Planet Earth is one of the greatest assets we have, and it’s well worth investing in. The theme of this year’s Earth Day, “Invest in Our Planet,” reflects this reality. While the theme is a continuation of last year’s, its focus on encouraging businesses, governments and ordinary citizens to do their part to create a more sustainable world is an important one.
With ESG performance management, companies can better understand the short- and long-term risks and opportunities that exist for their business, which will be key to enhancing sustainability initiatives. The ESG framework helps companies create business plans that enable long-term sustainability and resiliency.
Under the EU Corporate Sustainability Reporting Directive (CSRD), companies (including non-EU companies) will have to report on a number of ESG metrics covered by the European Sustainability Reporting Standards (ESRS).
For instance, the CSRD requires companies to report their impact on pollution, climate change, water and marine resources, ecosystems and biodiversity, as well as resource use and circular economy. When it comes to GHG emissions reporting, the CSRD requires companies to report their Scope 1, 2 and 3 emissions. Under the CSRD, the information that companies report must be certified by an independent auditor.
Therefore, having accurate, transparent and auditable data will be essential to meeting the demands of internal and external stakeholders and ensuring regulatory compliance. One way to do this is through carbon accounting, which allows companies to quantify their emissions baseline, set targets for reducing their emissions and track progress toward climate goals.
Once companies have quantified their GHG emissions, they can create strategies for reducing them. Corporate sustainability tools can enable successful GHG emissions reduction strategies, including determining where the emissions stem from, which emissions reduction measures will have the most impact and where the most important areas for emissions reduction are within the value chain and business operations.
A corporate sustainability software solution like Sphera’s provides a full audit trail that allows companies to communicate their emissions data transparently and accurately, bolstering their capabilities for reporting their ESG performance to stakeholders and regulators.
We have the power to drive progress in our sustainability efforts. And we need to take action to secure a better future for our planet every day—not just on Earth Day. No matter where a company might be on its ESG journey, Sphera is here to assist and advise every step of the way.
–Paul
Learn more about Paul Marushka.
Earth Day 2023: Highlighting the Need to Invest in Our Planet