INTERVIEW WITH ...
way that aligns with the respective standards and remains agile and processfocused along the way .
Many companies approach ESG reporting as a one-off exercise , which is generally a misguided approach . These organisations don ’ t focus enough on the process and efficiency side of their ESG KPIs — concentrating instead on a lot of manual exercises to get the year ’ s report over the finish line and then leaving it to rest until the next year . Companies need recurring data collection and a workflow process to continually improve data and performance . For instance , as the current CDP ( formerly the Carbon Disclosure Project ) reporting period is winding down , now is the time to begin to gear up and build a process for next year ’ s disclosure period .
Q . WHAT ARE THE MAIN CHALLENGES THEY ARE FACING ?
» The biggest challenge is stakeholder engagement . In order to be successful , an ESG programme should be an organisational effort . ESG reporting needs to be embedded in the company ’ s values . There needs to be a sense of ownership established across the organisation so that it ’ s clear how different roles contribute to the overarching programme . It ’ s procurement , human resources , facilities management and so on . Establishing responsibility and accountability across all business functions is paramount .
Some of the most successful approaches to stakeholder engagement come from the top down as well as the bottom up . That means that C-Suite leaders are vocal about the company ’ s commitment to these programmes and that employees are encouraged to mobilise and play an active role in shaping the programmes and bringing new ideas to the table .
Q . WHAT CAN BUSINESSES DO TO BETTER TRACK AND MANAGE SCOPE 3 EMISSIONS ?
» A key KPI in many ESG programmes is carbon emissions , and more specifically , the focus on value chain or Scope 3 emissions . Scope 3 presents a significant challenge to a lot of companies as they ’ re tasked with dealing with data , activities and stakeholders in their supply chain that they ’ ve traditionally had very little visibility into . sustainabilitymag . com 17