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Advancing Sustainable Development Through Science
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Sustainability Reporting
What is the Carbon Border Adjustment Mechanism (CBAM)?
The Carbon Border Adjustment Mechanism (CBAM) is a significant regulatory measure introduced by the European Union (EU) to address carbon emissions associated with imported products.
CBAM regulation aims to address carbon emissions associated with imported products, with a phased approach towards implementation and a focus on incentivizing cleaner practices in industries like iron and steel. It introduces new requirements for reporting, verification, and offsetting of emissions, reflecting the EU’s commitment to reducing climate change impacts.
- Transitional Reporting Phase (2023-2025):
- The transitional reporting phase spans from October 1, 2023, to December 31, 2025.
- During this phase, quarterly reporting of direct greenhouse gas emissions for all product categories is required, along with indirect greenhouse gas emissions for electricity, fertilizers, and cement products.
- CBAM Implementation (Starting 2026):
- From 2026 onwards, importers of covered products must purchase and surrender “CBAM certificates” to offset the products’ excess embedded emissions.
- The prices of these CBAM certificates will be equivalent to those set for EU Emissions Trading System (EU ETS) allowances, ensuring fair trade and alignment with the EU’s climate policy.
- Additionally, emissions reporting will require verification by an accredited verification body, with annual, verified CBAM declarations detailing total embedded emissions and CBAM certificate offsetting.
- Challenges and Impact on Industries:
- For industries like iron and steel, aluminum, electricity, cement, hydrogen, and fertilizers produced outside the EU, CBAM poses significant logistical, reporting, and financial challenges.
- Importers of steel products may face increased costs due to less stringent carbon pricing or emissions standards in their regions.
- A key goal of CBAM for the iron and steel industry is to incentivize the adoption of cleaner technologies and practices, contributing to global efforts to combat climate change.
- Calculation of Carbon Footprint for Iron and Steel:
- The carbon footprint of iron and steel products encompasses total greenhouse gas emissions associated with raw material extraction, production, transportation, use, and disposal.
- This carbon footprint is typically expressed in terms of CO2 equivalent emissions and is assessed through a Life Cycle Assessment (LCA), considering all emissions throughout the product’s lifecycle.
What ECG can do
ECG offers a range of services aimed at helping product manufacturers effectively manage their carbon footprint and navigate regulatory requirements, particularly in relation to the EU Carbon Border Adjustment Mechanism (CBAM). Here’s how ECG can support your organization:
- Product Carbon Footprint Assessment: ECG assists manufacturers in quantifying the greenhouse gas (GHG) impacts of their products throughout the entire lifecycle. This comprehensive assessment covers all stages, including raw material extraction, manufacturing processes, transportation, product use, and end-of-life disposal. By measuring emissions from source to final disposal, manufacturers gain valuable insights into their product’s environmental impact and identify opportunities for improvement.
- CBAM Carbon Footprinting Methodology: With the EU CBAM Regulation introducing specific requirements for carbon accounting across various industries, ECG ensures compliance by developing CBAM-compliant product carbon footprints. Our methodology aligns with the unique accounting standards mandated by CBAM, distinct from commonly used protocols such as PAS 2050, WRI/WBCSD GHG Protocol, and ISO/TS 14067. We stay updated with regulatory changes to ensure continued alignment with CBAM requirements, providing manufacturers with accurate and reliable carbon footprint data for regulatory compliance.
By partnering with ECG, manufacturers can navigate the complexities of carbon footprint assessment and CBAM compliance with confidence, ensuring transparency, accuracy, and adherence to regulatory standards.
Advisory
Our company specializes in guiding businesses through the intricate landscape of EU CBAM regulations, offering comprehensive support in various crucial areas:
- CBAM Training: We provide thorough training sessions covering all facets of the CBAM regulation tailored to your company’s specific industry, products, and corporate structure.
- Product Identification: We assist in identifying products within your corporate portfolio that fall under the scope of the CBAM regulation, ensuring compliance and proactive management.
- Emissions Calculation and Reporting: We help understand the methodologies for calculating and reporting emissions requirements for identified products, analyzing implications on both upstream and downstream supply chains.
- Cost Analysis: We conduct detailed cost analyses to anticipate the potential impact of CBAM requirements, particularly focusing on the introduction of CBAM certificates in 2026 to offset product emissions.
- Transitional Registry Navigation: We guide companies through the intricacies of the CBAM Transitional Registry, offering insights into mechanisms for purchasing CBAM certificates (credits) and ensuring smooth compliance.
- EU Emissions Trading System (ETS) Integration: We provide clarity on the interaction between the EU ETS and CBAM, including how prices of CBAM certificates will fluctuate and the taxation implications for your products.
- Future Product Impact Assessment: We assist in understanding how future products may be affected as the scope of the CBAM regulation expands over time, enabling proactive planning and adaptation.
With our specialized expertise, we empower companies to navigate the complexities of EU CBAM regulations effectively, ensuring compliance, mitigating risks, and seizing opportunities in the evolving regulatory landscape.
ECG specializes in assisting product manufacturers in accurately measuring the greenhouse gas impacts of their products throughout the entire lifecycle. This comprehensive assessment includes quantifying GHG emissions from various stages, such as raw material extraction, transportation, manufacturing, distribution, product use, and end-of-life disposal.
What is a Product Carbon Footprint?
A product carbon footprint provides transparent information about the carbon intensity of your products. At ECG, we develop scientifically-prepared carbon footprints for your products based on internationally recognized standards such as ISO 14067, PAS 2050, and the WRI GHG Protocol.
Program Details and Eligibility
Our product carbon footprint services are available to organizations of all sizes and types, regardless of location. By assessing the climate change impacts of your products and services, you can gain valuable insights into their environmental footprint.
GHG Accounting Across the Entire Life Cycle
Our approach to assessing greenhouse gas emissions is based on the entire life cycle of your product or service. This involves evaluating emissions from all sources of activities, including raw material extraction, manufacturing, transportation, product use, and end-of-life disposal.
Methodologies for Carbon Footprinting
We utilize internationally recognized methodologies such as PAS 2050, WRI/WBCSD GHG Protocol, or ISO/TS 14067 to establish your product’s carbon footprint. These standards provide robust frameworks for quantifying emissions and ensuring accuracy and consistency in carbon footprint assessments.
Carbon Footprint Labels
For companies looking to communicate their carbon footprint externally, ECG can provide custom Carbon Footprint Declarations/Labels. These labels help demonstrate your commitment to sustainability and provide consumers with transparent information about the environmental impact of your products.
By partnering with ECG for product carbon footprint calculation, manufacturers can gain valuable insights into their environmental performance, demonstrate their commitment to sustainability, and meet regulatory requirements effectively.
Why ECG?
ECG leverages cutting-edge AI-based software in our operations to ensure that Life Cycle Assessments (LCAs) are conducted with utmost completeness, accuracy, and cost-effectiveness. By harnessing the power of AI, we streamline the carbon footprinting process, making it more efficient and precise than ever before.
Completing a carbon footprint analysis for your products provides invaluable insights into the environmental hotspots throughout their lifecycle. Armed with this information, you gain a clear understanding of where emissions occur most significantly, enabling you to strategically focus your efforts on reducing carbon intensity over time.
With ECG’s AI-driven approach, you can trust that your carbon footprint assessments are conducted with the highest level of precision, allowing you to make informed decisions and take meaningful actions towards sustainability and environmental stewardship.
Benefits
Extending the scope of carbon footprints to include the impacts of the goods and services produced by organizations is considered a best practice in sustainability. Measuring the life cycle GHG emissions of products offers numerous benefits:
- Identifying Hotspots and Cost/Energy Saving Opportunities: Analyzing the carbon footprint of products helps identify “hotspots” in their lifecycle where emissions are highest. This insight enables organizations to pinpoint areas for improvement and implement strategies to reduce emissions, leading to potential cost and energy savings.
- Design-for-Environment Product Configurations: Understanding the environmental impact of products allows organizations to design them with sustainability in mind. By optimizing product configurations and sourcing materials responsibly, companies can minimize their carbon footprint and promote environmentally friendly practices throughout the supply chain.
- Corporate Responsibility Reporting: Reporting on product carbon footprints demonstrates a commitment to corporate responsibility and transparency. It provides stakeholders with valuable information about the environmental impact of products, fostering trust and accountability.
- Identifying Environmental Risks in the Supply Chain: Assessing product life cycle emissions helps identify environmental risks within the supply chain. This enables organizations to address issues such as resource depletion, pollution, and climate change impacts, mitigating risks and ensuring supply chain resilience.
- Improving Brand Recognition and Corporate Reputation: By quantifying and reducing the carbon footprint of products, organizations can enhance their brand image and reputation. Consumers increasingly prioritize sustainability, and companies that demonstrate environmental stewardship can attract eco-conscious consumers, leading to improved brand recognition and market competitiveness.
In summary, measuring product carbon footprints offers a holistic view of environmental impacts, driving sustainability initiatives, enhancing corporate responsibility, and bolstering brand reputation in an increasingly environmentally conscious marketplace.
Calculating your entity’s Greenhouse Gas (GHG) Inventory is a crucial initial step in managing your carbon footprint and plays a vital role in your corporate sustainability efforts. With the regulatory landscape evolving rapidly, particularly regarding GHG Inventory reporting, it’s essential for organizations to stay compliant and proactive in their emissions management.
In the United States, proposed requirements by the Securities and Exchange Commission (SEC) for mandatory reporting of corporate GHG emissions, along with initiatives like California’s SB 253, underscore the increasing importance of GHG reporting. Similarly, in the European Union, the Corporate Sustainability Reporting Directive (CSRD) will impact companies with subsidiaries in the U.S. or those conducting business in the EU.
Regardless of whether your entity is a professional services company, a municipal entity, a non-profit organization, or a product manufacturer of any size and ownership structure, we provide comprehensive support to help you complete your GHG/Carbon Footprint assessment.
Your GHG Inventory serves multiple purposes, including identifying emissions hotspots, setting Science-Based Targets (SBTi) for emissions reductions, and fulfilling reporting requirements for platforms such as the Carbon Disclosure Project (CDP), Task Force on Climate-related Financial Disclosures (TCFD), and other reporting bodies.
By conducting a thorough GHG Inventory assessment, organizations can gain valuable insights into their emissions profile, enabling informed decision-making, targeted emissions reduction strategies, and enhanced transparency in sustainability reporting
Verification for Your Company’s GHG Inventory
Verification of your company’s Greenhouse Gas (GHG) Inventory is a crucial step in enhancing the reliability and credibility of your emissions reporting. Annual third-party verification ensures that your GHG inventory is accurate, free of material errors, and compliant with industry standards and regulations. This verification process provides you with greater confidence in your reporting and helps you effectively manage your carbon footprint.
This diagram shows the common greenhouse gases and their sources divided into Scopes 1, 2, & 3.
Verified accounting of GHG emissions is essential for various purposes, including:
- Managing Climate-Related Risks: Understanding your company’s carbon emissions data enables you to identify and mitigate climate-related risks, ensuring resilience and sustainability in the face of changing environmental conditions.
- Identifying Cost-Saving Opportunities: Accurate GHG reporting allows you to identify potential cost-saving opportunities by optimizing energy usage, improving operational efficiency, and implementing emissions reduction strategies.
- Regulatory Compliance: With regulatory requirements for GHG reporting evolving rapidly, verification of your emissions data ensures compliance with current and upcoming regulations. Initiatives such as the Securities and Exchange Commission (SEC) requirements, the General Services Administration (GSA), California’s SB 253, and the European Union’s Corporate Sustainability Reporting Directive (CSRD) may soon mandate GHG verification.
- Supply Chain Transparency: Accurate GHG reporting is increasingly important in supply chains, with some major retailers requiring suppliers to report their emissions. Verified GHG data enhances transparency and trust in supply chain relationships.
- Enhancing Brand Reputation: Showcasing GHG verification in your Corporate Social Responsibility (CSR) report demonstrates your commitment to transparency, accuracy, and environmental stewardship. This enhances your brand reputation, competitiveness, and stakeholder trust.
By undergoing GHG verification, your company not only strengthens its emissions reporting but also demonstrates leadership in sustainability, positioning itself as a responsible and trustworthy entity in the eyes of stakeholders and the broader community.
The World Resources Institute (WRI) Greenhouse Gas Protocol stands as the preeminent global standard for organizations seeking to measure and manage their greenhouse gas (GHG) emissions. Widely recognized and utilized, the GHG Protocol serves as the foundation for countless corporate GHG reporting initiatives worldwide. Its comprehensive set of standards offers a framework that enables companies, cities, communities, and others to demonstrate excellence in GHG emissions reporting. The GHG Protocol’s popularity can be attributed to extensive stakeholder consultation facilitated by the World Resources Institute and the World Business Council for Sustainable Development (WBCSD).
Similarly, the Carbon Disclosure Project (CDP), now known simply as CDP, operates as a vital not-for-profit organization overseeing a global disclosure system. Catering to investors, companies, cities, states, and regions, CDP’s platform hosts disclosures from over 18,700 companies, representing a substantial portion of the global market capitalization. Its significance lies in its role as a platform heavily utilized by investors who actively seek disclosures from companies through the CDP framework.
Both the WRI Greenhouse Gas Protocol and CDP play instrumental roles in advancing transparency, accountability, and action on climate change by providing standardized frameworks and platforms for GHG emissions measurement, management, and disclosure.
Measuring All Environmental Impacts Throughout a Product’s Life Cycle
Life Cycle Assessment (LCA) is a systematic approach used to evaluate the environmental impacts associated with all stages of a product’s life cycle, from raw material extraction to manufacturing, distribution, use, and disposal. At ECG, we employ advanced technologies, including artificial intelligence and state-of-the-art software and databases, to conduct LCAs that are comprehensive, accurate, and cost-effective. Our expertise allows us to handle projects of varying scales and volumes while ensuring compliance with ISO 14040/14044 standards.
What ECG can do?
Our team is proficient in using openLCA software, enabling seamless collaboration and sharing of LCA models with your organization’s LCA experts. Our LCA services include:
- Comparative LCA reports for products: We provide detailed assessments comparing the environmental impacts of different products to inform sustainable decision-making.
- LCA Screenings: We conduct preliminary assessments to identify potential environmental hotspots and prioritize areas for further investigation.
- Carbon footprints of your products or organization: We quantify the carbon emissions associated with your products or organizational activities to support emissions reduction strategies.
- Streamlined LCI data collection: We streamline the collection of Life Cycle Inventory (LCI) data, ensuring efficiency and accuracy in the assessment process.
- Advising on LCA strategy: We offer guidance on developing an effective LCA strategy tailored to your organization’s goals and objectives.
- Critical reviews of LCA studies: We conduct thorough reviews of existing LCA studies to assess their reliability and accuracy.
- Assessment or verification of Environmental Product Declarations (EPDs): We assess or verify EPDs to ensure they comply with relevant standards and accurately communicate environmental performance.
- Developing Product Category Rules (PCR): We assist in the development of PCR, which define the specific requirements for conducting LCAs within a particular product category.
By leveraging our expertise in LCA, we help organizations gain valuable insights into their environmental impacts, identify opportunities for improvement, and make informed decisions to promote sustainability across their product life cycles.
At ECG, we provide tailored water advisory services to assist your organization in advancing its commitment to water stewardship and sustainability. Our comprehensive suite of services is designed to support you at every stage of your journey, from developing water management strategies to validating and verifying CDP Water Reporting. Our services include:
- Water management strategies: We work closely with your organization to develop customized water management strategies that address your specific needs and objectives. Whether you are looking to improve water efficiency, reduce water-related risks, or enhance water quality, we can help you formulate practical and effective strategies to achieve your goals.
- Water risk assessments: We conduct thorough assessments to identify and evaluate water-related risks and opportunities associated with your operations. Our assessments take into account factors such as water availability, quality, regulatory compliance, and stakeholder engagement, allowing you to make informed decisions and prioritize actions to mitigate risks.
- CDP Water Reporting Validation and Verification: We assist organizations in validating and verifying their CDP Water Reporting submissions to ensure accuracy, completeness, and compliance with CDP’s reporting requirements. Our rigorous validation and verification processes help enhance the credibility and transparency of your water-related disclosures, enabling you to demonstrate your commitment to water stewardship to stakeholders.
By leveraging our expertise and experience in sustainable water practices, we help organizations implement effective water management strategies, mitigate water-related risks, and enhance their reputation as responsible stewards of water resources. Let us support you on your journey towards achieving water sustainability and resilience.
Carbon credits, also known as carbon offsets, are essential tools in achieving net zero emissions goals, allowing organizations to either directly reduce their carbon footprint or support projects that mitigate emissions elsewhere. While each carbon credit may vary in its attributes, they all undergo a similar lifecycle process, encompassing four key stages:
By understanding and engaging in the lifecycle of carbon offsets, organizations can effectively leverage these instruments to reduce their carbon footprint, support sustainable development initiatives, and contribute to global efforts to combat climate change.
The life of a carbon offset goes through four general stages:
Start of a carbon offset: Project Developers
Carbon emission reductions happen all the time, but not every reduction qualifies as an offset.
Before a carbon reduction becomes a carbon offset, it has to meet a set of quality criteria based on methodologies specific to a certain kind of carbon project.
The term “methodologies” may sound complicated. But they refer to the detailed procedures that developers use to quantify a project’s emissions reduction potential.
They’re also known as protocols, the blueprint for how various project metrics are calculated.
Each carbon project is unique, be it renewable energy or agricultural project. And so developers have to take several variables into account when developing them. They begin the process by designing the project and formalizing it in a Project Design Document (PDD).
Using a specific methodology, they then outline the project activities in the PDD. Some of the approved methodologies and protocols include:
- American Carbon Registry (ACR) methodologies
- Climate Action Reserve (CAR) protocols
- Clean Development Mechanism (CDM) methodologies
- Verified Carbon Standard (VCS) methodologies
Next, project developers establish a baseline of emissions reduction which is for assessment by a 3rd-party body. This is the 2nd stage of the carbon credit lifecycle explained in the next section.
Once the reduction impact of a project has been assessed (via a certain methodology), the developer now holds the carbon rights to that project.
They register the project with an approved registry like the Verra. This body tracks offset projects and issues their corresponding credits.
Project developers also must conduct regular monitoring and reporting of project activities on the ground.
Monitoring involves keeping track of the updates or progress of the project metrics. While reporting involves preparing the necessary documents about the project.
Right now, there are 170+ types of projects that produce carbon credit offsets according to Ecosystem Marketplace. But they fall under eight major categories as shown below.
The birth of a carbon offset
The second stage in the life of a carbon credit offset is undergoing a validation and verification process. Under this step are two responsible parties.
The 3rd-Party Auditors
The first one is an independent, 3rd-party auditor also called the validation/verification body. This body comprises subject matter experts who can validate a project’s emission reduction claims, both projected and actual achievements.
Essentially, the VVB validates the following elements of a carbon offset project from the developer’s document:
- Baseline scenarios
- Monitoring process
- Methodologies for calculating emission reductions
For example, professional foresters, agriculturalists, or community development experts often audit/validate forest carbon projects. The carbon program standard (e.g. Verra VCS) must accept these auditors to process the registration.
Upon successful completion of the validation, the auditor will issue a validation report and validation statement. These documents confirm that the project has been designed and implemented in accordance with the carbon certification standard.
The Verification Process.
Verification is key when it comes to ensuring that project data reported is true, transparent, and has integrity. In other words, it’s verifying that the project is actually doing what it says it’s doing.
Verifiers have to confirm that a proposed project meets a carbon program’s eligibility criteria. They can then verify by confirming that project monitoring data was collected in accordance with a program’s requirements.
They also verify that the calculations of the project’s emission reductions were done based on the approved methodology/protocol.
The verification process often involves a site visit while monitoring data to confirm that they’re accurate.
After the project has been validated and verified, it’s now ready for registration.
The Role of 3rd-Party Rating Agencies
Carbon rating agencies rate or score the likelihood that the carbon offsets issued via the project have indeed reduced a certain amount of carbon or its equivalent.
Different rating agencies use various frameworks or criteria in providing their scores. Some rate using an alphabetic scale (e.g. BeZero) – AAA, AA, A. Others give their ratings by using the scale of A (highest rate) to D (lowest rate) like how Sylvera does.
Projects must meet specific criteria to be eligible for a rating by an agency. While the criteria may vary, in general, projects must satisfy at least 3 things: carbon score, additionality, and permanence.
Also, rating agencies also require that the project has been audited as part of their scoring framework. Plus, there should be enough information on the project design and monitoring process available to base the ratings on.
This stage in the carbon credit lifecycle involves the carbon registries.
Carbon Registries
Registering a carbon offset project in an approved registry is easy if the previous steps above are taken into consideration.
Projects are certified and issued carbon credits called in various names, depending on which registry they’re registered in. For instance, under the Verra VCS program, the credits are called Verified Carbon Units or VCUs.
Under the Gold Standard offset program, they call carbon credits Verified Emission Reduction or VER. While Climate Action Reserve refers to them as Climate Reserve Tonnes or CRT.
- Regardless of their names, registries characterize carbon credit offsets through a number of quality assurance metrics. They’re confirmed via the validation/verification tasks explained in the prior step.
Each offset represents a reduction or removal of one tonne of CO2 equivalent achieved by the project.
The procedures to follow to get a project registered, certified, and issued with credit offsets depend on the specific registry chosen by the developer. The same goes for the rules or requirements provided.
Once the offset credits are issued to a project, they can now be in action. That means developers can look for their buyers in the carbon market.
Carbon offset retirement
Carbon offsets are bought by two parties – speculative investors and end buyers.
End buyers can be individuals, corporations, and governments. Buying carbon offsets can happen out of compliance to laws (compliance/regulatory carbon market). Or it can also be a voluntary decision to tackle emissions (voluntary carbon market).
Heavy industrial emitters are the major buyers of carbon offsets as part of their compliance requirements. But plenty of large firms are also buying because of their climate commitments.
If you prefer to buy offsets directly from project developers, you can do so.
Yet, buyers can also get offsets from brokers, traders, and exchanges. They can then use those offsets to address their current emission reduction measures.
But there’s another way to make money out of trading carbon credits. It’s via speculative marketplace/exchanges and carbon ETFs.
Speculative investors buy offsets through futures contracts with the intention to sell them later at a higher price, hopefully.
Top carbon exchanges include the CME Group, Xpansiv CBL, Climate Impact X, ICE, AirCarbon and Carbon Trade Exchange.
No matter how or where the carbon offsets are bought, once they’re used and reported as emission reduction, they should be retired.
Retirement of offsets also means their death. They should not be around anymore and are not for resale. They must serve their emission reduction purpose only once to avoid double counting.
That also means removing them from the marketplace and labeling them as retired in any records.
A retired carbon credit offset can now say goodbye to its not-so-popular yet critical world of reducing emissions.
If you’re interested to know more about carbon offsets, please contact us
What ECG can do?
ECG offers comprehensive support to organizations interested in investing in or directly developing carbon offset projects, ensuring that they are implemented responsibly and effectively. Our services include:
- Feasibility Studies: We conduct rapid assessments to determine the eligibility of projects to participate in the carbon market. These studies help project developers understand the potential for their initiatives to meet the requirements of carbon offset programs.
- Project Design Document Support: Our team provides expertise and partnership support to project developers in designing the practical aspects of their projects. We ensure that project designs align with the requirements of Validation, Verification, and Reporting processes, facilitating the successful implementation of carbon projects.
- Assessing Additionality, Credibility, and Risk: We assist organizations in evaluating the additionality and credibility of carbon projects. By assessing the project’s ability to deliver real and additional emissions reductions that would not have occurred otherwise, we help mitigate risks and ensure the integrity of carbon offset initiatives.
- Climate Finance Due Diligence: Our team conducts thorough due diligence activities to evaluate the feasibility, risks, and potential returns associated with investing in carbon offset projects. These assessments cover financial viability, technical feasibility, environmental sustainability, and compliance with relevant standards and regulations, ensuring that investments are sound and aligned with organizational objectives.
Through our expertise and tailored support, we enable organizations to navigate the complexities of carbon project investment and development, maximizing the effectiveness and impact of their climate strategies while meeting the latest scientific and regulatory requirements.
What are Science Based Targets?
Science-Based Targets (SBTs) are climate goals established by companies based on scientific evidence to align with the objectives of the Paris Agreement. The Science-Based Targets Initiative (SBTi) provides a framework for companies to set these goals, aiming to prevent the worst impacts of climate change and limit global warming to well below 2 degrees Celsius, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.
By developing and implementing a GHG emissions reduction strategy, companies can not only reduce their carbon footprint but also contribute to global efforts to combat climate change. Additionally, setting science-based targets enhances transparency, accountability, and credibility in addressing climate-related risks and opportunities.
Key aspects of Science-Based Targets include:
- Framework for Climate Goals: SBTs enable companies to determine the amount of greenhouse gas (GHG) emissions they need to reduce and the timeframe within which these reductions should occur. This framework ensures that emission reduction targets are grounded in scientific research and align with the goals of the Paris Agreement.
- Alignment with Paris Agreement: SBTs are consistent with the objectives of the Paris Agreement, which aims to strengthen the global response to climate change and enhance the ability of countries to adapt to its impacts. By setting targets in line with the Agreement, companies contribute to global efforts to mitigate climate change and limit temperature rise.
- Global Adoption: More than 2,000 businesses worldwide are engaged with the SBTi, indicating widespread recognition of the importance of setting science-based targets. This global adoption demonstrates a commitment to addressing climate change and reducing GHG emissions across various sectors and industries.
- Comprehensive Emissions Strategy: Developing a GHG emissions reduction strategy involves identifying emissions sources, setting SBTs, implementing actions to achieve these targets, and tracking progress effectively. This strategy encompasses measures to address emissions from direct operations (Scope 1 & 2) as well as those associated with supply chains and product use (Scope 3).
Common measures included in a comprehensive GHG emissions strategy are:
- Improving energy efficiency in operations.
- Increasing the use of renewable energy sources.
- Transitioning to low-carbon transportation options.
- Collaborating with value chain partners to reduce emissions.
- Implementing sustainable practices across the organization.
What ECG can do
ECG offers comprehensive support to organizations in setting streamlined and efficient Science-Based Targets (SBTs) that contribute to climate improvement. Here’s an overview of the process:
- Conduct Scope 1 & 2 Inventory: ECG assists in conducting a thorough inventory of Scope 1 (direct emissions from owned or controlled sources) and Scope 2 (indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the organization) emissions. This step involves identifying and quantifying emissions sources within the organization’s operations.
- Conduct Scope 3 Screening and/or Inventory: Scope 3 emissions encompass all other indirect emissions that occur in the value chain of the organization, including emissions from purchased goods and services, transportation, and waste disposal. ECG helps in screening or conducting a detailed inventory of Scope 3 emissions to assess their significance and identify reduction opportunities.
- Data Collection & Management: ECG supports in collecting, organizing, and managing data related to GHG emissions across all scopes. This involves gathering relevant information from various sources within the organization and ensuring data integrity and accuracy.
- Benchmarking: ECG assists in benchmarking the organization’s GHG emissions performance against industry peers and competitors. This comparative analysis helps identify areas for improvement and sets a reference point for setting ambitious yet achievable SBTs.
- SBTi Feasibility Assessment: ECG conducts a feasibility assessment to determine the organization’s readiness and capacity to set science-based targets. This assessment considers factors such as available data, organizational commitment, and technical capabilities.
- SBTi Target-Setting: Based on the feasibility assessment and emissions data, ECG collaborates with the organization to set ambitious but realistic SBTs aligned with the Science-Based Targets Initiative criteria. These targets aim to reduce GHG emissions in line with the latest climate science and the goals of the Paris Agreement.
- SBTi Validation Form Submission: Once the SBTs are established, ECG assists in preparing and submitting the validation form to the Science-Based Targets Initiative for review and approval. This ensures that the targets meet the rigorous criteria set by the SBTi.
- Identify and Evaluate Emissions Reduction Initiatives: ECG helps identify and evaluate potential emissions reduction initiatives across various aspects of the organization’s operations and supply chain. This includes assessing the feasibility, cost-effectiveness, and impact of different measures to achieve the SBTs.
- GHG Reduction Roadmaps & Strategy: Based on the identified initiatives, ECG develops GHG reduction roadmaps and strategies that outline the actions, timelines, and responsibilities for achieving the SBTs. These roadmaps provide a clear pathway for implementing emission reduction measures and tracking progress over time.
By guiding organizations through this well-organized process, ECG ensures that they can set ambitious, credible, and achievable Science-Based Targets that contribute to mitigating climate change and advancing sustainability goals.
Our Process
ECG is committed to providing comprehensive support throughout the entire Science-Based Targets Initiative (SBTi) process, ensuring a smooth and efficient journey towards setting ambitious and credible climate goals. Here’s how we mentor organizations through the SBTi process:
- Gather Background Information: We begin by gathering relevant background information on the organization’s existing GHG inventories and previous reduction efforts. This helps us understand the current state of emissions and identify areas for improvement.
- Establish Baselines: If baseline data for Scope 1, 2, and/or 3 GHG emissions is not already available, we assist in establishing these baselines. This involves collecting and analyzing data to quantify emissions from different sources within the organization’s operations and value chain.
- Evaluate Feasible SBTi Options: We assess the feasibility of various SBTi options within the organization’s context and compare them to industry peers. This analysis considers factors such as emission reduction potential, technical feasibility, and alignment with organizational goals and priorities.
- Evaluate Reduction Initiatives: ECG evaluates potential emissions reduction initiatives and provides specific recommendations tailored to the organization’s circumstances. This includes identifying low-hanging fruit, as well as more ambitious measures that may require additional investment or collaboration.
- Create Strategic Roadmap: Based on the evaluation of reduction initiatives, we develop a strategic roadmap for implementation. This roadmap outlines the actions, timelines, responsibilities, and resources required to achieve the SBTs effectively.
- Develop Programs, Trainings, and Policies: ECG assists in developing programs, trainings, and policies aligned with the SBTi strategy. This may include capacity-building initiatives, employee training on sustainability practices, and the development of internal policies to support emissions reduction efforts.
- Access and Share SBT Progress: We help organizations access and share progress on SBT implementation through internal and external Environmental, Social, and Governance (ESG) reporting. This involves tracking and reporting on key performance indicators related to emissions reduction and communicating achievements to stakeholders.
Throughout the entire SBTi process, ECG is dedicated to providing guidance, expertise, and support to help organizations overcome challenges, seize opportunities, and achieve their climate goals. Our goal is to ensure that organizations navigate the SBTi process efficiently and effectively, ultimately contributing to a more sustainable and resilient future.
Benefits
Setting GHG emissions reduction targets offers numerous benefits to companies, including:
- Reducing Environmental Impact and Minimizing Risk: By committing to reducing GHG emissions, companies contribute to mitigating climate change and its associated environmental impacts. This proactive approach also helps mitigate regulatory and reputational risks associated with climate change.
- Improving Investor Confidence: Investors increasingly prioritize sustainability and environmental performance when making investment decisions. By demonstrating a commitment to reducing emissions and setting ambitious targets, companies can enhance investor confidence and attract responsible investment.
- Creating Cost Savings and Operational Efficiencies: Implementing emission reduction measures often leads to cost savings and operational efficiencies. For example, investments in energy efficiency, renewable energy, and waste reduction can reduce energy and resource consumption, resulting in lower operational costs over time.
- Gaining Competitive Advantages: Companies that adopt sustainable practices and achieve emission reduction targets can gain a competitive edge in the marketplace. This may include attracting environmentally conscious customers, winning new business opportunities, and differentiating themselves from competitors.
- Strengthening Brand Reputation: Sustainability initiatives, including GHG emissions reduction efforts, contribute to building a positive brand reputation. Consumers, employees, and other stakeholders increasingly value companies that prioritize environmental responsibility and contribute to addressing global challenges like climate change.
- Meeting Net-Zero Targets and SBTi: Setting GHG emissions reduction targets aligns companies with global efforts to achieve net-zero emissions and meet Science-Based Targets Initiative (SBTi) criteria. This demonstrates leadership in sustainability and reinforces the company’s commitment to addressing climate change in line with scientific recommendations.
Overall, setting GHG emissions reduction targets is essential for companies seeking to enhance their sustainability performance, reduce environmental impact, and align with global climate goals. By integrating emission reduction targets into their business strategy, companies can drive positive environmental, social, and economic outcomes while also securing long-term business success.
Double Materiality Assessments are comprehensive evaluations that consider the financial and non-financial impacts of a business’s operations. Here’s an overview of what they entail:
What is Double Materiality?
Double Materiality refers to the consideration of both financial materiality (traditional financial risks and opportunities) and non-financial materiality (societal and environmental impacts) in assessing a company’s performance and value creation.
Why are Double Materiality Assessments Important?
- Comprehensive Insights: By considering both financial and non-financial aspects, Double Materiality Assessments provide a more holistic view of a company’s performance and risks.
- Risk Management: They help identify emerging risks and opportunities related to sustainability issues, ensuring proactive risk management.
- Stakeholder Engagement: Assessments facilitate dialogue with various stakeholders, including investors, customers, employees, and communities, enhancing transparency and trust.
- Regulatory Compliance: Many regulatory frameworks now require or encourage disclosure of non-financial information, making Double Materiality Assessments essential for compliance.
Components of Double Materiality Assessments:
- Materiality Mapping: Identify and prioritize financial and non-financial material issues based on their significance to stakeholders and the business.
- Impact Assessment: Evaluate the impact of material issues on financial performance and vice versa, considering both short-term and long-term implications.
- Reporting and Disclosure: Develop reporting frameworks that integrate financial and non-financial metrics, ensuring transparency and accountability.
- Stakeholder Engagement: Engage with stakeholders to understand their perspectives on material issues and incorporate their feedback into decision-making processes.
- Strategy Integration: Align business strategies with identified material issues, integrating sustainability considerations into core business practices.
Benefits of Double Materiality Assessments:
- Enhanced Risk Management: Better understanding of risks and opportunities related to sustainability issues.
- Improved Stakeholder Relations: Increased transparency and trust among stakeholders.
- Regulatory Compliance: Meeting regulatory requirements for non-financial reporting.
- Long-term Value Creation: Integration of sustainability into business strategies for sustainable growth.
- Competitive Advantage: Differentiation through sustainable practices and responsible business conduct.
In summary, Double Materiality Assessments are essential for businesses looking to navigate the complex intersection of financial and non-financial considerations, ensuring sustainable and resilient operations in an evolving business landscape.
ECG offers comprehensive support to organizations aiming to achieve net-zero emissions commitments. In addition to developing plans to assess and set targets aligned with the Science-Based Targets Initiative (SBTi), we provide the following services:
- On-site Workshops: We conduct on-site workshops to train your teams, enabling them to understand and take ownership of the emissions reduction process. These workshops provide valuable insights and guidance on implementing sustainable practices within your organization.
- Carbon Incorporation Training: Our training programs educate organizations on incorporating carbon considerations into their business paradigm. We help companies understand the importance of carbon management and provide strategies for integrating carbon considerations into decision-making processes.
- Developing a Carbon Price: ECG assists organizations in developing a business price for carbon as part of their cost-of-doing-business framework. This involves evaluating the financial implications of carbon emissions and integrating carbon pricing mechanisms into business models.
- Future Carbon Price Evaluation: We offer evaluations of future carbon prices, helping organizations anticipate and plan for potential changes in carbon pricing regulations. This proactive approach enables companies to adapt their strategies and investments in response to evolving carbon market dynamics.
How Does an Emissions Reduction Strategy Help Achieve a Net Zero Commitment?
Developing an emissions reduction strategy is a crucial step towards achieving a net-zero operating scenario. While it may seem daunting initially, a detailed reductions roadmap can bridge the gap between short-term emission reduction targets and long-term net-zero goals.
Here’s how an emissions reduction strategy facilitates the journey towards net zero:
- Establishing Milestones and Timelines: The roadmap outlines key milestones, actions, and timelines necessary to achieve each stage of the emissions reduction journey. It provides a structured approach to progress towards net zero over time.
- Empowering Decision-Making: By presenting a suite of options for initiatives and scenarios, the roadmap empowers decision-makers within the organization. It enables informed decision-making based on the anticipated impact of different strategies on emissions reduction efforts.
- Alignment with SBTi Net Zero Standard: Emissions reduction roadmaps are developed in accordance with the Science-Based Targets Net Zero Standard. This ensures that the organization stays on track towards its net-zero target over the long term, following rigorous scientific guidelines.
In summary, an emissions reduction strategy, supported by a detailed roadmap, serves as a guiding framework for organizations striving to achieve net zero. It provides clarity, direction, and actionable steps to transition towards a sustainable, low-carbon future.
Process to Establish an Emissions Reduction Strategy
- Conduct a comprehensive assessment of both direct (Scope 1) and indirect (Scope 2 and Scope 3) emissions associated with your organization’s activities.
- Identify sources of emissions across the entire value chain, including production processes, energy consumption, transportation, and supply chain activities.
- Analyze the emissions data to identify “hotspots” or high-emitting areas within your operations and supply chain.
- Prioritize emissions reduction measures based on their potential impact, feasibility, and cost-effectiveness.
- Consider measures such as energy efficiency improvements, renewable energy adoption, waste reduction, and sustainable transportation initiatives.
- Set specific, measurable, achievable, relevant, and time-bound (SMART) targets to reduce emissions.
- Define both short-term targets to address immediate emissions reduction opportunities and long-term targets aligned with climate goals such as those set by the Science-Based Targets Initiative (SBTi) or net-zero commitments.
- Develop a detailed roadmap outlining the steps and milestones required to achieve the established targets.
- Identify key actions, initiatives, and projects needed to implement the emissions reduction strategy.
- Allocate resources, assign responsibilities, and establish timelines for each action item.
- Implement the action plan in collaboration with relevant stakeholders across the organization and supply chain.
- Establish a robust monitoring and reporting system to track progress towards emissions reduction targets.
- Regularly measure and evaluate emissions data to assess the effectiveness of implemented measures.
- Report progress internally to stakeholders within the organization and externally to relevant stakeholders, regulators, and the public.
- Use feedback and insights gained from monitoring and reporting to adjust the strategy, refine targets, and optimize emissions reduction efforts over time.
By following this systematic process, organizations can effectively establish and implement an emissions reduction strategy that aligns with their sustainability goals and contributes to mitigating climate change.
By leveraging ECG’s CDP consulting services, companies can streamline the reporting process, improve the quality of disclosures, and effectively communicate their environmental efforts to stakeholders. This ensures a more efficient and stress-free CDP disclosure process while driving progress towards sustainability goals.
- Preparation and Data Collection:
- Conduct Scope 1 & 2 inventory: Gather data on direct emissions from owned or controlled sources (Scope 1) and indirect emissions from purchased electricity, heat, or steam (Scope 2).
- Conduct Scope 3 screening and/or inventory: Assess indirect emissions associated with the value chain, including upstream and downstream activities.
- Provide quantitative and qualitative data collection: Collect relevant data required for CDP reporting, including emissions data, energy consumption, water usage, and other environmental metrics.
- CDP Scoring Assessment:
- Analyze the CDP scoring methodology and guidance documents to understand the criteria used for assessing responses.
- Conduct a scoring assessment to evaluate your company’s performance against CDP’s scoring framework and identify areas for improvement.
- Review and Revision of CDP Disclosures:
- Review existing CDP disclosures to identify strengths and areas for enhancement.
- Revise leading or supporting CDP disclosures to ensure alignment with reporting requirements and maximize scoring potential.
- Science-Based Target (SBTi) Assistance:
- Provide assistance in setting Science-Based Targets (SBTs) that align with the company’s climate goals and commitments.
- Support in integrating SBTs into the CDP reporting process and aligning disclosures with SBTi criteria.
- Streamlined Reporting Process:
- Assess gaps from previous reporting cycles and identify opportunities to improve performance and scoring.
- Maximize your score by crafting responses that align with CDP’s scoring methodology and reporting guidance.
- Submit responses efficiently and identify areas for continuous improvement in future reporting cycles.
The Global Reporting Initiative (GRI) standards have been the most widely used sustainability reporting framework for the last 25 years. As the official reporting standard of the UN Global Compact, the GRI standards offer the most comprehensive suite of corporate sustainability and sector standards. However, navigating the many GRI standards can be difficult.
Through our GRI Reporting service, organizations can meet the requirements of the GRI Standards, enhance transparency and accountability in sustainability reporting, and leverage reporting outcomes to drive positive social, environmental, and economic impacts.
Our multi-step GRI process includes:
- Understanding GRI Standards:
- Identify the specific GRI standards applicable to your organization based on its size, sector, and geographical location.
- Determine the optimal level of reporting based on organizational goals and stakeholder expectations.
- Alignment with Other ESG Frameworks:
- Assess alignment with other ESG reporting frameworks such as SASB (Sustainability Accounting Standards Board) or TCFD (Task Force on Climate-related Financial Disclosures).
- Ensure coherence with Sustainable Development Goals (SDGs) to demonstrate the organization’s contribution to global sustainability objectives.
- Mapping Sustainability Goals to GRI Standards:
- Map current sustainability goals, initiatives, and performance indicators to relevant GRI standards and reporting requirements.
- Ensure comprehensive coverage of economic, environmental, and social aspects in alignment with GRI guidelines.
- Identifying KPIs and Data Management:
- Identify key performance indicators (KPIs) and metrics for reporting on economic, environmental, and social impacts.
- Assess data management gaps and opportunities to enhance the quality and reliability of sustainability data.
- Content Development:
- Develop a structured content index to support the organization’s disclosures and facilitate stakeholder navigation of the report.
- Prepare “assurance-ready” economic, environmental, and social report content that is verifiable and transparent.
- Communication and Stakeholder Engagement:
- Communicate sustainability accomplishments effectively to stakeholders, investors, and the public through the GRI report.
- Ensure transparency and accountability in reporting practices to build trust and credibility with stakeholders.
- Leveraging Reporting Outcomes:
- Utilize reporting outcomes to inform the development of the organization’s ESG strategy and prioritize corporate sustainability initiatives.
- Drive continuous improvement by integrating insights from the reporting process into decision-making and goal-setting processes.
Materiality and the GRI Reporting Process
Materiality is a key concept in the GRI reporting process, guided by the principle that reporting organizations must determine the topics that are material or relevant to stakeholders and could influence their decision-making. Here’s how materiality is integrated into the GRI reporting process:
- Materiality Assessment:
- The reporting organization’s management conducts a materiality assessment to identify and prioritize topics that are material to both the organization and its stakeholders.
- The assessment evaluates the significance of economic, environmental, and social impacts, considering factors such as stakeholder expectations, regulatory requirements, and business risks and opportunities.
- GRI provides guidance on conducting materiality assessments, including best practices for engaging with stakeholders and assessing the impacts of sustainability issues.
- GRI Reporting Guidelines:
- Once material topics are identified, the organization aligns them with the GRI reporting framework, selecting relevant GRI Standards and indicators for reporting.
- GRI’s Standards include specific disclosures and indicators related to economic, environmental, and social topics, allowing organizations to report on their material issues in a structured and transparent manner.
- Integration with Double Materiality:
- In addition to assessing impacts on stakeholders, organizations may also consider financial materiality, known as double materiality.
- Double materiality involves assessing the financial significance of sustainability issues for the organization’s financial performance and long-term value creation.
- Integrating double materiality into the materiality assessment ensures that sustainability issues are aligned with the organization’s overall business strategy and financial objectives.
- Reporting Material Topics:
- In the GRI report, the organization provides detailed disclosures and data on its material topics, including information on policies, management approaches, performance, and future goals.
- Reporting material topics demonstrates the organization’s commitment to transparency, accountability, and stakeholder engagement, enhancing trust and credibility with stakeholders.
By incorporating materiality into the GRI reporting process, organizations can focus on the most relevant sustainability issues, prioritize actions to address them, and effectively communicate their impacts and performance to stakeholders. This approach promotes informed decision-making, strengthens stakeholder relationships, and drives continuous improvement in sustainability performance.
At ECG, we recognize the pivotal role of materiality in guiding organizational decisions and sustainability strategies. Utilizing the latest Global Reporting Initiative (GRI) Standards and guidance, our materiality assessments are meticulously aligned with industry best practices. Our double materiality approach, in compliance with the EU’s Corporate Sustainability Reporting Directive (CSRD), ensures a holistic evaluation of both external stakeholder impacts and internal financial risks associated with ESG issues. Leveraging our deep sustainability expertise and streamlined tools, we efficiently identify key areas of focus tailored to your organization’s unique needs, driving meaningful progress towards a more sustainable future.
A Materiality Assessment is crucial for organizations seeking to develop effective sustainability strategies and climate goals. Here’s why it’s important:
- Focus on Stakeholder Priorities:
- A Materiality Assessment helps organizations identify and prioritize sustainability topics that are most important to their stakeholders, including investors, customers, employees, and communities.
- By understanding stakeholder priorities, organizations can allocate resources more effectively and address issues that are most relevant to their key audiences.
- Guidance for Sustainability Strategy:
- Insights from the Materiality Assessment directly inform the development of sustainability strategies and initiatives.
- By identifying material issues, organizations can set clear goals and objectives that address environmental, social, and governance (ESG) risks and opportunities in a targeted and impactful manner.
- Risk and Opportunity Management:
- Materiality Assessments help organizations identify risks and opportunities related to sustainability issues.
- By understanding the potential impacts of environmental, social, and governance factors, organizations can proactively manage risks, seize opportunities for innovation and growth, and enhance long-term resilience.
- Resource Allocation and Prioritization:
- By prioritizing material topics, organizations can allocate resources, including time, budget, and personnel, more effectively.
- Focusing efforts on addressing material issues ensures that organizations maximize their impact and achieve meaningful results in areas that matter most to stakeholders.
- Engagement and Communication:
- Materiality Assessments facilitate engagement with stakeholders, fostering dialogue and collaboration around sustainability initiatives.
- Clear communication of material topics and performance metrics enhances transparency, builds trust with stakeholders, and strengthens the organization’s reputation as a responsible corporate citizen.
- Internal and External Reporting:
- Materiality Assessments support the development of robust sustainability reporting frameworks, enabling organizations to communicate key metrics and performance indicators to both internal and external stakeholders.
- Reporting on material topics demonstrates the organization’s commitment to sustainability, accountability, and stakeholder engagement, enhancing credibility and reputation.
Overall, a Materiality Assessment provides organizations with valuable insights into stakeholder priorities, sustainability risks and opportunities, and resource allocation, enabling them to develop targeted strategies that drive positive social, environmental, and economic outcomes.
What ECG can do
ECG offers comprehensive support throughout the materiality assessment process, ensuring that your organization can effectively identify and prioritize key sustainability topics. Here are the critical steps we take:
- Utilizing Industry Expertise and Reporting Framework Guidance:
- We leverage our industry expertise and familiarity with leading sustainability reporting frameworks such as GRI, SASB, and TCFD to identify potentially material topics and indicators.
- By aligning with established frameworks and standards, we ensure that the materiality assessment process is rigorous and robust, providing actionable insights for your organization.
- Mapping and Engaging with Stakeholders:
- We map out stakeholders relevant to your organization and directly engage with them to understand their perspectives and priorities.
- Through stakeholder consultations, surveys, interviews, and workshops, we gather valuable insights into stakeholder expectations, concerns, and areas of focus related to sustainability.
- Designing and Conducting Stakeholder Surveys:
- We design stakeholder surveys tailored to capture relevant information on sustainability topics and indicators.
- By collecting and analyzing survey responses, we refine stakeholder preferences and identify emerging themes and trends that inform the materiality assessment process.
- Measuring Relative Impacts using Global and Regional Indicators:
- We assess the relative impacts of identified sustainability topics using a combination of global and regional indicators.
- By considering both global trends and regional contexts, we ensure that the materiality assessment reflects the specific environmental, social, and governance challenges and opportunities facing your organization.
- Data Gathering and Analysis:
- We gather data from various sources, including internal documents, external reports, and industry benchmarks, to support the materiality assessment process.
- Through rigorous data analysis and synthesis, we identify the most relevant and impactful sustainability topics for your organization and prioritize them accordingly.
- Finalizing the Assessment Report:
- We compile the findings of the materiality assessment into a comprehensive report that outlines key insights, stakeholder perspectives, and recommended actions.
- The assessment report serves as a valuable resource for decision-making, strategy development, and stakeholder communication, providing a clear roadmap for advancing sustainability initiatives within your organization.
Throughout the materiality assessment process, ECG provides guidance, support, and expertise to ensure that your organization gains actionable insights and effectively addresses the most relevant sustainability topics aligned with stakeholder expectations and business priorities.
Our Process
ECG conducts materiality assessments tailored to the specific needs and context of your organization, ensuring alignment with leading sustainability reporting standards and regulations. Here’s an overview of our materiality process:
- Understanding Business Context and Stakeholders:
- We start by gaining a deep understanding of your organization’s business operations, industry dynamics, regulatory landscape, and stakeholder expectations.
- This comprehensive understanding helps us identify key risk areas, operational challenges, and stakeholder priorities that inform the materiality assessment process.
- Identifying Potential ESG Indicators:
- We leverage peer benchmarking, reporting frameworks such as GRI Standards, and insights from ESG rating agencies to identify a comprehensive list of potential Environmental, Social, and Governance (ESG) indicators.
- By aligning with established frameworks and benchmarks, we ensure that the materiality assessment covers a broad spectrum of relevant sustainability topics.
- Custom Stakeholder Engagement:
- We employ tailored approaches to engage with stakeholders, recognizing the diversity of stakeholder perspectives and interests.
- Through surveys, interviews, focus groups, and stakeholder dialogues, we gather qualitative and quantitative data on stakeholder priorities, expectations, and concerns related to sustainability.
- Data Collection and Analysis:
- We collect both quantitative and qualitative data from internal and external sources to support the materiality assessment.
- Our rigorous data analysis process involves synthesizing information, identifying recurring themes and patterns, and assessing the relative significance of different sustainability topics.
- Development and Review of Recommendations:
- Based on the insights gained from stakeholder engagement and data analysis, we develop actionable recommendations for addressing priority ESG topics.
- Our recommendations are reviewed and refined in collaboration with your team to ensure alignment with organizational goals and objectives.
- Finalized Materiality Assessment and Double Materiality Grid:
- We compile the findings of the materiality assessment into a finalized report that includes a double materiality grid, highlighting the organization’s impacts on people, the planet, and financial risks.
- The double materiality approach ensures compliance with regulatory requirements such as the EU’s Corporate Sustainability Reporting Directive (CSRD).
- Presentation of Results and Advisory Support:
- We present the materiality assessment results to your organization’s management, providing actionable insights and recommendations for improving ESG performance.
- Additionally, we offer advisory support to help your organization set baselines and targets for prioritized ESG topics, enabling you to track progress and drive continuous improvement.
Through our comprehensive materiality process, ECG empowers organizations to make informed decisions, prioritize sustainability initiatives, and enhance stakeholder engagement, ultimately driving positive environmental, social, and economic outcomes.
Benefits
Establishing a GHG emissions reduction strategy and setting targets can yield several benefits for companies, including:
- Reducing Environmental Impact and Minimizing Risk: By committing to reducing GHG emissions, companies contribute to mitigating climate change and minimizing their environmental footprint. This proactive approach can also help mitigate regulatory, physical, and reputational risks associated with climate change impacts.
- Improving Investor Confidence: Investors increasingly consider environmental factors, including GHG emissions, when evaluating companies for investment. By demonstrating a commitment to reducing emissions and aligning with science-based targets, companies can enhance investor confidence and attract investment from environmentally conscious stakeholders.
- Creating Cost Savings and Operational Efficiencies: Implementing GHG emissions reduction strategies often involves optimizing energy efficiency, transitioning to renewable energy sources, and streamlining operations. These measures can lead to significant cost savings through reduced energy consumption, lower operating expenses, and improved resource utilization.
- Gaining Competitive Advantages: Companies that proactively address GHG emissions can gain a competitive edge in the marketplace. By differentiating themselves as environmentally responsible and sustainable organizations, they may attract environmentally conscious consumers, partners, and employees, and position themselves as leaders in their industries.
- Strengthening Brand Reputation: A strong commitment to reducing GHG emissions and achieving sustainability goals can enhance a company’s brand reputation and corporate image. Positive associations with environmental stewardship and social responsibility can build trust among stakeholders, enhance brand loyalty, and attract socially conscious consumers.
- Meeting Net-Zero Targets and SBTi: Setting ambitious GHG emissions reduction targets aligned with science-based criteria and net-zero objectives demonstrates leadership and commitment to addressing climate change effectively. Achieving these targets not only contributes to global efforts to limit global warming but also aligns with international initiatives such as the Science-Based Targets Initiative (SBTi) and the transition to a low-carbon economy.
Overall, by establishing GHG emissions reduction strategies and setting targets, companies can drive positive environmental, social, and economic outcomes while positioning themselves for long-term sustainability and success.
The Sustainability Accounting Standards Board (SASB) Standards play a crucial role in providing industry-specific disclosures on environmental, social, and governance (ESG) issues that are financially material to enterprise value.
Overall, SASB industry-based disclosures play a critical role in enhancing the quality, relevance, and comparability of ESG reporting, ultimately contributing to more informed decision-making by investors, stakeholders, and companies themselves.
Here are some key points highlighting the importance of SASB industry-based disclosures:
- Industry Relevance: SASB Standards offer industry-specific guidelines tailored to the unique ESG risks and opportunities faced by companies across 77 different industries. This specificity ensures that companies focus their reporting efforts on the ESG issues most relevant to their operations and financial performance.
- Financial Materiality: SASB Standards emphasize ESG issues that have a direct impact on financial performance and enterprise value. By focusing on financially material topics, SASB enables companies to prioritize disclosures that are most critical for investors and stakeholders in assessing long-term sustainability and risk management.
- Comparability and Transparency: The standardized nature of SASB disclosures facilitates comparability across companies within the same industry. Investors and stakeholders can use SASB metrics to benchmark performance, assess risks, and make informed investment decisions, enhancing transparency in ESG reporting.
- Investor Communication: SASB reporting emphasizes the financial relevance of ESG factors, which can enhance communication between companies and investors. By providing clear and concise information on industry-specific ESG risks and opportunities, SASB disclosures enable more effective dialogue between companies and their investors.
- Complementary Reporting: SASB reporting complements other ESG disclosure frameworks such as the Global Reporting Initiative (GRI), Task Force on Climate-related Financial Disclosures (TCFD), and Carbon Disclosure Project (CDP). Companies can use SASB standards in conjunction with these frameworks to provide comprehensive and holistic ESG disclosures that address the needs of various stakeholders.
- Encouraging Accountability: By encouraging companies to disclose industry-specific ESG metrics, SASB promotes accountability and transparency in sustainability reporting. This enables investors, regulators, and other stakeholders to hold companies accountable for their ESG performance and progress towards sustainability goals.
SASB is now part of the International Sustainability Standards Board (ISSB)
The integration of the Sustainability Accounting Standards Board (SASB) into the International Sustainability Standards Board (ISSB) under the umbrella of the International Financial Reporting Standards (IFRS) Foundation marks a significant milestone in the evolution of sustainability reporting standards. Here are the key points regarding this development:
- Formation of ISSB: The ISSB was established by the IFRS Foundation in response to the growing demand for transparent and consistent sustainability disclosures by companies worldwide. This initiative aims to address the urgent need for globally recognized standards for financially related sustainability reporting.
- Global Framework: The ISSB operates alongside the International Accounting Standards Board (IASB) and is positioned to become the global framework for sustainability reporting, similar to how the IASB serves as the global standard-setter for financial accounting regulations.
- Alignment with SASB: As part of the merger, SASB’s industry-based standards are recognized by the ISSB. The ISSB plans to further align SASB metrics within its framework through a revision process. This alignment enhances the credibility and relevance of SASB standards on a global scale.
- Regulatory Development: The ISSB’s standards are expected to influence regulatory developments at the national level. For example, the European Union has already introduced the Corporate Sustainability Disclosure Standard, reflecting the trend towards mandatory sustainability reporting requirements.
- Voluntary vs. Regulatory Disclosures: While SASB standards remain voluntary, their adoption positions companies ahead of potential regulatory mandates. By complying with SASB standards, companies demonstrate their commitment to transparent and consistent sustainability reporting, mitigating regulatory risks and enhancing stakeholder trust.
- Clear Path to Compliance: SASB provides companies with a clear pathway to navigate the transition from voluntary to regulatory disclosures. By adhering to SASB standards, companies can streamline their reporting processes and prepare for future regulatory requirements, ensuring compliance with evolving sustainability reporting frameworks.
Overall, the integration of SASB into the ISSB reinforces the importance of industry-based sustainability standards and paves the way for greater harmonization and consistency in sustainability reporting practices globally. This development underscores the growing recognition of sustainability as a fundamental aspect of corporate governance and financial decision-making.
What ECG can do
ECG’s SASB Reporting service is designed to assist organizations in meeting the requirements of the SASB Standards and providing accurate, comparable, and high-quality information. Our comprehensive process includes the following steps:
- Identification of Applicable Standards: We determine the specific SASB industry standards relevant to your company based on your industry sector. This ensures that your reporting efforts are tailored to the unique ESG considerations of your industry.
- Materiality Assessment: Conducting an initial materiality assessment helps identify which reporting categories are most material to your organization within the context of your industry. This ensures that your reporting priorities are aligned with the issues most relevant to your stakeholders and business operations.
- Alignment with Other Frameworks: We manage your company’s alignment with other ESG reporting frameworks, such as GRI, TCFD, ISSB, and the UN Sustainable Development Goals. This ensures consistency and coherence across your sustainability reporting efforts.
- Mapping Sustainability Goals to SASB Standards: We map your current sustainability goals and initiatives to the specific requirements of the SASB standards. This alignment ensures that your reporting reflects your organization’s strategic objectives and commitments.
- Identification of KPIs and Metrics: We identify the key performance indicators (KPIs) and metrics necessary for SASB reporting, ensuring that your disclosures are robust and comprehensive. We also uncover any data management gaps and opportunities to enhance data collection and reporting processes.
- Content Index Development: Developing a content index helps support the organization and navigation of your disclosures for stakeholders. This ensures that your reporting is accessible and user-friendly, enhancing transparency and accountability.
- Assurance-Ready Reporting: We develop ‘assurance-ready’ environmental, social, and economic report content that is verifiable and meets the highest standards of accuracy and reliability. This helps showcase your company’s ESG accomplishments with credibility and integrity.
- Communication of Accomplishments: We assist in communicating your sustainability accomplishments with stakeholders, investors, and the public through effective communication channels and platforms. This helps enhance stakeholder engagement and trust.
- Leveraging Reporting Outcomes: We help leverage reporting outcomes to inform further development of your ESG strategy and set corporate priorities, including science-based targets. This ensures that your sustainability efforts are aligned with evolving best practices and stakeholder expectations.
Overall, ECG’s SASB Reporting service provides organizations with the guidance and support needed to navigate the complex landscape of sustainability reporting and effectively communicate their ESG performance and accomplishments.
Materiality is a key concept in SASB reporting, as it helps companies understand what issues are financially material to their specific industry and therefore require disclosure. SASB provides a Materiality Map for each of the 77 industries it covers, outlining the areas of materiality that companies should focus on in their reporting.
ECG can assist organizations in better understanding what is considered financially material to their industry by leveraging the SASB Materiality Map. We help companies collect the necessary data for reporting and ensure that their disclosures align with SASB standards.
As the reporting landscape evolves towards double materiality, which considers both financial materiality (as addressed by SASB) and the broader impacts of a company on society and the environment (as addressed by frameworks like GRI), ECG incorporates SASB materiality results into a comprehensive double materiality assessment.
By conducting an initial materiality assessment, we help organizations identify the areas that need to be addressed in their ESG reports and determine how best to showcase their ESG accomplishments. This process ensures that companies focus on the most relevant issues and effectively communicate their sustainability performance to stakeholders.
Integrating the United Nations Sustainable Development Goals (SDGs) into your sustainability strategy is a powerful way to contribute to global sustainable development while also gaining a competitive advantage. The SDGs provide a framework for addressing pressing global challenges and offer companies a roadmap for aligning their operations with broader societal and environmental priorities.
Here are some key benefits of incorporating the SDGs into your sustainability strategy:
- Strategic Alignment: Linking your sustainability goals to the SDGs helps you focus on areas where your company can have the most significant impact. It provides a clear framework for strategic alignment with global priorities.
- Enhanced Transparency and Accountability: Actively measuring and reporting on your sustainability performance and contributions to the SDGs demonstrates your commitment to transparency and accountability. It builds trust with stakeholders who expect companies to contribute positively to society and the environment.
- Improved Stakeholder Relations: Including the SDGs in your business goals and reporting strengthens your relationship with stakeholders, including investors and customers. It shows that you are actively working towards global sustainability objectives.
- Competitive Advantage: Demonstrating your commitment to the SDGs can give your company a competitive edge in the marketplace. Leading on sustainability and innovation by tracking progress against the SDGs can differentiate your brand and attract socially conscious consumers.
- Positive Brand Image: Integrating the SDGs into your sustainability reporting enhances your brand image as a responsible and forward-thinking company. It showcases your dedication to being a socially and environmentally conscious organization, which can improve customer loyalty and brand reputation.
- Long-Term Value Creation: Investing in sustainable practices and contributing to the SDGs can lead to long-term value creation. Sustainable companies are often better positioned to navigate risks, adapt to changing market conditions, and attract top talent, driving innovation and growth.
Overall, integrating the SDGs into your sustainability strategy not only benefits society and the environment but also strengthens your business in the long run. It aligns your company with global priorities, enhances stakeholder trust, and fosters innovation and resilience in the face of evolving challenges.
Integrating the Sustainable Development Goals (SDGs) into your sustainability journey involves several key steps:
- Identify Relevant SDGs: Our experts will assist you in identifying which of the 17 SDGs are most relevant to your business operations, industry, and goals. This involves understanding the impact opportunities and challenges your organization faces and aligning them with the corresponding SDGs. For example, if your organization is focused on providing affordable and clean energy solutions, SDG 7 (Affordable and Clean Energy) would be relevant.
- Implement Sustainable Strategy Alignment: Once relevant SDGs are identified, we work with your company to align your business goals with these global objectives. This ensures that your initiatives extend impact beyond your business footprint and contribute to a more sustainable world. We help establish clear and measurable SDG-aligned targets that integrate with your company’s existing goals, values, and challenges. Additionally, we support decision-making towards joining initiatives like the UN Global Compact, which promotes business integration of the SDGs.
- Support Data Integration of Performance Indicators: We collaborate with your team to identify key metrics and performance indicators aligned with the selected SDGs. These indicators should be feasible to manage within your current systems and should provide accurate, reliable, and up-to-date data. Integrating these indicators into your reporting framework ensures that progress towards SDG-aligned targets is effectively measured and communicated.
- Integrate SDGs into Reporting Frameworks: We assist your team in embedding the selected SDGs, along with associated targets, metrics, and indicators, into your existing sustainability reporting frameworks. This may include frameworks such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), or International Integrated Reporting Council (IIRC) guidelines. By integrating the SDGs into your reporting structure and narratives, you demonstrate your organization’s commitment to sustainable development and transparency.
- Manage the Sustainability Report Publication Process: We guide your team through the process of publishing your annual sustainability report with SDG-aligned reporting. Our comprehensive service includes creative design and layout support, ensuring that your report effectively communicates your organization’s positive impact on communities and the environment. Additionally, we provide support for reporting to initiatives like the UN Global Compact, further enhancing your company’s commitment to sustainable development.
By following these steps, your organization can effectively integrate the SDGs into its sustainability journey, aligning business objectives with global sustainability goals and contributing to a more sustainable future.
The Importance of TCFD
The Task Force on Climate-Related Financial Disclosure (TCFD) plays a pivotal role in guiding businesses worldwide towards effective climate risk management and transparent reporting on climate-related financial information.
Here’s why TCFD is important:
- Leading Global Framework: TCFD has emerged as the foremost global framework for addressing climate-related financial risks and disclosures. Its prominence has grown significantly as businesses recognize the urgent need to address climate change and its financial implications.
- Consistent Reporting Framework: TCFD provides a structured framework for companies to report on climate-related financial risks and opportunities in a consistent manner. This enables investors, lenders, rating agencies, and other stakeholders to access comparable information necessary for informed decision-making.
- Enhanced Climate Governance: TCFD recommendations help companies strengthen their climate governance capacities. By establishing robust governance structures, companies can better understand and manage their exposure to climate-related risks, thereby safeguarding their bottom line.
- Risk Management: TCFD assists companies in identifying and assessing climate-related risks that could impact their financial performance. By comprehensively understanding these risks, businesses can develop strategies to mitigate them, ensuring resilience in the face of climate change.
- Integration into Business Practices: The TCFD framework is increasingly integrated into business practices, particularly in terms of governance and public disclosure. For instance, platforms like the CDP Climate questionnaire align with TCFD recommendations, facilitating the adoption of TCFD-aligned reporting by companies globally.
Overall, TCFD provides a structured approach for companies to navigate climate-related financial risks and opportunities, enhancing transparency, resilience, and informed decision-making in the face of climate change.
The Task Force on Climate-Related Financial Disclosures (TCFD) has transitioned from a voluntary framework to becoming a cornerstone of mandatory climate-related disclosures globally. Here’s how this evolution has unfolded:
- Establishment and Evolution: TCFD was established in 2015 by G20 Finance Ministers and Central Bank Governors within the Financial Stability Board (FSB). Since then, it has evolved to become a pivotal framework for addressing climate-related financial risks and disclosures.
- Transfer of Oversight to IFRS Foundation: In July 2023, the FSB announced that the monitoring of progress on companies’ climate-related disclosures would be transferred to the International Financial Reporting Standards (IFRS) Foundation, effective January 2024. This coincides with the publication of ISSB standards, IFRS S1 and IFRS S2, which fully incorporate the TCFD framework into global reporting standards.
- Global Adoption and Mandates: TCFD’s framework has underpinned new and proposed climate-related regulations across G20 countries. It has rapidly been adopted globally by publicly traded companies, moving from voluntary to mandatory compliance in various jurisdictions:
- Signatories of the UN Principle of Responsible Investment (PRI) are now required to report in line with specific TCFD recommendations.
- In 2021, G7 countries agreed to move toward mandatory disclosure of climate-related risks.
- The UK became the first country to incorporate TCFD into mandatory reporting with the Climate-related Financial Disclosure Regulations in April 2022.
- The European Union adopted the Corporate Sustainability Reporting Directive with TCFD alignment, effective from January 1, 2024, impacting upwards of 50,000 companies.
- In June 2023, ISSB published two inaugural Standards fully incorporating the TCFD framework into global sustainability-related disclosures.
- The United States Securities and Exchange Commission (SEC) proposed rule on climate-related disclosures aligns strongly with TCFD, with a final rule expected by the end of 2023.
- ECG Support: ECG offers support to companies of all sizes in optimizing their sustainability governance structures and preparing for regulatory compliance, ensuring alignment with TCFD framework and standards.
Overall, TCFD has played a crucial role in driving the transition from voluntary to mandatory climate-related disclosures, facilitating greater transparency, accountability, and resilience in the face of climate change.
A greenhouse gas (GHG) emissions reduction strategy is a crucial framework for organizations to mitigate their environmental impact and work towards sustainability goals.
Creating a strategy to reduce GHG emissions empowers companies to pinpoint emission sources, establish scientifically-grounded targets for emission reduction, enact measures to reach these goals, and gain insights into effectively monitoring progress towards their targets.
Here’s an overview of its components and benefits:
- Definition: A GHG emissions reduction strategy comprises actions, programs, and policies aimed at reducing the carbon footprint of a specific entity, such as a company, municipality, or government. It is designed to achieve targeted reductions in greenhouse gas emissions (GHGs) over a defined timeframe.
- Scope: A comprehensive GHG emissions strategy addresses emissions from direct operations (Scope 1 & 2) as well as those associated with value chains and product use (Scope 3). This approach considers emissions hot spots and high-emitting activities within an organization’s operations and supply chain.
- Measures: Common measures in a GHG emissions reduction strategy include:
- Improving energy efficiency in operations and facilities.
- Transitioning to renewable energy sources.
- Implementing low-carbon transportation options.
- Collaborating with value chain partners to reduce emissions collectively.
- Objectives:
- Identifying Emissions Sources: Organizations assess their emissions sources to understand where emissions occur and their magnitude.
- Setting Science-Based Targets: Based on assessment findings, organizations set ambitious but achievable targets aligned with scientific recommendations to limit global warming.
- Implementing Actions: Strategies include implementing measures to reduce emissions, such as adopting renewable energy or improving operational efficiency.
- Tracking Progress: Organizations establish mechanisms to monitor and track progress towards emission reduction targets, allowing for adjustments and improvements over time.
- Benefits:
- Environmental Impact: Reduction strategies help mitigate climate change by lowering GHG emissions, contributing to overall environmental sustainability.
- Operational Efficiency: Improving energy efficiency and transitioning to renewable sources can lead to cost savings and operational efficiencies.
- Compliance and Reputation: Meeting emission reduction targets demonstrates environmental responsibility, enhancing regulatory compliance and reputation.
- Risk Management: Addressing emissions hot spots and reducing dependence on high-carbon energy sources reduces exposure to regulatory, physical, and reputational risks associated with climate change.
- Innovation and Competitiveness: Embracing low-carbon technologies and practices fosters innovation and positions organizations competitively in a low-carbon economy.
In summary, a GHG emissions reduction strategy is essential for organizations to proactively address climate change, achieve sustainability objectives, and remain resilient in a rapidly evolving business and environmental landscape.
What ECG can do
An emissions reduction strategy plays a pivotal role in achieving a net zero commitment, ensuring organizations proactively address climate change and transition towards sustainable operations. Here’s how such a strategy contributes to achieving net zero emissions:
- Setting Science-Based Targets (SBTs): ECG assists clients in setting SBTs aligned with the Paris Agreement’s goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels. These targets provide a clear direction for emissions reduction efforts and ensure that organizations contribute to global climate action.
- Roadmap Development: Developing a detailed emissions reduction roadmap is crucial for bridging the gap between near-term targets and long-term net zero commitments. This roadmap outlines key milestones, actions, and timelines necessary to achieve emission reduction goals. It empowers organizations to make informed decisions and prioritize initiatives effectively over time.
- Compliance with Standards: Emissions reduction roadmaps are established in accordance with the Science-Based Targets Net Zero Standard, ensuring that strategies are robust and aligned with best practices. Compliance with recognized standards enhances credibility and demonstrates a commitment to addressing climate change effectively.
- Long-Term Planning: By focusing on long-term emissions reduction goals, organizations can plan and implement strategies that facilitate a gradual transition towards net zero emissions. This approach enables them to identify and address challenges proactively, ensuring sustained progress over time.
- Staying on Track: ECG supports clients in staying on track towards their net zero targets by regularly monitoring progress against established milestones and adjusting strategies as needed. Continuous tracking and evaluation ensure that organizations remain accountable and responsive to evolving circumstances.
In summary, an emissions reduction strategy, developed in line with science-based targets and supported by a comprehensive roadmap, is instrumental in guiding organizations towards achieving net zero emissions. By aligning actions with global climate goals and adopting robust planning processes, organizations can effectively contribute to addressing climate change and securing a sustainable future.
Advisory
Establishing an emissions reduction strategy is a multifaceted process that involves several key steps to ensure effective planning, implementation, and monitoring. Here’s a detailed outline of the process:
- Assess Direct and Indirect Emissions: Begin by conducting a comprehensive assessment of both direct (Scope 1) and indirect (Scope 2 and 3) emissions associated with your organization’s operations, including energy consumption, transportation, supply chain activities, and other relevant sources.
- Prioritize Emissions Reduction Measures: Identify and prioritize emissions reduction measures based on their potential impact, feasibility, and alignment with organizational goals. Consider factors such as cost-effectiveness, technological feasibility, and stakeholder preferences when selecting measures to prioritize.
- Establish Short- and Long-Term Targets: Set clear, measurable, and time-bound targets for reducing greenhouse gas emissions. These targets should be ambitious yet achievable, taking into account both short-term goals (e.g., reducing emissions by a certain percentage within the next five years) and long-term objectives (e.g., achieving net zero emissions by a specific target year).
- Develop a Roadmap and Implement an Action Plan: Develop a detailed roadmap outlining the steps and actions required to achieve emissions reduction targets. This roadmap should include specific initiatives, investments, policy changes, and other interventions necessary to drive progress towards the established goals. Implement the action plan systematically, allocating resources, assigning responsibilities, and tracking progress.
- Monitor and Report Progress Over Time: Implement robust monitoring and reporting mechanisms to track progress towards emissions reduction targets. Regularly collect and analyze data on emissions performance, evaluate the effectiveness of implemented measures, and adjust strategies as needed to stay on track. Transparently report progress to stakeholders, investors, regulators, and other relevant parties to demonstrate accountability and drive continued momentum towards emissions reduction goals.
By following this process, organizations can develop a comprehensive emissions reduction strategy that effectively addresses their carbon footprint, contributes to global climate goals, and enhances sustainability performance over time.
Developing procedures and processes to meet global mining certification standards is crucial for ensuring responsible and sustainable mining practices.
What ECG can do
Here’s how ECG can support mining companies in this endeavor:
- Initiative for Responsible Mining Assurance (IRMA)
ECG can assist mining companies in aligning their operations with the standards set by IRMA, which focus on social and environmental responsibility throughout the mining lifecycle. This may involve conducting gap assessments, implementing best practices, and preparing for third-party audits. - International Council on Mining and Metals (ICMM)
ECG can help mining companies adhere to the principles and standards established by ICMM, which cover areas such as environmental performance, social responsibility, and stakeholder engagement. This may include developing policies, procedures, and management systems to meet ICMM requirements. - Towards Sustainable Mining (TSM)
ECG can support mining companies in implementing the TSM program, which focuses on enhancing environmental and social performance in mining operations. This may involve conducting performance assessments, implementing improvement initiatives, and reporting on key indicators. - Responsible Steel
ECG can assist steel mining and production companies in achieving Responsible Steel certification, which demonstrates adherence to sustainability and responsible sourcing criteria. This may involve establishing traceability systems, improving resource efficiency, and engaging with stakeholders along the supply chain. - Aluminum Stewardship Initiative (ASI)
ECG can help aluminum mining and production companies comply with ASI standards, which promote responsible production, sourcing, and stewardship of aluminum. This may involve implementing environmental management systems, conducting risk assessments, and achieving ASI certification.
In the jewelry industry, sustainability and traceability are becoming increasingly important considerations for consumers and stakeholders. ECG offers specialized support to jewelry companies looking to develop and manage their sustainability strategies and processes, particularly focusing on supply chain management.
What ECG can do
Here’s how we can assist:
- Benchmarking: ECG can conduct comprehensive benchmarking assessments to evaluate your company’s sustainability performance relative to industry peers and best practices. This involves analyzing key sustainability metrics, such as environmental impact, ethical sourcing practices, and social responsibility initiatives, to identify areas for improvement and opportunities for differentiation.
- Strategy Development: ECG works closely with jewelry companies to develop tailored sustainability strategies aligned with their business goals and stakeholder expectations. This includes defining sustainability objectives, setting measurable targets, and identifying initiatives to address environmental, social, and governance (ESG) challenges throughout the supply chain.
- Management Support: ECG provides ongoing management support to help implement and oversee sustainability initiatives effectively. This may involve establishing governance structures, allocating resources, and integrating sustainability considerations into day-to-day operations and decision-making processes.
- Supply Chain Management: ECG assists jewelry companies in enhancing supply chain transparency and traceability to ensure responsible sourcing of materials, such as precious metals and gemstones. This includes implementing traceability systems, conducting supplier assessments, and engaging with stakeholders to promote ethical and sustainable practices across the supply chain.
- Continuous Improvement: ECG emphasizes a continuous improvement approach to sustainability management, helping jewelry companies monitor performance, track progress against targets, and adapt strategies as needed. This involves regular performance assessments, stakeholder engagement, and transparent reporting to demonstrate commitment to sustainability and accountability.
By leveraging ECG’s expertise in the jewelry space, companies can strengthen their sustainability efforts, enhance brand reputation, and meet the growing demand for ethically sourced and environmentally responsible jewelry products
Ensuring the traceability of diamonds is crucial for addressing concerns related to ethical sourcing, conflict-free origins, and sustainability in the jewelry industry. ECG offers specialized support to jewelry companies seeking to enhance diamond traceability and comply with upcoming G7 legislation requirements.
What ECG can do
Here’s how we can assist:
- Traceability Solutions Evaluation: ECG collaborates with leading traceability providers to assess and identify suitable traceability solutions for diamonds within your supply chain. This involves evaluating various technologies, platforms, and certification programs designed to track the journey of diamonds from mine to market while ensuring transparency and authenticity.
- Implementation Support: Once a traceability solution is selected, ECG provides implementation support to integrate the chosen technology or certification program into your diamond supply chain. This may include configuring systems, establishing data protocols, training personnel, and conducting pilot tests to ensure seamless adoption and functionality.
- Compliance with G7 Legislation: ECG assists jewelry companies in understanding and preparing for upcoming G7 legislation requirements related to diamond sourcing disclosure. This involves staying abreast of regulatory developments, interpreting legislative mandates, and developing strategies to meet compliance obligations effectively and efficiently.
- Supplier Engagement and Due Diligence: ECG helps jewelry companies engage with diamond suppliers and conduct due diligence to verify the authenticity and ethical sourcing of diamonds. This includes assessing supplier practices, auditing supply chain processes, and promoting responsible sourcing standards to uphold industry best practices and legal requirements.
- Certification and Verification: ECG supports companies in obtaining relevant certifications and verifications to validate the authenticity and ethical provenance of diamonds. This may include certifications from recognized industry bodies, such as the Responsible Jewellery Council (RJC) or the Kimberley Process Certification Scheme (KPCS), as well as independent third-party audits and assessments.
- Continuous Monitoring and Improvement: ECG emphasizes the importance of continuous monitoring and improvement in diamond traceability efforts. We help companies establish monitoring mechanisms, conduct regular audits, and implement corrective actions to address any gaps or issues identified in the traceability process, ensuring ongoing compliance and accountability.
By leveraging ECG’s expertise in diamond traceability and compliance, jewelry companies can enhance transparency, build consumer trust, and demonstrate commitment to ethical and responsible sourcing practices in their diamond supply chains.
ECG offers specialized support to luxury goods and apparel companies aiming to enhance sustainability and traceability throughout their product lifecycle.
What ECG can do
Here’s how we can assist:
- Sustainability Strategy Development: ECG collaborates with luxury goods and apparel companies to develop tailored sustainability strategies aligned with industry best practices and stakeholder expectations. This involves conducting comprehensive assessments of current practices, identifying key sustainability priorities, and setting ambitious yet achievable goals to drive meaningful change across the supply chain.
- Supply Chain Management: ECG provides expertise in supply chain management to help companies optimize their operations for sustainability and traceability. This includes mapping supply chains, assessing supplier practices, implementing ethical sourcing standards, and fostering transparent communication and collaboration with suppliers to ensure compliance with sustainability criteria and standards.
- Life Cycle Assessments (LCA): ECG assists companies in conducting Life Cycle Assessments (LCAs) for their products to evaluate environmental impacts across the entire lifecycle, from raw material extraction to end-of-life disposal or recycling. LCAs help identify areas for improvement, prioritize sustainability initiatives, and communicate transparently with stakeholders about the environmental footprint of products.
- Comparative Assertions: ECG supports companies in leveraging comparative assertions to differentiate their products in the marketplace based on sustainability performance. This involves conducting benchmarking analyses, evaluating product attributes against industry benchmarks and standards, and developing compelling messaging to communicate sustainability benefits to consumers and stakeholders.
- Traceability Solutions Integration: ECG helps luxury goods and apparel companies integrate traceability solutions into their supply chains to enhance transparency and accountability. This may include adopting blockchain technology, RFID tagging, or other traceability tools to track the origins and movement of materials and products, ensuring compliance with ethical sourcing standards and regulatory requirements.
- Stakeholder Engagement: ECG facilitates stakeholder engagement processes to build trust, transparency, and collaboration across the value chain. This involves engaging with suppliers, consumers, investors, and other stakeholders to solicit feedback, address concerns, and communicate progress on sustainability initiatives, fostering a culture of continuous improvement and shared responsibility.
By partnering with ECG, luxury goods and apparel companies can strengthen their sustainability performance, enhance brand reputation, and demonstrate leadership in addressing environmental and social challenges throughout their operations and supply chains.