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“THE BIGGEST CHALLENGE IS STAKEHOLDER ENGAGEMENT . IN ORDER TO BE SUCCESSFUL , AN ESG PROGRAMME SHOULD BE AN ORGANISATIONAL EFFORT ”
The first and most essential thing a company can do is gain an understanding of what is important in its own value chain of emissions so it can really focus on the carbon hotspots . There are screening tools out there that , with fairly limited data input , can point you in the right direction . Even if it ’ s a little rough around the edges , this is perfectly acceptable to get a first picture of your value chain emissions .
The second step is building relationships with external stakeholders , as that ’ s where most Scope 3 data come from . One way to encourage your external partners is to share your emissions information , enabling greater transparency in your efforts to engage suppliers . This also lays the groundwork to align more closely with partners to build a common understanding and shared accountability , transparency and management in the supply chain .
I would love to see more industries coming together to create shared platforms to tackle this challenge , because , their value chains are shared . In fact , this is already happening in industries like manufacturing and pharmaceuticals . The more exchange of information , the better , and it ’ s really exciting to see some of this collaboration already taking shape .
Finally , when it comes to managing and reporting Scope 3 data , adopting a robust software system that can cater to all 15 categories of Scope 3 emissions will play a big part in the overall programme management and disclosure experience .
Q . HOW CAN ESG DATA HELP BUSINESSES MAKE MORE SUSTAINABLE BUSINESS DECISIONS ?
» I believe that ESG data can ultimately help businesses increase their value . Again , it ’ s about understanding what data are most important to the company and the industry and how that can drive the company ’ s decisions . That goes back to embedding ESG into a company ’ s DNA . It ’ s more than just making decisions from a sustainability perspective ; it ’ s doing so from an overall business value creation perspective .
For instance , through our work with a leading US health plan provider , the company reduced energy use by 8 %, saving $ 19.6 million ( USD ) annually . That kind of reduction is good for business and the environment .
In short , for many businesses , looking at ESG factors can help mitigate risks , uncover new business opportunities and help reduce costs .
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