Why Sustainability Reporting has Become More Important Than Ever Before
Over millions of years, Earth’s climate has changed several times. It has warmed up and cooled down several times and at present, it is getting warmer at a faster rate than ever. The disastrous consequences of the same are visible through extreme events such as bushfires, floods, earthquakes, hurricanes and many more. A significant study says by 2025, and there’s a 40% chance of at least one year being 1.5C hotter than the pre-industrial level. Considering the prediction, the global rise in temperatures, warming oceans, shrinking ice sheets, rising sea levels and decreased snow cover is evidence of rapid climate change.
What does the IPCC’s latest report say about global warming?
Predicting that the environment would need regular assessments to understand its impact and future consequences, The United Nations’ Intergovernmental Panel on Climate Change (IPCC) was created in 1988. Since then, it has been providing scientific information to governments to help them develop climate policies.
This October, the IPCC’s latest report at full Sixth Assessment Report was directed to all the governments, investors, and businesses. It stated that the planet is facing irreversible and unprecedented changes due to the climate crisis, so companies need to act and gain momentum in net-zero pledges globally. They must have interim science-based targets in line with 1.5C, which robust and credible transition plans must uphold. The panel also shared that biodiversity, forests and oceans need to be protected and tackled together as they are interdependent.
All the observations prove that the time frame to cut carbon emissions and save humans from the worst impacts of nature is closing rapidly. The ’emissions gap’ report states that if emissions are not cut quickly and immediately, the global temperature will most likely exceed 3 degrees Celsius this century, leading to high impact events, extreme weather events and rising sea levels. However, it is still possible to limit global temperature rise to 1.5°C, but organizations need to halve their emissions to avert the disasters since we are perilously close to that threshold.
It’s time to act!
Pietro Bertazzi, the Global Director of Policy Engagement and External Affairs, CDP, shared that the latest IPCC is not less than a warning leading to perilous climate tipping points. This serves as a wake-up call for everyone and we must find a way to deal with it.
Some companies (nearly 600 companies) are making progress, setting science-based targets, and executing plans to help decrease emissions globally by 2030 through campaigns. Other 110-plus companies are working together to help reach the goals of the Paris Agreement 10 years early through the Climate Pledge. Actions taken include:
- Switching entire value chains to renewable power.
- Making all-electric transport fleets.
- Lower-carbon techniques for manufacturing products.
As companies aim higher towards sustainability, Governments and financial institutions can take control of the emissions. Global companies are in line with climate changes and their regulations are enforced at a nationwide level. These national climate targets clarify the long-term direction of travel and strengthen the case for countries to set precise end dates for coal and cars powered by petrol and diesel. For example, in the EU, ministers are actively considering a ban on all new combustion engine cars by 2035. The question arises: How can companies track the metrics to improve and take relevant steps towards sustainability. Here comes sustainability reporting that helps track the output and show the impact of actions taken by organizations.
Why tracking the output can be helpful for companies?
Measuring sustainability helps you track and assess progress while motivating stakeholders to participate more. And Goodera helps you do just that! With tracking and monitoring, you can find programmatic barriers. Tracking, monitoring and reporting sustainability also works as a beneficial tool to influence public opinions, raise awareness around sustainability, save money on energy and other operating expenses. In addition to this, businesses can comply with the regulation easily.
With all the conferences related to climate change, depleting energy sources and climatic impact, there is no denying the fact that adopting sustainability and keeping a check on it through reporting will make a difference. This calls for transparency in terms of metrics in sustainability reports. It can help businesses externally (by keeping transparency for stakeholders) as well as internally (to ensure results). Companies need comprehensive internal reporting metrics to have a clear picture of the results of their efforts. If they have the full report, they will improve the practices and run a metrics-driven approach.
To get more information regarding sustainability reporting, contact us!