Why is GHG data assurance crucial for businesses today?
As climate change concerns intensify and regulatory landscapes evolve, companies are increasingly being held accountable for their greenhouse gas (GHG) emissions. Large organisations, particularly in the UK and EU, are now required to report not only their direct emissions but also the emissions of those within their supply chains. As a result, many other businesses, including small and medium-sized enterprises (SMEs), are feeling the pressure to have accurate data available.
Ensuring that your GHG emissions data is correct, reliable, complete and independently verified brings significant benefits — not just in compliance but also in strengthening stakeholder trust, making better strategic decisions and preparing for future regulatory changes.
Strengthening stakeholder trust
In addition to the pressure to report and assure their GHG data by virtue of being within the supply chain of large multi-national groups, businesses are also being asked for this information by finance providers and shareholders. These key stakeholders are aware of the role that sustainability plays in driving long-term company value. GHG emissions-related KPIs and targets, such as net-zero goal-setting, are an important consideration in investment decision-making.
Obtaining third-party assurance of your GHG data enhances stakeholder confidence by ensuring the quality and completeness of your emissions reporting. Verified data reassures key stakeholders that your reporting is aligned with best practices. This, in turn, strengthens your reputation and provides a competitive advantage when working with larger clients, investors and the like.
Make better strategic decisions
Reliable GHG data is not only essential for compliance but also for making informed strategic decisions. Carbon emissions are increasingly viewed as important non-financial KPIs, with implications that extend beyond environmental impact to financial performance as well. Accurate emissions data allows businesses to improve risk management, identify cost-savings and improve their overall sustainability strategies.
We have seen first-hand how companies can use assured GHG data to drive strategic initiatives. For example, we have worked with clients to identify opportunities to reduce their overall carbon emissions while simultaneously reducing costs through identifying poorly performing energy providers among their operating locations.
Assurance over GHG data ensures you have a comprehensive and reliable understanding of your emissions profile, enabling more effective target-setting, KPI-tracking and carbon reduction planning.
Prepare for upcoming changes in legislation
The regulatory environment is evolving rapidly, with the EU already implementing rules that require the assurance of sustainability reports, and the UK is expected to follow suit by 2025. Obtaining assurance now allows your business to get ahead of these changes, ensuring your data systems and processes are prepared when assurance becomes a mandatory requirement.
Being proactive in securing assurance not only helps future-proof your business against regulatory changes but can also reduce future compliance-related costs.
We can help
In an era where environmental accountability is becoming increasingly important, obtaining assurance over your GHG data is a vital step towards long-term sustainability and success.
Wherever you are in your GHG data journey, our team of sustainability and ESG experts can work with you to ensure that your data is robust and reliable.
Contact us for more information.
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