By Rachel Delacour, Co-founder and CEO at Sweep
Sustainability isn’t a trend, or a fad. It’s a fundamental shift in how we define value and success in the business world. This is demonstrated by major regulatory shifts in the world’s biggest economies: the recent introduction of the SEC’s climate disclosure rules in the United States, or the Corporate Sustainability Reporting Directive (CSRD) in the European Union to name just two.
Organisations across all industries are now being forced to confront the reality that they need to get on board with reporting on their carbon and ESG data in a meaningful and transparent way. New disclosure rules signal one thing: building sustainable business for people and the planet, starts with data.
Of course it’s not easy – businesses had to undergo digital transformation just 15 years ago. But the fact that they made it through this evolution, should give company leaders confidence that they can do it again now – not just to survive, but thrive in the low-carbon economy of the future.
Against this backdrop, the increase in regulatory frameworks and reporting standards should be seen as helpful, offering much-needed clarity. Requirements such as the CSRD or the GHG Protocol provide consistent metrics, which bring with them transparency and comparability.
Divergent regulatory frameworks and reporting standards
That’s not to say it’s all harmony and agreement in the world of sustainability regulation. The SEC’s decision to omit Scope 3 emissions from its climate disclosure rules – while they are included in the EU’s CSRD- highlights a divergence in global standards.
And yet the consensus is leaning towards greater transparency about the planetary impact of business operations and financing. Consumers and investors are becoming increasingly savvy about sustainability, thereby putting businesses under increasing pressure to “keep the receipts” and prove their commitment to ESG in both their direct operations and along their value chains, to avoid accusations of greenwashing.
This demand for data signifies a growing expectation for businesses to not only disclose their direct and indirect emissions but also to take actionable steps towards reducing them.
Sustainability data platforms can empower businesses to accurately track and manage their carbon footprint and ESG strategies. By simplifying their reporting across all emission scopes, as well as other metrics such as water use and waste generation, businesses are able to meet regulatory demands and stay ahead in a landscape where sustainability is increasingly non-negotiable. Building sustainable business for people and the planet, starts with data.
Leading multinationals are already embracing the transformative potential of accurate carbon accounting. Companies we work with leverage data to pinpoint high-environmental-impact areas within their operations and supply chains. This enables them to make targeted interventions that yield substantial emissions reductions, and set new standards for sustainability in their respective industries.
The key to unlocking this transformation is data. Granular insight is critical for setting realistic decarbonisation targets and tracking progress towards them. Think about it: if you are trying to sprint faster, you time yourself on each run. If you’re trying to get stronger, you note the weight you’re able to lift at each training session. Only by generating an accurate data snapshot can companies move beyond estimating to accurately measuring their Scope 1, 2, and 3 emissions.
Embracing the future with transparency and accountability
The move towards standardised, transparent reporting is critical. It ensures that businesses cannot hide behind vague claims of sustainability but must instead show, through clear and comparable data, how they are contributing to a more sustainable future.
As regulatory frameworks evolve and the expectations of consumers, investors, and partners grow, the ability to report accurately and act decisively on environmental impacts will distinguish leaders in the global market.
Tools that provide detailed insights into a company’s carbon footprint and promote a culture of transparency are essential for navigating the nuances of regulatory compliance and for driving the changes needed to address climate change.
