PPAI Magazine September 2023

In 2022, the U.S. Securities and Exchange Commission proposed a rule to update required climate-related disclosures. This presents implications beyond large or publicly traded companies, as it requires those companies to delve into their supply chains, which often include promotional products businesses. Scope 3 emissions are an example of how although not all promo companies will be directly affected by the SEC’s proposed disclosure regulations, many industry members’ clients will be required to obtain relevant information from them. The first step in identifying your carbon footprint should be to ascertain the boundaries of your operation, specifically what items your company owns or holds investments in. This refers to buildings, vehicles and equipment. The next step involves decisions about how various calculations will be made. Depending on which carbon tracking tool a company decides to use, it may have the option to measure its carbon emissions based on either operational control or financial control: • Choosing operational control to measure carbon emissions means the company will need to consider those entities within the boundary that was determined in step one. These are items the company has operational control over and are managing as a normal part of their business. • Choosing financial control means the company is also going to be accounting for anything they might have investments in, even if those invested entities have their own management. Important parts of this decision include being as complete and accurate as possible and making a choice that can be sustained longterm, because year-over-year consistency is critical to measuring the company’s efforts. After these initial determinations, logistical endeavors can begin, such as figuring out who has access to the company’s utility bills and who has the relevant data for the needed calculations. These details include everything within the company’s boundaries that were outlined in step one. This information will enable the next step of beginning to calculate the company’s usage information applicable under Scope 1 and Scope 2 emissions. The Responsibility | Voices WarwickPublishing.com See All Stock Stlyes at Use our stock art as above or... Add your logo to our stock art or... Create your own full color art Your choice all at the same low price! 5 Stock Holiday Designs in 4 Pillowbox Sizes! We make the box... you add the Goodies! Stock Design Holiday Tuck Box Packaging! Made in USA PPAI/114154 SAGE/57590 As low as $.81(C) PPAI • SEPTEMBER 2023 • 37

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