Climate Action - Assisting business towards carbon neutrality

The increasing importance of climate change means that companies and organisations will need to effectively communicate their responses in various ways and through various channels, both internally and externally. As with assessments of a company's greenhouse gas emissions, transparency is critical. The internet and other new media mean that companies cannot hide behind the greenwash thin veneer. This is where tools for verification and reporting guidelines with recognised indicators are critical, an obvious example being the Global Reporting Initiative (GRI). The G3 version of the GRI Guidelines includes special guidance on boundary questions and protocols on for example energy and emissions-related indicators that can be used by your company to measure, track, benchmark and communicate progress.

Internal communications via intranets and company publications can report progress and acknowledge contributions by individual staff or teams. It's also important to let your shareholders know. Reducing emissions, particularly by improving efficiency is a win-win situation that can also enhance a company's reputation. Many climate change related shareholder resolutions are now underway by institutional shareholders such as state and city pension funds, foundations, religious institutional investors and socially responsible investment firms. These resolutions are requesting information on a company's response to risks and opportunities related to climate change such as climate change policy, greenhouse gas emissions reports, and emission reduction plans.

Naturally, industries that have a direct impact on emissions are more targeted, such as fossil fuel, forestry and the electric utility sectors. Past resolutions have resulted in changes in corporate governance, accounting practices, and now to a growing extent, climate change policies and non-financial reporting. In response to a shareholder resolution, for example, Ford Motor Company began an open dialogue with the resolution's proponents on greenhouse gas reporting and future emissions reductions.

As mentioned earlier, reducing carbon emissions can serve as a driver for reducing, or eliminating, other environmental impacts of your business and its products and services. Communicating this to other parts of the company and encouraging staff to look for opportunities is an important element to improve the way your company does business. This underlines the potential role of reporting as a management tool and helping your organisation find deeper solutions. It brings us back to the change in culture and business model highlighted earlier.