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TYS Lunch & Learn Episode 4 – Unraveling the Global Tapestry of Politics, Economics, and Supply Chains

In this episode, we dive deep into the intricate web of global politics, economics, and supply chains, unraveling the complexities that shape the landscape of modern business. Join us as we explore pressing questions and uncover insights that shed light on the evolving dynamics of the global risk environment.

The volatile nature of today’s global political and economic climate reverberates across industries, making it imperative for supply chain and procurement professionals to stay vigilant. Every shift in geopolitics or economic policy can send ripples through the supply chain, impacting everything from sourcing strategies to operational efficiency.

So, why does this matter for supply chain and procurement? Simply put, businesses operate in a connected world where disruptions in one region can have far-reaching consequences. Whether it’s trade disputes, sanctions, or geopolitical tensions, these factors can disrupt supply chains, increase costs, and affect business continuity.

Tracking these issues requires a comprehensive approach, leveraging a mix of data sources, analytics, and expert analysis. By monitoring key indicators, companies can anticipate risks and identify opportunities, enabling proactive decision-making.

To gain deeper insights into these challenges, we asked the experts at Prism about the emerging trends in global politics and economics. Watch our conversation with them and read our blog, co-authored by TYS and Prism, on how the Swiss climate ruling reshapes supply chains and risk management.

April Harrison Blog, Data Privacy & Security, Podcast, Risk & Compliance, Supplier Information Management 0 Comments , , , , ,

Navigating Geopolitical Shifts

How the Swiss Climate Ruling Reshapes Supply Chains and Risk Management

by Michelle Armstrong, TYS Global VP of Value Engineering and George Coe, Prism Cofounder & Partner

On April 9, 2024, a Swiss Court determined that the Swiss government had a legal obligation to combat climate change, based on European Human Rights Law. The case will have significant implications for ESG and supply chains. 

This adds to a wave of climate litigation, against both countries and companies, but stands as a landmark ruling due to the use of human rights law broadly, and the European Convention on Human Rights (ECHR) specifically, for which a precedent is now set for all 46 countries that are signatories. 

The implications go far beyond the direct ruling. TYS partner, PRISM, a geopolitical risk advisory firm, breaks down the issues for supply chain leaders to watch in three categories. 

Risk of rapid regulatory expansion: the ruling implies that governments have an obligation to take appropriate measures to meet their stated climate goals. Current policy in almost every country comes far short of stated climate goals, such as the Net Zero by 2050 targets set in most Western economies. Legal obligations to put in place policies that match stated goals would mean transformative new climate regulations that would require far larger changes to supply chains than current law. This could range compliance burdens like greater disclosures, but the ruling implies effort aimed more directly at cutting climate risk, making it more likely that direct supply chain costs would be imposed by policies that require renewables investments, more ambitious emissions reductions, reduction of high emissions imports, and other more fundamental changes. 

More countries: a range of other cases exist using human rights and other laws. Other countries, from France to Portugal to India and beyond must be watched for similar precedent-setting rulings that would expand the implications of this legal framework beyond Switzerland and the ECHR. 

Direct corporate lawsuits: the ruling accelerates the impact of climate litigation from activists, which has also been aimed directly at companies. It can be expected to boost efforts to sue companies directly for failures on climate change, creating financial risk to companies and their suppliers, if more lawsuits are successful. 

More broadly, the case could act as a catalyst for enhanced international cooperation. By framing climate action as a human rights imperative, it may lead to a concerted effort among nations to standardize environmental policies and regulatory frameworks, especially at a time when human rights and environmental goals are being pursued in tandem in supply chain regulations like the EU’s CSDDD. 

The case itself is a crucial moment in the use of litigation by climate activists, bringing together years of work at the intersection of environmental advocacy, human rights, legal strategy, and political dynamics. If a precedent has truly been set that expands to more countries, we can expect a rapid rise in transformative climate action, rather than just stated goals, in the coming years. 

Learn more about our TYS partner Prism.

Read more about the landmark Swiss case.

#TYS #Prism #ClimateLitigation #ESG #HumanRightsLaw #RegulatoryExpansion #CSDDD #Sustainability #GeopoliticalRisk 

April Harrison Blog, ESG, Risk & Compliance, Risk Management, Value Engineering 0 Comments , , , ,

Trust Your Supplier at EcoVadis SUSTAIN 2024

A Thankful Reflection and Path Forward

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

Last week, Trust Your Supplier (TYS) joined leaders in sustainability at EcoVadis SUSTAIN 2024, diving into the complexities of compliance and sustainable practices. We’re grateful to EcoVadis and all participants for a forum rich in insights and collaborative spirit.

Key Insights: Simplifying Compliance
The call for simplification in the face of growing regulatory complexities was loud and clear. Our blockchain-based solution’s role in streamlining compliance and fostering transparency across supply chains was more relevant than ever. This reinforces our mission to make navigating compliance easier for everyone.

Our Commitment to Guidance and Collaboration
The discussions at SUSTAIN 2024 have strengthened our commitment to providing innovative solutions and expert guidance. Emphasizing collaboration, we’re energized to work alongside industry peers and businesses to tackle sustainability and compliance challenges together.

Looking Ahead with Optimism
SUSTAIN 2024 was a powerful reminder of our shared goals for a sustainable future. Trust Your Supplier is dedicated to leading the charge in simplifying compliance, ensuring it’s a stepping stone rather than a hurdle. We thank everyone involved for the inspiration and look forward to continued collaboration.

As we move forward, let’s carry the momentum from SUSTAIN 2024 to create a sustainable, compliant world where businesses thrive together.

Interested in seeing how the EcoVadis integration works in TYS? Book a meeting!

April Harrison Blog, ESG, Events, Risk & Compliance, Value Engineering 0 Comments , , , , ,

Navigating Climate Disclosure

TYS Leads the Way Amid Regulatory Evolution

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

In the ever-evolving landscape of climate disclosure, recent adjustments by the U.S. Securities and Exchange Commission (SEC) have prompted a reevaluation of reporting requirements, leaving many businesses in a state of uncertainty. This shift underscores the importance of adaptable solutions like Trust Your Supplier (TYS), a trailblazer in blockchain technology, which continues to serve as a guiding light for companies navigating the complex web of regulatory compliance, including alignment with European directives. 

The Changing Face of SEC Regulations: The SEC’s recent decision to revise climate-disclosure rules omitted a proposed mandate for companies to report Scope 3 emissions, concerning emissions from supply chains and product usage by customers. While this alteration may provide temporary relief, TYS recognizes the ongoing challenges that businesses encounter in this swiftly transforming regulatory environment. 

TYS – A Pillar of Compliance: Trust Your Supplier understands that compliance is not a uniform journey for all. Leveraging innovative blockchain solutions, TYS empowers businesses to seamlessly adapt to evolving regulations. The transparency and efficiency afforded by blockchain technology enable continuous monitoring, historical analysis, and predictive insights, fostering a culture of compliance excellence. 

Addressing Scope 3 Emissions: Scope 3 emissions, which include indirect carbon emissions, present a formidable obstacle for companies. TYS acknowledges the complexities involved in quantifying these emissions, particularly amid escalating global pressure to reduce carbon footprints. With TYS, organizations can streamline the tracking of Scope 3 emissions, transforming challenges into opportunities for sustainable practices. 

Embracing Global Standards: While the SEC’s decision may alleviate concerns for some, other jurisdictions such as the European Union and California are steadfast in advocating for comprehensive climate-related disclosures. TYS recognizes the significance of aligning with global directives and stands prepared to assist companies in meeting diverse reporting obligations across various regions. 

Facilitating Supplier Collaboration: Central to Trust Your Supplier’s ethos is its collaborative ethos. TYS facilitates seamless communication and data exchange between businesses and their suppliers. As demands for Scope 3 data intensify, TYS serves as a conduit, aiding companies in acquiring the necessary information to fulfill reporting requirements. 

Looking Ahead: While the SEC’s decision offers a brief respite, the journey towards comprehensive climate disclosure persists. Trust Your Supplier remains steadfast in its commitment to empowering businesses, equipping them with the tools needed to navigate the evolving landscape of compliance. 

In a regulatory environment characterized by fluidity, Trust Your Supplier emerges as a trusted ally for businesses navigating the intricacies of climate disclosure. With TYS’s blockchain-driven solutions, companies can not only meet existing compliance mandates but also seamlessly adapt to future changes, ensuring a sustainable and transparent approach to supplier and risk management. Stay tuned for further insights from Trust Your Supplier as we continue to pioneer innovation at the intersection of blockchain technology and regulatory compliance. 

Referenced WSJ Article – The SEC Watered Down Its Climate Reporting Requirements: Here’s What That Means for Companies

Discover how Trust Your Supplier can revolutionize your supply chain security. Contact us today to learn more or to schedule a demo. 

April Harrison Blockchain, Blog, ESG, Risk & Compliance, Value Engineering 0 Comments , , , ,

TYS Lunch & Learn Episode 3 – Unlocking the Power of Master Data Management

In the ever-evolving landscape of business operations, one concept stands out as the cornerstone of success: master data management (MDM). Recently, Trust Your Supplier (TYS) hosted a thought-provoking episode of TYS Lunch & Learn, delving deep into the intricacies of MDM, financial information, compliance, and data privacy. This enlightening discussion shed light on the challenges and opportunities facing businesses today and provided invaluable insights for industry professionals. 

The conversation kicked off with an exploration of the “core theater” essential for operational success, encompassing individuals, suppliers, transportation, and data privacy. Participants emphasized the critical importance of maintaining master data governance throughout the supply chain lifecycle, citing real-world examples of companies teetering on the brink of bankruptcy due to lapses in data management. This sobering revelation underscored the profound implications of master data on individual businesses and entire supply chains, making it a non-negotiable aspect of organizational strategy. 

As the discussion unfolded, participants turned their attention to recent trends and innovations in financial information provision and MDM. They highlighted the adoption of technology for financial crime prevention and the challenges posed by the quality of customer and third-party data. The consensus was clear: high-quality, accurate, and complete information is paramount for enhancing customer experiences and detecting suspicious behavior, making MDM indispensable for achieving business objectives and ensuring compliance. 

The conversation then shifted gears to address the complexities of monitoring and verifying data across different jurisdictions, particularly in light of evolving compliance regulations. Participants stressed the need for globally sourced, accurate, and consistent data to support robust risk assessment and compliance efforts. The impact of mergers and acquisitions on MDM and compliance was also explored, with a focus on identifying beneficial owners and understanding complex family structures. 

A particularly poignant moment in the discussion arose when the intersection of data privacy regulations like GDPR with compliance requirements was examined. Participants acknowledged the conflicting nature of Know Your Customer (KYC) and GDPR regulations, highlighting the need for companies to navigate these regulations effectively while safeguarding sensitive information. 

Further insights were shared on the challenges of continuous auditing of information and the importance of monitoring data changes. Participants underscored the necessity of providers offering robust monitoring capabilities and event-driven updates, emphasizing the role of compliance officers in reviewing critical changes. 

The conversation culminated in a discussion on the transformative role of AI and machine learning in automating manual processes and ensuring data quality. Participants stressed the importance of high-quality data as the foundation for AI applications and the need for data cleansing to avoid exacerbating existing problems. 

In conclusion, the episode provided invaluable insights into the challenges and opportunities in MDM, compliance, and data privacy. It underscored the critical role of accurate and high-quality data in driving business success and ensuring regulatory compliance. As businesses navigate the complexities of today’s landscape, embracing robust MDM practices and leveraging innovative technologies will be key to staying ahead of the curve. Trust Your Supplier continues to lead the conversation in thought leadership, empowering industry professionals to navigate the ever-changing business landscape with confidence and agility. 

April Harrison Blog, Data Privacy & Security, Podcast, Risk & Compliance, Supplier Information Management 0 Comments , , , , ,

TYS Lunch & Learn Episode 2- Mitigating Financial Risk to Unlock Added Value: Insights from Procurement Experts

In today’s fast-paced business environment, companies face numerous challenges in managing financial risk effectively while unlocking added value from their procurement processes. To gain valuable insights into this critical area, we turn to procurement experts Stephen Brandt & Chad Hill from Trust Your Supplier (TYS), and Eric Evans from RapidRatings, who share their wealth of experience and knowledge in the field. 

Stephen Brandt, a value engineer at Trust Your Supplier, emphasizes the importance of understanding regulatory goals and compliance risks in procurement. With 15 years of experience in the industry, Stephen highlights the need to uncover value while mitigating financial risks effectively. 

Chad Hill, the Chief Revenue Officer at Trust Your Supplier, underscores the significance of leveraging technology to enhance supply chain management. With over 17 years of experience in procurement technology, Chad emphasizes the importance of collaboration and amplifying the mission of delivering value to the market. 

Eric Evans, a seasoned expert with 20 years of experience in data risk and compliance, provides valuable insights into the role of predictive analytics in managing financial risk. As a partner at Rapid Ratings, Eric discusses the impact of rising interest rates and leveraged debt on companies, particularly in the wake of the COVID-19 pandemic. 

One of the key challenges highlighted by Eric is the need to assess the financial health of critical relationships within the supply chain. By segmenting companies based on their criticality and leveraging predictive analytics, organizations can gain deeper insights into potential risks and opportunities. 

Furthermore, Eric emphasizes the importance of continuous monitoring and due diligence in supplier onboarding processes. With the help of platforms like Trust Your Supplier, organizations can customize their monitoring strategies to align with their specific needs and priorities. 

Chad echoes the importance of resilience in today’s business landscape, emphasizing the interconnected nature of financial, operational, and environmental risks. By leveraging technology and expert insights, organizations can better anticipate and mitigate potential risks, ensuring long-term sustainability and growth. 

In conclusion, mitigating financial risk in procurement requires a holistic approach that integrates technology, expertise, and strategic partnerships. By leveraging predictive analytics, continuous monitoring, and customized solutions, organizations can unlock added value while safeguarding against potential risks, ensuring resilience and success in today’s dynamic business environment. 

Trust Your Supplier (TYS) is a Small, Minority, and Woman-owned business with a global reach offering an innovative blockchain-based solution for supplier and risk management to large and mid-size enterprises. By harnessing the immutability of the blockchain, TYS ensures daily monitoring, and historical, predictive, and prescriptive risk insights, enabling trusted data exchange and workflow automation beyond traditional boundaries. This distributed ledger technology fosters transparency, efficiency, and empowerment for businesses to manage suppliers and mitigate risks effectively. 

April Harrison Blog, Financial, Podcast, Risk & Compliance 0 Comments , , ,

GHG Protocol Decoded: Tech Solutions for Scope 3 Reporting

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

 

Scope 3 emissions, often referred to as “value chain emissions,” are a part of the Greenhouse Gas Protocol’s corporate standard for greenhouse gas accounting. These emissions are generally the most significant share of an organization’s carbon footprint but are also the most complex to manage and mitigate, as they involve activities not directly owned or controlled by the reporting company. Scope 3 includes both upstream and downstream emissions and encompasses a wide range of indirect emissions sources.

The regulations and guidelines around Scope 3 emissions vary depending on the region and the specific regulatory framework. However, there are some general aspects to consider:

  • Voluntary vs. Mandatory Reporting: In many regions, reporting Scope 3 emissions is still voluntary but is increasingly being encouraged or required as part of broader sustainability reporting frameworks. For example, the European Union’s Non-Financial Reporting Directive (NFRD) encourages companies to report on their Scope 3 emissions.
  • Standards and Protocols: The Greenhouse Gas Protocol provides the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions, including Scope 3.
  • Corporate Sustainability Reporting: Companies may choose to report Scope 3 emissions as part of their sustainability or corporate social responsibility (CSR) reporting. This is often done to improve transparency, manage risks, and identify opportunities for reducing emissions in the supply chain.
  • Investor and Stakeholder Pressure: There is increasing pressure from investors, customers, and other stakeholders for companies to report and reduce their Scope 3 emissions. This pressure often drives more detailed and rigorous reporting and reduction strategies.
  • Sector-Specific Guidelines: Certain industries have specific guidelines or expectations for Scope 3 reporting. For example, the Science Based Targets initiative (SBTi) provides methods and guidance for companies to set science-based targets for reducing greenhouse gas emissions, including Scope 3.
  • Local and National Regulations: Some countries have specific regulations or guidelines for Scope 3 reporting. These can vary significantly and may be more or less stringent than international standards.
  • Integration with Broader ESG Goals: Scope 3 emissions reporting is often part of broader environmental, social, and governance (ESG) strategies and goals within organizations.

Technological Approaches for Measuring Scope 3 Emissions

Measuring Scope 3 emissions involves complex data collection and analysis due to the broad range of indirect emission sources across a company’s value chain. Technology plays a crucial role in this process, with several key approaches:

  • Life Cycle Assessment (LCA) Tools: These software tools analyze the environmental impacts of products or services throughout their entire life cycle, from raw material extraction to disposal. LCA tools can be instrumental in quantifying Scope 3 emissions related to product use and end-of-life stages.
  • Supply Chain Analysis Software: These platforms focus on mapping and assessing emissions within a company’s supply chain. They help identify hotspots of high emissions and opportunities for reduction by analyzing supplier data and activities.
  • Carbon Accounting Platforms: These comprehensive tools enable companies to track and manage their carbon emissions across all scopes, including Scope 3. They often feature dashboards, reporting capabilities, and scenario analysis to support strategic decision-making.
  • Energy Management Systems (EMS): While primarily focused on direct energy consumption (Scope 1 and 2), EMS can also contribute to Scope 3 analysis by providing insights into the energy use and associated emissions of leased assets, franchises, and outsourced activities.
  • Blockchain and IoT: Emerging technologies like blockchain and the Internet of Things (IoT) offer new ways to track and verify emissions data across complex supply chains, enhancing transparency and accuracy.

Data Sources for Scope 3 Emissions Measurement

Scope 3 reporting platforms gather data from a variety of sources:

  • Supplier Surveys and Self-Reporting: Direct communication with suppliers to collect data on their emissions and environmental practices.
  • Industry Averages and Benchmarks: Utilizing established databases and benchmarks to estimate emissions for common processes or products in the absence of specific data.
  • Public and Proprietary Databases: Accessing government or commercial databases that provide emissions factors and environmental impact data for a wide range of activities and materials.
  • Sensor and IoT Data: Collecting real-time data from sensors and IoT devices embedded in products or supply chain operations to monitor emissions.

Reliability and Approaches

The reliability of Scope 3 measurement can vary significantly based on the data quality, the methodologies used, and the comprehensiveness of the analysis. Approaches that incorporate primary data from direct suppliers and use robust, widely recognized methodologies (like those recommended by the Greenhouse Gas Protocol) tend to be more reliable. However, even with the best tools and intentions, Scope 3 measurements often involve a degree of estimation and uncertainty, especially when relying on secondary data or industry averages.

Watch-Outs When Sourcing Scope 3 Reporting Software

  • Data Quality and Transparency: Ensure the software supports high-quality, verifiable data collection and offers transparency about its methodologies and data sources.
  • Customization and Scalability: The platform should be adaptable to your specific industry and supply chain complexity and scalable as your business and reporting needs evolve.
  • Integration with Existing Systems: The software should integrate seamlessly with your existing ERP, CRM, and other management systems to streamline data flow and avoid silos.
  • Compliance and Standards Alignment: Verify that the software supports compliance with relevant regional regulations and aligns with international standards like the Greenhouse Gas Protocol.
  • User Support and Training: Adequate user support, training, and resources are essential to ensure the successful implementation and ongoing use of the platform.

In conclusion, technology offers powerful tools for measuring Scope 3 emissions, but the choice of platform and approach requires careful consideration of your company’s specific needs, the quality and source of the data used, and the ability to integrate and align with broader sustainability goals

April Harrison Blog, ESG, Risk & Compliance, Risk Management, Value Engineering 0 Comments , ,

International Sustainability Standards Board (ISSB)

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

Complying with the global standards set by the International Sustainability Standards Board (ISSB) involves aligning your business’s sustainability reporting with internationally recognized guidelines. The ISSB, operating under the IFRS Foundation, aims to provide a global baseline of high-quality sustainability disclosure standards to meet investors’ information needs. Here’s a guide for your business to align with the ISSB standards: 

Understand the ISSB Standards and Their Objectives

  • Overview of ISSB Standards: Familiarize yourself with the ISSB’s aim to standardize sustainability disclosures, focusing on providing relevant, reliable, and comparable information to investors. 
  • Scope and Relevance: Understand how these standards are relevant to your business, particularly in communicating sustainability-related financial risks and opportunities to investors. 

Assess Current Sustainability Reporting Practices

  • Gap Analysis: Evaluate your current sustainability reporting practices against the ISSB standards to identify gaps. 
  • Stakeholder Engagement: Engage with key stakeholders, including investors, to understand their needs and expectations regarding sustainability information. 

Integrate Sustainability into Governance

  • Governance Structure: Ensure your board and management are equipped to oversee sustainability issues in line with the ISSB standards. 
  • Accountability and Responsibility: Assign clear roles and responsibilities for sustainability reporting and disclosure within your organization. 

Enhance Data Collection and Management

  • Robust Data Systems: Develop or enhance systems to collect accurate and verifiable sustainability data. 
  • Quality and Consistency: Focus on the quality, consistency, and reliability of the data collected for sustainability reporting. 

Align Reporting with ISSB Requirements

  • Disclosure Practices: Adapt your sustainability reporting practices to align with the ISSB’s disclosure requirements, focusing on materiality, clarity, and completeness. 
  • Continuous Improvement: Regularly review and update your reporting practices to align with evolving ISSB standards and best practices. 

Prepare for External Assurance

  • Assurance Readiness: Prepare for external assurance of your sustainability disclosures to ensure they meet the ISSB standards. 
  • Transparency and Credibility: Use external assurance to enhance the credibility and transparency of your sustainability reporting. 

Implement Effective Communication Strategies

  • Investor Communication: Develop a strategy to effectively communicate your sustainability performance and risks to investors. 
  • Public Reporting: Ensure public disclosures are clear, concise, and provide meaningful information to investors and other stakeholders. 

Monitor Developments and Participate in Dialogues

  • Stay Informed: Keep abreast of developments and updates in ISSB standards and related regulatory changes. 
  • Industry Collaboration: Participate in industry forums and dialogues to stay informed and influence the development of sustainability standards. 

Train and Educate Staff

  • Internal Training: Provide training for staff involved in sustainability reporting to ensure understanding and compliance with ISSB standards. 
  • Building Expertise: Develop internal expertise or seek external support for interpreting and applying the ISSB standards. 

Conclusion
Aligning with the ISSB standards is a strategic move towards globally consistent and comparable sustainability reporting. It not only aids in meeting investor demands but also enhances the overall credibility and transparency of your business’s sustainability efforts. As these standards evolve, staying proactive in adapting and improving your sustainability reporting practices will be key to maintaining alignment and demonstrating your commitment to sustainable business practices. 

April Harrison Blog, ESG, Risk & Compliance, Risk Management, Value Engineering 0 Comments , ,

Task Force on Climate-Related Financial Disclosures (TCFD)

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

Complying with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) involves a strategic approach to climate-related risk management and disclosure. The TCFD aims to improve and increase the reporting of climate-related financial information. Here’s a comprehensive guide for your business to align with the TCFD recommendations: 

Understand the TCFD Framework

  • Framework Overview: Familiarize yourself with the TCFD’s four core areas: Governance, Strategy, Risk Management, and Metrics and Targets. 
  • Applicability and Benefits: Understand how the TCFD recommendations apply to your organization and the benefits of enhanced climate-related financial disclosures, including better risk management and more informed strategic planning. 

Integrate Climate-Related Risks into Governance

  • Board Oversight: Ensure your board of directors is informed about and oversees climate-related risks and opportunities. 
  • Management’s Role: Establish management-level roles responsible for assessing and managing climate-related issues. 

Incorporate Climate Change into Organizational Strategy

  • Impact Assessment: Assess the potential impact of climate-related risks and opportunities on your organization’s businesses, strategy, and financial planning. 
  • Scenario Analysis: Conduct scenario analysis to understand the resilience of your organization’s strategy under different climate-related scenarios. 

Manage Climate-Related Risks

  • Risk Identification and Assessment: Identify and assess climate-related risks to determine how they could affect your organization. 
  • Risk Management Processes: Integrate climate-related risks into your existing risk management processes, ensuring an organization-wide approach to addressing these risks. 

Develop and Disclose Climate-Related Metrics and Targets

  • Metrics Selection: Choose appropriate climate-related metrics that are relevant to your organization. 
  • Setting Targets: Set and disclose targets your organization uses to manage climate-related risks and explain how these targets align with your strategy. 

Enhance Transparency and Disclosure

  • Reporting: Prepare to disclose climate-related financial information in your organization’s annual financial filings or other public documents. 
  • Continuous Improvement: Regularly update and refine your disclosures as practices and knowledge evolve. 

Engage with Stakeholders

  • Stakeholder Communication: Communicate with stakeholders about your organization’s approach to managing climate-related risks and opportunities. 
  • Feedback Incorporation: Use stakeholder feedback to enhance your climate-related financial disclosures. 

Monitor Regulatory Developments

  • Regulatory Awareness: Stay informed about current and upcoming regulations related to climate disclosure in the jurisdictions where your organization operates. 
  • Compliance Preparation: Prepare your organization for potential regulatory changes or requirements related to climate reporting. 

Provide Training and Build Capacity

  • Internal Training: Ensure relevant employees and management are trained on the importance of climate-related risks and the TCFD recommendations. 
  • Expertise Development: Develop in-house expertise or seek external support to understand and implement TCFD-aligned disclosures effectively. 

Conclusion
Aligning with the TCFD recommendations is essential for forward-thinking organizations committed to addressing climate change risks and opportunities. It facilitates compliance with emerging regulations and positions your business as a leader in sustainable practices, enhancing investor confidence and public trust. By taking proactive steps in governance, strategy, risk management, and transparent reporting, your organization can effectively navigate the challenges and opportunities posed by climate change. 

April Harrison Blog, ESG, Risk & Compliance, Risk Management, Value Engineering 0 Comments , ,

Complying with the EU Corporate Sustainability Reporting Directive (CSRD)

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

Complying with the EU Corporate Sustainability Reporting Directive (CSRD)involves several key steps and considerations for businesses. The CSRD significantly expands the sustainability reporting requirements for companies in the EU. Here’s a guide to what your business needs to do: 

 Understand the Scope and Applicability

  • Determine Eligibility: The CSRD applies to all large companies, whether they are publicly listed or not. Specifically, it targets companies with more than 500 employees. 
  • Timeline Awareness: Be aware of when the CSRD requirements will apply to your business. The directive is expected to be applied in stages starting from 2024 for reports published in 2025. 

 Develop Robust Data Collection Systems

  • Data Collection and Management: Establish or enhance systems for collecting a wide range of ESG (Environmental, Social, and Governance) data. This includes environmental impact, social practices, and governance structures. 
  • Technology Integration: Consider implementing technology solutions that can help in accurately collecting and managing sustainability data.

Align Reporting with CSRD Requirements

  • Understand Reporting Criteria: Familiarize yourself with the specific reporting standards and formats that the CSRD mandates. This includes details on sustainability-related matters such as environmental protection, social responsibility, and treatment of employees. 
  • External Standards and Frameworks: Align your reporting with recognized sustainability frameworks and standards that are consistent with CSRD requirements. 

Integrate Sustainability into Business Strategy

  • Strategic Alignment: Ensure that your company’s strategy reflects a commitment to sustainability, as the CSRD aims for sustainability to be integrated into the business model. 
  • Stakeholder Engagement: Engage with stakeholders, including employees, customers, and suppliers, to understand their perspectives and incorporate their feedback into your sustainability practices. 

Establish a Sustainability Governance Structure

  • Governance Framework: Set up a governance framework for sustainability reporting, ensuring that there is oversight and accountability within the organization. 
  • Training and Awareness: Train relevant staff on CSRD requirements and the importance of sustainability reporting. 

Prepare for Assurance and Verification

  • Assurance Readiness: Prepare for external assurance of your sustainability reporting, as the CSRD requires assurance on the reported sustainability information. 
  • Transparency and Accountability: Focus on the accuracy and transparency of your reporting to build trust with stakeholders and comply with the directive. 

Stay Informed and Adapt

  • Regulatory Updates: Stay updated on any changes or updates to the CSRD and related regulations. 
  • Continuous Improvement: Regularly review and update your sustainability practices and reporting to ensure ongoing compliance and improvement. 

Communicate and Disclose

  • Effective Communication: Develop a communication plan to effectively disclose sustainability information both internally and externally. 
  • Report Preparation: Prepare your sustainability reports in line with CSRD guidelines and ensure they are accessible to stakeholders. 

Conclusion
Compliance with the CSRD is not just a regulatory requirement; it’s an opportunity to embed sustainability into the core of your business operations. By taking these steps, businesses can not only comply with the directive but also demonstrate their commitment to sustainable development and corporate responsibility. 

April Harrison Blog, ESG, Risk & Compliance, Risk Management, Value Engineering 0 Comments , ,
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