Wavelets have proven to be powerful bases for use in numerical analysis and signal processing. Their power lies in the fact that they only require a small number of coefficients to represent general functions and large data sets accurately. This allows compression and efficient computations. Classical constructions have been limited to simple domains such as intervals and rectangles. In this paper we present a wavelet construction for scalar functions defined on the sphere. We show how biorthogonal wavelets with custom properties can be constructed with the lifting scheme. The bases are extremely easy to implement and allow fully adaptive subdivisions. We give examples of functions defined on the sphere, such as topographic data, bidirectional reflection distribution functions, and illumination, and show how they can be efficiently represented with spherical wavelets.