1. Assemble a cross-functional team and educate those responsible for reporting
Climate reporting is complex and operates across multiple arms of a company. A lot of information can be lost in translation throughout departments and key players.
The first step is to create a cross-functional team to address your disclosure requirements. Secondly, educate yourself and your team on the relevant legislation, whether that’s California’s SB 253 and SB 261 or any other regulations, particularly any requirement for Scope 3 emissions.
Your team should be able to identify reporting risks and teach interdepartmental team members about reporting requirements, working closely together to define each department’s roles and responsibilities and ensure all disclosure requirements are met.
2. Articulate a clear plan for gathering data
As you create your plan for reporting implementation, understanding what information to gather and how to go about doing it will set you on the right path.
As an example, a logistics company may have Scope 1 emissions data that includes fuel, Scope 2 including electricity used, and Scope 3 might include emissions from outsourced companies required for regular business operations.
Armed with this information, develop a workflow that helps streamline data collection across departments. This workflow should include all timelines and responsibilities in order to avoid missed deadlines or data reporting errors, which can be costly.
3. Streamline workflows across departments
Accurate and efficient data collection company-wide is not negotiable. Implement workflow systems such as Quentic ESG reporting software that are consistent across all departments and accurately collect all data required under the legislation.
To help ensure you collect and report the right data, our software automatically updates to the latest legislative updates. That means you can create a report aligned to the latest California Air Resources Board (CARB) templates easily. Our guided report builder streamlines every step of your SB 253 or SB 261 disclosure so you can submit quickly and confidently.
Regardless of the legislation, accurately collecting data and quickly creating reports is fast becoming a standard requirement demanded by investors and stakeholders. As climate-risk data has to become more accessible and transparent, a workflow system to achieve this is imperative.
As your workflow is implemented, check in with your team and conduct audits regularly. Catching errors or bottlenecks in data gathering processes will save you time and money in the future.
4. Establish internal governance and controls
Approach your climate data like you would your financial data. Internal governance and controls will always be necessary to ensure consistency, efficiency, and most importantly, accuracy in data gathering and reporting.
Conduct a climate-related financial risk assessment, framing it around the TCFD pillars of Governance, Strategy, Risk Management, Metrics & Targets.
Create an ESG data gathering and reporting governance charter – a document that clearly sets out all parameters, permutations, requirements, roles and responsibilities. Include both soft and hard deadlines for reporting. Your charter should lay out steps to be taken in the event of discrepancies, data gaps, or other inconsistencies, as well as how these issues should be addressed and by whom.
If you are working with specialized ESG reporting software, utilize the onboarding personnel to help train an ongoing education team.
5. Achieve company-wide buy-in
Every level of an organization needs to be on the same page. Along with ESG data gathering and software onboarding, hold regular educational seminars that are available company-wide. Outline the importance of California SB 253 and SB 261, or any other relevant legislation, and how it impacts the company.
Explore individual roles and responsibilities using concrete examples that align with workers’ daily tasks. So, whether that’s factory floor staff using more energy-efficient equipment or procurement staff evaluating supply chains to reduce transport emissions, get staff enthused about the difference they can make.
Consider incentive programs for departments when they meet their data collection goals and integrate objectives into performance metrics. By acknowledging and compensating any extra labor these initiatives might require, you will gain critical stakeholder buy-in and keep it.
Future-proof your disclosures
Climate disclosure is increasingly required – by governments, by investors, and by consumers – which means accurate data collection, management, and reporting is essential.
With the Quentic ESG Solution, you can simplify this process, building compliant, up-to-date reports easily. Our intelligent, end-to-end system provides analytics, benchmarking, and gap analysis tools to reduce errors and save time, and with the ability to repurpose data to other reporting frameworks, you can maximize compliance moving forward.
Finally, with fully auditable, accurate reports as your starting point, it’s easier than ever to make meaningful change on your climate impacts.
