Month: February 2024

Through creative collaborations with like-minded companies such as WM, we can help advance the well-being of people and the planet. Together, we’re developing a blueprint for sustainability in communities and in sports, helping events like the Grant Thornton Invitational address its environmental footprint.

Given golf’s intrinsic connection to nature, the significance of advancing sustainability in the sport cannot be overstated. And there’s a growing responsibility to ensure its impact on the environment aligns with modern values for futureproofing. Doing so not only minimizes the ecological footprint of golf tournaments, course management, and other golf-related activities, but also sets a powerful example for fans, athletes, sponsors and brands alike. In alignment with such values, the inaugural Grant Thornton Invitational golf tournament sought the expertise of two companies known for their expertise in sustainability: Dow and WM.

Two Brands, One Sustainability Mission

WM’s broad reach as a comprehensive environmental solutions provider and our leadership in materials science are bringing enhanced levels of sustainability and innovation to a variety of spheres – one of which is golf. For example, leveraging insights learned respectively from the acclaimed WM Phoenix Open and Dow Great Lakes Bay Invitational, WM advises the PGA TOUR on sustainability, while Dow serves as the Official Sustainability Resource for the LPGA and Ladies European Tour.

Both WM and Dow collaborate closely with the GEO Foundation for Sustainable Golf (GEO), an organization dedicated to championing sustainability in golf worldwide. Through this work, the 2019 Dow Great Lakes Bay Invitational became the first-ever GEO-Certified LPGA event, while the 2017 WM Phoenix Open became the first GEO-Certified PGA TOUR event. The GEO Certification acknowledges adherence to the highest sustainability standards in golf.

Just as the LPGA and PGA TOUR’s best teamed up on the golf course at the Grant Thornton Invitational, WM united their strengths with ours to elevate the sustainability program of the tournament, further demonstrating their shared dedication to advancing environmental responsibility in and beyond the sport.

A Closer Look at Dow & WM’s Sustainability Initiatives

With the potential to reach millions, professional golf events like the Grant Thornton Invitational provide unparalleled opportunities to educate and raise awareness of environmental issues and sustainable solutions. Our companies came together to advance the shared goal of driving sustainability through carefully planned and executed initiatives at the tournament, including:

Careful analysis of the tournament’s footprint, such as tracking water and other natural resource usage, to support the development of a phased emissions reduction plan.A commitment to recycling, exemplified by using recycling and trash bins crafted from recycled cardboard.Active engagement with event attendees to foster a culture of environmental sustainability through educational efforts, such as clarifying the distinction between recyclable and non-recyclable materials.On-site sorting efforts to separate recyclable materials effectively, paired with pre-event guidance distributed to vendors outlining preferred items for on-site use.Collaboration with caterers to facilitate food donations.

Our partnership with WM extends beyond the realms of the Grant Thornton Invitational – and golf. In November 2022, we co-launched a residential collection program in North America, specifically designed for hard-to-recycle plastic, including items like grocery bags and shrink wrap. In select markets, consumers now have the convenience of placing these materials directly in their curbside recycling, with WM handling the processing at their nearest state-of-the-art recycling facility. Once at full capacity, the program is anticipated to divert a notable 120,000 metric tons of plastic film away from landfills each year. Looking ahead, we are excited to expand our collaboration with WM in the future, through the sponsorship of the 2024 WM Phoenix Open. During the Grant Thornton Invitational, our teams participated, together with WM, in great discussions around best practices in the worlds of DEI, sustainability and purpose-driven sports marketing, that will help guide future collaborations – stay tuned!

Driving ahead

By embracing innovative, environmentally conscious practices, it is possible to future-proof professional golf while inspiring a broader audience to champion sustainability. For us and for WM, golf isn’t the final destination, but rather just one of the platforms being leveraged to amplify the use of environmentally responsible practices, and to develop game-changing, sustainable innovations and collaborations.

Learn more about Dow’s Partnerships in Golf

Learn more about Dow and WM’s Recycling Program

Carlos Padilla II, Head of Global Sports Partnerships at Dow 
 

Authored by Julia Smith and Brianna Hardy

In November 2022, the Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) proposed an amendment to the Federal Acquisition Regulation (FAR), known as the Federal Supplier Climate Risks and Resilience Proposed Rule, to increase the transparency of climate-related information related to government contracting.

The proposed regulation would require applicable federal contractors to:

disclose greenhouse gas (GHG) emissions for scopes 1, 2 and 3,conduct a climate risk assessment to identify risks in alignment with the Task Force on Climate-related Financial Disclosures (TCFD),complete the Carbon Disclosure Project (CDP) climate change questionnaire, andcommit to developing a science-based target validated by the Science Based Targets initiative (SBTi).

Who does it affect? 
The proposed rule divides the federal contractor supplier base registered in the System for Award Management (SAM) into two categories:

Significant contractors are defined as contractors that received between $7.5 million and $50 million in federal contract obligations in the prior federal fiscal year.Major contractors are defined as contractors that received more than $50 million in federal contract obligations in the prior federal fiscal year.

In FY2021 alone, there were more than 5,500 qualifying contractors. This proposed rule is expected to cover 86% of annual federal spending and about 86% of the federal supply chain’s GHG and climate impacts [1].

See the requirements for each contractor category:

Type of contractorScope 1 and 2 GHG emissionsScope 3 GHG emissionsDescription of climate risk assessment process and risks identifiedCDP climate change questionnaire sections that align with TCFDScience-based targets with validation by SBTiSignificant contractor 
($7.5M – $50M)✓    Major contractor 
(>$50M)✓✓✓✓✓

 

Regulatory timeline 
While there isn’t a clear timeline for approval, the proposed rule states that after one year of publication of the final rule, all federal contractors must have completed their GHG inventory and disclosed scope 1 and 2 GHG emissions. The additional requirements for major contractors would begin two years after publication of the final rule. These additional requirements include reporting on scope 3 GHG emissions, conducting a climate risk assessment to identify risks in alignment with the TCFD, completing the CDP climate change questionnaire and committing to developing a science-based target validated by the SBTi.

Comparison to the SEC climate-related disclosures 
In March 2021, the SEC announced plans for a greater focus on climate-related risks. The proposed disclosure ties to the TCFD and the newly formed International Sustainability Standards Board (ISSB), a part of the International Financial Reporting Standards (IFRS) Foundation. The TCFD focuses on governance, strategy, risk management and metrics and targets of climate change disclosures. The details of the disclosure requirements are extensive, and registrants will be required to disclose both qualitative and quantitative climate information, such as disclosures of climate-related risks, GHG emissions, events and plans. The proposed SEC rule demonstrates a great reporting burden for public companies.

The reporting burden for federal contractors due to the proposed amendment to the FAR will vary depending on the value of contracts received. See the chart above for specific requirements. In comparison, the SEC climate-related disclosures will require a greater level of reporting but that shouldn’t diminish the reporting requirements for FAR.

Of note, under the proposed rule, major contractors would be subject to setting and validating a SBTi, a much higher threshold than the SEC rule that does not require any goalsetting. This can be a challenging goal to meet and often requires several years of reporting and analysis to determine business-appropriate pathways to net zero as required by the methodology of SBTi.

Key takeaways

The FAR rule is likely to increase the reporting requirements for most federal contractors.The reporting burden is far greater for major contractors (>$50MM).Science-based target setting and CDP submissions are third party reporting and verification entities that have stringent guidelines to perform well. Organizations often need several years to align processes with the methodologies used by these groups.When the final rule is issued, it will come into effect over 12 to 24 months, depending on the significant or major contractor segment.Being unprepared for this reporting poses a material profit and loss (P&L) risk to the organization. This includes challenges to meet reporting obligations held within current contracts, which can affect scoring for future competitive bids that include environmental, social and governance (ESG) components.

Take action 
The proposed climate-related disclosure and reporting requirements will soon be a reality for contractors of the U.S. federal government. Now is the time to start thinking about how the changing regulatory landscape could affect your organization. Companies can prepare by executing the below steps:

Gain an understanding of your reporting landscape and the associated requirementsDevelop a consistent approach to reporting by leveraging other successful reporting processesDevelop an ESG governance structure and risk management processes and procedure document to address climate-related risksPerform a climate-related risk assessment and identify climate-related risksEvaluate the impact of the identified risks on the company’s operations, products or services and develop risk responses and mitigation activitiesAlign risk management processesEvaluate targets, goals and progress

Navigating the proposed regulation and its potential impact to your organization can be daunting. Lean on us to help you understand and respond to the rapidly changing ESG reporting landscape.

For more insights visit, Baker Tilly’s government contractors page.

[1] Federal Acquisition Regulation: Disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk, Federal Register