Six Secrets of Smart Climate Reporting



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There's a lot riding on a company's ability to communicate its carbon management efforts effectively - without overpromising. Here are six tips for striking the right balance. By Kathee Rebernak



All corporate reporting has potential pitfalls. Overpromising, playing fast and loose with terms, cherry picking, speaking in absolutes - or not, as the case may be - all can get you into trouble. Certain rules apply, and it's a good idea to follow them. Here are a few to keep in mind.

Be careful what you promise. As climate consultant Will Sarni noted last year, REI pledged carbon neutrality first and assessed its footprint later, only to find that its travel business was a major contributor to total GHG emissions. A better approach is to understand your impacts first, then set goals that make sense for your business.

Watch your words. Define your terms carefully, and make sure everyone in the company is speaking the same language. For example, if you're aiming for carbon neutrality, be clear as to whether that goal is limited to the impacts of your own operations or includes indirect impacts generated by sources such as suppliers and employees.

Use meaningful metrics. When reporting GHG emissions and reduction goals, use real-world metrics such as "carbon intensity per unit" rather than "carbon intensity." And while "we aim to reduce carbon intensity by 15% across our value chain by 2015" may sound impressive, the impact in terms of absolute reduction may be minimal when sales growth is factored in. It's best to report absolute as well as per-unit figures.

Report performance in context. Companies never perform in a vacuum. Be sure to include metrics that will enable stakeholders to compare performance against your goals, over time, and with that of your peers.

Maintain balance. In other words, report the good, the bad, and the ugly. If you avoid reporting on GHG emissions from employee travel because that’s all they do, rest assured someone will call you out.

Admit any shortfalls. Stakeholders want to see progress. But if you fail to meet your emissions reduction goals, say so - and be specific about what you’ll do differently going forward. Your stakeholders will respect you for it.

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Kathee Rebernak is the founder and CEO of Framework:CR, a sustainability consultancy, which works with clients to develop and integrate sustainable business strategy and practices and communicate performance to stakeholders.

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