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Annual Reporting with GHG Emissions


Why should you include GHG emissions in your Annual Report


When developing your annual report, it's an ideal time to integrate your sustainability efforts into your annual reporting process. Today, transparency and accountability are paramount. We've noticed a significant shift towards including sustainability metrics in annual reporting, which is a positive development. This includes reporting greenhouse gas (GHG) emissions alongside your annual accounts. Including GHG emissions in a company’s annual report is not just a regulatory necessity for many; it is also a strategic decision.


Here’s why:


Building trust through ESG reporting

Including your company GHG emissions in your annual report enhances your company's transparency and accountability. Stakeholders, including investors, customers, and regulators, are increasingly requesting disclosures of your environmental impact.  By reporting GHG emissions to an international standard (such as ISO or the GHG Protocol), you can demonstrate your impact, as well as your commitment to sustainability and your willingness to be held accountable for your environmental imprint. This openness builds trust and improves your reputation.

Investors increasingly factor in environmental, social, and governance (ESG) criteria when making investment decisions. Companies that actively report and manage their GHG emissions can attract ESG-focused investors. Transparent GHG reporting can signal to investors that the company is proactive in managing its environmental risks, making it a more attractive investment. Additionally, it helps retain existing investors who are committed to sustainability.


Drive operational efficiency

Measuring and reporting GHG emissions can uncover inefficiencies in a company's operations. Identifying and addressing these inefficiencies can lead to cost savings. For example, reducing energy consumption not only lowers GHG emissions but also decreases energy costs. By optimising resource use, companies can improve their bottom line while reducing their environmental impact.


Enhance your brand reputation

Consumers are increasingly conscious of the environmental impact of the products and services they purchase. If your customers can ‘see’ how sustainability is weaved and integrated into your company values, this shows a genuine commitment to the environment which can enhance brand reputation and foster customer loyalty. Dual reporting allows consumers to see the efforts being made, which can differentiate a company from its competitors.


Prepare for the Future

The global market is rapidly evolving towards greater environmental sustainability. Companies that start measuring, managing, and reporting their GHG emissions are better prepared for future market conditions and likely to open new business opportunities.

Many countries and regions require companies to report GHG emissions for their products, which is relevant for exporters to jurisdictions like the EU, where carbon taxes on imported goods are being established to create a fairer market.

Setting GHG emissions targets aligns your organisation with global efforts to combat climate change. By setting realistic, achievable targets for emission reductions and tracking progress over time, you contribute to these efforts and build trust through transparent reporting in your annual reports.



Conclusion

Companies that embrace GHG emissions reporting and include these in your annual report will not only contribute positively to the environment but will be able to see how they can front-foot the risks and opportunities that lie within the sustainability realm. This strategic approach benefits the environment and positions your company for growth.



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