Streamlining climate risk and emission data in the value chain – to get ahead of global climate disclosure.
How do global climate disclosure rules impact companies in Europe?
The International Sustainability Standards Board (ISSB) voted on Feb. 16, 2023, to take the global climate and sustainability disclosure rules in effect next year (2024). Thereby, the ISSB affirmed the drafts of the first two standards as final rules: S1, General Sustainability-related Disclosures and S2, Climate-related Disclosures.
These disclosure rules provide a general framework for reporting insights on corporate climate performance. Companies are hence required to disclose the risks and opportunities they face related to climate, carbon emissions, and the climate impact on business model and corporate strategy.
To easy the usage of the new rules, ISSB alines its standards to the well-established framework of the Task Force on Climate-Related Financial Disclosures (TCFD). The TCFD recommendations are the de facto standard for legal and regulatory climate reporting requirements – adapted by the EU, Switzerland, UK, Canada, Hong Kong, Japan, Singapore, and the U.S.
What specific climate indicators have to be reported?
According to EFRAG, companies falling under CSRD in Europe will need to disclose against the new climate disclosure rules. This will allow external parties to understand how they are reducing emissions and how they intend to transition towards a low carbon economy.
Specific indicators are clustered in three major areas:
✅ GENERAL CLIMATE DISCLOSURE
How a company is using a transition plan to adapt the overall corporate strategy and mitigate the business model in line with the 1.5 °C target. Including material impacts, risks and opportunities and their interaction with strategy and business model – as well as a description of how those were identified.
✅ CLIMATE IMPACT, RISKS & OPPORTUNITIES
How a company is managing resources, actions and policies to drive decarbonization.
✅ METRICS & CLIMATE TARGETS
How a company sets reduction targets and which decarbonization levels are excepted. Reporting GHG emissions is included as well as energy consumption and the connection between financial and climate statement.
How does climate disclosure effects the supply chain?
The required informations about the entire climate performance of a company does not stop with its direct actions, it includes the value chain (e.g. suppliers are affected). For most companies, around 90% of emissions are generated within the supply chain. This becomes evident when calculating the Corporate Carbon Footprint: the so-called Scope 3 emissions are most often the largest proportion.
If companies now need to report on their decarbonization strategy, reduction measures and current emission data, companies must also get their suppliers on board and support them in reducing their own emissions and work in line with the 1,5°C target of the Paris Agreement.
This is a major challenge for most companies. According to SBTi, suppliers might be overwhelmed with reporting requests, lack resources and knowledge, and often don’t know where to start. For this reason, the data collection from suppliers must be simple and comprehensible, and on top, need to create an opportunity to rise awareness and share best practices on how to increase climate performance.
Our Climate Intelligence Platform is a software solution that is created to do just that. The platform enables companies to easily collect, streamline, compare and evaluate data from suppliers. At the same time, suppliers receive support, insights and benchmarks as well as resources to achieve their own climate targets step by step.
The 5 biggest benefits of the Climate Intelligence Platform for companies
✅ Simple management of invites and answer rate tracking of suppliers in the platform
✅ Collection of supplier data on emissions, climate risks, reduction measures and climate targets
✅ Overview of climate maturity of large supplier base, based on primary and secondary data
✅ Evaluation of individual climate scorecards of suppliers, underpinned by sophisticated data analysis, benchmarks and insight as foundation for strategic corporate decisions on climate protection
✅ Tracking and monitoring of supplier reduction measures
The 5 biggest benefits of the Climate Intelligence Platform for suppliers
✅ Professional guidance and personal support in providing the data requested by the customer
✅ Provision of data via the platform to several customers at the same time
✅ Reporting on emissions and transition efforts to reduce emissions
✅ Personalized recommendations and access to learning materials for each stage on your climate
✅ Benchmarks and performance comparison with other suppliers in your customer’s network
Our Climate Intelligence Platform specially focuses on collaboration and accelration of climate actions along the supply chain. As suppliers, you gain step by step assistance in the management of your climate performance and implementation of climate protection measures. As company, you get an easy and scalable tool to engage suppliers and aline with them to drive decarbonization measures together.
How can we support you here?
Create your basic free account to get started and reach out to learn how to start your own Supply Chain Decarbonization program in the Climate Intelligence Platform. Get ahead of climate regulation, streamline data and make it actionable, now. We are looking forward to support you.