Automating Your ESG/Climate Reporting is Probably a Good Idea

It’s becoming clear that any deviation from the Net Zero and green agenda will be frowned upon by Globalist backed governments. Regardless of where your insurance brand is incorporated, there’s little chance of escaping the climate change and ESG reporting rules & regulations. Luckily Normative can help you tick those annual report boxes. Here’s the word;

Normative’s accurate and truthful carbon accounting helps businesses stay compliant with the soon-to-be implemented CSRD in the EU, as well as the TCFD and the SECR in the UK.

The expanded legislation means that more enterprises will have to report their value chain emissions (also called scope 3 emissions). In a recent study by McKinsey, it was concluded that the consumer-goods industry is facing a huge environmental challenge and will have to more than halve its greenhouse-gas emissions by 2030. In addition, the SCRD requires around 50,000 EU businesses to report on their emissions from the financial year of 2023, while the TCFD and SECR already require all large UK enterprises to report emissions.

The complexity of measuring a business’s total value chain emissions is due in part to the difficulty of collecting individual suppliers. This is particularly true for large enterprises, whose suppliers often number in the thousands. A survey from the Boston Consulting group found that businesses calculating emissions manually had an average error rate of up to 40%.

NO GREENWASHING FOR FIRST WORLD BRANDS

The failure to account for nearly 40% of their emissions means that businesses inevitably report incomplete emissions measurements, an accuracy gap that can potentially result in legal non-compliance and opening the business up to allegations of greenwashing. In addition, any climate impact reduction actions taken based on incomplete information will have incomplete results, slowing the global effort to reach Paris Agreement climate targets.

Comprehensive and accurate emissions measurement is the cornerstone of sustainable and credible business. By establishing a trustworthy inventory of their emissions, enterprises stay legally compliant, seize business and branding opportunities,” says Maggie Buggie, COO of the world’s first carbon accounting engine Normative.

Normative’s carbon accounting engine enables companies to comprehensively measure their entire carbon footprint, including value-chain emissions. These value chain emissions measurements are achieved using the hybrid methodology, as recommended by the Greenhouse Gas Protocol, in which an initial measurement is performed based on a company’s spend data. Normative draws from a scientifically-derived database of 30 million data points to calculate value-chain emissions, which can then be refined with activity-based data.

YEAH THERE’S A CARBON ALGORITHM

The carbon calculator incorporates intelligent automation throughout the product,- accelerating the calculation process and minimizing human error. The resulting measurements can be used for audits, compliance, reduction certifications like SBTi, and other corporate reporting.

Measuring emissions is also a business opportunity. In the same McKinsey study it was seen that brands who have credibly established a sustainability focus in their brand identity have seen effective growth rates.

Normative customer Flying Tiger Copenhagen attests to their business success from carbon measurement with Normative “Being able to communicate our sustainability impact is crucial for our business to be successful and with with our complex supply chain we need a company who really knows what they’re doing – as Normative does. I don’t see how you could measure your company’s entire emissions profile without a tool like Normative helping you out,” says Trine Pondal, Head of Sustainability and Social Responsibility at the retail chain Flying Tiger Copenhagen.

 

About alastair walker 10593 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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