- Published on
Talking ESG: PwC’s perspectives on enhancing the GHG Protocol
- Authors
- Name
- ESG Insights
Revolutionizing ESG Reporting: #ESG #Sustainability #Business🌍💼📈
3 Key Takeaways:
- Emphasize governance and update protocols in GHG reporting.
- Advocate for flexible, yet precise standards for emissions data.
- Align GHG protocols with evolving technologies and stakeholder needs.
Further Insights:
Standard Evolution The GHG Protocol requires rapid adjustments to meet diverse stakeholder requirements. The protocol must focus on improved governance to facilitate updates and ensure relevance.
Stakeholder Diversity Increased range of stakeholders, including investors and accountants, necessitates the GHG Protocol to cater to broader needs, leaning towards a neutral stance with core principles for emissions reporting.
Data Accuracy Recommendations include transparent disclosure of data sources and estimation methods, alongside a hierarchical approach to data quality, akin to financial reporting standards.
Lease Accounting Align GHG reporting on leases with financial reporting updates, eliminating the distinction between operating and finance leases for emissions reporting consistency.
Scope Fundamentals Scope 1, 2, and 3 emissions calculations should be refined for accuracy and practical application, including reconsidering dual reporting requirements for scope 2 to focus on location-based methods.
Technological Adaptability The GHG Protocol must evolve with market developments and new technologies to ensure accurate and relevant emissions reporting, potentially incorporating a mechanism for ongoing adaptation.
Closing Thoughts: As the GHG Protocol embarks on a journey of transformation to align with the current landscape of ESG reporting, it faces the challenge of integrating diverse stakeholder perspectives while maintaining neutrality. How can it foster inclusivity in its governance and standards revision process to ensure the protocols are both dynamic and robust? This pivotal evolution presents an opportunity for businesses to rethink their sustainability strategies, potentially setting a new standard for ESG reporting globally.