The most recent report from the Intergovernmental Panel on Climate Change has called the path we are on to limit global temperature rise at the current rate as being “catastrophic” by many scientists. The IPCC report is very clear on the urgency of addressing climate change. The findings suggest that the carbon emissions from human activities need to be reduced dramatically if we are to limit climate change to under 2 degrees Celsius. It also calls for “negative emissions,” or removing more CO2 from the air than we emit.
A key factor in reducing and eliminating CO2 emissions is first to quantify them. What is not measured cannot be improved, and software technologies are key to solving this problem as they are accessible tools to help businesses quantify their environmental impacts.
ESG & Sustainability Data: The Backbone of the Climate Tech Industry?
Investors are now demanding climate data as the way that businesses handle their climate strategy is a long-term risk to shareholders. However, it is not enough to simply provide data on their climate programs; this data must be verified by auditing firms.
Ambitious sustainability goals are common these days, but as companies collect and share data about their impact on the environment and realign processes to reduce emissions they’re learning that achieving those goals is a lot more than filling out a framework. Corporations and Big Four accounting firms are already being subjected to audit their climate reports in the same way they would financial results.
Quantifying Data for EU Regulations
EU regulations and sustainability reporting such as the Corporate Sustainability Reporting Directive will soon become mandatory for large businesses within the next few years. The more companies wait to start data collection, reporting and transforming their organization’s climate strategy, the more drastic the change will need to be once regulations are in place.
This is why ESG & sustainability data is so crucial for investors and is called by some the ‘backbone’ of the climate tech industry. The value that this data has is the key to shareholder decision-making as well as keeping businesses aligned with EU regulations and the upcoming SEC climate disclosure rules.
Discover the top ESG and sustainability software providers
