There is much room for improvement in how Finnish companies report emissions calculations and sustainability, the corporate-responsibility NGO Finnwatch said in a report published on Tuesday.
The only company that reached full points in its survey was networks firm Nokia. Two majority-state-owned companies, energy giant Fortum and flag carrier Finnair, also did relatively well.
Finnwatch found the most deficiencies were in emissions data provided by small and medium-sized enterprises (SMEs) to back up carbon-neutrality claims in their communications.
The report assessed the reliability of emissions calculations by 24 companies operating in Finland and how they are reported to the public. The survey focused on the country’s largest companies, including the biggest majority-state-owned firms. It also included a sample of smaller companies that have used carbon neutrality claims in their communications.
According to the NGO’s study, corporate emissions reporting does not give a clear picture of actual climate action.
Choices and assumptions made in emission calculations are often only made public to a limited extent. In most cases, emissions reports are not related clearly enough to progress toward a company’s climate goals, Finnwatch noted.
“Emission reduction targets are often set for years or even decades away. It is problematic that stakeholders cannot reliably monitor whether the promised emission reductions are being realised or not,” Finnwatch climate policy expert Lasse Leipola said in a press release.
Emissions reporting by large companies was clearly the most advanced. This is because they face the greatest external pressure in this regard, he noted.
The smaller the company, the more flaws were found.
“This is partly explained by the fact that fewer resources are available for calculation and reporting. On the other hand, if a firm calculates emissions and makes marketing claims based on them, they must always be able to communicate the details openly,” Leipola said.
Source: Yle
