1. It’s all about the investors
Investors want the data and they want comparable data. We’ve seen GLYNT customers blocked from capital because their sustainability data was stale and coarse, full of estimates. When investors don’t get what they want, there are real costs to companies, so they will prepare their data. Companies that ignore this capital market demand may also find themselves in litigation. Climate activists believe sustainability data is material, and when companies defend themselves, they’ll need to prove it was immaterial – with data! Everyone must prepare their sustainability data.
2. Sustainability data is elevated to the rigor of financial data
Apples-to-apples comparisons of companies – which is what the investors want – starts with apples-to-apples data preparation. We have all learned how to prepare financial data at this quality level, why not apply those best practices and lessons learned to sustainability data?
3. Litigation is the sideshow
While the SEC worked hard to provide “litigation proof” rules, they are expecting lawsuits from both sides of the political spectrum. Meanwhile, companies must comply with California regulations, EU regulations and IFRS standards. So the SEC’s rules may be in court, most companies must prepare this data for investors, customers and other regulators. Get your popcorn, watch the litigation show, but also prepare your sustainability data. You’ll need it!
4. The biggest risk: the Supreme Court’s ruling on EPA
In February the U.S Supreme Court heard a case challenging the EPA’s rulemaking. Often Congress passes laws with intent – “We want clean water” – but not the how – “Science says you should measure clean water this way and levels above X cause cancer, so are banned.” How far can the EPA go to fill in the blanks? That is the case before the Supreme Court. The Court may change this body of law, causing chaos for the way the EPA and the SEC operate. Another bag of popcorn needed as you watch this show unfold, but remember those investors: They still want your data!
5. Every sustainability team is making pancakes, not baking a birthday cake
A 10 year-old’s birthday is a once-in-a lifetime event. That birthday cake is a once-and-done project. But sustainability teams are actually cooking pancakes on a weekend morning. The first pancake is not the best one. Over time, a consistent quality of pancakes are made. It is the same with data. First round of wrangling will not be your best. Our experience is that it takes months to get a first round of data together and more months to fix all the issues. So start now. And plan on repeating. You’re in the pancake business now!
ABOUT GLYNT
“We got audited, so you don’t have to.”
GLYNT is The Sustainability Data Company, producing investor-grade data for businesses around the world. Our audit-ready sustainability data enables accurate reporting, operational efficiencies and access to financial capital. With a purpose-built machine learning system, GLYNT is the automated solution for all types of water, waste, energy and emissions data. Speed work, lower costs, and power ESG, carbon accounting and other business systems with accurate, actual data from GLYNT.
