Introduction
What would you do if we told you, you could reduce your business costs, increase customer retention and attract more investors with one key focus. Would you believe us?
Luckily, this is true with 88% of public companies and 67% of private businesses already having this key focus as part of their initiatives. Want to know what it is? You guessed it, Environmental Social and Governance (ESG).
In a world where climate change is expected to cost businesses £1.05 trillion by the year 2026, a strong environmental, social and governance (ESG) approach is more important than ever. For this reason, on December 12, 2015, the Paris Agreement was adopted by 196 countries at the UN’s Climate Change Conference (COP21). This agreement is a commitment made by these nations to reduce their greenhouse gas emissions (GHG) to stop the average global temperature from rising by more than 1.5 degrees Celsius. Every five years, nations evaluate their emissions to see whether they have stayed true to this commitment.
Not only is this necessary to help save the environment, but a strong sustainability strategy is key for global investors today.
In fact, ESG-related bonds amounted to more than £565 billion in issuances in 2021, which is nearly double the amount recorded in 2019. Your investors care whether your organisation is sustainable or not and the methods you are implementing to prove this. One of the ways you can accomplish this is through GHG reporting.
Keep reading to discover exactly what greenhouse gases are, GHG reporting requirements, and why such reporting is not only important, but beneficial. Next, we’ll dive into which organisations need to submit these reports as well as five steps to complete them. We’ll also share three key tips and recommendations from one of our internal sustainability experts you should consider when completing these reports, in addition to five common mistakes to avoid. Finally, we’ll explore how a digital approach to GHG reporting can help simplify and strengthen the process.
Without further ado, let’s get started!