Around the world, we are witnessing a drive toward standardized ESG reporting requirements, particularly as they relate to environmental issues and climate risk. This effort recently gained steam in the U.S., where the Securities and Exchange Commission (SEC) proposed new climate-related disclosures. In Europe, the European Financial Reporting Advisory Group (EFRAG) announced even broader ESG reporting requirements. And in late 2021, the Japan Financial Services Agency (JFSA) announced that it will encourage companies listed on the Prime Market segment of the Tokyo Stock Exchange to enhance the quality and quantity of their disclosures, based on the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.
While many regulations are still open for debate, one thing is certain: Greater transparency with respect to ESG performance is now expected for companies that want to compete for investment dollars and be a force for good. Fortunately, greater transparency comes with an improved ability to address climate-related risk and achieve more sustainable operations.
To reduce climate risk and stay competitive, companies must optimize their ESG performance. For that, they need an ESG strategy to drive investment decisions, identify opportunities for improvement, measure progress toward science-based targets and communicate results to stakeholders. One way many companies do this is through a product Life Cycle Assessment (LCA). Conducting an LCA can be arduous—but it doesn’t have to be. As part of Sphera’s goal to enable a cleaner, greener and easier operational approach among businesses worldwide, we recently launched our Life Cycle Assessment (LCA) Automation software. It lets businesses aggregate and calculate life cycle assessments at scale. As such, it offers a game-changing solution for companies in sectors with complex supply chains, such as manufacturing, consumer goods, paints and chemicals.
As the first organization to bring a fully automated LCA solution to market, Sphera reinforces its role in supporting businesses’ efforts to understand and address the environmental impact of their products. For companies intent on reducing the environmental footprint of their products, LCA Automation software can truly help them go green. This is just one example of how companies can optimize their ESG efforts.
At Sphera, we’re also celebrating new partnerships. Among them, a partnership with PwC that combines our deep environmental, social and governance (ESG) expertise and platform deployment experience with PwC’s technology and strategy consulting capabilities. Through this new alliance, we will create a stronger digital ESG ecosystem that helps organizations improve their ESG performance while remaining focused on their core strengths.
To those who want to gain more knowledge and insights on ESG, please consider attending our upcoming virtual ESG Summit, which will bring together professionals from around the world to advance the ESG conversation. We will analyze ESG investment criteria, discuss regulatory trends and examine solutions for common challenges, such as Scope 3 carbon accounting. We’ll also look at how our LCA Automation solution can help businesses meet some of these challenges.
It’s all about transitioning to a more sustainable future. PwC and Blackstone will help launch the conversation in a Day 1 session on Investing in the Future. This virtual summit takes place from June 21 – June 23, and I warmly invite you to join us.