“The industry has experienced an accelerated focus on emissions management, but requires the appropriate foundations to advance across the maturity curve.”
Emissions Management Maturity Continuum
- Companies are keenly focused on delivering annual, static emissions reporting as a part of their Sustainability Reports – driven by stakeholder pressures and the emerging SEC climate disclosure proposal
- The annual process has proven to be challenging and resource intensive, driven predominately by disparate activity sources, various reporting requirements, and lack of overall governance for a new process
- Companies should look to establish and streamline the base foundations of emissions management to convert the process from a value preservation activity to a value-added activity
- As the organization progresses from Level 1 to Level 3, the company benefits from data access & quality, internal controls, and reduced cycle-times. From Level 3 to Level 5, the company enables data-driven planning and insights and market leading emissions management
Best-in-Class Emissions Management
As the organization matures across the emissions continuum, so too will its ability to deliver on critical “Emissions Planning & Analysis” activities.
Requirements for Best-in-Class Emissions Management are Comparable to Familiar FP&A Pillars
- Focus on putting the foundations in place to become better stewards which will enable the ability to also become planners and partners
- Meeting reporting requirements is the short-term objective, and building a best-in-class sustainable organization is the vision
- Take the time and effort to kill two birds with one stone, where possible
- The organizations that deliver on the 3 pillars will convey to the market a climate narrative backed by leading climate action
- Standardized processes and data governance are critical “blocking and tackling” activities required to streamline the end-to-end process….
- ….Coupling process with fit-for-purpose technology accelerates the company’s ability to deliver best-in-class emissions management