Article
Unlocking value: How GHG emissions assurance boosts confidence and reduces costs
June 17, 2024 · Authored by Kelly Bourbon, Alyssa Rade, Sustain.Life
Each passing year, often as part of a larger environmental, social and governance (ESG) strategy, a growing number of organizations embrace the task of measuring and disclosing greenhouse gas (GHG) emissions. Whether driven by impending regulatory mandates, mounting stakeholder expectations, or internal commitments to sustainability, this trend is unmistakable. As the demand for GHG emissions reporting intensifies, so does the call for independent, third-party assurance to uphold the integrity and reliability of the underlying data.
Current GHG emissions assurance landscape
Currently (and unsurprisingly), large organizations are spearheading the adoption of third-party assurance over GHG emissions data to strengthen the credibility of their disclosures. However, due to increased stakeholder expectations and regulatory requirements, the imperative for middle-market organizations to embrace GHG emissions assurance is on the very near horizon.
Certainly, there exists a degree of reluctance around undertaking third-party GHG emissions assurance; for some business leaders, allocating resources to scrutinize non-financial data is challenging to accept. It’s easy to see the value in attaining third-party assurance over quantitative reporting like annual financial statements—the level of financial rigor this undertaking conveys to investors, creditors and stakeholders is plain to see. However, for many organizations, especially private enterprises, leaders have struggled to calculate a motivating return on investment when it comes to assurance over non-financial data—until now. In light of recent booms in GHG emissions-related regulatory mandates and increased pressure from investors and stakeholders, the demand for GHG emissions data reporting and assurance continues to intensify.
Benefits of assurance over GHG emissions data
Organizations are increasingly directing resources towards third-party GHG emissions assurance for many reasons, stemming from both internal and external pressures.
