Assignment for Business Analyst – Sustainability

Short and to the point answers are appreciated. Keep it original as the intent is towards gauging understanding,
and list all the sources used.

1. Carbon Footprint of your residence: Your residence owner has asked you to create a roadmap for data
collection to calculate baseline carbon footprint of your residence (home/PG/hostel) etc. List down all
possible data sources you will collect, data type (actual or assumed, with units), and categorize then
under different scopes as per GRI standard (Scope 1, Scope 2, Scope 3 – all Categories as applicable)

Answer - To create a roadmap for data collection to calculate the baseline carbon footprint of your
residence, it's important to identify all potential sources of carbon emissions and categorize them
according to the three scopes outlined in the Global Reporting Initiative (GRI) standard. Here's a
comprehensive list[1]:

Scope 1: Direct Emissions

1. Natural Gas Consumption- Use of LPG cylinders or diesel generators for power backup
Data Source: Utility bills or meter readings
2. On-Site Fuel Combustion (e.g., for heating or cooking)- Use of biomass for cooking or heating
purposes
Data Source: Fuel purchase records or estimates based on usage

Scope 2: Indirect Emissions

1. Electricity Purchases – Import of electricity from the grid
Data Source: Utility bills or invoices

Scope 3: Other Indirect Emissions

1. Waste Generation
Data Source: Waste disposal records or estimates based on household size
2. Transportation
Data Source: Travel logs, vehicle mileage records, or commuting surveys
3. Food Consumption
Data Source: Grocery receipts or estimates based on household consumption patterns
 4. Purchased Goods and Services
Data Source: Receipts for goods and services purchased
5. Water Usage (related to Scope 3 emissions such as water treatment and distribution)
Data Source: Utility bills or meter readings
6. Telecommunications
Data Source: Phone and internet bills
7. Paper Consumption
Data Source: Receipts for paper purchases or estimates based on usage

By collecting data from these sources and categorizing them according to the GRI standard, you can
create a comprehensive baseline carbon footprint assessment for your residence, including all relevant
emissions sources within Scopes 1, 2, and 3.

2. List down various emission factors with source for the following material categories:
a. Leather emission factors – India/China/Europe/USA
b. Stainless Steel emission factors – India/China/Europe/USA
c. Cardboard packaging – global

Answer

b) Stainless Steel emission factors – India/China/Europe/USA

China –
Europe-
The average carbon footprint of stainless steel is: 0.39 tons of CO2 emissions per ton of stainless steel
(Source).

3. List down various sustainability reporting frameworks available globally and conduct a side-by-side
comparison, if possible.
The frameworks for sustainability reporting considered for comparison are -
 Framework Structure Focus Areas Key features

-Widely recognized and used

globally
Comprehensive,
Inclusivity, -Offers guidelines for
Global Reporting covers economic,
Stakeholder reporting on various
Initiative (GRI) environmental, and
engagement sustainability topics
social aspects
-Emphasizes stakeholder
engagement and materiality

Organized into 5 -Focuses on financially material

categories:
Disclosure Topics, sustainability issues
Sustainability AccountingAccounting Metrics, Industry and sector -Tailored for different industries
Standards Board (SASB) Topics & Metrics, specific
Technical Protocol, - Emphasizes alignment with
and Implementation financial reporting
Guide

The E and G pillars. - Enables companies to

Environmental disclose environmental
disclosures related to External environmental impacts
Carbon Disclosure Project
climate change, impacts for requesting - Provides insights for
(CDP)
water security, stakeholders. investors and stakeholders
forests and supply - Focuses on climate change,
chain. water security, forests

- Provides guidance for

Recommendations
climate-related financial
Task Force on Climate- for disclosing Focuses on climate-
disclosure
related Financial climate-related related financial risks
- Focuses on governance,
Disclosures (TCFD) financial risks and and opportunities
strategy, risk management, and
opportunities
metrics

4. How does recent SEC’s Climate Disclosure Rule and Corporate Sustainability Reporting Directive (CSRD)
impact’s the sustainability strategy/implementation among corporates especially operating in the US.

Answer- The recent SEC's Climate Disclosure Rule and the European Union's Corporate Sustainability
Reporting Directive (CSRD) are significant regulatory developments that impact corporate sustainability
strategy and implementation, particularly for companies operating in the US. Here's how these
regulations may influence corporate sustainability efforts:
1. Increased Transparency and Disclosure Requirements: Both the SEC's Climate Disclosure Rule and
the CSRD aim to enhance transparency and disclosure of climate-related information by requiring
companies to report on their environmental impacts, risks, and mitigation strategies. This increased
transparency can help investors and stakeholders make more informed decisions and hold companies
accountable for their environmental performance.
2. Standardized Reporting Frameworks: The SEC's Climate Disclosure Rule and the CSRD may lead to
the adoption of standardized reporting frameworks, such as the Global Reporting Initiative (GRI) or the
Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Standardized reporting
frameworks can facilitate comparability of sustainability data across companies and industries, enabling
investors to better assess climate-related risks and opportunities.
3. Integration of Climate Risks into Business Strategy: With mandated climate disclosure requirements,
companies may be compelled to integrate climate-related risks and opportunities into their overall
business strategy. This could involve conducting scenario analysis, assessing the physical and transition
risks associated with climate change, and developing strategies to mitigate these risks and capitalize on
opportunities for innovation and growth.
4. Impact on Capital Allocation: Enhanced climate disclosure can influence capital allocation decisions
by investors and financial institutions. Companies with robust sustainability strategies and transparent
disclosure may be perceived as lower-risk investments and attract capital more easily. Conversely,
companies that fail to adequately address climate risks and disclose relevant information may face
higher financing costs and reduced access to capital.
5. Stakeholder Engagement and Reputation Management: Compliance with the SEC's Climate
Disclosure Rule and the CSRD can enhance stakeholder trust and reputation. By demonstrating a
commitment to transparency and sustainability, companies can build stronger relationships with
customers, employees, communities, and regulators, thereby safeguarding their long-term license to
operate and enhancing their brand reputation.
 Overall, the SEC's Climate Disclosure Rule and the CSRD are likely to drive a shift towards more
comprehensive and standardized climate reporting practices among US-based corporations. By
integrating climate considerations into their business strategy, companies can better manage risks, seize
opportunities, and demonstrate leadership in sustainability, ultimately contributing to long-term value
creation and resilience

5. What is your point of view of ‘the U.S. Uyghur Forced Labor Prevention Act (UFLPA) 2023’ for retail
organizations?
Answer- The UFLPA 2023 aims to prohibit the import of goods produced with forced labor in the
Xinjiang Uyghur Autonomous Region (XUAR) of China, where reports of human rights abuses, including
forced labor, have surfaced. Retail organizations, especially those sourcing products from China or
utilizing supply chains that involve Xinjiang, would be significantly affected by this legislation.
Here are some points to consider regarding the impact of UFLPA on retail organizations:
1. Supply Chain Transparency: Retail organizations would need to enhance transparency within their
supply chains to ensure compliance with the UFLPA. This may involve conducting thorough audits,
requiring suppliers to provide detailed information about the origin of materials and labor, and
implementing robust tracking mechanisms.
2. Risk Mitigation: Retailers may face increased risks associated with non-compliance, including
reputational damage, legal penalties, and disruptions to supply chains. Implementing due diligence
measures to identify and mitigate risks of forced labor in the supply chain would be essential.
3. Sourcing Strategies: Retail organizations may need to reassess their sourcing strategies, diversify
suppliers, and reduce reliance on regions or suppliers implicated in forced labor practices. This could
involve sourcing from alternative regions or investing in local manufacturing capabilities.
4. Consumer Awareness and Responsiveness: Consumer awareness of forced labor issues is increasing,
and retail organizations may need to respond to consumer expectations for ethically sourced
products. Communicating transparently about supply chain practices and demonstrating a
commitment to responsible sourcing could enhance brand reputation and consumer trust.
Overall, the UFLPA 2023 presents both challenges and opportunities for retail organizations. By proactively
addressing forced labor risks, enhancing supply chain transparency, and prioritizing ethical sourcing
practices, retailers can navigate the regulatory landscape, mitigate risks, and uphold their commitment to
corporate social responsibility.

References
[1] - https://www.globalreporting.org/publications/documents/english/gri-305-emissions-2016/

3) https://www.globalreporting.org/
https://sasb.ifrs.org/
https://www.cdp.net/en

4)
https://www.wolterskluwer.com/en/expert-insights/csrd-for-us-companies
https://viewpoint.pwc.com/dt/uk/en/pwc/in_depths/in_depths_INT/in_depths_INT/navigating-the-sec-
climate-related-disclosure-requirements.html
5)
https://www.just-style.com/features/uyghur-forced-labor-prevention-act-uflpa-and-how-it-impacts-
apparel/?cf-view
https://www.dhs.gov/sites/default/files/2022-06/22_0617_fletf_uflpa-strategy.pdf