Don’t feel like you have the resources to tackle climate reporting properly in your company? Here are some challenges, actions and opportunities you should know about.  

Despite facing challenges such as missing budget allocation, underequipped sustainability teams and lack of stakeholder involvement, companies can act by investing in digitalisation, knowledge-building and team capacity to communicate a clear business case for facilitating Climate Reporting. 

Challenges: 

Previous blog posts already covered the challenges of needing more data management and people skills. This section will look at more general challenges when it comes to having the resources needed to perform efficient and useful climate reporting. 

• Missing budget allocation: Lack of financial resources can hinder Climate Reporting by limiting investments in data collection, software tools, and staff training.  

  
  

• Underequipped sustainability team: Many companies embarking on their Climate Reporting journey often assign the responsibility to employees who already have a lot on their plate or designate only a part-time role to the topic. 

  
  

• Missing digitalisation: As covered extensively under Data, technological resources, such as data management systems, software tools, and data analysis tools, are necessary to efficiently collect, process, and report climate data.  

  
  

• Missing knowledge: The extent of this challenge was already outlined under Available skills & knowledge, but human resources such as qualified personnel with the necessary skills and expertise are essential for the successful implementation of Climate Reporting.  

  
  

• Lack of stakeholder involvement: As information needs to be exchanged between different organisations, there needs to be a degree of willingness to share data and support one another. Lack of collaboration only hinders successful Climate Reporting.  

  
  

• Missing integration: Integrating sustainability indicators in existing, well established reporting streams can reduce additional resources needed and emphasise the importance of sustainability. Parallel reporting is not efficient and comes with a risk of misaligned reporting. 

  
  

• Underestimating the effort: A report is not reporting. Most companies underestimate the effort that has to go in setting up the right governance, roles, processes and controls that are required 

Resource Allocation - Actions and Opportunities  

Companies will inevitably have to spend resources on Climate Reporting, but rather than seeing them as a pure expense, viewing them as an investment is much more constructive. 

Calculate a clear business case for sustainability:

Companies should create a business case calculation, including a cost-benefit analysis of sustainability and climate initiatives to demonstrate the potential return on investment and persuade decision-makers to allocate sufficient budget. 

Opportunities: Firstly, it can help to identify the most impactful and cost-effective climate initiatives, allowing companies to prioritise their sustainability efforts and allocate resources more effectively. Secondly, it can improve transparency and credibility in Climate Reporting by providing a quantitative assessment of sustainability initiatives' environmental and social benefits alongside the financial costs. 

Invest in the team's capacity:

Companies should invest in training and development programs to build the team's ability and hire additional staff with relevant expertise. 

Opportunities: Firstly, it can lead to a more knowledgeable and skilled sustainability team, better equipped to tackle sustainability challenges and identify opportunities for improvement. Secondly, it can improve employee engagement and retention by demonstrating a commitment to employee development and sustainability. Thirdly, it can enhance transparency and credibility in Climate Reporting by ensuring that the team responsible for it has the necessary skills and expertise to report on sustainability performance accurately. 

Create training and knowledge-sharing sessions:

Companies should invest in regular training and knowledge-sharing sessions to help bridge knowledge gaps and improve the team's expertise in sustainability topics. 

Opportunities: Firstly, Consistent training and knowledge-sharing can help create a culture of sustainability within the organisation, where sustainability is seen as a core value rather than a separate initiative. Secondly, sharing knowledge and ideas with employees can encourage innovation and new thinking around climate initiatives. Thirdly, offering training and development opportunities in sustainability can make the company more attractive to potential employees and help retain current staff by providing opportunities for career growth.