We’re past the point of simply saying you’re committed to sustainability, it’s time for tangible and verified action.
This is what many are calling for in response to the recent rise in Greenwashing and subsequent erosion of trust from consumers and other stakeholders regarding any green claims.
As a result, a number of voluntary disclosure schemes have been created to help benchmark and verify organisation’s claims, should they choose to participate. One example being the focus of today’s episode: EcoVadis.
In this episode Mel Blackmore continues with our voluntary disclosure’s series, discussing the ESG rating scheme EcoVadis, what is required to earn a Platinum rating and provides some tips on how to get that Platinum rating.
You’ll learn
- What is EcoVadis?
- What are the requirements to achieve a Platinum rating?
- Top tips for earning an Platinum rating for EcoVadis
- What are the advantages of earning a Platinum rating?
- What are the disadvantages of getting involved with EcoVadis?
Resources
- EcoVadis
- Carbonology
- Contribute to Mel’s carbon verification commitment research by taking her Survey
In this episode, we talk about:
[02:05] Episode Summary – Mel discusses the voluntary disclosure scheme: EcoVadis, including what’s involved with taking part, how to achieve a Platinum rating and the pros and cons of being benchmarked.
[03:00] Why is there a need for EcoVadis? An increased number of investors and financial institutions, in addition to clients are demanding more than just financial reports. They want to know what a company’s environmental footprint is, and at this point, it’s time to move on beyond simply making pledges.
This extends to other elements of governance as EcoVadis doubles as a crucial ESG rating scheme.
[04:30] What is EcoVadis? EcoVadis is a globally recognised provider of business sustainability ratings. They assess companies’ environmental, social, and ethical performance across 21 indicators and four main themes: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement.
EcoVadis aims to help organisations manage their supply chain sustainability risks and opportunities. If you’re a supplier, you’ve likely received a request from a customer to complete an EcoVadis assessment.
The assessment process involves completing a detailed questionnaire, submitting supporting documentation, and then EcoVadis analysts review your submission and assign a scorecard. This scorecard provides a detailed breakdown of your performance across the four themes and assigns an overall score and a medal status: Bronze, Silver, Gold, or Platinum.
It’s this medal status that’s crucial, especially those coveted Gold and Platinum badges, which signal to your customers that you are a top-tier performer in sustainability.
[05:40] We want to hear from you: Mel is currently running some research around CDP and the key drivers behind carbon emission verification, and would appreciate your feedback if you have a few minutes to spare.
The results are completely anonymous, and it should only take 5 – 10 minutes. You can take the survey here.
Thank you in advance to any contributors!
[06:05] What is required to achieve an Platinum Rating? – While EcoVadis assesses across four themes, the ‘Environment’ theme often carries significant weight, and within that, greenhouse gas (GHG) emissions management is paramount for the higher ratings.
To earn an EcoVadis Platinum rating, you’ll generally need to achieve an overall score between 78-100 out of 100. Key areas that you need to excel in include:-
1) Comprehensive Environmental Management System: This includes policies, actions, and reporting on a wide range of environmental issues. For Platinum, EcoVadis expects to see highly structured and systematic approaches to environmental management.
2) Robust GHG Emissions Management: For this you need to:
- Measure your GHG Emissions: Accurately calculate your Scope 1, Scope 2, and significant Scope 3 emissions. EcoVadis places increasing emphasis on Scope 3, as it often represents the largest portion of a company’s footprint.
- Set Ambitious Targets: Have clear, quantitative targets for GHG emission reduction. Aligning these with a science-based target (SBTi) is highly advantageous and often a de facto requirement for Platinum.
- Implement Reduction Initiatives: Demonstrate concrete actions you are taking to reduce emissions, such as investing in renewable energy, improving energy efficiency, optimizing logistics, or engaging your supply chain.
3) Independent Verification of GHG Emissions Data: This is a non-negotiable for Platinum and often for Gold. EcoVadis awards significant points for having your Scope 1 and Scope 2 GHG emissions (and increasingly, relevant Scope 3 categories) independently verified by a third-party accredited body. This provides assurance that your reported data is accurate and reliable. As a CDP accredited verification body, we routinely help companies through this process, and it makes a profound difference in their EcoVadis and overall ESG scores.
4) Strong Policies and Actions Across All Themes: While we’re focusing on environment, remember Platinum requires excellence across all four EcoVadis themes:
- Labor & Human Rights
- Ethics
- Sustainable Procurement
Implementing Standards such as ISO 37001 (Anti-Bribery and Corruption), ISO 27001 (Information Security), ISO 20400 (Sustainable Procurement) can help put some of these in place.
5) Effective Reporting and Transparency: You need to clearly articulate your policies, actions, and performance data within the EcoVadis questionnaire. This includes providing high-quality, relevant supporting documentation. To get the best result, don’t just tick boxes; provide evidence!
6) Continuous Improvement: EcoVadis looks for evidence of ongoing improvement. It’s not a one-off assessment; it’s about demonstrating a commitment to continually raising your standards.
[14:20] How to get an EcoVadis Platinum Rating with verified data? – Here’s a few tips:
- Start Early and Plan Strategically: Don’t wait until the last minute. The EcoVadis assessment requires significant time and effort. Plan your data collection, policy development, and verification process well in advance.
- Understand the EcoVadis Methodology: Download the EcoVadis methodology and scoring criteria. These double as guidance documents that explain what they’re looking for in each section. Tailor your responses and documentation accordingly.
- Invest in carbon accounting software: Accurate and consistent data is paramount. Implement systems (whether software or well-organized spreadsheets) to track your energy consumption, waste, water use, and especially your GHG emissions.
- Prioritize GHG Emissions Verification: Engage a reputable, accredited third-party verification body (like Carbonology 😉) to audit your Scope 1 and Scope 2 GHG emissions. Ensure the verification covers the reporting period relevant to your EcoVadis assessment. This provides the external assurance EcoVadis demands.
- Address All Four Themes: While environmental performance is crucial, don’t neglect Labor & Human Rights, Ethics, and Sustainable Procurement. A weak score in one area can pull down your overall rating.
- Leverage External Expertise: If you’re new to EcoVadis or aiming for a significant jump in your score, consider consulting with experts. They can help you identify gaps, optimize your strategy, and ensure your documentation meets EcoVadis’s requirements. Blackmores consultants are able to provide support if you’re seeking an EcoVadis rating.
- Continuous Improvement: Use the EcoVadis scorecard feedback to identify areas for improvement. Implement corrective actions and integrate them into your ongoing sustainability strategy. This commitment to continuous improvement is a strong indicator of a Platinum-level company.
[16:40] The pros and cons of EcoVadis: Many of these share similarities with the Carbon Disclosure Project, which we covered in a previous episode. To summarise:
Pros:
- Enhanced Reputation and Brand Value
- Risk Management and Resilience
- Cost Savings and Operational Efficiency
- Competitive Advantage
- Innovation and Strategic Planning
- Benchmarking and Peer Learning
Cons:
- Resource Intensive
- Potential for Negative Public Scrutiny
If you’d like any assistance with carbon verification, get in touch with Carbonology, they’d be happy to help!
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ISO consultancy isn’t a field many aspire to enter, mostly because many don’t know it exists until you’re tasked with either managing an existing ISO Management System or implementing a brand new one.
We’re continuing with our latest mini-series where we introduce members of our team, to explore how they fell into the world of ISO and discuss the common challenges they face while helping clients achieve ISO certification.
In this episode we introduce Alison Henshaw, an Isologist® at Blackmores, to learn about her journey from aspiring pub-landlord to becoming an ISO Consultant, and what drives her to help clients on their ISO journey.
You’ll learn
- What is Ali’s role at Blackmores?
- What does Ali enjoy outside of consultancy?
- What path did Ali take to become an ISO Consultant?
- What is the biggest challenge she’s faced when implementing ISO Standards?
- What is Ali’s biggest achievement?
Resources
In this episode, we talk about:
[02:05] Episode Summary – We introduce Alison Henshaw (Ali), an Isologist® here at Blackmores, to discuss her journey towards becoming an ISO consultant who specialises in ISO 20400 and ISO 26000.
[03:45] What is Ali’s role at Blackmores? Ali is an Isologist® with Blackmores, supporting companies with maintaining systems, undertaking internal audits, and supporting with implementing new systems to gain certification utilising our Isology methodology.
[04:00] What does Ali enjoy doing outside of consultancy?: Ali has a daughter aged 5, so a lot of her social life revolves around play dates and kids parties.
As a family, they are very outdoor orientated, enjoying long walks and camping. In the past Ali enjoyed swimming, often visiting family near the coast to make use of the more bracing bodies of water.
She also likes to craft, recently taking up knitting as her mum often knits for different charitable causes. So far, she’s mastering the art of the knitted rectangle, which lends itself nicely to scarves and blankets.
Lastly, Ali is also a fan of photography due to her father sharing a similar interest. Most of her subject matter revolves around family and the outdoors.
[06:45] What was Ali’s path towards becoming an ISO Consultant?: Ali states that none of her working roles so far have been purposeful, rather more serendipitous.
She started managing pubs at the age of 18, after which she did relief management where she would cover different manager absences in pubs near her home. The owner of the pub she was working with at the time was looking to sell, and for a time, her plan had to been to buy and run it. Unfortunately, as she was only 18, she needed to have some form of business qualification to allow her to progress with that.
This led to Ali starting a part-time business management degree, At the time one of her pub regulars was recruiting for the production departments on a shift basis. So she ended up packing wallpaper on a factory floor for 3 days a week while earning her degree.
Sadly, by the time she had earned her degree, the pub she wanted to buy had been knocked down and turned into a block of flats! Though, after working in a different industry for 2 years she came to reevaluate her desire to run pubs, and came to the conclusion that she rather preferred the manufacturing industry and it’s ability to create something.
Ali also enjoyed the people within the factory she had been working at, and opted to stay there with her mentor, the Technical Manager, who offered her a place in the technical floor. So began her new role as the quality assurance technician.
This progressed as Ali worked her way up through Assistant quality tech to quality tech, to assistant quality manager to quality manager. Her mentor at the time was phasing out to retire, so Ali was essentially his legacy plan.
When he did retire Ali became the Quality Technical R&D and Health and Safety Manager. While in that role Ali implemented ISO 9001, in addition to business research and development programmes for product and process development compliance. Which amounted to sitting on trade association technical committees, monitoring upcoming legislation and also contributing to British technical committees that helped write the legislation for the wall-coverings sector. She later went onto help them implement ISO 45001.
Ali then had her daughter, Angie, during lockdown. For as much as she loves the manufacturing sectors, the worktime for those roles isn’t very flexible. She knew that when looking back, she would rather have spent more time with her daughter than working, so she wanted to find something with a bit more flexibility to allow her to spend quality time with her family. It wasn’t an easy decision by any means, but she was drawn to consultancy due to the variety of work and clients and the increased flexibility it would allow.
She Started to work with Blackmores following lockdown, appreciating the family values that our business was built on. Here she shares the sentiment:
“I’m very rarely the smartest person in the room, and we learn so much from each other.” Going on to say that the varied background of Blackmores consultants offers insight into so many other industries, and she’s drawn on their experience of how to apply ISO Standards in the real world.
[14:15] What is Ali’s favourite aspect of being a Consultant? – Ali enjoys working with SME’s due to her background of working with a 4th generation family owned business. They can often see the value in ISO Standards, and Ali works with them to ensure that do what they do best while working towards certification.
Many businesses simply gain ISO as a tick box for tenders or stakeholder requirements, which isn’t necessarily bad, it’s just how things work in the real world. But Ali figures that if they have to get it, get it right by ensuring it drives internal improvements. Often times clients are pleasantly surprised by all the benefits of effective ISO implementation.
Ali’s favourite clause in Standards is 6.2 Objectives as they drive proactive improvement in businesses. The key is to truly embed them in business processes and practices to ensure they are being achieved.
This is something that even mature management systems can get wrong. She’s seen cases where Objectives were one person’s responsibility, which can lead to them being a separate part of the management system. They need that lightbulb moment from leadership to realise the function of objectives to drive the whole business by taking a more proactive stance.
Many times, Ali’s heard of fantastic internal initiatives being run in a business without them being tied to any objective. By making them an objective, people can make a case for more time, resources and people to complete it, in addition to making the outcome a quantifiable and measurable metric for continual improvement.
[17:35] Practice what we preach – Ali has helped re-shape how we at Blackmores approach our sustainability objectives, turning them into something we can measure the impact of.
As Ali states: “The want for perfection stops progress”. It admirable to strive for perfection, but it isn’t realistic and it often hinders any meaningful progress. When it comes to things like sustainability, you should want to drive improvement now.
[18:55] What Standards does Ali specilaise in and why? Starting with:
- ISO 20400 Sustainable Procurement: This is a guidance Standard thar businesses can align with to ensure their procurement practices are sustainable. This extends to the supply chain, expanding each businesses sphere of influence.
- ISO 26000 Social Responsibility: Another guidance Standard that acts a solid foundation for businesses looking at starting their ESG journey. It tackles the human element of sustainability, in addition to consideration for fair labour practices and community support.
- ISO 9001 Quality Management: The first Standard Ali implemented, and the core foundation that many businesses start with when diving into the world of ISO Standards.
- ISO 14001 Environmental Management: Ali is a fan of sustainability in general, enjoying it’s tangible impacts and the creativity in the many ways people can incorporate it into their business.
- ISO 45001 Health and Safety Management: The second standard Ali implemented, it’s also one of the core 3 ISO’s that businesses tend to implement. It’s importance as a tool to prevent harm to humans cannot be understated.
- ISO 50001 Energy Management and ISO 20121 Sustainable Events: Ali helps to audit these standards, once again these fall into her preference of sustainability as a focus.
It’s clear to see that Ali loves Sustainability and safety based Standards, and the reason is mostly due to ensuring there is a bright future for her daughter. Ultimately, she aims to help people and wants to work with Standards that can make a real difference.
[22:05] What is the biggest challenge Ali had faced during a project and how did he overcome it?: The confidence clients have in themselves. People are very knowledgeable about what they do and the processes involved, but because they aren’t familiar with ISO speak they feel very lost when implementing a standard.
Ali’s main role is translating that ISO speak, and assuring clients that they’re already covering key points such as risks, opportunities and what they’re doing to address them. For many businesses, it’s simply a case of dotting the I’s and crossing the t’s ahead of certification.
The challenge for Ali is to build that confidence in clients ahead of their Stage 1 and 2 Assessments. This is where internal audits come in handy, they act as dummy runs of the assessment. Ali can reaffirm what is meant by each clause and what it relates to in terms of the business activities or certain documentation.
She also reminds clients that they can question the assessor if they don’t understand how they’ve worded a questions. It’s up to the assessor to make themselves understood.
Assessors also understand that your management system will be immature on it’s first certification, it’s simply a starting point on which you’ll build and continually improve.
[27:15] What is Ali’s proudest achievement?
- Changing careers: Ali saw herself retiring in her previous role and so it was a significant change to make the leap to consultancy. She still loves the manufacturing and wall-covering industry, and will always have a keen interest in it, but she can now see herself retiring in a consultancy role.
- Having Angie: Her daughter is one of her proudest achievements, but it also scared everything out of her. It put her at her physical limit, and she’s quite happy to have an only child, ensuring that she gets to spend as much time with as possible while she’s growing up.
- Doing a skydive: As part of a ‘Before your 30’ list with friends, Ali took part in a skydive. Which she admits was horrendous and not something she would do again, but she’s proud to have pushed past the fear as getting out of your comfort zone is often the key to growth.
If you’d like any assistance with implementing ISO standards, get in touch with us, we’d be happy to help!
We’d love to hear your views and comments about the ISO Show, here’s how:
- Share the ISO Show on Twitter or Linkedin
- Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one.
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ISO Standards have been at the forefront of creating a unified approach to various aspects of sustainability, ensuring businesses have a robust framework to both manage and reduce their environmental impact.
However, there are a lot of different sustainability Standards that cover specific areas of sustainability, or only apply to certain sectors. Each come with their own pros and cons, making it tricky to pick the best fit for you.
In this episode Steph Churchman introduces four of the leading sustainability focused ISO Standards and explains the benefits and disadvantages of each to help you decide which could be the best fit for your business.
You’ll learn
- Learn about our upcoming ESG Workshop
- What is ISO 14001?
- What are the pros and cons of ISO 14001?
- What is ISO 50001?
- What are the pros and cons of ISO 50001?
- What is ISO 20400?
- What are the pros and cons of ISO 20400?
- What is ISO 14064?
- What are the pros and cons of ISO 14064?
Resources
- Isologyhub
- Register for our ESG Workshop (26th March 2025)
In this episode, we talk about:
[02:05] Episode Summary – Steph discusses the leading sustainability ISO Standards, and explains the advantages and disadvantages of each.
[02:45] ESG Workshop: On the 26th March 2025 we’ll be explaining how ISO Standards directly support ESG compliance, and we’re including the opportunity to participate in 1 of 3 interactive sessions that tackle things like completing a materiality assessment, a balance scorecard and learning more about the current mandatory ESG reporting requirements.
[03:15] What is ISO 14001?: ISO 14001 is the Standard for Environmental Management. Published back in 1996, this Standard is one of the staples in the ISO world.
Its main purpose is to establish and implement an effective environmental management system (EMS), with the primary goal of helping organizations to minimize their environmental impact and achieve sustainability objectives.
It sets out general requirements for:
- Pollution control
- Reduction of your impact on the environment
- And compliance to relevant legislation
It is also due for a revision soon, with the latest version expected to include further considerations for changes to available technology, more emphasis on product life-cycle and supply chain issues and further guidance on integrating environmental issues into your strategic planning.
[04:35] What are the benefits of ISO 14001?:
Reducing environmental impact: By identifying and controlling environmental aspects, organizations can minimize pollution, reduce waste, and conserve resources.
Improved compliance: ISO 14001 helps organizations comply with environmental regulations and legal requirements, such as the environment Act 2021, reducing the risk of fines and penalties.
Improved efficiency: ISO 14001 helps to tighten production processes, leading to better efficiency and reduction in the risk of incidents. It also removes uncertainty by managing disruption and waste and helps to clarify staff responsibility.
Enhanced reputation: Demonstrating a commitment to environmental responsibility can enhance your reputation and brand image, attracting environmentally conscious customers and stakeholders.
Cost savings: Implementing an EMS can lead to cost savings through improved resource efficiency, reduced waste disposal costs, and lower energy consumption. Businesses can also benefit from reduced insurance costs by demonstrating better risk management.
Increased competitiveness: ISO 14001 certification can give organizations a competitive advantage in the marketplace, particularly in sectors where environmental performance is a key consideration.
[06:45] What are the disadvantages of ISO 14001?
Initial costs: Implementing an EMS requires an initial investment in resources, including training, documentation, potentially hiring consultants, and if you’re going for certification, that will incur its own costs from a certification body too.
Ongoing maintenance: Maintaining an EMS requires ongoing effort and resources to ensure compliance with the standard and continuous improvement.
Potential for bureaucracy: If not implemented effectively, an EMS can become cumbersome, hindering operational efficiency.
Limited scope: ISO 14001 focuses primarily on environmental aspects within an organization’s direct control, and may not address broader environmental impacts or social responsibility concerns – which is where other Standards can fill the gap.
[08:05] What is ISO 50001? – ISO 50001 is an internationally recognized standard that provides a framework for organizations to establish, implement, and maintain an Energy Management System (EnMS).
The primary goal is to help organizations improve energy performance, including reducing energy consumption, increasing energy efficiency, and using energy more effectively.
[08:40] What are the benefits of ISO 50001?
Reduced energy costs: By identifying and addressing energy inefficiencies, you can significantly reduce your energy bills. We had great success with this when we worked closely with a branch of the NHS, where their initial energy spend was around £2.8 million which was reduced by £1 million as a result of implementing ISO 50001.
Improved energy performance: ISO 50001 helps organizations establish baselines, set targets, and track progress in improving energy performance. This is vital as you can’t hope to reduce what you can’t measure.
Enhanced environmental performance: Reduced energy consumption leads to lower greenhouse gas emissions and a reduced environmental impact. Often times, energy usage is the largest impact many organisations have on the environment, especially for those who may only have an office or warehouse.
Increased competitiveness: Demonstrating a commitment to energy efficiency can enhance an organization’s reputation and attract environmentally conscious customers and stakeholders.
Improved operational efficiency: An energy management system can lead to improved operational efficiency through better resource management and reduced waste.
[10:55] What are the disadvantages of ISO 50001?
Initial investment: Implementing an EnMS requires an initial investment in resources, including training, data collection, and possible help from a consultancy.
Limited Guidance: Calculating your energy usage can be complicated, especially if you’re spread across multiple sites and countries. In cases where you’re renting space, you may face difficulties obtaining the information needed, then on top of that is the actual calculation which may involve conversion factors if you’ve got international sites in scope.
Resistance to change: Implementing changes to energy-using processes can sometimes meet with resistance from employees. A lot of practices will require a change in habits, such as turning off and unplugging all devices when leaving an office, or more frequent checks on equipment to ensure it’s running optimally.
Limited scope: ISO 50001 focuses primarily on energy performance within an organization’s direct control and may not address broader energy-related issues or the entire supply chain – which includes its own energy consumption considerations.
[12:30] What is ISO 20400? – ISO 20400 is an internationally recognized standard that provides guidance on sustainable procurement. It helps organizations integrate sustainability considerations into their procurement processes, ensuring that environmental, social, and economic factors are taken into account when making purchasing decisions.
This Standard differs from the others as it’s not a certifiable Standard. It’s a guidance document that you can align with.
For those of you looking into ESG schemes, this Standard is often citied as a key tool to help get you in the right place for scoring.
In addition, for those of you looking into more comprehensive carbon reporting, Supply chains are often one of the biggest sources of emissions. Alignment with that Standard will allow you to take a good hard look at the suppliers you work with, and determine if they hold the same sustainability values as you.
[13:25] What are the benefits of ISO 20400? –
Reduced environmental impact: By selecting suppliers with strong environmental performance, businesses can reduce their overall environmental footprint. You also have a great chance to help influence your own supply chain, we know that if you’ve had a reliable supplier for a number of years, it’s not just a simple case of cut and move on.
Improved social responsibility: ISO 20400 encourages organizations to consider the social and ethical impacts of their procurement decisions, such as fair labor practices and human rights.
Enhanced reputation: Demonstrating a commitment to sustainable procurement can enhance your reputation and brand image. It shows that you’re thinking and acting sustainably from start to finish for either your product production or service delivery.
Cost savings: Sustainable procurement practices can lead to cost savings through reduced waste, improved resource efficiency, and lower long-term maintenance costs.
Increased innovation: Working with sustainable suppliers can expose you to new technologies, products, and services that can improve your own operations.
[15:35] What are the disadvantages of ISO 20400? –
Increased complexity: Integrating sustainability considerations into procurement processes can add complexity and require additional resources. This would include supplier checks before working with new suppliers and a review of all current suppliers to see where improvement could be made.
Finding sustainable suppliers: Identifying and qualifying sustainable suppliers can be challenging. Though more businesses are certainly making an effort to be more sustainable, ensuring they have proof of their claims is essential.
Potential for higher costs: In some cases, sustainable products and services may have a higher initial cost compared to conventional options.
Limited scope: ISO 20400 focuses primarily on procurement practices and may not address broader sustainability issues within the organization. This is where ISO 20400 can be supported by certifiable standards such as ISO 14001 and ISO 50001.
[17:00] What is ISO 14064? – ISO 14064-1 is an internationally recognized standard that provides a framework for organizations to quantify and report their greenhouse gas (GHG) emissions and removals.
It helps organizations to:
- Understand their carbon footprint
- Set reduction targets
- Engage in carbon markets
- Improve environmental performance
[17:45] What are the benefits of ISO 14064?
Improved data quality: The standard provides a robust methodology for collecting, analyzing, and reporting GHG emissions data, ensuring accuracy and consistency.
Set achievable reduction targets: By having an accurate way to measure your impact, you can look to set realistic and more importantly achievable reduction targets.
Enhanced credibility and transparency: Both consumers and stakeholders are increasingly looking at real tangible evidence of your carbon claims. Simply having a sustainability page full of promises is no longer enough, you need facts and figures to back up what you say you’re doing.
Reduced climate risk: By understanding and managing your GreenHouse Gas emissions, you can better mitigate the risks associated with climate change, such as regulatory changes and physical impacts.
Competitive advantage: In an increasingly climate-conscious world, businesses that can demonstrate their environmental performance through credible GHG reporting will gain a competitive advantage.
[19:30] What are the disadvantages of ISO 14064?
Initial investment: Much like the other Standards, if you want to do this right you will have to invest time, resources and money. That could include hiring consultants to help you with the necessary calculations, and if you wish to go for full verification, then there will be an additional cost from a verification body.
Ongoing maintenance: Maintaining an accurate and up-to-date GHG inventory requires ongoing effort and resources. Monitoring your emissions doesn’t stop once you get a verification badge, it will be on-going.
Data complexity: Collecting and analyzing GHG emissions data can be complex, especially for large and diverse organizations. So, you may need some initial help to do and understand this yourselves.
Limited scope: ISO 14064-1 focuses primarily on the quantification and reporting of GHG emissions and removals, and may not address broader sustainability issues.
If you’d like any assistance with implementing any of these Standards, get in touch with us, we’d be happy to help!
We’d love to hear your views and comments about the ISO Show, here’s how:
- Share the ISO Show on Twitter or Linkedin
- Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one.
Subscribe to keep up-to-date with our latest episodes:
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Did you know that only a third of the emissions reductions required to achieve the country’s 2030 target are currently covered by credible plans?
As a result, we can expect to see more mandatory and voluntary regulations that require carbon emissions reporting to verify your ESG and net zero claims.
In this episode, Mel closes out the ESG Reporting Disclosures series by explaining what Corporate Sustainability Due Diligence Directive (CSDDD) is, it’s key emissions reporting requirements, the verification requirements and who qualifies for CSDDD.
You’ll learn
- What is CSRD?
- Key requirements of CSDDD
- Key emissions reporting requirements
- the emissions verification requirements for CSRD?
- Who qualifies for CSDDD?
- The likely impact of CSDDD
Resources
In this episode, we talk about:
[00:30] Join the isologyhub – To get access to a suite of ISO related tools, training and templates. Simply head on over to isologyhub.com to either sign-up or book a demo.
[02:10] Episode summary: Mel closes out the series on ESG reporting requirements by diving into CSDDD.
[03:10] What is CSDDD? – The Corporate Sustainability Due Diligence Directive (CSDDD) is a new EU directive that promotes sustainable and responsible corporate behaviour in companies’ operations and across their global value chains.
Purpose: It aims to promote sustainable business practices, protect human rights, and address environmental challenges.
The CSDDD was adopted by the European Commission on the 23rd of February 2022 and approved by the Council of the European Union on the 24th of May 2024. The new rules ensure that companies in scope identify and address adverse human rights and environmental impacts of their actions inside and outside Europe. The CSDDD is expected to start affecting companies from 2027 at the earliest once the directive has been transposed into national legislation.
[05:10] What are the key requirements of CSDDD?:
- Human rights due diligence: Companies must identify, prevent, and mitigate adverse human rights impacts within their value chains.
- Environmental due diligence: They must assess and manage risks related to climate change, biodiversity loss, and pollution.
- Disclosure obligations: Companies must disclose their due diligence processes, findings, and any remedial actions taken.
[06:20] What are the Emissions Reporting Requirements? Under the CSDDDD, companies are required to report on their greenhouse gas (GHG) emissions within a climate transition plan.
This includes considerations for Scope 1, 2 and 3. These were explained in more detail in a previous episode on CSRD, so go check that out if you want to learn more about the individual scope requirements.
What if you fit the requirements of both CSRD and CSDDD, do you have to double report on emissions? In short – No!
The climate transition plan required by the CSDDD will be reported within CSRD reporting, as organisations just need to adhere to the CSDDD’s implementation requirements for the transition plan.
[10:10] What are the Emissions Verification Requirements? More definitive guidance on verification requirements is expected closer to 2027. Companies will more than likely need to verify the emissions data reported through CSDDD, as the directive mandates a climate change transition plan that aligns with the Corporate Sustainability Reporting Directive (CSRD), which does require companies to verify their emissions data.
[09:55] Who qualifies for CSDDD? The Corporate Sustainability Due Diligence Directive (CSDDD) applies to both EU and non-EU companies depending on their workforce size and revenue:
EU and non-EU companies (or the ultimate parent company of a group):
- With more than 1,000 employees and a global net turnover of at least €450 million in the last fiscal year; or
- Which have franchising or licensing agreements in the EU in return for royalties with more than €22.5 million generated by royalties in the EU and have a net worldwide turnover of over €80 million in the last financial year.
[11:10] What is the possible impact of this new directive? Similar to the other ESG disclosures I’ve covered over the past few weeks in this series on reporting disclosures, the impact of the CSDDD will result in 3 key impacts:-
- Increased transparency: This directive will provide stakeholders with a clearer picture of companies’ sustainability efforts, to combat greenwashing.
- Enhanced accountability: Companies will be held accountable for their environmental and social performance.
- Stimulation of sustainable business practices: The directive will encourage companies to adopt more sustainable practices, including regular reporting.
If you would like to learn more about CSDDD or inquire about the related course, please get in touch with Carbonology.
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Businesses are coming under increasing pressure to monitor, report and reduce their energy use and carbon emissions to meet net zero targets.
As a result, we’re seeing an increase in both mandatory and voluntary regulations that require carbon emissions reporting to verify your net zero claims.
In this episode, Mel continues the ESG Reporting Disclosures series by explaining what The International Sustainability Standards Board Climate-related Disclosures (ISSB S2) are, the emissions reporting and verification requirements and who qualifies for ISSB S2.
You’ll learn
- What is ISSB S2?
- What is the scope of ISSB S2
- What are the emissions reporting requirements for ISSB S2?
- Emissions verification requirements
- Who qualifies for ISSB S2?
Resources
In this episode, we talk about:
[00:30] Join the isologyhub – To get access to a suite of ISO related tools, training and templates. Simply head on over to isologyhub.com to either sign-up or book a demo.
[02:10] Episode summary: Over the course of September, Mel will be exploring the latest climate change regulations that may affect your organisation. In this episode she dives into The International Sustainability Standards Board Climate-related Disclosures (ISSB S2).
[03:20] What is ISSB S2? – The International Sustainability Standards Board Climate-related Disclosures (ISSB S2) is a new global standard that mandates entities to provide comprehensive information about climate-related risks and opportunities.
The ISSB S2 was issued by the International Sustainability Standards Board on the 26th of June 2023 and is effective for annual reporting periods beginning on or after the 1st January 2024. The new standard ensures that companies disclose physical and transition risks and their potential impact on the move towards a low carbon economy.
[04:20] Further learning with Carbonology: Carbonology have created a half-day course which walks you through all of the various carbon reporting disclosures and sustainability disclosure reporting requirements.
If you would like to learn more, get in touch with Carbonology.
[07:00] What does ‘Acute and Chronic Physical risks’ mean in the context of ISSB S2? Climate related physical risks are risks resulting from climate change that could be event driven, so an example of an acute physical risk could arise from weather related events like storms, floods and heatwaves, which are increasing in frequency.
These could have a knock-on effect to businesses, taking a heat wave as the example, you will need to consider:
- Can your IT systems and datacentres cope with it?
- Have you got resilience built in to your operations to be able to deal with that sort of disruption to your organisation?
Chronic physical risks arise from longer term shifts in climatic patterns, including changes in precipitation and temperature, which could lead to sea level rises and reduced water availability and changes in soil productivity.
These risks could carry a weighty financial burden either through direct damage to assets, or indirectly through supply chain disruption.
[09:35] Join the isologyhub and get access to limitless ISO resources – From as little as £99 a month, you can have unlimited access to hundreds of online training courses and achieve certification for completion of courses along the way, which will take you from learner to practitioner to leader in no time. Simply head on over to the isologyhub to sign-up or book a demo.
[11:43] What does ‘Transition risk’ mean in the context of ISSB S2? This is looking for a climate related transition plan, which should include targets, actions and resources for the transition towards a lower carbon economy.
This would include actions such as reducing greenhouse gas emissions.
[12:30] What is the scope of ISSB S2? This Standard applies to:
- climate-related risks to which the organisation is exposed, which are:
- climate-related physical risks; and (ii) climate-related transition risks; and
- climate-related opportunities available to the entity.
Climate-related risks and opportunities that could not reasonably be expected to affect an organisation’s prospects are outside the scope of this Standard.
- The Standard covers:-
- Governance
- Strategy
- Climate related risks and opportunities
- Business Model and Value Chain
- Financial position, financial performance and cash flows
- Climate resilience
- Risk Management
[14:10] What are the emissions reporting requirements for ISSB S2? – Under ISSB S2, companies are required to measure and disclose their greenhouse gas (GHG) emissions across three scopes:
- Scope 1 Emissions: Direct emissions from owned or controlled sources. For example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.
- Scope 2 Emissions: Indirect emissions from the generation of purchased energy. This includes emissions from the production of electricity, steam, heating, and cooling consumed by the company.
- Scope 3 greenhouse gas emissions: Indirect greenhouse gas emissions (not included in Scope 2 greenhouse gas emissions) that occur in the value chain of an entity, including both upstream and downstream emissions. Scope 3 greenhouse gas emissions include the Scope 3 categories in the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011).
[16:20] Emissions verification requirements – Under ISSB S2, companies are required to have their reported greenhouse gas (GHG) emissions data verified.
Verification can provide users of financial reports confidence that the information is complete, neutral and accurate.
Disclosure of inputs to Scope 3 greenhouse gas emissions needs to disclose information about the measurement approach, inputs and assumptions it uses.
[18:30] Who qualifies for ISSB S2? – ISSB S2 applies to all entities that are required by law, regulation, or administrative provision to prepare financial statements. This includes, but is not limited to:
- Publicly listed companies
- Large private companies
- Financial institutions such as banks and insurance companies
- State-owned enterprises
Entities are encouraged to adopt the ISSB S2 voluntarily, even if they are not mandated by law or regulation. Early adoption is permitted and encouraged to enhance transparency and accountability in climate-related disclosures.
If you would like some help with your carbon emissions reporting, please get in touch with Carbonology.
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- Share the ISO Show on Twitter or Linkedin
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As the urgency to address the climate emergency heightens, businesses are coming under increasing pressure to monitor, report and reduce their energy use and carbon emissions to meet net zero targets.
As a result, there is an increase in regulations to ensure that companies are taking the climate emergency seriously and not pay lip service to climate action.
During September, we’ll be taking a look at a few of the latest regulations that may affect your organisation, including:
In this episode, Mel Blackmore breaks down what Streamlined Energy and Carbon Reporting (SECR) is, its reporting requirements, it’s qualifiers and how it can work in tandem with other carbon management initiatives.
You’ll learn
- How do these regulations relate to ESG reporting?
- What is Streamlined Energy and Carbon Reporting?
- What are the SECR Emissions Reporting Requirements?
- Who qualifies for SECR?
- How can SECR work with other carbon management initiatives?
Resources
In this episode, we talk about:
[00:30] Join the isologyhub – To get access to a suite of ISO related tools, training and templates. Simply head on over to isologyhub.com to either sign-up or book a demo.
[02:10] Episode summary: Over the course of September, Mel will be exploring the latest climate change regulations that may affect your organisation. In this episode she dives into Streamlined Energy and Carbon Reporting (SECR).
[03:20] How do these regulations relate to ESG reporting? – ESG requirements include a commitment to sustainability, and reducing your overall impact. All of these regulations contribute towards an organisations ESG reporting requirements, as they require tangible proof to back up your ESG claims.
They will require you to provide comprehensive emissions reporting, the level of detail of which will depend on the specific applicable regulation.
[04:05] Future content to look forward to: During September Mel will look at involuntary emissions reporting schemes, but in October she will be looking into the voluntary schemes that many are already adopting as part of their Stakeholder requirements.
This will include:
[05:50] What are the SECR Emissions Reporting Requirements?: SECR has been around since April 2019, and was originally introduced to replace the Carbon Reduction Commitment Scheme.
This is a mandatory scheme, so it is a legal requirement for those that meet it’s criteria. For those that are familiar with ESOS (The Energy Savings Opportunity Scheme), it functions in a very similar way.
This scheme isn’t solely focused on reporting energy usage and carbon emissions, it’s also looking for organisations to report on efficiency measures that are undertaken on an annual basis. Which is reflected in the financial reporting that you will also have to submit.
It’s important to note that SECR has specific requirements for the disclosure of greenhouse gas (GHG) emissions and energy consumption. Emission reporting requirements vary slightly between quoted companies and large unquoted companies and LLPs.
For quoted Companies:
- Global Scope 1 and 2 GHG emissions must be reported. Scope 3 emissions reporting is strongly recommended but voluntary.
For large unquoted companies and LLPs:
- UK based Scope 1 and Scope 2 emissions and associated energy consumption. Scope 3 emissions from the combustion of fuel in vehicles or equipment not owned by the company.
[10:10] Join the isologyhub and get access to limitless ISO resources – From as little as £99 a month, you can have unlimited access to hundreds of online training courses and achieve certification for completion of courses along the way, which will take you from learner to practitioner to leader in no time. Simply head on over to the isologyhub to sign-up or book a demo.
[12:05] Who qualifies for SECR?: All UK Quoted Companies: Any company that has shares listed on the UK Stock Exchange is required to comply with SECR.
Large Unquoted Companies and Large LLPs: These are companies and Limited Liability Partnerships (LLPs) that are not listed on the UK Stock Exchange but meet two or more of the following criteria:
- Turnover: More than £36 million per annum.
- Balance Sheet Total: More than £18 million.
- Number of Employees: 250 or more employees.
These criteria ensure that SECR framework targets large organisations that have a significant impact on the UK’s energy consumption and carbon emissions. By complying with SECR, these organisations can contribute significantly to the UK’s sustainability goals.
[14:10] When is the SECR disclosure made? SECR reporting must occur alongside financial reporting, being included within annual reports and Directors’ Reports, which are then filed with Companies House.
[14:30] The importance of Accurate SECR Reporting and Carbon Reduction – The reporting process can unlock valuable insights and opportunities for operational improvements, leading to enhanced energy efficiency and reduced carbon emissions over time.
Demonstrating your organisation’s commitment to energy efficiency and carbon reduction can enhance brand perception and foster positive relationships with stakeholders, including investors, clients, and regulators.
[16:05] Integrating SECR Reporting with Other Carbon Management Initiatives – You are missing a trick if you’re keeping your SECR reporting separate from the rest of your business activities. It should be included as a part of your sustainability umbrella, and can be invaluable if you’re going for other reporting requirements such as EcoVardis and CSRD.
There’s no need to reinvent the wheel if you already have something like an Environmental Management System in place, simply weave the additional requirements in with your usual annual maintenance. Established systems will already be adhered to across the business, meaning any new requirements will soon become business as usual.
You could incorporate this as part of your Net Zero strategy, or Carbon Reduction Plan if PPN 06/21 is one of your reporting requirements. You could also incorporate this into your supply chain emissions reporting.
If you would like some help with SECR, please get in touch with Carbonology.
We’d love to hear your views and comments about the ISO Show, here’s how:
- Share the ISO Show on Twitter or Linkedin
- Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one.
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ESG is a very broad topic to try and address for any organisation, leaving many scratching their heads on where to start with ESG reporting.
Currently, there is no official certification for ESG, however there are a number of schemes that will give you either a score or rating for your level of compliance against their requirements.
For those currently working towards one of these schemes, you may already have a solid foundation in place if you’re certified to one or many ISO Standards.
In this episode, Ian Battersby and Ali Henshaw discuss ESG compliance and how elements of an ISO Management system can help with ESG reporting.
You’ll learn
- What is ESG?
- Is ESG reporting required?
- Is ESG a nice to have or good solid business practice?
- Is ESG certifiable?
- How can ISO Standards help to address the 3 pillars of ESG?
- How ESG compliance helps to combat Greenwashing
Resources
In this episode, we talk about:
[00:30] Join the isologyhub – To get access to a suite of ISO related tools, training and templates. Simply head on over to isologyhub.com to either sign-up or book a demo.
[02:00] Episode summary: Ian and Ali will be discussing how ISO Standards can help with ESG reporting.
[02:20] What is ESG? – ESG stands for Environmental, Social, and Governance. Analysis and evaluation against these three elements help organisations to consider different areas within their overall sustainability profile.
The Environmental section looks at issues surrounding climate change and actions to address an organisation’s environmental responsibility. This includes monitoring and management of your energy consumption, waste management and pollution. It also seeks to tackle how organisations can address, reduce and mitigate their overall environmental impact.
The Social aspect is based around the relationships an organisation has with its stakeholders. This is focused on employees and looks at a broad range of topics including employee wellbeing, fair and competitive pay, benefits and human resource related policies. Considerations can also include wider business relationships such as supplier relations, local community and government work.
[05:00] The pillars of ESG aren’t silos – You shouldn’t approach each pillar of ESG in isolation, as they cross over in a lot of areas.
For example, in environmental management you may manage hazardous substances, you’ll have a duty to ensure those substances don’t pollute the surrounding area or bodies of water. However, you will also need to consider the health and safety aspect of storing and working with that material. So already you have 1 issue that crosses both the Environmental and Social pillar of ESG.
[05:50] What does the Governance pillar cover? – Governance criteria focuses on creating a business environment that is fair, transparent, and accountable. Considerations in this area include board composition, fairness in pay structures and executive compensation, business ethics and risk management.
[07:05] What types of ESG reporting are required? – For small organisations, there is currently no set requirement as it stands, but you many encounter stakeholder or customer requirements that encourage ESG reporting on some level.
For larger organisations at certain sizes there are mandatory reporting frameworks that you will be required to fulfill. At the moment it’s quite sector specific but this is a trend that will only increase over time.
Like with anything new, this is likely to trickle down to smaller organisations over time, however there will likely be funding and grants available to assist when that time comes.
[08:25] Is ESG a nice to have or good solid business practice? If you want to be a sustainable business, with good legacy that has the ability to grow and develop, ESG is a fantastic tool.
Investors are now looking for sustainable businesses, it’s become a market trend for an ever increasingly environmentally conscious consumer base. You either need to move with the times of get left behind, and sustainability is one key factor that will determine which of those categories you fall into.
[09:50] Which ISO Standards can support ESG?: From a holistic point of view, the structure of ISO standards, the plan do check Act (PDCA) cycle, the need for monitoring and measurement and the need for improvement supports the principles of ESG in terms of quantifiable results.
The additional aspect of having set objectives and proof of tangible improvement actions was something that fulfilled CSR (Corporate Social Responsibility), which in turn has been superseded by ESG.
ISO Standards high-level structure and life cycle approach lend themselves to support various aspects of ESG, depending on the Standard you implement.
ISO 14001 for example, would support the environmental pillar, as it looks at your significant aspects and impacts in addition to that of your supply chain. You’ll need to factor these into your objectives and overall business strategy.
ISO 45001 would tackle elements of the social pillar as it directly addresses the well-being of your employees. It also includes a clause for the consultation and participation of workers, so work directly with employees to identify and address risks that may be missed by management.
[13:40] Is there a certifiable Standard for ESG?: Not currently, but an ISO guidance document is in the works.
Standards that address core elements of ESG include ISO 26000 (Social Accountability) and ISO 20400 (Sustainable Procurement). Again, these aren’t certifiable, but provide invaluable guidance.
Guidance documents have the advantage of being selective in what elements you decide to adopt. The ESG one in development is a good example, ESG as a topic is huge, a smaller organisation may not realistically be able to implement all of the advice.
But, it can be used as a starting point for a materiality assessment that will allow you to be selective of the core subjects you apply to your business.
The idea of guidance documents is not to be a bolt on, as those quickly get forgotten. It’s all about embedding their elements into existing processes.
[17:10] Utilising elements of ISO Implementation for ESG reporting: If you’ve already got an ISO Management System in place, i.e. ISO 14001 or ISO 45001, then you’ll already have objectives, processes and monitoring & measurement in place to address those elements.
ISO 26000 is another good example as it covers a wide range of topics, including human rights, labour practices, the environment, community involvement and development, consumer issues and fair operating practices. Some may not be applicable to you, but as mentioned, it’s a guidance document so you have the freedom to be selective about the aspects you incorporate into your management system.
You need to decide what really applies to you. It’s better to prioritise and take 10 steps on one subject vs 1 on 10 subjects.
[20:25] ESG isn’t a once a year activity: There’s no tick box exercise that you can do once a year and claim compliance, ESG is an on-going endeavor for as long as your business is running. It’s a way of operating, much like ISO Standards. It will develop and grow with your business.
[21:30] Join the isologyhub and get access to limitless ISO resources – From as little as £99 a month, you can have unlimited access to hundreds of online training courses and achieve certification for completion of courses along the way, which will take you from learner to practitioner to leader in no time. Simply head on over to the isologyhub to sign-up or book a demo.
[23:36] Will elements of ESG become certifiable down the line? We’ll never say never! It’s still very much a developing field. There is currently a framework being developed by the International Standards Organisation, it’s currently in draft form.
Ali herself is on the commenting committee for it’s development, and can confirm that the framework is looking at the links between certifiable Standards and the tangible application.
ISO Standards require third-party verification of your claims before getting certified. In that aspect, they’re the perfect tool to provide tangible proof that you are doing what you say you’re doing, but only in select aspects.
ESG is broad, almost too broad to certify. It’s not really feasible for one person to come in and assess a whole business like they would do for an ISO Assessment, there’s simply too much to cover!
[25:00] The trouble with ESG verification: Currently, a lot of voluntary schemes require you to report against and fulfill, but they are very sector specific because a general one would be too broad and likely will not cover every aspect appliable to every business.
Schemes out there are doing something to battle greenwashing, as the environmental aspects are easier to verify, however social aspects are a lot more tricky and can get even more complicated outside of the UK where there is no HSE annual reporting available.
[26:20] How can you support the Social aspect of ESG?: Measuring your social value can difficult, many think of education as the solution. Here are some ideas to consider:
- Working with local schools – Improvement projects driven by Student run business studies
- Work experience
- Charitable work – allow staff to have a charity day as part of a benefits package
[28:10] How can we prevent the greenwashing of ESG compliance?: Government Bodies are working to tackle this. It’s being built into legislation to prevent greenwashing in future where self-policing hasn’t gone far enough.
Trade Associations are also pushing their members towards more legitimate frameworks to ensure they do remain accountable and transparent about their activities in relation to ESG compliance.
[30:00] What resources do Blackmores have to help? We’ve developed an ESG Gap Analysis, based on the guidance provided in ISO 26000 Social Accountability.
This ESG Gap Analysis will highlight where you’re already compliant and where there is work to be done.
You may be surprised to see that you’re more compliant that you think! Especially if you’re certified to one or many ISO Standards.
We also have a Materiality Assessment, which will help you to determine which topics are of importance to your business and your stakeholders.
You can take the findings from both to help develop your ESG Strategy. If you’re not mandated to do any reporting, you can leave it at that. However, you may want to consider sector specific frameworks to get ahead of the curve for when elements of ESG do become mandated down the line.
[36:00] Where should you start with tackling ESG using ISO Standards? If you’re certified to one or many ISO Standards, then you will have processes in place that can support an ESG initiative program strategy, and you can make it as big or as small as you want.
Start by looking at your environmental, social and governments impacts and work to embed ESG into your existing ISO Management System before they become mandated by stakeholders and legislation – being ahead also feeds into the principles behind social responsibility.
You’re embedding a culture, and it becomes a norm which can be developed further. Then, when legislation or customer requirements come in, you’re already prepared to answer.
Also, with ESG there is a focus on people and you can’t have a successful business without good people. ESG isn’t only attractive to your customers, but also to potential employees who will want to work for ethical, sustainable businesses. If you aren’t keeping up and fulfilling that, you will struggle to find new talent.
It also goes without saying that being ESG compliant will attract consumers. Greenwashing, as frustrating as it is, exists for a reason – because people want businesses to be sustainable. People wouldn’t lie about it if it wasn’t important to someone, so stand out by beating the greenwashing allegations and take the right steps towards tacking ESG.
If you’d like to book a demo for the isologyhub, or would like help with an ESG Gap Analysis, simply contact us and we’d be happy to give you a tour.
We’d love to hear your views and comments about the ISO Show, here’s how:
- Share the ISO Show on Twitter or Linkedin
- Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one.
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ESG compliance has fast become a focus for many organisations looking to address their wider sustainability profile.
However, its broad framework has left many scratching their heads on exactly where to start with evaluating and addressing various elements of Environmental, Social, and Governance compliance.
For those looking for some direction, you may already have a solid foundation in place if you’re certified to one or many ISO Standards.
Today Steph Churchman will explain what ESG is, how it can be scored and what role ISO Standards can play in ESG compliance.
You’ll learn
- What is ESG?
- What scoring systems are available for ESG?
- How can ISO Standards support ESG compliance?
- What ISO Standards can support each pillar of ESG?
Resources
In this episode, we talk about:
[00:30] Join the isologyhub – To get access to a suite of ISO related tools, training and templates. Simply head on over to isologyhub.com to either sign-up or book a demo.
[02:05] Episode summary: Steph will be breaking down what ESG compliance means, how ISO Standards can support ESG compliance and give some examples of what ISO Standards can support each pillar of ESG.
[02:50] What is ESG? – ESG stands for Environmental, Social, and Governance. Analysis and evaluation against these three elements help organisations to consider different areas within their overall sustainability profile.
The Environmental section looks at issues surrounding climate change and actions to address an organisation’s environmental responsibility. This includes monitoring and management of your energy consumption, waste management and pollution. It also seeks to tackle how organisations can address, reduce and mitigate their overall environmental impact.
The Social aspect is based around the relationships an organisation has with its stakeholders. This is focused on employees and looks at a broad range of topics including employee wellbeing, fair and competitive pay, benefits and human resource related policies. Considerations can also include wider business relationships such as supplier relations, local community and government work.
Governance criteria focuses on creating a business environment that is fair, transparent, and accountable. Considerations in this area include board composition, fairness in pay structures and executive compensation, business ethics and risk management.
[04:15] An evolution of CSR – CSR (Corporate Social Responsibility) is very similar to ESG, but is less sustainability focused. It also lacked substance in the form of effective and accountable scoring systems that held businesses to account. This is where ESG differs, with many scoring systems, certifications and even mandatory requirements driving businesses to address their compliance.
[04:45] ESG scoring – There are many schemes, scoring systems and certifications available for ESG, some of which are specific to industry sectors and company sizes. What one you pick will be up to you (note that some many be mandatory in select countries), however, here are a few examples:
The S&P Global ESG Score – This assesses a company’s performance and management of ESG risks and opportunities using a combination of company disclosures, media analysis, and industry-specific questionnaires. A score of 0-100 is given based on their findings and are relative within a company’s industry sector.
Fitch Ratings ESG Relevance Scores – Fitch Ratings assigns ESG Relevance Scores alongside their traditional credit ratings. These scores assess how ESG factors could impact a company’s creditworthiness. Their scores range from 1-5, with 5 indicating the highest ESG relevance to credit risk.
MSCI – They offer ESG ratings for a broad range of companies, it’s not really limited by sector or size. They use a letter grade system, going from AAA-CCC, to assess a company’s relative ESG risks and opportunities compared to its peers. The scoring for this one assigns companies as either an ESG leader, average or laggard within their industry.
[06:10] How can ISO Standards support ESG Compliance – It’s important to clarify that there’s no single ISO standard that guarantees ESG compliance because ESG is a broad framework. However, ISO standards provide a strong foundation for implementing many aspects of an ESG strategy.
[06:35] Supporting ESG – Structure and Framework: ISO standards offer a structured approach to managing environmental, social, and governance practices. This helps companies identify key areas for improvement and develop a systematic plan to address them.
[07:10] Supporting ESG – Improved Performance: By following ISO standards, companies can demonstrably improve their environmental performance, social responsibility, and governance structures by putting in frameworks that align with best practice standards
[07:30] Supporting ESG – Transparency and Credibility: Achieving certification to a relevant ISO standard involves a third-party audit, which verifies that a company’s systems and processes meet the standard’s requirements. This certification acts as a credible signal to stakeholders such as your investors, customers, regulators, that you’re committed to ESG principles.
[07:55] Supporting ESG – Risk Management: Proactive management of ESG risks is a key component of any ESG strategy. Many ISO standards focus on risk identification and mitigation. For example, ISO 37001 (Anti-Bribery Management Systems) helps identify and address bribery risks, which can have significant financial and reputational consequences. Or ISO 45001 health and safety management, which requires risk assessments to be carried out to ensure the safety and well being of your employees on site locations, which would fall under the social aspect of ESG.
[08:30] Supporting ESG – Competitive Advantage: Strong ESG performance is increasingly sought after by investors and stakeholders. Implementing ISO standards can help companies demonstrate their ESG commitment and gain a competitive advantage in the marketplace. You’ll also feel the benefit of gaining multiple badges, through ISO certification and possibly an ESG score if you choose to go through one of the official scoring schemes.
[08:55] Think of ISO standards as building blocks. They provide the foundation and structure for a strong ESG strategy. By implementing relevant standards and achieving certification, you can demonstrate a dedicated commitment to ESG principles.
[09:50] Join the isologyhub and get access to limitless ISO resources – From as little as £99 a month, you can have unlimited access to hundreds of online training courses and achieve certification for completion of courses along the way, which will take you from learner to practitioner to leader in no time. Simply head on over to the isologyhub to sign-up or book a demo.
[11:55] What ISO Standards can support the Environmental aspect of ESG Compliance?:
- ISO 14001: Environmental Management – This provides a framework for managing environmental impacts, reducing waste, and improving your resource efficiency.
- ISO 50001: Energy Management – this helps companies monitor and optimize their energy use with the aim to help reduce greenhouse gas emissions.
- ISO 20400: Sustainable Procurement – This will help you to adopt sustainable procurement principles and practices within your organisation, by looking at how you can reduce waste, choose more sustainable options for required resources, how you can extend the life of resources available through remanufacturing and recovery of waste, and encourages the use of more innovative products and services.
- ISO 20121: Sustainable Event Management – This Standard is mostly applicable to the events sector, and aims to help reduce the amount of waste produced during events, either through potential energy savings and the production and recycling of resources used during an event. It’s recently had an update, so check out our latest episode to find out what the changes are.
- ISO 14064: Greenhouse Gas Verification – This provides a framework for measuring and managing greenhouse gas emissions. This is a crucial step if you’re working towards Net Zero, as you need to know what your baseline is before you can work on reducing and offsetting remaining emissions.
- ISO 14068: A framework for helping businesses achieve Net Zero, this standard will replace PAS 2060 in November 2025, so anyone looking into PAS 2060 now may be better off going with ISO 14068 as it includes more guidance on purchasing credible carbon credits.
[14:15] What ISO Standards can support the Social aspect of ESG Compliance?:–
- ISO 26000: Social Responsibility – which offers guidance on integrating social responsibility practices throughout your organization.
- ISO 45001: Occupational Health and Safety Management – which helps companies create a safe and healthy work environment. It provides a robust set of requirements designed for improving workplace safety in organisations and supply chains, with the aim of reducing workplace injury and illness.
- ISO 45003: Psychosocial Health & Safety Management aka Mental health in the workplace. For the last 4 years or so, work related stress, depression and anxiety has been the leading cause for work related ill-health cases and lost working days. That’s according to the annual HSE reports, which clearly highlights a big issue that many more need to consider and address.
[14:15] What ISO Standards can support the Governance aspect of ESG Compliance?:–
- ISO 9001: Quality Management – this is the leading global ‘quality mark’ for businesses and designed as a vital business improvement tool. It’s quite simply A blueprint for running your business successfully.
- ISO 22301: Business Continuity Management – Which provides a basis for planning to ensure your long-term survivability following a disruptive event. This is a Standard that many align with, but don’t always certify to, and for good reason as it provides some invaluable guidance for establishing robust Business Continuity Plans.
- ISO 27001: Information Security – This is a Standard that is common place for most sectors now, given how reliant we all are on tech. ISO 27001 will help you to implement an Information Security Management System (ISMS), which is a systematic approach to managing sensitive company information, ensuring it remains secure and available. It encompasses people, processes and IT systems.
- ISO 37001: Anti-Bribery Management Systems – It’s the International Standard that allows organizations of all types to prevent, detect and address bribery by adopting an anti-bribery policy, appointing a person to oversee anti-bribery compliance, training and carry out risk assessments.
- ISO 44001: Collaborative Business Management – This was originally a British Standard that had been created to provide a framework for creating and managing collaborative business relationships between organisations. The standard promotes the best way for businesses to work together, thus effectively developing and managing their interactions with each other for maximum benefit to all.
If you’d like to book a demo for the isologyhub, simply contact us and we’d be happy to give you a tour.
We’d love to hear your views and comments about the ISO Show, here’s how:
- Share the ISO Show on Twitter or Linkedin
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The demand for tangible sustainability action is becoming more pressing as we inch closer to our 2030 and 2050 Net Zero targets.
However, that is still quite a way off, and many businesses are dragging their feet when it comes to taking action. Sure, some may have an ESG Policy or mention it on their website, however that term is starting to become synonymous with green washing due to poor implementation in many cases.
So, what can you do to make a difference right now?
In this weeks’ episode Mel explains the principle of Parkinson’s law, how ISO Standards can help to tackle climate change and how you can achieve Net Zero in just 90 days.
You’ll learn
- What Parkinson’s Law is
- How can ISO standards help tackle climate change
- The 3 reasons why businesses are behind on achieving net zero
- How you can achieve Net Zero in just 90 days using the Net Zero Planner
Resources
In this episode, we talk about:
[00:25] Come visit the Carbonology stand at EMEX! – EMEX is a free exhibition to learn about carbon management, ESG and sustainability. It takes place at ExCeL London on 22nd – 23rd November 2023 – Carbonology will be at Stand G38. Come grab a free Net Zero Planner while you’re there! Register your place here.
[02:10] Episode Summary – Today we’ll be talking about why we need to act now rather than in a decade or two, how ISO Standards can play a critical role in tackling climate change and using the Net Zero Planner to help you set achievable objectives to work towards Net Zero in just 90 days.
[02:55] We need to act now rather than later! – Our 2030 and 2050 targets are very far away, which results in businesses not doing much to address them in the meantime.
They might have an ESG policy or they might have something referencing ESG on their website, but are they actually taking action right now to make that happen? In many cases, no. Which is where Parkinson’s Law comes into play.
[03:40] What is Parkinson’s Law? Parkinson’s Law is the idea that work expands to fill the time allotted for its completion. This may mean you take longer than necessary to complete a task or you procrastinate and complete the task right before the due date.
Parkinson’s Law is the old adage that work expands to fill the time allotted for its completion. The term was first coined by Cyril Northcote Parkinson in a humorous essay he wrote for “The Economist” in 1955.
Lets say you are given a task to complete a report in 3 weeks, chances are if you were given the task to do in 1 week – you’d make it happen.
Parkinson’s Law says that the perceived importance and difficulty of a task will grow in proportion to the amount of time given to finish it.
[05:30] Is it possible to achieve Net Zero in 2024?: Yes! Carbonology® been turning around projects to help businesses to build net carbon neutral in less than three months – so why can’t you?
[06:05] The Net Zero Planner – The Net Zero in 90 days planner gives you a pathway to follow to achieve Net Carbon Zero.
Each day focuses on a specific task, enabling you to make step by step progress to achieve your goals.
Your Net Zero Planner provides the foundations for not only achieving Net Zero but also achieving verification to Carbon standards along the way. Grab a copy here!
[08:25] What role do ISO Standards play in tackling climate change? Standards have a critical role in helping meet climate goals. Particularly when there is an influx of greenwashing across industries.
The international standards for carbon verification (ISO 14064) and carbon neutrality (PAS 2060, due to be ISO 14064 in 2024) support the Sustainable Development Goals (SDG) and create a level playing field, providing transparency, reliability, accountability and without a doubt, credibility.
[10:00] So why are businesses struggling to achieve Net Zero? there are three reasons why businesses are behind on achieving Net Zero:-
- Time and resources have not been dedicated.
- Lack of focus and structure
- Lack of knowledge on what to do
The Net Zero Planner will help to address these challenges.
[11:15] Carbonology is there to support you – Some of the tasks in the planner may be tricky – quantifying your emissions for example, this is always going to be challenging.
Carbonology is there to support you, either with consultancy or digital resources via the Carbonologyhub. If you need some extra assistance, simply contact them.
[11:55] How can the Net Zero Planner help you? – First and foremost, Net zero is not going to happen, unless you prioritise your time.
This starts with designing your ideal week. Imagine how would you structure your week if you had 100% control. What does your ideal week look like?
Remember, What gets scheduled gets done. Sticking to a plan takes discipline, but imagine if every business dedicated 2 hours a day for 3 months, we’d be achieving net zero well before 2050!
By setting aside 2 hours a day to complete a Net Zero task, you and your team will be well equipped to put your planning in place and achieve Net Zero accreditation! Of course, not every week will be aligned with your ideal week, but it’s a guide that you can refer back to.
[13:00] Making progress with the Net Zero Planner – It’s imperative you review progress on a weekly and monthly basis and at the end of the 9O days. This will help to drive momentum when you see what you’ve achieved and also provide a reality check if you need additional support or time.
The weekly, monthly and quarterly review provides an opportunity to look back at your progress and allows you time to reflect on what went well, and where you’ve been having challenges which may result in making decisions to address any shortfalls.
This could include allowing more time for a specific task the following week, delegating responsibilities internally or outsourcing activities i.e. carbon quantification or verification.
It’s recommended that you schedule this review and reflection time in your calendar i.e. 1 hour on a Friday afternoon or at the end of the month. In addition to the structured planner pages, there are blank pages for expanding on your ideas and taking notes.
[15:25] Special Deal! – The Net Zero Planner is available for Amazon at a reduced price of £7.99 until the 15th December 2023. The Standard price will be £14.99. If you’re at EMEX on the 22nd or 23rd November 2023, we have 100 free copies to give away!
Lastly, if you have an questions or would like to learn more about how Carbonology can help you, feel free to book a call in via David’s Calendly.
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