Enigin Distributors can help with Creditbility Gap for Companies
CLIMATE and sustainability data reported by some of the world's largest companies suffer from a credibility gap, a new report found, primarily because companies fail to have the information verified.
Smart Sustainability’s new report suggests that the carbon and sustainability data put out by FTSE 350 companies is lacking in credibility. Currently, companies are choosing from independent third party verification, stakeholder panels, internal audit statements and celebrity endorsements. A lack of standardisation has led to confusion among stakeholders and investors about what is best practice.
The study was carried out by Smart Sustainability and sponsored by Defra, Barclays, BP, BAT, CII, SAP and BPR Group. It benchmarks the assurance of sustainability reports in response to investor demand for a way to compare the credibility of sustainability reports.
It identifies a need for harmonisation and transparency in assurance and questions why some companies, especially in high impact industries, do not externally verify their carbon data. With responsible investment expected to grow to $26.5 trillion in the next 5 years, credible sustainability reporting has never been more important.
Investors are increasingly using sustainability and carbon emissions data to make investment decisions or market predictions.
Still, a troubling number of companies fail to report or verify carbon data. If investors would never accept non-verified financial data, this report questions why they would accept non-verified carbon data.
Enigin Distributors can provide the Eniscope, which not only monitors energy use in real-time but from that data, and other factors, can provide a running report of sustainability data - which can also be displayed publicly.
