How Impact Statements can help with your ESG reporting
Written by Tim Greenhalgh
Our Impact Statements are a unique way to help strengthen your Environmental Social and Governance (ESG) reporting.
These Impact Statements are generated through our ground-breaking Home Club service. You can offer your staff membership to the SaveMoneyCutCarbon Home Club. It’s a big boost that works wonders for their bills at home while also protecting the planet.
This will help your staff to take clear, simple actions to drastically reduce waste and carbon footprint as well as reducing their utility bills. As members of the Home Club they get guaranteed unbeatable pricing on a range of energy and water saving products, as well as planet-friendly sustainable products to use around the home.
And we can then provide you with Impact Statements on the products bought, which will reinforce your sustainability reporting. Our unique tool measures the impact of their purchases to produce aggregated anonymised reports on the plastic, carbon, waste and water savings made, which reinforces your Scope 3 reporting on indirect emissions.
These statements should provide the following:
- Financial savings i.e. standard website price vs club price
- Financial savings based on reducing energy / water use
- Energy reduction
- Water reduction
- Carbon reduction
- Plastic reduction
Why is ESG important?
Businesses need to respond to greatly increased scrutiny from stakeholders – investors, employees, customers, regulators and the public. They need quality ESG metrics for disclosure. And it is a big challenge to get this right. It’s about building transparency and trust.
So the Impact Statements will provide a good few pieces in the ESG jigsaw. Businesses that score highly on ESG factors clearly show stakeholders that they are a sustainable and resilient, creating better conditions for long-term success.
What are ESG metrics?
There are a huge range of ESG metrics and disclosure frameworks, not surprisingly varying by sector, size, business complexity and location. ESG disclosures need to comply with current mandatory and voluntary reporting requirements.
Examples of ESG
Environment: Climate change and carbon emissions, air and water quality, biodiversity, deforestation, energy efficiency, waste management
Social: Customer satisfaction, data protection and privacy, gender and diversity, employee engagement, community relations, human rights, labour standards
Governance: Board composition, audit committee structure, bribery and corruption, executive compensation, lobbying, political contributions, whistle-blower programmes.
Is ESG reporting mandatory?
Not yet. But Rishi Sunak has made the UK the first country in the world to mandate companies in line with the Task Force on Climate-related Financial Disclosures (TCFD). What this means is that premium listed companies in the UK are being required to make better disclosures about how climate change affects their business, consistent with the recommendations of the TCFD.
The TCFD was established in 2015 to help address the lack of consistent, reliable data in order to know where to target efforts and to measure, analyse and track progress.
The Chancellor has now announced that from 2023 most big UK firms and financial institutions will have to show how they intend to hit climate change targets, through detailed public plans on how they will progress to a low-carbon future. An expert panel will set the standards the plans have to meet.
This means that companies will need comprehensive, integrated sustainability strategies that focus on both direct carbon emissions (Scope 1) and indirect emissions by suppliers and customers, and other groups (Scopes 2 & 3).
Want to find out more? Get in touch with us today.
Find out how we can help your business.
0333 123 5464