Top 10 SME considerations to support your journey to Net Zero
Posted on: July 5th 2022 · read
Our Sustainability & ESG (Environmental, Social and Governance) Technical Director, Jose De Mayne Hopkins has prepared the top 10 key considerations for SMEs to focus on while on their journey to achieving Net Zero.
- Climate change is a board level issue. Start discussions on the topic now. How are we expecting to allocate responsibilities between the board and management team in managing climate-related risks and opportunities?
- SME should invest time and focus in understanding the meaning of Net Zero, TCFD framework and scenario analysis to guide current reporting and assessment. Do we have the right set of skills and/or do we need external training on TCFD and scenario analysis?
- Transparency in disclosure is key. How do I even start and disclose my Net Zero journey and how do I communicate this across the organisation?
- What is going to be our roadmap (short term, medium term and long term) to be a carbon neutral & Net Zero SME organisation, and TCFD reporting? It is key you are transparent and set interim targets in your journey to Net Zero.
- There has been a significant number of companies who have and will disclose scope 3 emissions which will directly affect a significant number of SME included in the supply chain. Speak to your customers and understand their Net Zero journey.
- Do I have the right capabilities and know who to successful perform climate risk assessment on the operations? Do I understand the meaning of transition and physical risk?
- Risk management: Have I consider if climate change could generate a direct or indirect principal and/or emerging risk that should be disclosed? Don’t just include climate change in the risk register, and perform an assessment as to the impact of physical risks? Do we need to monitor and invest in flood defences?
- Have I measured my carbon footprint, and do I understand the boundaries and scope of each type of emissions? What is going to be my baseline year? What is the company’s greenhouse gas (GHG) footprint across scopes 1, 2, and 3?
- Start understanding your supply chain climate related risks and opportunities now. Do I need to implement controls and processes to capture accurate and complete data?
- How is climate data going to be reported across the organisation? The systems to produce, distribute and consume climate data are significantly less mature than those for financial information.
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