Emissions reporting in the food sector is in transformation
When a company reports the emissions of it’s own operations, that creates a solid basis for understanding, operation and communication. In the future, we will see increasing amount of requirements for companies’ climate reporting.
Emissions reporting is an essential part when you want to find out the climate effects of your own operations and influence your carbon footprint. The report is an information document, and calculation results, which enables to describe the effects of one’s own activities, take climate actions and communicate responsibly.
Many entities do and require climate reporting. It is done at the state level, the EU reports to the UN, and companies report climate issues both at the level of the company and the entire supply chain. So far, climate reporting is not regulated by law, but regulation on companies’ reporting obligations is already on the horizon at the EU level.
The importance of climate reporting is increasing
Reporting on financial matters is everyday action for companies. The financial statements must be made annually, and the taxman requires reports in accordance with the laws. Along with financial reporting, the importance of non-financial reporting is also growing.
Consumers are constantly more interested in climate issues and know how to take a critical view of greenwashing. With the help of reports, it is possible to offer verified climate claims to informed consumers. In addition to this, the authorities are also tightening the requirements for non-financial reporting.
Corporate responsibility reporting will be affected by at least these:
- Corporate Sustainability Reporting Directive (CSRD)
- Taxonomy Regulation and Sustainable Finance Disclosure Regulation (SFDR)
- Green Claims Directive
- Science Based Targets initiative
In the near future, the EU’s Corporate Sustainability Reporting Directive (CSRD) will already require large companies and those listed on the stock exchange to report on corporate responsibility based on the prescribed standards. Small and medium-sized companies are not required to report, but CSRD also indirectly affects their operations.
In order for large companies to be able to report their emissions, they also need information from their own value chain. In these value chains, there are smaller companies from which large companies buy raw materials, and need information about their carbon footprint.
So, at least for the time being, the law does not oblige small companies to take responsibility into account in their annual reports, but information is still required about the pressure from large companies.
In addition, there are specific regulation for the financial sector (Taxonomy regulation and Sustainable Finance Disclosure Regulation). The financial industry, banks and insurance companies must report on the responsibility of their investments. Therefore, food companies and agricultural entrepreneurs must also be able to demonstrate their climate responsibility in order to receive funding in the future.
Financial institutions need reporting from companies due to regulation, but also from a risk management perspective. The investment may lose its value in the future if the object turns out to be a major climate risk.
The EU acts as a trend setter
In the European Union, we are at the forefront of implementing responsibility reporting regulation. Communication and marketing should also be based on verified information, so that companies doesn’t share incorrect climate claims.
Calculation reports are a great way to verify climate friendliness, and soon verification of climate claims will also be legally required. The European Commission’s recent proposal for the Green Claims Directive aims to prevent greenwashing in corporate communications and marketing.
In addition to EU regulation, there are also some international initiatives on corporate emissions reporting. The Science Based Targets initiative helps companies ensure that their climate actions is in line with the Paris Climate Agreement. The UN Global Compact, CDP, the World Natural Resources Institute and WWF founded the initiative in 2015.
Among the large Finnish companies, Kesko already invited its suppliers to report on their climate targets in 2022. In its sustainability strategy, Kesko has set as a goal that 67 percent of the largest suppliers would set science-based emission reduction targets by 2026.
Voluntary company and product-level reporting enables companies to set science-based emission reduction targets.
The digital solutions enables easy emission reporting
Since reporting requirements are still in transition, tools for reporting emissions are also still being developed. With Biocode’s digital reporting concept, data collection and climate reporting are cost-effective.
The digital carbon footprint calculation is easy to update. Emission calculations are information that changes constantly, and the data must be updated so that it does not become outdated. Printed reports are static and it is difficult to modify them afterwards, but in a digital reporting solution, updating is easy.
The report from carbon footprint calculator is available online, from where it can be easily distributed to different stakeholders, thus facilitating communication.
Clarity and visuality.
Reports must be clear and understandable to be useful. If the reports are unclear, heavy and difficult to read, it is difficult to use them, even if their content is important. With Biocode’s calculator, reports get a visual and clear form.
With the help of our calculator, you can generate high-quality and reliable reports that meet international criteria. Our counters and reports comply with ISO 14067 and ISO 14040 standards, IPCC guidelines for national greenhouse gas inventories and EU’s PEFCR regulations.
Carbon footprint reporting is about development. The carbon footprint changes every year, when the operation and the inputs used to make the product change. By monitoring the development, it is ensured that the activities are carried out in the right direction at the right pace. Long-term reporting requires systematic monitoring and a correct reporting tools.
Need clarity on the chaos of carbon footprint reporting? Try our carbon footprint calculator free for two weeks. By logging into the calculator, you can immediately study and test the carbon footprint calculation.