The Challenge
In 2015, a well-known and highly respected leader in the specialty chemicals industry took its sustainability reporting to the next level. Already celebrated as a brand that puts responsibility, sustainability, and equity at the forefront of its identity, the company had set its sights on CDP disclosure the year before and had published its own sustainability reports since 2008.
At the time, about one-third of the company’s electricity was sourced renewably, and it had already begun making great strides on its Sustainability Journey. With a strong focus on climate action, supply chain engagement, and community support, this global industry leader had already established a Code of Ethics, corporate policies on ESG, and ambitious goals addressing product quality and safety, responsible sourcing, human rights, and diversity, among many other ESG issues.
It makes sense, then, that a company that values responsibility and has ambitious sustainability goals would seek out a partner on ESG initiatives that could support their progress towards those goals in a meaningful way.
Our Solution
ADEC ESG has had the privilege of working with our client since 2015. Over the course of our partnership, we have supported the company on a wide range of ESG programs, including reporting and disclosure, forest and water risk assessments, policy development, science-based targets, and more.
ESG reporting and disclosure support
ADEC ESG Solutions’ relationship with our client started with a Scoring Assessment for CDP’s Water Security questionnaire in 2015. Scoring Assessments give our clients the ability to see an estimate of their CDP performance for that year prior to submission. These assessments also offer visibility into how clients can incorporate recommended, company-specific improvements to increase their performance. On a broader scale, the Scoring Assessment also serves as an ESG roadmap for our clients, who use our guidance and detailed recommendations to inform the growth of their ESG strategy.
The following year, the scope of work with this client expanded, growing to include full disclosure completion for both Climate Change and Water Security questionnaires. Here, our team of experts worked closely with the client to complete the entire CDP disclosure process, from start to finish. This relationship has grown over the years into a long-term partnership, and we have continued to work with our client on full disclosure completions for Climate Change and Water Security every year since, as well as the Forests questionnaire since CDP launched it in 2017.
A strong commitment to transparency and reporting makes this client a top CDP performer, and the enthusiasm of its sustainability team drives the ambitious ESG goals and initiatives that help the company reach such a high level of performance. In fact, the company has been a steady Leadership-level performer since 2016 and has also made the A List every year since 2018.
Flexible on-demand time for ESG initiatives
In addition to support on CDP disclosure, our work with this client has expanded considerably since 2015. The company’s earnest commitment to its ESG goals does not stop at reporting and disclosure. Rather, it continually takes steps to measure and improve performance, expanding ESG programs and ensuring that its teams of internal stakeholders understand the company’s values surrounding sustainability and work to integrate these into policies, frameworks, and daily operations.
ADEC ESG has completed on-demand GHG inventory work covering scopes 1, 2, and 3 for our client. Our work provides clarity on various topics as well as consistent, reliable data to support the company’s reporting efforts. We have also worked to synthesize many of our client’s internal datasets into user-friendly data tracking, GHG tracking, and inventory-related tools, making the data collection and consolidation process streamlined and easier for internal teams.
Utilizing the flexibility of our on-demand services, our client turned to our expert team for support on its S&P Global Corporate Sustainability Assessment (CSA) reporting program. Pulling from our existing knowledge of our client’s data, systems, and operations, we supported the client’s sustainability team to develop the environmental section of the company’s response. Our team also provided guidance on forest risk assessments and helped to develop and provide feedback on forest-related environmental policy and palm oil policy development, providing a framework that our client uses to manage resource use, risks, and opportunities for mitigation.
Understanding and mitigating water risk
Water is a key component of the company’s operations, amplified by its global facilities and wide reach. The wide variety of water use within our client’s operations also gives its internal teams a lot of data to sort through and a range of water use issues to consider, such as water quality and scarcity.
ADEC ESG has been performing water risk assessments for our client since 2018. The purpose of these assessments is to identify and aid in the client’s understanding of potential water-related risks, including which sites are most at risk and the types of risk to which they may be vulnerable. Doing so supports crucial elements in the decision-making process, helping the client prioritize aspects of its operations and implement mitigation tactics strategically.
Policy review, development, framework, and alignment
To fully align with global frameworks—such as CDP, the S&P Global CSA, EcoVadis, the CEO Water Mandate, and more—we supported the client in the development and review of its environmental, forest, and water policies. This included researching and reporting on best practices, establishing baselines, and developing frameworks for our client’s sustainability programs and initiatives with benefits that cascaded into its supply chain as well.
Developing science-based targets (SBTs)
Setting science-based targets are an excellent way to ensure that company goals align with current climate science and are verified by a well-known and trusted third party. Setting SBTs also help companies set standards for their data management, giving them the means to translate raw data into qualitative data for reporting frameworks and as part of an overall risk management plan.
Our client brought our team of experts in to support the development of its initial SBTs, including a review of GHG inventories, providing clarification on the specific requirements of the Science Based Targets initiative (SBTi), and identifying and recommending targets based on SBTi guidelines and best practices. We also provided guidance on formal SBTi submission and engagement with the SBTi team—a resource for our client every step of the way—and we continue to support our client on updating and resubmitting SBTs moving forward.
Client Sustainability Journey: Continuous improvement, learning, and growth
Our client continues to grow its ESG programs, strengthening its commitments to sustainability and corporate responsibility as well as improving overall performance. Driven by both internal and external stakeholders—including numerous corporate customers requesting disclosure data every year—the company positions itself as a leader in sustainability, highlighting leading-edge policies and development and integrating ESG principals throughout its business. This includes a defined zero-impact carbon neutrality vision, continuous disclosure improvements, and bolstering an ESG-focused ecosystem by engaging with its supply chain, committing to responsible sourcing, and joining forces with other sustainability leaders to drive strategic change.
ADEC ESG Solutions is excited to work with an organization that leads on sustainability, focuses on transparency, and is in a position to set an example for its peers in the industry. We look forward to continuing to support the company’s growth as it continues on its Sustainability Journey.
Results and Deliverables
- Scoring Assessment for 2015 CDP Water disclosure
- Full disclosure completion for 2015-2021 CDP Climate Change questionnaire, resulting in A List performance every year since 2018
- Full disclosure completion for 2015-2021 CDP Water Security questionnaire
- Full disclosure completion for 2017-2021 CDP Forests questionnaire
- S&P Global Corporate Sustainability Assessment support
- Support on science-based targets and SBTi submission and engagement
- ESG research and gap analyses for policy development and review
- GHG inventory support and data optimization
- Forest and water policy review and development
- Water risk assessments
