CDP recently collaborated with three of our verification accredited solutions providers LRQA, Lucideon and KERAMIDA Inc. to produce a report which explores the business benefits, practical considerations and best practice for third-party verification of environmental data.
We are grateful for their expertise and insight in creating this valuable resource. Below we pull out some of the key findings – to see them in detail please take a look at the full report.
Demand for verification is growing. Investors, customers, regulators, media and even employees are all taking a keen interest in what companies are doing to reduce their impacts in line with the climate science limiting global warming to 1.5°C and with what’s needed to create a nature-positive, deforestation-free world.
Carbon-related regulation is increasing (and with it, a growing necessity for reporting on emissions across all scopes). Regulators are calling for companies to set credible targets, generated using a robust methodology consistent with limiting warming to 1.5°C.
Reporting progress towards this target, and on your emissions in general via publicly disclosed verified emissions data, will create a competitive advantage. Scope 3 emissions are most likely to be challenging to quantify and to improve upon, but they are the most important for an organization to reduce its emissions towards net-zero and to manage the business risks posed.
Disclosure across all three Scopes remains the goal. Organizations that have fully embedded their carbon reporting processes for Scopes 1 and 2 into their core management systems are ideally placed to extend those to their Scope 3 emissions and to reap the rewards.
The most important first step is to determine which of the Scope 3 emissions are most material to your business – it is these categories of emissions that should be addressed as a priority.
Verification of water and forests-related data is also growing in importance. This is evident in the upcoming regulation relating to biodiversity and the introduction of science-based targets for nature. Verification of water-related impacts, risks and opportunities will provide organizations with the assurance that these are correctly identified and quantified.
From here business policy, strategy and improvement targets can be established, implemented, monitored and communicated to engage with all stakeholders for continual improvement of water disclosure. Verification of forests products to credible certification standards assures companies that forest products are legal, deforestation free, and traceable to their original source; and consumers that environmental considerations have been taken into account.
The benefits of third-party verification of environmental data are wide reaching and critical. Companies need to incorporate verification into their standard business practices going forwards in order to reap these benefits. Third-party verification can improve your credibility and reputation as well as your internal processes. It can help you identify risks and opportunities, increase the reliability of data, give you a competitive advantage and even create cost savings.
There are a number of factors to consider in relation to verification. When verifying environmental data, practical considerations include ensuring you have clarity on your GHG emissions inventory, choosing the right verification body, deciding whether to opt for limited or reasonable assurance, and considering the timing of the verification process.
If you haven’t started looking at verifying environmental data – now is the time.
For more information on the report or to request an introduction to a CDP accredited verification solutions provider, please contact [email protected]. If you’re a verification provider interested in learning how to become a CDP accredited verification solutions provider, please also get in touch.