An eight-step plan to fold greenhouse gas reporting into existing financial accounting systems.
August 07, 2023
Illustration by Edmon de Haro; Rawpixel (birds)
The International Sustainability Standards Board and the European Commission are implementing new mandatory non-financial reporting requirements, with the former releasing its inaugural standards for global capital markets and the latter developing standards as part of the EU’s Corporate Sustainability Reporting Directive. These standards will take effect from 2024, but may not be as costly or difficult to meet as businesses fear. With robust GHG reporting, businesses can integrate sustainability measures into existing financial systems and processes, and this can be achieved effectively through collaboration between finance and sustainability professionals. The article provides an eight-step roadmap to achieve investor-grade GHG reporting.
Many businesses are now tracking their greenhouse gas (GHG) emissions and taking steps to curb them. However, the effort has not been coordinated or comprehensive. While data from recent research indicates most companies report some emissions data, only one in 10 companies in 2022 fully measured GHG emissions including Scope 3 emissions related to their business and value chain, according to the Boston Consulting Group.