What role does emissions tracking play in risk management

Emissions tracking plays a critical role in risk management by enabling companies to identify, assess, and mitigate environmental risks associated with their operations. By systematically tracking emissions, companies gain a comprehensive understanding of their environmental impact, which is essential for identifying potential compliance issues and avoiding regulatory penalties. This proactive approach helps in managing financial risks related to environmental liabilities and ensures that companies can quickly adapt to new regulations or market demands. Furthermore, emissions tracking supports the assessment of physical risks, such as those linked to climate change, by providing data that can inform risk management strategies. This data-driven approach to risk management can also enhance a company’s reputation by demonstrating a commitment to transparency and sustainability, thereby reducing reputational risks. For more information on emissions tracking and risk management, consult World Resources Institute and ISO. Key Takeaway: Emissions tracking aids risk management by identifying environmental risks and ensuring regulatory compliance.