How to Overcome Emissions Reporting Challenges

A key trend I've noticed over the past few months of chatting with folks in the sustainability space: Many were surprised by how much of their role is dominated by measuring emissions, reporting the alphabet soup of frameworks, responding to investor requests, and last but not least the ungodly amount of manual data collection and carbon calculations. It seems this part of the job description can be a bit overlooked and despite it being a necessary evil, we can't report our way out of climate change. If you're in the sustainability space, you likely joined this field to make a meaningful impact, not just feel like a data processor and compliance guru. The real challenge, then, is to strike a crucial balance where reporting complements rather than overshadows the essential work of environmental stewardship. Here are a four simple strategies that other sustainability managers recommend: 1. Leverage Technology: Implement automated data collection and reporting tools. This can free up valuable time for strategic planning and implementation of emission reduction initiatives. 2. Prioritize Actionable Data: Focus on collecting data that directly informs and improves sustainability initiatives, rather than just fulfilling reporting requirements. 3. Advocate for Standardized Reporting: Engage in industry dialogues to push for more standardized reporting frameworks, reducing the complexity and time spent on compliance. 4. Build Cross-Functional Teams: Collaborate with other departments like R&D, operations, and marketing and/or create an ESG committee in your company. Even a baby step is a step in the right direction. So, all that to say: huge shoutout to all the sustainability managers out there. Trust that your work is not just about managing data but about being at the forefront of driving meaningful environmental change. #esg #sustainability

California Climate Regulations are coming, yet guidance for companies in scope is slow to develop. FSI Consulting has put together a list of actions that companies can take today, that will prepare them for what will likely be a shortened runway for compliance. If you and your company are struggling with CA readiness and where to start, here are 5 no regret actions you can start taking towards compliance: 1- Engage with Key Stakeholders and Determine Overall Approach  Start by assembling a cross-functional team (Sustainability, Finance, Legal, Operations) to manage and support efforts. Work as a team to secure executive and Board-level buy-in while ensuring adequate resources and oversight. Investigate options to keep work in-house or engage with a consultant to calculate GHG emissions and/or prepare a climate risk report.   2- Start Compiling Climate Risk Data  Compile a list of potential physical risks (floods, fires, heat, etc.) to facilities, and research potential transition risks (carbon pricing, regulations, market changes, etc.) based on your organizational boundaries. Think about and identify internal climate risk governance activities and collect relevant metrics and targets for evaluating climate risk mitigation activities. Review peer companies’ climate risk reports in the public domain.   3- Evaluate GHG Emissions Inventory Reporting Readiness  Conduct an internal review of current GHG inventory processes (with future attestation in mind), assess data quality management systems and identify reporting gaps versus requirements.   4- Engage Third-Party Assurance Provider for GHG Emissions Inventory  Select and onboard a qualified verification body and get early feedback on data collection processes and controls.   5- Review Climate Strategy Documentation  Assess current climate commitments and targets, identify gaps in current documentation and create a clear paper trail for compliance purposes.

After months of anticipation from the corporations mandated to disclose through California’s Climate Corporate Data Accountability Act (SB 253) and Climate-Related Financial Risk Act (SB 261), as well as the investors and consumers of this information, we have to get comfortable operating strategically in a dynamic landscape. In this ESG Today article I summarize the current status of the laws, following CARB's May public workshop. The takeaway is clear: deadlines are firm, reporting requirements are coming, and companies must prepare now. 🗓️The Clock is Ticking: Despite ongoing development of prescriptive reporting rules expected by year-end, core reporting requirements begin in 2026 for FY2025 data. Companies should already be deep in the stakeholder collaboration, data collection, and analysis required to meet reporting requirements. ✅"Good Faith Effort" Requires Concrete Action: While CARB is not enforcing compliance penalties for SB 253 in 2026, this allowance is only for companies that demonstrate good faith efforts to meet reporting requirements.  This means scope 1 & 2 emissions inventories must obtain limited assurance. 📈Beyond Compliance, It's Strategic Imperative: This isn't just about ticking boxes.  Market demand for climate disclosure is high, with investors increasingly incorporating climate considerations into their risk assessments and capital allocation decisions. Similar business advantages exist for companies to de-risk and decarbonize supply chains.  So what should companies do over the next 6 months ahead of reporting deadlines? Make "No-Regret" Decisions Today: The smartest move is to focus on foundational work that aligns with current requirements and global best practices. This includes: 📊Building audit-ready, GHG Protocol-aligned emissions inventories  🔐Preparing for assurance from day one with transparent documentation  💻Investing in robust data systems that can adapt ⚖️Incorporate climate into core governance, risk and resilience infrastructure The market is already demanding this level of transparency. California isn't backing down, and organizations that lead with proactive preparation will be the ones to thrive in this dynamic landscape. What proactive steps has your organization taken to navigate these non-negotiable deadlines? Let me know in the comments! 👇 https://lnkd.in/ekGhT_kq Workiva #climatedisclosure #climaterisk #GHGemissions

Every CFO I speak to says the same thing: ”We don’t have a reporting problem. We have a data problem.” Let’s unpack that. The biggest blocker to high-quality sustainability reporting isn't regulations. It’s the painful reality that most of the data you need is: • In 12 different places • Owned by someone outside Finance • Not collected in a usable format • Or not collected at all And that means every reporting cycle turns into a treasure hunt. One client told us they needed to calculate emissions from refrigerants across 200+ retail locations. The data existed—somewhere. But it was in service contracts. Scanned PDFs. Vendor portals. A few local Excel trackers maintained by regional ops managers. In the end, they gave up and estimated everything with a generic factor. The report got published. The CFO signed it. But no one really trusted it. This is the real challenge: You can’t govern what you can’t see. You can’t improve what you can’t measure. And you can’t measure what you can’t access. So, what can Finance do? Treat sustainability data like financial data: • Map the data journey: What’s needed, where it lives, who owns it • Set up systematic collection, not ad hoc email chases • Align data collection with financial periods and business rhythms • Define a materiality threshold so you don’t boil the ocean • Automate ingestion and quality checks wherever possible The goal is to move from “We scramble for estimates” to “We have a controlled, consistent, explainable process.” Because the question isn’t just “What did we emit?” It’s: “Can we explain and defend the number to our board, our investors, and our auditors?” Finance doesn’t need to do all the collecting. But they need to be the ones who say: "This is the level of data integrity we need to run this business." And right now, most sustainability data isn’t even close.