My Customer asked me for ESG information on my business. What do I do now ?
As companies increasingly prioritize sustainability, they are now requiring their suppliers to provide detailed data on environmental metrics, especially greenhouse gas (GHG) emissions. This trend is driven by major corporations like Amazon, that recently informed its supply chain standards to provide regular reporting and alignment to it’s emission goal. This shift towards mandatory disclosures marks a significant move in the global effort to achieve net-zero carbon emissions by 2040.
The operational impact of these new requirements is substantial. Companies that fail to meet these standards may face significant consequences, including the potential loss of business opportunities with major clients like Amazon. However, there is typically a transition period allowing companies to adjust their operations and align with the new requirements. This period is crucial for suppliers to develop and implement effective strategies for measuring and reducing their emissions.
To comply with these new standards, companies must take several preparatory steps. First, they need to thoroughly understand the specific data requirements, including Scope 1, 2, and 3 emissions. Developing a clear and structured process for data collection is essential. This involves communicating with suppliers to gather the necessary information and setting up internal systems to manage and report this data accurately.
A valuable tool for simplifying this process is the Sustainability Network’s SaaS platform. This platform streamlines data collection and report generation, supporting organizations in managing their sustainability efforts from upstream to downstream operations. It automates the gathering of emissions data, helping companies to efficiently track, document, and report their GHG emissions, thus ensuring compliance with Amazon’s and other stakeholders’ requirements.
Engaging with the sustainability network can provide additional support. Organizations like the Sustainability Consortium and CDP offer resources and guidance for companies aiming to enhance their sustainability practices. Requesting a demo from these organizations can provide insights into best practices for data collection and reporting, helping businesses to meet their sustainability goals effectively.
In summary, the push for detailed sustainability metrics from suppliers reflects a broader trend towards increased transparency and accountability in corporate operations. By preparing adequately and utilizing advanced software tools like the Sustainability Network’s SaaS platform, companies can ensure they meet new regulatory and client requirements, positioning themselves as leaders in sustainability and maintaining strong business relationships with major clients.