing. The strategic move aims to enhance Sphera’s scope 3 emission tracking capabilities by leveraging SupplyShift’s extensive network of over 100,000 suppliers.
SupplyShift’s platform enables quick engagement and information sharing among suppliers, facilitating effective risk management and regulatory compliance. By integrating SupplyShift’s capabilities, Sphera intends to empower companies to achieve accurate tracking and reporting of their scope 3 emissions, ensuring compliance with global regulations and meeting stakeholder expectations.
Paul Marushka, CEO and President of Sphera, emphasized the significance of the acquisition in addressing the growing demand for transparency and regulatory compliance. The combination of Sphera’s expertise and SupplyShift’s network is expected to play a crucial role in helping businesses navigate sustainability reporting frameworks and emerging regulations related to scope 3 emissions.
Sphera, backed by asset investment company Blackstone, boasts a customer base of over 3,000 businesses across 80 countries. The company’s integrated approach, combining Software-as-a-Service (SaaS) solutions with consulting services and proprietary data, positions it as a key player in assisting organizations in managing and mitigating ESG risks.
The acquisition of SupplyShift follows Sphera’s strategic moves in the supply chain domain, including the acquisition of riskmethods, a supply chain risk management and software company, in 2022. With a focus on leveraging artificial intelligence, big data, and machine learning, Sphera aims to help businesses identify and address supply chain risks effectively.
As sustainability reporting frameworks increasingly emphasize the disclosure of scope 3 emissions, Sphera’s acquisition aligns with the evolving landscape of ESG regulations. Initiatives such as the International Sustainability Standards Board and the European Union’s Corporate Sustainability Reporting Directive underscore the importance of comprehensive emissions reporting, with scope 3 emissions often constituting a significant portion of a company’s overall carbon footprint.
While the Securities and Exchange Commission (SEC) is set to release a climate disclosure rule in April, the industry anticipates potential challenges, especially concerning scope 3 disclosure requirements. The acquisition of SupplyShift positions Sphera to provide robust solutions to businesses navigating the evolving regulatory landscape and striving for sustainability excellence.