Legislation Mandatory reporting 3/4
scheme was almost entirely wiped out by the announcement in last Year’s Autumn Statement that 2013 was the second, and last, year that the CRC Performance League Table was to be published. Flawed as it undoubtedly is, the table is the primary reputational output of the CRC and removing it removes a key driver for business. Without it, the appe- tite for transparent, measured and public
reporting of carbon emissions, or CO2 equivalent, is clear, and falls firmly at the door of the new mandatory obligations. If the CRC has one legacy, it’s that it has created a familiarity when it comes to managing carbon emissions. This means most affected companies did not start from scratch when mandatory report- ing was announced and, it is hoped, will potentially look to expand the scope of their reporting mechanisms.
“I think what we’ve seen, from some companies, is that the rigour of how they applied the management of data, infor- mation and monitoring and verification of their emissions under the CRC inter- nally has enabled them to realise gaps in other parts of their organisation which encouraged them to start gathering qual- ity data and information,” says Baxter.
Moving forward, it’s important that businesses use mandatory reporting as an opportunity for further operational improvement rather than merely a com- pliance benchmark.
And, far from merely doing what needs to be done to meet current requirements, businesses need to ensure that reporting mechanisms are robust enough to stand the test of time and the resulting data used to ensure business continuity.
The environment is changing the busi- ness dynamic, says Baxter. Companies must realise that access to resources will constrain the ability to operate effective- ly and efficiently in the future and this awareness presents an opportunity for businesses to future-proof operations. “A business can use this knowledge to help build a more resilient organisa-
tion against some of the more frequent climatic-related events,” he says. From flood-affected global supply chains, to drought-exposed raw material pric- es, environmental risks are starting to have much more tangible impacts on a company’s long-term potential success. Ultimately, boards of directors need to start thinking about this now and take the longer term perspective. In terms of a business’ success, under- standing what the corporate world might look like in years to come is a vital, albe- it challenging, step to ensuring carbon reduction mechanisms, such as a report- ing system, work over the long-term. This approach will differentiate those operating successfully from those strug- gling to keep afloat and it will essentially come down to companies that can with- stand the changing dynamics of business through increased volatility from climate change.
“Organisations should be thinking about what sort of environment they may be operating in in 2025 and how well they are positioned to operate in that environment. This needs to set the context of today’s decision-making to inform the direction of the business and
Organisations should be thinking about what sort of environment they may be operating in in 2025 and how well they are positioned to operate in that environment
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