Well done for publishing your carbon footprint. But is your data correct and robust?
Dr Stephen Finnegan, managing director of PNZ Advisory (formerly Arete Zero Carbon) explains why assurance is becoming an increasingly important must-have for IT channel firms
The only true way of knowing your carbon data is both correct and robust enough to stand up to scrutiny is to seek third-party independent support to verify both data and processes. This is where Assurance comes in.
But what is assurance? In essence, it is a process of independent validation of your carbon or ESG data. It gives confidence to internal stakeholders, customers, investors, and regulators that your disclosures are robust and aligned with leading frameworks. In addition, it strengthens internal processes for data accuracy and audit readiness.
We are seeing a marked increase in companies getting in touch because they wish to be assured and want that extra peace of mind that their carbon data is correct.
Why is this so important?
One word: greenwashing.
Numerous businesses have published their carbon footprint only to find out that the underlying data and assumptions were incorrect or have been misinterpreted. "Creative Accounting" is a real problem and has been highlighted in a study by The Guardian in 2022. Their findings suggest that global players including Meta, Google, Microsoft and Apple, are emitting 7.6 times more greenhouse gases than they are admitting to.
What could be the consequences?
To use an example, the UK Competition and Markets Authority (CMA) has been granted the ability to fine companies for misleading consumers, which could prompt a crackdown on corporate greenwashing, experts say. The Digital Markets, Competition and Consumers Act, which became law in 2024, came into force at the start of the new financial year on 6 April, 2024.
The wide-ranging act boosts the enforcement powers of the regulator to target unfair sales and commercial practices. On 4 April, the government published final guidance for businesses on unfair commercial practices and details on enforcement. Under the new rules, companies providing goods and services to UK consumers can be fined up to 10 per cent of global turnover for consumer law infringements, up to five per cent for breaching undertakings to the CMA, and up to one per cent for failing to provide information, or providing false information to the regulator.
Where do I start with assurance?
There are several types including limited, moderate and reasonable. The latter provides the highest level of assurance possible as it is compliant with ISO 14064-3 standards. Assurance is not an expensive service, but it will become essential given that hundreds of businesses are currently using AI and automation to help calculate their emissions.
For further information and support please do get in touch via the PNZ website.
Interested in Sustainability? Find out more about CRN's Sustainability in Tech Summit & Awards here.