Global Scope 3 Emissions: A Corporate Sustainability Shift

A recent Workiva survey reveals a strong commitment to climate-related disclosures among global executives, who are focusing on comprehensive reporting that likely includes Scope 3 emissions.

The commitment persists despite political uncertainties, highlighting the growing importance of supply chain transparency in corporate sustainability strategies.

Workiva's survey, encompassing 1,600 business leaders worldwide, demonstrates a resolute stance on climate reporting. An impressive 85% of executives plan to proceed with disclosures of greenhouse gas emissions, regardless of political developments or election outcomes.

The commitment likely extends to Scope 3 emissions, which account for a significant portion of many companies' carbon footprints.

Scope 3 categories under the spotlight

Integrating financial and ESG data for value chain insights

A remarkable 97% of executives recognise the value of integrating financial and ESG data.

The integration is crucial for Scope 3 reporting, as it allows companies to identify performance gaps and growth opportunities throughout their value chains.

Mandi McReynolds, Vice President of Global ESG and Chief Sustainability Officer at Workiva, highlights the shift: "Leaders are no longer just reacting—they're proactively building resilience and adaptability into their strategies".

Preparing for regulatory expansion

Executives anticipate an increase in sustainability-related regulations, with expectations varying by region:

• US: More than half expect new or expanded regulations
• UK: Two-thirds (60%) anticipate stricter rules
• Brazil and Singapore: 78% and 80%, respectively foresee regulatory changes

The expectations likely include more stringent requirements for Scope 3 emissions reporting, prompting companies to enhance their data collection and analysis capabilities across their value chains.

Challenges in implementing comprehensive reporting

While the commitment to disclosure is strong, executives acknowledge potential hurdles:

• 85% express concerns about having the right technology for ESG reporting
• 38% cite inflation and interest rates as significant factors influencing reporting
• 35% view changes in legislation and policy as pivotal challenges

The challenges are particularly relevant for Scope 3 reporting, which often requires complex data gathering from numerous sources across the value chain.

The Workiva survey highlights a significant shift in the corporate mindset, with sustainability and comprehensive emissions reporting becoming integral to long-term business strategy.

Mandi notes: "The interplay of business performance, social impacts and technology is not just shaping outcomes; it's driving real, sustainable value".

The approach, encompassing Scope 3 emissions, is set to redefine corporate sustainability efforts in the years to come.

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