Climate change is not simply an environmental issue but a complex problem that touches on your entire supply chain, impacting operations at all levels of your company operations. According to the report by Carbon Disclosure Project (CDP), the world’s 500 biggest companies are at risk of losing up to USD1 trillion because of global warming unless they take active preventative measures. Indeed, it is not just the large companies but all enterprises, which is one of the reasons why you should start climate reporting right away.
If you are new to ESG sustainability, climate risk reporting can be pretty challenging because the process is lengthy and involves a lot of parameters. However, more governments and regulatory authorities are in the process of making it mandatory. For example, the UK, EU, Hong Kong, New Zealand, and other countries have already adopted or are in the process of developing reporting policies for their countries. Well, you have to get it right, and this post highlights expert tips that you should consider.
Understanding the Carbon Footprint
To start on the right step, it is prudent to ensure you understand your company footprint. An organization’s carbon footprint is the total amount of greenhouse gas (GHG) emissions coming from your company. In your carbon footprint calculation, include scope one, scope two, and scope three emissions to get the correct levels. After determining the amount of emissions, go ahead and select strategies that can help to cut down carbon footprint.
Here are some examples of activities that you can use to cut down carbon footprint.
- Shifting from fossil fuel to green energy sources.
- Changing the product design to adopt eco-friendly raw materials.
- Training staff on eco-friendly practices.
- Drawing supply chain contracts with a focus on carbon footprint reduction.
- Recycling materials instead of dumping them into a landfill.
Always Pick an Appropriate Framework
The main reason why companies adopt climate risk reporting is to disclose their efforts on sustainability to stakeholders. To achieve this, you should select an appropriate framework to serve as a guideline for gathering data and reporting. For example, the Carbon Disclosure Project (CDP) requires you to fill out a questionnaire on climate change, forests, and water. Then, your company is given a score.
Other frameworks that you should consider using include:
- The Task Force on Climate-Related Financial Disclosures (TCFD).
- Global Reporting Initiatives (GRI).
- GHG Protocol
Consider Bringing an Expert On Board to Help
As we mentioned already, the process of climate risk reporting can be pretty complex. So, whether you are finding the process challenging for a lack of skills, limited staff, or a busy schedule, it will be a good idea to work with an expert. Having handled similar tasks in the past, experts will be there to help you do the following:
- Correctly calculate the company’s carbon footprint.
- Review the company’s operations and select the material topics.
- Help draw or enrich your company strategies with findings of the carbon calculation and review.
- Prepare high-quality reports in line with ESG sustainability principles, such as materiality and verifiability.
Work with the Right ESG Sustainability Reporting Software
One mistake that people make when starting their ESG sustainability reporting journey is opting to do it manually. There are so many parameters, calculations, and policy factors to consider, which require advanced application to handle. So, check for a good sustainability reporting software that can automate data gathering and make following key performance indicators (KPIs) easy. The app should also make it possible to analyze the data you gather, produce mini-reports, and simplify information verifiability.
Climate change reporting is the new determinant of company success, and it is crucial to get it right every bit. This post has highlighted the most important tips that you should consider to get the process of climate change reporting correct. Visit Diginex.com for expert assistance and the best sustainability management software for your ESG reporting.