Is greenhouse gas reporting about to become the next SOX-like IT problem?
The last two weeks have brought a whirlwind of news, from both a global and domestic perspective, that suggest things are about to get really tricky for businesses that have been ignoring the little matter of climate change and greenhouse gas emissions reporting.
I couldn't possibly list everything but there are two major things to keep in the back of your head as you read to the end of the post.
- The United Nations Environment Programme (UNEP) issued a new report called "Climate Change Science Compendium 2009" in which it declares that the pace of climate change is outstripping even the draconian scenarios suggested by the the Intergovernmental Panel of Climate Change. One of the findings: Sea levels could rise by up to two meters by the year 2100. Some of the most sobering predictions have to do with the future of the fresh water supply. Here is the link to the full report.
- The second tidbit has to do with ongoing developments at the U.S. Environmental Protection Agency. I reported barely two weeks ago that the EPA will be requiring new visibility from the biggest emitters (that is companies with big plants and fabs and such). Now, apparently, it is floating a proposal under which it will require any facility creating more than 25,000 tons of greenhouse gas emissions per year to demonstrate that they are using the "best available control technologies and energy efficiency measures" to minimize these emissions. The EPA claims that small businesses and farms would be exempt. Here's a press release with more information about the proposal. A link with the full text and a place to leave comments is at the end.
So, here's the subtext: Various scientific data suggests things are getting worse, which has created a major brouhaha in the business community (just read this New York Times story about the companies who are defecting from the Chamber of Commerce because of its inaction regarding climate change). Meanwhile, the EPA appears to be getting much more aggressive about forcing companies to report as much greenhouse gas data as possible. If that is so, many businesses are in for a world of hurt.
Lo and behold, a research report hit my desk today from Verdantix that suggests many companies use nothing more than a spreadsheet to collect bits and pieces of relevant energy efficiency and greenhouse gas data. Its research is more anecdotal than quantitative, but it suggests that people better get on the ball and start evaluation software and applications that can help manage carbon management and sustainability portfolios.
About half of the companies that talked to Verdantix for its report collect their data annually. I just talked to a major networking company, and this jibes with what I discussed with them. I thought it was great that it was collecting the data, but would your business wait a year to act on budget or inventory numbers? There is a major disconnect.
Verdantix has published a report about the software that is emerging in the carbon management category. There are 22 listed altogether, but there are six that emerge as "leaders":