In October 2022, The International Sustainability Standards Board (ISSB) has unanimously confirmed to require companies to disclose scope 1, scope 2, and now scope 3 greenhouse gas emissions. This decision was made to provide investors with high quality, transparent, reliable, and comparable data on climate-related risks and opportunities.
The new reporting requirements will come into effect for fiscal years beginning on or after January 1st, 2025.
There are two primary reasons for this change. First, there is an increasing need for businesses to disclose their climate-related risks and opportunities to make informed strategic decisions. Second, the demand for high-quality, transparent data has never been higher. The need to provide this type of information is growing increasingly more important as investors seek out reliable and comparable sources they can trust to find opportunities that will benefit them financially.
For businesses to comply with the new standards, they must improve how they track their scopes 1, 2, and 3 carbon emissions. This will require making significant changes to their operations or purchasing decisions. It is important to start planning for these changes now so that you can make the necessary adjustments in time.
The first step to addressing the challenges associated with compliant scopes 1, 2, and 3 emissions reporting is having accurate, real-time data. Cuttingedge energy and carbon management platforms are invaluable tools for businesses that need to minutely calculate and report their carbon footprint. Such platforms dramatically lessen the workload and complications associated with emissions reporting.
And as awareness of the climate crisis grows, investors and consumers are increasingly demanding that businesses disclose their carbon emissions and energy usage. For many businesses, this presents an opportunity to benchmark their performance against their peers and identify opportunities for improvement. In some cases, disclosing energy data can also be a key step towards achieving climate-related goals such as energy efficiency or net zero emissions. By doing so, businesses can signal their commitment to climate action and build trust with stakeholders. Ultimately, public disclosure of energy and carbon data can help businesses to improve their climaterelated planning and strategies.
Data platforms that streamline energy and carbon reporting and monitoring of reduction targets through the accurate measuring of a business’ energy and carbon intensity exist. This kind of technology puts businesses in control of how they not only disclose their carbon emissions, but also reach optimal energy performance, reduce energy expenditures, and reduce your impact on the environment.
Visit clearvue.business to discover technology and consultancy solutions that will help your business report and reduce its scopes 1, 2, and 3 carbon emissions.