EHS Support is providing environmental, social, and governance (ESG) support to develop a conceptual model for a wood preservation client to calculate Scope 3 greenhouse gas (GHG) emissions across the company’s value chain, including its supply chain, waste management, and the life cycle impacts of its products. EHS Support is working closely with the company’s EHS, Procurement, Operations, and Sales departments to identify and survey a representative sample of suppliers, waste contractors, and customers to validate presumed Scope 3 emissions across the company’s value chain. EHS Support is applying the Corporate Value Chain (Scope 3) Accounting and Reporting Standard and related guidance for calculating Scope 3 emissions. Results will be applied to an iterative and ongoing assessment of the company’s ESG program, including a previously developed calibration of a carbon sequestration model.
EHS Support is preparing a baseline analysis of increased physical risks to the company’s supply chain from extreme weather events and assessing enterprise-wide, climate-related transitional risks, and opportunities in accordance with the Task Force for Climate-Related Financial Disclosures (TCFD). EHS Support will update a previous Climate Change Risk Assessment Screening and Validation Report by focusing on physical risks to company facilities from a two-degree Celsius rise in temperature above pre-industrial levels using representative concentration pathway (RCP) 4.5. EHS Support will use ThinkHAZARD!, or similar models of weather-related hazards, over periods of time that are compatible with its business planning cycle (e.g., short-term [0-5 years], medium-term [5-10 years], and long-term [10+ years]).
A virtual climate change risk-opportunity assessment brainstorming session will be facilitated by EHS Support, with select EHS, Risk Management (RM), ESG, and business unit staff. Reference information will be distributed to brainstorming participants prior to the session; ideas captured during the session will be assigned a life-cycle classification of upstream/pre-production (supplier), production, or downstream/post-production (products). Each suggestion will be assigned a high-, medium-, or low-value ranking for further evaluation. EHS Support will prepare a summary report of brainstorming suggestions for EHS/RM/ESG management to share with business unit and company management executives for consideration in future business planning, along with any requests for feedback and additional input on climate-related risks, opportunities, and potential financial impacts.