5 things every company should consider
PLANET | CLIMATE DISCLOSURE
5 things every company should consider
While all businesses are at different points in their ESG journey , here are five things all should consider :
1 . Assemble a cross-functional team to create accountability for ESG performance Finance has the experience to oversee accounting , controls and reliability of ESG information , while sustainability teams have the deep subject matter experience and context . Companies should address any knowledge gaps through upskilling or hiring .
2 . Ensure you have dataregulators will expect It ’ s critical to clearly define ESG metrics , their scope and boundaries , what systems the information comes from and who the owners are inside the company . To do so , companies should gather baseline data to compare current performance against future goals and milestones .
3 . Set an overarching strategic approach to ESG This is not an exercise merely to tick a regulatory box , but to create sustainable advantage and value . Companies should connect ESG strategies , milestones and reporting to the overall business strategy .
4 . Upskill corporate directors Boards , especially audit committee members , need to better understand how ESG fits into the overall business strategy to appropriately manage governance oversight responsibilities .
5 . Prepare for independent assurance The SEC proposed independent , thirdparty assurance for Scope 1 and Scope 2 emissions to bolster confidence in climate change information ( for accelerated or large accelerated filers ).
“ This is an important step to prevent greenwashing and to make sure everyone has access to the same quality of information ”
Wes Bricker PwC ’ s Vice Chair – US Trust Solutions Co-Leader
Wes says the SEC ’ s proposal is historic for the US and fits into a global pattern that is increasingly pushing for critical reporting requirements for greenhouse gas emissions , climate risk disclosure , and other sustainability-related information .
“ While climate disclosures around the world vary , the SEC ’ s proposal seeks to foster comparable , consistent climate information that companies with global operations are already complying with and the rule aims to be consistent with the building blocks approach set out by international organisations ,” he says . businesschief . com 65