Why Greenhouse Gas Emissions (GHG) Reporting is a Game Changer for Corporations
[Follow this series where each post will explore another benefit of reporting GHG emissions]
Expectations for corporations to manage and reduce their greenhouse gas (GHG) emissions have grown, as temperatures soar and climate change becomes a more pressing global issue. Companies that manage their climate related risks and opportunities not only demonstrate their commitment to sustainability but also help address several related key aspects including:
regulatory compliance
risk management
investor confidence
corporate social responsibility (CSR)/consumer trust
operational efficiency and cost savings
benchmarking and goal setting
global impact and corporate leadership.
Companies that effectively manage sustainability and climate-related risks and opportunities will be better positioned to gain a competitive edge in the market.
1. Regulatory Compliance
Governments are enacting regulations that mandate corporations disclose their GHG emissions. Compliance with these regulations is not optional; it is a legal requirement. In May 2024, the U.S. Securities and Exchange Commission (SEC) introduced new climate disclosure regulations that significantly impact corporate reporting on climate-related issues. Large accelerated filers and accelerated filers are required to report their Scope 1 and Scope 2 GHG emissions. These emissions must be independently verified, with limited assurance initially and reasonable assurance over time. The European Union's (EU) Corporate Sustainability Reporting Directive (CSRD) mandates that large companies disclose detailed information on their sustainability practices, including GHG emissions. This regulation aims to improve the quality and comparability of sustainability data across Europe, thereby enhancing investor and stakeholder confidence. Companies not covered by the regulations should proactively collect and report emissions data, to help them stay ahead of future legislation. Ensuring regulatory compliance helps avoid potential fines, sanctions, and legal challenges, ensuring more efficient business continuity.
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About ECOthink Group
Transform your sustainability strategy with ECOthink Group’s expert GHG accounting services. Contact us today to learn how we can help you lead the way in corporate responsibility and environmental stewardship.
What We Offer:
Accurate GHG Emissions Inventory
Detailed Reporting and Compliance
Strategic Action Plans
Stakeholder Engagement: