HEMA’s comprehensive approach to measuring and reporting its CO2 emissions offers valuable insights for investors conducting due diligence on corporate environmental performance. Their collaboration with the consulting firm Metabolic underscores the importance of external expertise for accurate and reliable data. This case highlights that investors should seek companies that partner with reputable experts for their emissions calculations.

The use of international standards, such as the Greenhouse Gas Protocol, is essential for consistent and comparable reporting. HEMA’s adherence to this standard ensures the accuracy of their data, which builds investor confidence in the company’s environmental performance. Furthermore, the completeness of scope 3 reporting is crucial. Given that scope 3 often represents the majority of emissions, as seen with HEMA’s 94%, it demonstrates a deep understanding of a company’s overall environmental impact.

Clear baseline measurements and ambitious, measurable targets are also key indicators. HEMA’s choice of 2019 as a baseline year and their goal to halve emissions by 2030 provide investors with a robust foundation to track progress and assess a company’s strategic approach. Open and transparent communication about methodologies and results enhances a company’s credibility and accountability. HEMA’s openness about their process and findings facilitates investors in evaluating the integrity of their sustainability efforts.

Innovative and practical solutions are significant factors as well. HEMA’s product innovations, such as the grow-with-me baby romper and replaceable dish brush heads, demonstrate how practical changes can have a substantial impact. Companies that actively develop sustainable products and processes often gain a competitive advantage. Balancing commercial interests with sustainability is also crucial. HEMA’s strategy, focusing on selling more durable products, illustrates how commercial success and sustainability can go hand in hand. Investors should look for companies that manage to find this balance.

Finally, customer engagement plays a major role. HEMA’s strategy of encouraging consumers to make informed choices without being intrusive shows an effective way to increase customer involvement and promote sustainable consumption. Companies that effectively inform and inspire their customers to make sustainable choices are likely to attract investor interest.

Conclusion

HEMA’s detailed and transparent approach to measuring and reporting their CO2 emissions provides a valuable blueprint for investors. By focusing on external expertise, international standards, completeness of scope 3 reporting, clear baseline measurements and targets, transparency, innovative solutions, the balance between commerce and sustainability, and customer engagement, investors can better assess how seriously and effectively companies manage their environmental performance.

Source

This article is based on the original web article titled “Hoe HEMA zijn totale uitstoot heeft weten te berekenen,” dated October 4, 2023, written by NRC editor Joost Pijpker following an interview with Wilma Veldman, Director of Purchasing at HEMA. A version of this article also appeared in NRC on October 5, 2023.