Roadmap Test v10 Option 2

Metrics and Targets

Set emissions targets and feed into transition plans

While 54% of firms have identified emissions reduction opportunities and 48% have a first order transition plan outlining scope 1 and 2 targets, only 25% have incorporated scope 3 into their targets

Do the targets you're setting align with your strategic goals, and do you have action plans to achieve these across all three emissions scopes? Furthermore, do you have appropriate metrics in place to measure progress in these actions?

ERM Energetics works with some of Australia's largest organisations to help them set ambitious but credible targets across scopes 1, 2 and 3, backed by a rigorous plan.

Metrics and Targets

Enhance scope 1, 2 & 3 inventory

77% of companies have estimated scope 1 and 2 emissions using a formal reporting process, but only 42% of companies have assessed their scope 3 footprint

Do you know what your emissions will show when you disclose across all three scopes?

ERM Energetics works with some of Australia's largest organisations to develop emissions inventories aligned with global standards.

Metrics and Targets

Build assurance-ready emissions data management systems and processes

Only 44% of firms have a data management plan in place to support timely and accurate reporting

Are you confident in the data that underpins your approach to calculating emissions, and do you have data governance processes and systems in place?

ERM Energetics works with some of Australia's largest organisations to help them ensure their sustainability data is well governed and develop emissions inventories aligned with global standards.

Metrics and Targets

Disclose scope 1 & 2 inventory

77% of companies have estimated scope 1 and 2 emissions using a formal reporting process, but only 42% of companies have assessed their scope 3 footprint

Do you know what your emissions will show when you disclose across all three scopes?

ERM Energetics works with some of Australia's largest organisations to develop emissions inventories aligned with global standards.

Strategy

Incorporate risks/opportunities in strategies and planning (including transition planning)

Only 22% of companies have a detailed climate transition plan and only 21% have a capital plan which includes allocations for climate transition

Can you articulate how you will adapt your business plan in response to climate risks and opportunities, and how you're investing to achieve these changes?

ERM has deep expertise developing risk assessments, driving scenario anaylsis and identifying climate opportunities.

Governance

Ensure board ownership of climate risk

56% of respondents have a Board committee that considers climate related matters in place

Can your company demonstrate sufficient control of climate risk through executive structures and at Board level?

ERM Energetics can help you align your governance and build board and executive capability.

Governance

Align management oversight and incentives

While 71% of companies have a designated person(s) within management responsible for climate related issues and risks, only 34% have that designated persons with climate-related targets in remuneration and performance management

Has your company set itself up for climate transition success by aligning governance structures and incentives?

ERM Energetics can help you align your governance and build board and executive capability.

Governance

Review board and management capability

40% of companies have assessed their Board's climate competency and upskilling requirements, and 43% have considered their Executive team

Does your Executive Leadership team and your Board have the capabilities they need to embed climate across company strategy and risk management pillars, understand their climate metrics and set and meet targets?

ERM Energetics can help you align your governance and build board and executive capability.

Strategy

Risk and opportunity anaylsis (including scenario analysis)

Only 44% of companies have identified climate-related risks over the short, medium and long term, while only 34% report using stress testing using scenario analysis

How are you going to build an understanding of climate risks and opportunities for both your business model and your value chain, under a range of scenarios and time horizons?

ERM has deep expertise developing risk assessments, driving scenario anaylsis and identifying climate opportunities.

Strategy

Quantify how climate risks and opportunities will impact your business performance

Only 22% of companies have assessed the financial and strategic impacts of climate change on their business and value chain

Do you have an understanding of financial materiality for your company, and which risks and opportunities meet this threshold?

ERM has deep expertise developing risk assessments, driving scenario anaylsis and identifying climate opportunities.

Risk Management

Integrate consideration of climate risks and opportunities into business practices

While 61% of companies have processes in place to identify, assess, prioritise and monitor climate-related risks and opportunities, only 51% have integrated climate risk management into risk management processes

Can you isolate climate-related risks from your overall risk management framework, and evaluate them on a standalone basis?

ERM Energetics has demonstrated expertise in integrating climate into leading companies' approach to risk and opportunities.

Risk Management

Refine integration of climate risks and opportunities into business practices

While 61% of companies have processes in place to identify, assess, prioritise and monitor climate-related risks and opportunities, only 51% have integrated climate risk management into risk management processes

Do you have plans and accountability to build maturity of your climate risk and opportunity management?

ERM Energetics has demonstrated expertise in integrating climate into leading companies' approach to risk and opportunities.

Metrics and Targets

Test-run emissions inventory across scopes 1, 2 and 3

77% of companies have estimated scope 1 and 2 emissions using a formal reporting process, but only 42% of companies have assessed their scope 3 footprint

Do you know what your emissions will show when you disclose across all three scopes?

ERM Energetics works with some of Australia's largest organisations to develop emissions inventories aligned with global standards.

Disclosure

Refine disclosure approach

Are you ready to benchmark your disclosures against others and feedback from users, and reset appetite if necessary?

How are you using the extra time to be ready for any voluntary topics deferred from year 1?

ERM Energetics has experience running diagnostics, workshops and planning processes to create alignment and momentum across a range of organisations.

Disclosure

Map ASRS disclosures against previous published information

Is your ASRS disclosure consistent with what you've said previously, or can you explain why it has evolved?

Can you articulate why any discretionary topics have been deferred, and what your action plan is to address?

Do you understand what your competitors/ peers and customers are likely to say based on previous disclosures?

ERM Energetics has experience running diagnostics, workshops and planning processes to create alignment and momentum across a range of organisations.

Metrics and Targets

Implement emissions reductions and monitor progress

While 54% of firms have identified emissions reduction opportunities and 48% have a first order transition plan outlining scope 1 and 2 targets, only 25% have incorporated scope 3 into their targets

Do the targets you're setting align with your strategic goals, and do you have action plans to achieve these across all three emissions scopes? Furthermore, do you have appropriate metrics in place to measure progress in these actions?

ERM Energetics works with some of Australia's largest organisations to help them set ambitious but credible targets across scopes 1, 2 and 3, backed by a rigorous plan.

Disclosure

Develop disclosure appetite & plan including aim for year 1 and 2

Have you mapped end-to-end approval and sign-off process?

Have you identified the overall positioning and ambition (mandatory versus discretionary topics)?

Have all the relevant stakeholders aligned on the narrative?

ERM Energetics has experience running diagnostics, workshops and planning processes to create alignment and momentum across a range of organisations.

Assurance

Do you know what auditors will be looking for when providing assurance of your disclosures?

Do you understand the difference between limited and reasonable assurance, and have you considered implications for relevant processes and systems?

ERM Energetics can work with our sister firm, ERM CVS, to provide pre-assurance services and audit support.

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Pre-Year 1

Year 1

Year 2

Governance

Quantify how climate risks and opportunities will impact your business performance

Strategy

Risk
Management

Test-run emissions inventory across scopes 1, 2 and 3

Build assurance-ready emissions data management systems and processes

Disclose scope 1 and 2 inventory

Enhance scope 1, 2 and 3 inventory

Metrics and
Targets

Assurance

Disclosure

Governance

Strategy

Risk
Management

Metrics and
Targets

Assurance

Disclosure