Understanding GhG Compliance and your role in the future of ESG reporting!

 Beyond the concern we all may have as individuals for the environment, this ominous forecast will soon begin to impact your bottom line. In the future almost all business small or large will need to be able to have some basic understanding of their GhG Scope 1 and Scope 2 Impacts.  

 In March of 2022, The US Securities and Exchange Commission introduced the “issuer rule”. As part of this rule, companies will have to disclose emissions they are directly responsible for as well as emissions from their supply chains and products. These guidelines are expected to be completed and, in some form, adopted by the end of 2022. Although, legal challenges have already begun to arise, most companies are anticipating these changes and are seeking ways to meet the future standards. 

 There are several factors today driving the need for accurate GhG reporting by companies. Weather it is a socially conscious company leadership, or board seeking to adopt a carbon neutral goal, or a targeted, loyal customer base demanding their businesses be environmentally friendly. Current research shows that although these factors can be powerful motivators they trend more to being “contributing factors” then key drivers towards a company’s GhG decision making. The most overarching driver to date for corporate GhG reporting, is compliance. Currently only 71 percent of the S&P 500 disclose GHG emissions in their annual reports, sustainability reports, or company websites.  

 This is true, currently you may not have federal requirements to report your GhG, but if your company does business with any company that is public and is required, your ability to maintain your current contracts will more than likely depend on your ability to supply these companies your Scope 1 and Scope 2 GhG impacts. Additionally, if your company currently or in the future plans to perform work for any governmental entities, GhG reporting requirements are becoming more and more commonplace in the bidding and acceptance process. As the federal government begins to set more and more standards around GhG, we can anticipate that these standards will inevitably become adopted at the State and Local levels as well 

This is true, currently you may not have federal requirements to report your GhG, but if your company does business with any company that is public and is required, your ability to maintain your current contracts will more than likely depend on your ability to supply these companies your Scope 1 and Scope 2 GhG impacts. Additionally, if your company currently or in the future plans to perform work for any governmental entities, GhG reporting requirements are becoming more and more commonplace in the bidding and acceptance process. As the federal government begins to set more and more standards around GhG, we can anticipate that these standards will inevitably become adopted at the State and Local levels as well 

 While the climate crisis threatens dire consequences, it also offers big opportunities for organizations that address it head-on. Opportunities are everywhere: around the globe, in every sector of the economy. Over the next ten years climate-driven innovations is expected to have a $3–5 trillion impact on global markets. According to a Harvard Business School study, companies with strong sustainability strategies consistently outperform their peers. This is true, currently you may not have federal requirements to report your GhG, but if your company does business with any company that is public and is required, your ability to maintain your current contracts will more than likely depend on your ability to supply these companies your Scope 1 and Scope 2 GhG impacts. Additionally, if your company currently or in the future plans to perform work for any governmental entities, GhG reporting requirements are becoming more and more commonplace in the bidding and acceptance process. As the federal government begins to set more and more standards around GhG, we can anticipate that these standards will inevitably become adopted at the State and Local levels as well 

 You cannot change what you do not measure, the longer you wait to begin measuring the harder it will be to recapture key historical data. 

Consider creating an internal strategy for your carbon footprint, and most importantly let us help you identify what “drives” your strategy for the future. 

At Powerline Consulting we can help you meet all your GhG report gathering requirements. Our team has over 30 years of utility software experience and will guide you through the requirements gathering process. 

Powerline Consulting leverages the Salesforce platform to expedite the implementation process minimizing costs/ implementation time and maximizing value.