How Consumer Brands Implement Climate Reporting at a Global Scale: Insights from Industry Experts

In a recent webinar hosted by Planet FWD, industry experts gathered to discuss the evolving landscape of sustainability reporting and climate regulations. The session provided valuable insights for consumer brands grappling with new requirements and the challenges of implementation. Here are the key takeaways from this enlightening discussion.

Embracing Regulations as Opportunities for Transformation

One of the most powerful messages from the webinar came from Anna Turrell, Chief Sustainability Officer at Decathlon. She emphasized the importance of viewing new regulations not as burdensome compliance exercises, but as catalysts for organizational change:

"Ultimately [regulations are about] how you embed responsible, sustainable business practices across your business. Don't look at this as a regulation that you need to comply with. Look at this as an opportunity to almost rewire the organization to be future-fit."

This perspective shifts the conversation from mere compliance to strategic transformation, encouraging companies to use regulatory requirements as a framework for building more sustainable and resilient businesses.

The Global Impact of CSRD

Charlie Quann, Head of Corporate Reporting and Decarbonization at Planet FWD, highlighted the far-reaching implications of the Corporate Sustainability Reporting Directive (CSRD):

"CSRD is one of the most robust regulations we have. So even if your company doesn't have operations in Europe that would require you to comply with CSRD, it's likely that other regions will follow in the footsteps of CSRD."

This insight underscores the importance of understanding CSRD, even for companies not directly affected by it. As global sustainability standards converge, CSRD may well become the blueprint for future regulations worldwide.

Quann also offered an interesting analogy to describe CSRD's approach:

"CSRD is not re-inventing the wheel, it's really re-assembling the bicycle to ensure the data that companies need to report is actually useful and actionable."

This perspective highlights how CSRD is bringing together existing sustainability reporting elements into a more coherent and effective framework.

The Challenge of Narrative Building

Anna Turrell shared a crucial insight about the often-overlooked aspect of sustainability reporting – the narrative:

"Sometimes data is hard to come by. But we underestimate how much time it takes to build the narrative around our data points. And that's what CSRD will focus on. How do we tell the story of our positions and strategies as they relate to climate, decarbonization and the environment."

This emphasis on storytelling and context underscores the need for companies to not just collect data, but to interpret and communicate it effectively to stakeholders.

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ESPR and Digital Product Passport: A New Era of Product Sustainability

Pearl Neymet, European chemicals policy expert at Anthesis Group, provided valuable insights into the Ecodesign for Sustainable Products Regulation (ESPR) and the Digital Product Passport (DPP). She highlighted how these new regulations are pushing companies to think beyond their immediate operations:

"The Digital Product Passport, one of the main goals under ESPR, is to ensure traceability of substances of concern along the life cycle of products to ensure better informed choices and safer treatment at the end of their life cycle."

This emphasis on product-level sustainability and transparency represents a significant shift in how companies will need to approach their sustainability efforts. It requires a deeper understanding of product lifecycles and a more comprehensive approach to data collection and management throughout the supply chain.

Neymet also pointed out the potential for companies to leverage these new requirements for broader sustainability goals:

"A big trend we see is that companies would like to go beyond the ESPR regulatory obligations when they think about the digital product passport. They think the digital product passport should be the one true source of information on anything around the product sustainability."

This perspective suggests that forward-thinking companies are seeing the DPP not just as a compliance requirement, but as a powerful tool for enhancing transparency, improving product sustainability, and potentially gaining a competitive edge.

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The Ripple Effect of New Standards

Turrell also pointed out the broader impact of new reporting standards, even on companies not directly subject to them:

"Even if your business is not impacted, sooner rather than later, people will be knocking on your door asking 'how are you responding to some of these specific elements outlined in CSRD?'"

This observation highlights the cascading effect of new sustainability standards, as stakeholders increasingly expect similar levels of transparency and accountability from all companies, regardless of their regulatory obligations.

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Preparing for the Future

The webinar also covered practical advice for companies preparing for new regulations:

1. Start Early: Given the complexity of new requirements, companies should begin preparation well in advance of deadlines.
2. Leverage Existing Efforts: Many companies already have sustainability initiatives in place. The key is to align these with new regulatory requirements.
3. Collaborate Across Departments: Sustainability reporting requires input from various parts of the organization, including finance, operations, and legal.
4. Invest in Data Management: Robust data collection and management systems are crucial for meeting reporting requirements efficiently.
5. Stay Informed: As regulations continue to evolve, it's essential to stay up-to-date with the latest developments and interpretations.

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Take the Next Step in Your Sustainability Journey

Did these insights pique your interest? There's even more valuable information waiting for you:

1. Watch the Full Webinar: Gain a deeper understanding of these critical topics by watching the complete webinar on demand. Our expert speakers dive into more detail and provide additional insights that can help your organization navigate the complex world of sustainability reporting. Watch the Webinar On-Demand
2. Get a Free Regulatory Consultation: Still have questions about how these regulations apply to your specific situation? We're offering a complimentary 30-minute consultation with one of our regulatory experts. During this session, you can discuss your unique challenges and get personalized advice on how to prepare for upcoming requirements. Book a Regulatory Consultation

Don't miss this opportunity to deepen your understanding and get expert guidance. Take action now to ensure your organization is prepared for the future of sustainability reporting. 

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