Sustainability can sometimes feel like a confusing alphabet soup of acronyms and jargon, especially when you get into regulations, ratings, standards and guidelines. To help make sense of it all, let’s take some inspiration from an iconic band – The Beatles. Yes, this absolutely means I will be taking every opportunity to work in a lyric or song.
So, come together, right now, over sustainability!
Ratings: The John Lennon Of Sustainability
Just as John Lennon was the visionary and outspoken band member, ratings are the bold and influential voice in sustainability. They assess your company’s performance on environmental, social and governance (ESG) criteria, making sure your sustainability efforts are seen and heard.
ESG ratings help both customers and end users understand how well you’re managing sustainability risks and opportunities. In the world of sustainability, ESG ratings are like Lennon’s famous anthem “Imagine” – they envision a better, more responsible world.
Bonus Connection: Yoko Ono!
Yoko Ono’s contributions to Lennon’s life and work brought a new depth and perspective, much like ESG ratings bring a comprehensive view of a company’s sustainability efforts. Just as Ono’s influence helped Lennon explore new artistic and social realms, ESG ratings guide companies to broaden their focus beyond financial performance, emphasizing the importance of environmental and social responsibility.
Some examples of prominent rating agencies that you may have heard about include:
- MSCI ESG Ratings, which assesses companies based on their exposure to industry-specific ESG risks and their ability to manage those risks.
- EcoVadis, which provides holistic sustainability ratings, evaluating companies on environmental, social, ethics and supply chain criteria. It’s like a full-body scan for your company’s sustainability practices.
- CDP (Carbon Disclosure Project), which scores companies based on their environmental transparency and performance.
Regulations: The Paul McCartney Of Sustainability
Paul McCartney was known for his discipline and ability to craft the band’s most structured and enduring hits. Similarly, regulations are the essential frameworks that ensure everyone is playing by similar rules. These are mandatory requirements set by governments and regulatory bodies to protect the environment and society.
Think of regulations as the “Let It Be” of your sustainability journey, providing wisdom and guidance through structured practices.
Key regulations include:
- PFAS Regulations: Laws and guidelines aimed at limiting the use of per- and polyfluoroalkyl substances (PFAS) in products due to their persistence in the environment and potential health risks.
- FTC Green Guides: U.S. regulations to prevent greenwashing by ensuring that environmental marketing claims are truthful and substantiated.
- The Modern Slavery Act: A law requiring companies to disclose efforts to prevent slavery and human trafficking in their supply chains, ensuring ethical treatment of workers.
Reporting Standards And Frameworks: The George Harrison Of Sustainability
George Harrison brought depth and spiritual insight to The Beatles, much like reporting standards and frameworks bring depth and clarity to sustainability reporting. These standards provide a structured approach to disclosing your sustainability performance, ensuring transparency and credibility.
Think of reporting standards as the “Here Comes the Sun” moment for your sustainability efforts, shedding light on your progress and achievements.
Some examples of prominent sustainability standards:
- GRI (Global Reporting Initiative), which provides a comprehensive set of standards for reporting on a range of sustainability topics.
- SASB (Sustainability Accounting Standards Board), which develops industry-specific standards to guide businesses in disclosing important sustainability information that stakeholders need for decision making, including investing.
- ISSB (International Sustainability Standards Board), which provides global standards for sustainability disclosures, helping companies provide consistent and comparable sustainability information.
Guidelines: The Ringo Starr Of Sustainability
Ringo Starr (my favorite of the Fab Four), with his steady drumming and easy-going nature, provided the foundation and rhythm for The Beatles. Similarly, guidelines offer best practices and recommendations that help companies enhance their sustainability efforts.
While not mandatory, they provide valuable insights and strategies for improving sustainability performance, much like Ringo’s reliable beats. Guidelines are like the “With a Little Help from My Friends” of sustainability, offering support and advice to keep your efforts harmonious and effective.
Notable guidelines include:
- The UN Sustainable Development Goals (SDGs), a collection of 17 interconnected global goals aimed at addressing critical challenges, such as poverty, inequality, climate change, environmental degradation, peace, and justice.
- Greenhouse Gas Protocol, the definitive standard for carbon accounting. It offers comprehensive guidance for companies to accurately measure and manage their greenhouse gas emissions.
- Science Based Targets, which offers methodologies and targets for companies to set science-based emissions reduction goals, ensuring they are in line with the latest climate science.
All You Need Is Love
Hopefully, you’ve got a couple solid tunes stuck in your head and you’re feeling a bit better about which means what.
Remember, sustainability is a continuous journey. It’s about making ongoing improvements, celebrating small wins and staying committed to your goals. Don’t feel overwhelmed, you’ve got the support of many in the industry (including yours truly), cheering you on.
