ESG Reporting Frameworks
In today’s business climate, investors, clients, and colleagues expect companies to address Environmental, Social, and Governance framework reporting compliance. To achieve this, a GHG carbon inventory needs to be compiled and calculated. Further, a story needs to be told of the investments to increase efficiency and lay out science-based goals needs to be completed to round out the picture.
These are tasks that are straightforward, but each requires specific industry knowledge of the calculations, standards, and accepted practices to execute. Where and when to use market-based calculations in lieu of electric grid averages, how to pick a baseline year, and how to identify levers available to the organization to control carbon emissions can be difficult to ascertain.
This is where a high-end consultancy like Burton Energy Group can augment your team. We can perform rudimentary carbon inventory activities all the way to building a complete step-by-step sustainability program framework within your company, tailored to your business needs.
Burton will provide our clients with the foundations for establishing a publicly facing corporate sustainability program, which will include the establishment of an initial greenhouse gas emissions baseline and ongoing measurement strategy, measurement of past and future energy project effectiveness, mandatory benchmarking compliance, and a pro-active program to identify opportunities and measure corporate goals against actual performance. Our goal is to provide reporting that is Relevant, Complete, Consistent, Transparent and Accurate.
The scope of work for this engagement is outlined below in the following sections:
- Carbon Reporting and Sustainability Framework
- Monthly Performance Analysis and Reporting
- Mandatory Benchmarking
Burton will provide a report which outlines Scope 1 and 2 emissions as defined:
Scope 1 – Direct Emissions
This includes refrigerants leaked into the environment, vehicles used by the business, gas combusted in boilers or furnaces. This includes all retail operations, office and support facilities, manufacturing, and distribution.
Scope 2 – Electricity Indirect
Purchased electricity used to operate the business, facilities such as retail stores, warehouses, offices. Since this energy has emissions associated with the production of the electricity, this must be calculated not only from the amount of energy but also the source of the energy (nuclear, natural gas, coal, etc.).
Before accounting for scope 2 emissions, companies should consider which business goal or goals they intend to achieve. Companies consuming electricity may seek to:
- Identify and understand the carbon impact associated with emissions from purchased and consumed electricity
- Identify internal GHG reduction opportunities, set reduction targets, and track performance
- Engage energy suppliers and partners in GHG management
- Enhance stakeholder information and corporate reputation through transparent public reporting
- Consider how capital investments and expansion of the business scales the carbon footprint and water impact to local communities