Post by account_disabled on Feb 19, 2024 22:57:25 GMT -5
According to Watch Wire , 2023 will be a perfect year to establish the keys in sustainability reporting. Since these are the means of dissemination and communication of environmental, social and corporate governance ( ESG ) objectives, as well as a company's progress towards them.
The benefits of sustainability reporting include Chile Mobile Number List better risk management, optimization of costs and savings, facilitation of decision making and improved trust and corporate reputation, towards customers as investors. That said, here are some data that will set the business agenda as the 2022-2023 sustainability reporting cycle begins.
10 keys to sustainability reporting
1. Possible SEC Mandatory Emissions Reporting
In March 2022, the U.S. Securities and Exchange Commission (SEC) issued a new regulatory proposal that would require climate disclosure in financial reports. The proposal was originally expected to be approved over the summer. However, the SEC ultimately extended the public comment period on the proposal until June 17, 2022, meaning the proposal is now expected to be approved in late 2022.
If the proposal is approved, it will be the first time that publicly traded companies will be required to measure and disclose greenhouse gas emissions in a standardized way. It is important to note that this proposal is not an anomaly: it is part of a growing trend of stakeholders raising concerns about the sustainability of companies and the risks that climate change may pose to their investments.
2. Sustainability reporting is increasingly popular with investors and consumers
The Governance & Accountability Institute (G&A), a leading sustainability and ESG consulting firm, found in a 2021 report that 92% of S&P 500 companies published a sustainability report in 2020, up from 90% in 2019. This shows that corporate sustainability reporting has been adopted as a best practice by the largest public companies in the US. The reason for this? Pressure from investors and consumers.
The 2021 Global Sustainability Study , conducted by Simon-Kucher & Partners, revealed that more than a third of the population is willing to pay more for sustainable products or services. The study also found that, globally, sustainability is considered an important purchasing criterion for 60% of consumers.
The best way for companies to share their sustainability initiatives and efforts is through sustainability reports, the results of which can be shared formally with investors and informally with consumers through social media and other marketing channels.
3. Digital transformation will change the way sustainability reporting is done
Traditionally, digital transformation has meant the adoption of digital technology by an organization with the goal of improving efficiency, value or innovation. But increasingly, companies are using digital transformation to increase sustainability.
Speaking of which, an ABB report found that 72% of respondents in its recent analysis cite sustainability as the reason they are increasing their spending on digital technology, and 96% of decision makers says digitalization is “essential for sustainability.”
With this in mind, it is predicted that by 2023, one of the keys in sustainability reporting will be digitalization not only to increase its sustainability, but also to report on it. Digital energy and sustainability management platforms can automate the process of collecting, auditing and analyzing utility, energy and sustainability data.
Additionally, as these advances will be integrated with sustainability reporting frameworks, technology platforms can streamline the reporting process for companies, making an otherwise tedious and error-prone process fast and accurate.
opportunities-in-sustainability-
4. Sustainability reports will have a greater focus on supply chains
A 2016 report from McKinsey estimates that 80% of consumer goods companies' emissions come from their supply chains. To achieve sustainability and net zero emissions goals, it is clear that companies will need to focus on reducing emissions in their supply chains .
Looking ahead, in 2023 sustainability reporting frameworks are expected to increasingly focus on Scope 3 emissions. Scope 3 emissions, also known as value chain emissions, often account for the majority of an organization's total GHG emissions, according to the U.S. Environmental Protection Agency (EPA) . Reporting frameworks are also expected to ask more detailed questions about companies' supply chains, not just in terms of emissions. , but also waste and energy use.
5. There will be a big crackdown on greenwashing
A quick search for “ greenwashing examples” on Google returns countless results from companies that have been caught making false or misleading sustainability claims. However, the days when companies could get away with bad business practices are quickly coming to an end.
In a recent example, fast fashion company Boohoo recently came under fire for promoting a sustainable clothing line with reality star Kourtney Kardashian — the star has been criticized for traveling on private jets. The backlash came primarily from young Gen Z consumers on Twitter, showing that the younger generation is aware of the term and ready to reprimand companies for the offense.
As a result, sustainability reporting frameworks are expected to take steps to take stronger action against greenwashing by asking more questions and requiring more specific data sets.
6. Carbon offsets will take a backseat to other emissions reduction efforts
Previously, carbon offsets were an important way for companies to demonstrate their sustainability and net zero initiatives. Carbon offsets will take a backseat in 2023 and will be replaced by more concrete ways to reduce emissions , such as implementing energy efficiency projects, investing in renewable energy, etc.
But what does this mean in terms of sustainability reporting? Companies that persist in overusing carbon offsets may receive lower ratings in assessments or be rejected for some certifications.
The benefits of sustainability reporting include Chile Mobile Number List better risk management, optimization of costs and savings, facilitation of decision making and improved trust and corporate reputation, towards customers as investors. That said, here are some data that will set the business agenda as the 2022-2023 sustainability reporting cycle begins.
10 keys to sustainability reporting
1. Possible SEC Mandatory Emissions Reporting
In March 2022, the U.S. Securities and Exchange Commission (SEC) issued a new regulatory proposal that would require climate disclosure in financial reports. The proposal was originally expected to be approved over the summer. However, the SEC ultimately extended the public comment period on the proposal until June 17, 2022, meaning the proposal is now expected to be approved in late 2022.
If the proposal is approved, it will be the first time that publicly traded companies will be required to measure and disclose greenhouse gas emissions in a standardized way. It is important to note that this proposal is not an anomaly: it is part of a growing trend of stakeholders raising concerns about the sustainability of companies and the risks that climate change may pose to their investments.
2. Sustainability reporting is increasingly popular with investors and consumers
The Governance & Accountability Institute (G&A), a leading sustainability and ESG consulting firm, found in a 2021 report that 92% of S&P 500 companies published a sustainability report in 2020, up from 90% in 2019. This shows that corporate sustainability reporting has been adopted as a best practice by the largest public companies in the US. The reason for this? Pressure from investors and consumers.
The 2021 Global Sustainability Study , conducted by Simon-Kucher & Partners, revealed that more than a third of the population is willing to pay more for sustainable products or services. The study also found that, globally, sustainability is considered an important purchasing criterion for 60% of consumers.
The best way for companies to share their sustainability initiatives and efforts is through sustainability reports, the results of which can be shared formally with investors and informally with consumers through social media and other marketing channels.
3. Digital transformation will change the way sustainability reporting is done
Traditionally, digital transformation has meant the adoption of digital technology by an organization with the goal of improving efficiency, value or innovation. But increasingly, companies are using digital transformation to increase sustainability.
Speaking of which, an ABB report found that 72% of respondents in its recent analysis cite sustainability as the reason they are increasing their spending on digital technology, and 96% of decision makers says digitalization is “essential for sustainability.”
With this in mind, it is predicted that by 2023, one of the keys in sustainability reporting will be digitalization not only to increase its sustainability, but also to report on it. Digital energy and sustainability management platforms can automate the process of collecting, auditing and analyzing utility, energy and sustainability data.
Additionally, as these advances will be integrated with sustainability reporting frameworks, technology platforms can streamline the reporting process for companies, making an otherwise tedious and error-prone process fast and accurate.
opportunities-in-sustainability-
4. Sustainability reports will have a greater focus on supply chains
A 2016 report from McKinsey estimates that 80% of consumer goods companies' emissions come from their supply chains. To achieve sustainability and net zero emissions goals, it is clear that companies will need to focus on reducing emissions in their supply chains .
Looking ahead, in 2023 sustainability reporting frameworks are expected to increasingly focus on Scope 3 emissions. Scope 3 emissions, also known as value chain emissions, often account for the majority of an organization's total GHG emissions, according to the U.S. Environmental Protection Agency (EPA) . Reporting frameworks are also expected to ask more detailed questions about companies' supply chains, not just in terms of emissions. , but also waste and energy use.
5. There will be a big crackdown on greenwashing
A quick search for “ greenwashing examples” on Google returns countless results from companies that have been caught making false or misleading sustainability claims. However, the days when companies could get away with bad business practices are quickly coming to an end.
In a recent example, fast fashion company Boohoo recently came under fire for promoting a sustainable clothing line with reality star Kourtney Kardashian — the star has been criticized for traveling on private jets. The backlash came primarily from young Gen Z consumers on Twitter, showing that the younger generation is aware of the term and ready to reprimand companies for the offense.
As a result, sustainability reporting frameworks are expected to take steps to take stronger action against greenwashing by asking more questions and requiring more specific data sets.
6. Carbon offsets will take a backseat to other emissions reduction efforts
Previously, carbon offsets were an important way for companies to demonstrate their sustainability and net zero initiatives. Carbon offsets will take a backseat in 2023 and will be replaced by more concrete ways to reduce emissions , such as implementing energy efficiency projects, investing in renewable energy, etc.
But what does this mean in terms of sustainability reporting? Companies that persist in overusing carbon offsets may receive lower ratings in assessments or be rejected for some certifications.