ESG Outlook is Sourcing Journal’s discussion series with industry executives to get their take on their company’s latest environmental, social and governance initiatives and their own personal efforts toward sustainability. Here, Scott Lehmann, VP, product management at integrated sustainability and operational risk management software, data and consulting services Sphera, discusses why proactive risk management is no longer optional.
Name: Scott Lehmann
Title: VP, product management
Company: Sphera
What do you consider your company’s best ESG-related achievement over the last 5 years?
Whether it’s supply chain risk management, reducing environmental impact, ensuring worker and broader operational safety or navigating complex regulations, our goal is to help businesses meet requirements and operate more efficiently and responsibly while also managing risk.
One of our biggest wins has been developing our integrated sustainability solutions. Managing sustainability data can be overwhelming, especially with different teams working across various areas like operations, supply chain, and product development. Our solution brings all that data together in one place, making it easier for companies to align their efforts and get a clear picture of their sustainability performance. This has been a game-changer for Scope 3 reporting, helping businesses build stronger data foundations and provide more accurate, comprehensive sustainability risk and emissions disclosures. We’re making sustainability management more streamlined and actionable for our clients.
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What is your company’s most recent ESG product or initiative?
The SpheraCloud Integrated Sustainability solution is designed to help businesses navigate the growing complexities of sustainability reporting and compliance. As stakeholder expectations rise, companies need accurate, transparent and actionable data to drive their sustainability strategies. This solution streamlines data collection, emissions tracking, regulatory reporting, and sustainability performance management, all in one AI-powered platform and available with our expert consultants. By automating key processes and integrating real-time insights, SpheraCloud helps organizations reduce manual efforts, improve data accuracy, and make more informed sustainability decisions. It’s all about making sustainability management seamless to help businesses meet compliance requirements, but also drive measurable impact long term.
What is the biggest misconception businesses have about ESG compliance and corporate sustainability?
Many companies see sustainability as simply a compliance box to check. In reality, sustainability is a strategic opportunity that can drive business value and drive innovation, efficiency and resilience. When applied in a balanced way, sustainability creates long-term business success. The organizations that embed sustainability in their operations, products and supply chains eventually emerge as clear leaders. But even before they establish themselves as leaders, they find that sustainability helps them differentiate themselves in the marketplace, innovate, attract investment, achieve cost savings, enhance customer loyalty and strengthen their ability to manage climate-related risks.
Sphera helps shift this perspective with integrated solutions that go beyond compliance. Our tools ensure regulatory alignment and enhance operational performance, risk management and brand reputation. We empower organizations to see sustainability as a pathway to sustainable growth and a competitive advantage.
The COVID-19 crisis forced many companies to rethink sustainability and risk management. What are the biggest takeaways from that period that remain relevant today for businesses?
The pandemic was a wake-up call for businesses. It exposed how fragile supply chains can be, how quickly regulations can shift, and the importance of real-time data for making informed decisions. Companies that had integrated risk management systems in place were able to adapt quickly, while the others scrambled to catch up.
The biggest lesson learned during this period was that proactive risk management is no longer optional. Businesses need full visibility across their operations and supply chains to anticipate disruptions and respond effectively. With AI-driven technology, companies can analyze risks in real time, helping them make smarter, faster decisions and stay resilient in an ever-changing landscape.
As consumer pressure around sustainability reporting increases, what challenges do companies face in navigating and meeting these expectations?
Consumers expect transparency when it comes to sustainability. They want to know where products come from, how they’re made, and what impact they have on the environment and society. This growing demand puts companies under pressure to provide clear, credible and consistent sustainability reporting. Investing in ESM [enterprise service management] solutions allows companies to improve data accuracy, align reporting with evolving standards, and communicate their progress in a way that resonates with consumers.
What do you see as the biggest missed opportunity in corporate sustainability, where companies could be making a greater impact but aren’t?
Too many companies focus on meeting the bare minimum requirements rather than fully integrating sustainability into business strategies. When sustainability efforts are siloed, organizations miss out on opportunities to drive innovation, improve efficiency, and build stronger relationships with stakeholders. Sustainability should be woven into decision-making to drive growth and resilience. Companies taking this approach gain a competitive edge by making business decisions that benefit their bottom line and the world around them.
How does Sphera support companies in integrating sustainability into their supply chains, ensuring compliance while also driving business value?
Sustainability efforts are only as strong as the supply chains behind them. Our Supply Chain Sustainability solution helps businesses gain full visibility into their suppliers by collecting direct data on Scope 3 emissions, sustainability metrics, and risk factors through expert-built assessments. With this tool, companies can proactively manage costs, reduce risks, and ensure compliance, rather than reacting to issues after they come up. It also allows them to adopt more sustainable procurement practices to create a measurable impact and drive long-term business value.
Are there emerging trends or technologies in ESG that you believe will reshape corporate sustainability strategies in the next five years?
AI’s energy-intensive nature means it is not at present a sustainability friendly technology, with 21 percent of all energy consumption expected to be needed to power AI by 2030. However, the evolution of AI will likely see developments that reduce its current exponential energy usage trajectory by becoming more efficient. And while clean wind and solar power are not natural fits for data centers, given the limited amounts and lack of sustained, reliable energy they produce, nuclear energy is better matched to the demand of data centers, with nuclear plants able to generate power reliably, without interruption. (MIT).
As sustainability expectations grow more complex, automation and AI-driven analytics are transforming how companies manage sustainability initiatives. These technologies are helping businesses cut through data overload, enhance reporting accuracy, and drive real impact by automating key processes. AI has also transformed risk management with real-time monitoring, predictive insights, and proactive decision-making. Companies can now run “what if” analyses more efficiently, using AI to compare various scenarios and address sustainability gaps, as well as identifying areas for improvement such as detecting vulnerabilities in supply chains and assessing environmental impacts. This will prove instrumental in enhancing efficiency and spur leaner businesses.
Is there anything else you’d like to add about the future of business sustainability and Sphera’s role in shaping it?
Sustainability is becoming an integral part of companies’ operating model, rather than a series of regulatory compliance initiatives driven by groups outside the normal corporate structures. At Sphera, we have seen examples in our customer base of procurement departments adopting new requirements as part of supplier qualification and onboarding, as well as risk management and engagement. Companies that will thrive in the future will be those that can build and manage resilient and sustainable supply chains.
As regulations shift with the recent administration changes, the demand for what sustainability has been before 2025 will naturally morph into what it has become today: a long-term business imperative that plays a large role in driving operational efficiency and building resilience in any economic or regulatory environment, setting up companies for sustainable success. Instead of scaling back sustainability initiatives, businesses should have a long-term focus by strengthening their data, technology and strategy to stay resilient and prepared for regulatory and business environment shifts.