Insights
Companies in all industries are faced with increasing pressure to define their corporate approach to climate change and greenhouse gas (GHG) reduction, disclose GHG numbers, and manage a flurry of ESG acronyms and reporting bodies. A growing list of stakeholders, including regulators, investors, bankers, insurance companies, NGOs, and the public, are demanding greater transparency of and corporate commitments to environmental performance.
The forthcoming 2024 SEC GHG reporting regulation—which will likely follow the California Bill SB253 and EU CSRD regulations—is widely considered the biggest change driving ESG and Carbon Management complexity in the new year. These regulations mandate reporting of scope 1, 2, and 3 GHG emission inventories, and strict assurance audits. But what does this mean for those impacted?
In this article we will discuss likely impacts on organizations and provide a high-level strategic checklist for responding effectively. The following information may be of particular interest to professionals in industrial sectors, companies who sell directly to the public, and any companies traded on North American or European stock exchanges.
The regulations referenced above mandate increasingly stringent and audited reporting requirements. The new requirements create several critical risks and impacts to organizations across industries:
There are several things to consider when developing a carbon strategy, informed by your organization’s unique context, and an executable plan to deliver value to your organization. As a first step, sustainability professionals should consider the following:
The climate change issue and the exposure to associated risks and business opportunities continue to evolve and expand quickly. The interdisciplinary nature of this issue, bringing together compliance, finance, operations, and technology teams, means that many businesses have difficulty finding the right resources to develop successful strategies and plans to address carbon. Therefore, it is advisable to seek the appropriate experts in compliance and sustainability early on, enlisting consultants and other outside professionals with experience in matters that involve multiple disciplines, teams, organizational divisions, and/or segments which an organization is not already fully prepared to manage on its own. However, addressing carbon management and having the appropriate strategies in place can also bring benefits to your company's bottom line.
We would like to thank our colleagues Andrea Korney and Steven Andersen for providing insight and expertise that greatly assisted this research.
Andrea Korney is Vice President of Sustainability for J.S. Held’s ESG & EHS Digital Solutions group. Throughout her career, Andrea has demonstrated her passion for inclusive stakeholder relations in the mining and energy sectors, focusing on reducing barriers and creating opportunities for diverse employees, business owners, and industry partners through policy and regulation influence, workforce development, and sustainability outreach. Andrea’s 25+ years of experience in energy and metals extraction includes longstanding roles in oil & gas, power generation, and mining across North America and Russia. Her focus in these roles has included HR, corporate services, global supply chain and logistics, stakeholder relations, Native American relations, and government affairs.
Andrea can be reached at [email protected] or +1 725 567 0668.
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